ASIA’S FMCG MARKET AT A GLANCE

Issue 1・ July 2023

MARKETS: Data period: MAT Q1 2023
China | Indonesia | South Korea | Malaysia
Philippines | Thailand | Taiwan | Vietnam | India | UAE WORLDPANEL DIVISION
Welcome to Asia Pulse

Welcome to the Q1 2023 edition of Asia Pulse!

•
In the rapidly evolving landscape of the Asia-Pacific region, the •
first quarter of 2023 has brought about notable shifts and •
exciting developments across various markets. As the expert in
the FMCG industry and consumer insights, we are delighted to
present this comprehensive report, Asia Pulse, which highlights
key trends and insights from the Asia region.
• •
As you explore the insights in this report, we encourage you to • •
delve into the intricate details of consumer behaviour and market • •
dynamics that shape the first quarter of 2023 in Asia. The
Worldpanel Division of Kantar Asia takes pride in offering a
thorough analysis that equips businesses with the tools to
navigate this intricate and dynamic landscape, enabling them to • •
uncover growth prospects and cultivate sustainable success. • •
• •
If you’d like to explore more opportunities for your brands, please
• •
do not hesitate to contact us. • •

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Q1 2023 | Summary Asia OVERVIEW

% Value Change FMCG – MAT Q1 2023 vs. Year Ago Growth ≤ -0.5% -0.5% < Growth ≤ 5% Growth > 5%

Asia Northeast Asia West & South Asia Southeast Asia

Chinese India Malaysia Vietnam Vietnam
Total Taiwan South Korea UAE Indonesia Thailand Philippines
Mainland (Urban) (Peninsular) (Urban) (Rural)

FMCG Total 0.8 2.6 4.2 8.5 6.1 4.7 0.3 15.2 8.8 14.5

Food 3.2 0.4 4.4 8.1 8.5 5.8 -3.1 18.8 -4.5 6.1

Beverages 2.9 -2.1 1.2 9.9 3.6 3.9 3.6 13.9 22.2 23.2

Dairy -1.7 -4.4 -2.1 0.7 4.8 -1.1 -2.7 6.9 4.2 16.2

Home Care 7.0 -2.0 5.9 9.5 9.7 5.2 6.2 17.4 16.4 15.5

Personal
Care
-4.5 9.4 8.4 9.0 1.2 7.0 7.4 14.9 20.3 15.9

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FMCG Growth in Asia: YOY OVERVIEW

Asia/MAT Q1 2023 – Value Spend Growth vs YA Q1 2022 Q1 2023

7.0

4.4 4.3 3.9

3.3
2.8 2.7
2.4
1.4
0.9

-0.2
-0.6

FMCG Food Beverages Dairy Home Care Personal Care

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FMCG Growth in Asia: YOY OVERVIEW

Asia/MAT Q1 2023 – Value Spend Growth vs YA Q1 2022 Q1 2023

6.5
5.4
3.2 4.0
1.8 2.5
1.2 1.1 1.3
North Asia 0.1

-1.9 -2.4

9.9 9.5 9.0

8.5 8.1 8.3
West & South 5.2
4.3
Asia 2.6
0.7
2.1 1.0

8.2 7.7 6.9 6.3

5.9 5.9
Southeast Asia 4.0 4.0
2.9
2.0
1.0 1.0

FMCG Food Beverages Dairy Home Care Personal Care

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FMCG
Asia/MAT Q1 2023 – % Value Growth vs YA Q1 2022 Q1 2023

8.5
6.5 6.1
FMCG 4.2 4.2 4.3 2.4
2.6
1.3 0.8
0

-3.8

Chinese Mainland Taiwan South Korea India (Urban) United Arab Emirates United Arab
Emirates

15.2 14.5
2.4 2.8 8.8
5.9 4.7 4.6 4.6
0.3 0.3 2.0

3.7
-3.8

Asia Indonesia Malaysia (Peninsular) Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Food
Asia/MAT Q1 2023 – % Value Growth vs YA Q1 2022 Q1 2023

Food 14.4
8.1 8.5
4.4 5.2
3.2 2.7 3.7
0.5 0.4 0.0

-4.0

Chinese Mainland Taiwan South Korea India (Urban) United Arab Emirates United Arab
Emirates

4.4 18.8 20.1

2.7
8.8 10.6
5.8 7.4 6.1
4.5
1.6

-3.1 -4.2 -4.5

Asia Indonesia Malaysia (Peninsular) Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Beverages
Asia/MAT Q1 2023 – % Value Growth vs YA Q1 2022 Q1 2023

Beverages 9.9
8.3
5.6
4.1 3.6
2.9 1.2
0.0 0.0

-1.7 -2.1 -1.5

Chinese Mainland Taiwan South Korea India (Urban) United Arab Emirates United Arab
Emirates

22.2 23.2
4.3
3.3 13.9
7.1
1.5 3.9 3.6 3.9

-5.0 -4.1
-6.7
-9.5

Asia Indonesia Malaysia (Peninsular) Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Dairy
Asia/MAT Q1 2023 – % Value Growth vs YA Q1 2022 Q1 2023

Dairy 4.8
2.9 2.6
0.0 0.7 0.0 0.0

-1.7 -1.0 -2.1

-4.4
-6.5

Chinese Mainland Taiwan South Korea India (Urban) United Arab Emirates United Arab
Emirates

13.9 16.2
6.4 6.9 6.5
4.2
0.9

-1.1 -1.0 -2.7 -0.5

-0.6 -2.6
-7.6

Asia Indonesia Malaysia (Peninsular) Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Home Care
Asia/MAT Q1 2023 – % Value Growth vs YA Q1 2022 Q1 2023

15.2
Home Care 7.0 6.8
9.5 9.7
4.9 5.9
2.1
0.0 0.0

-2.0
-3.7

Chinese Mainland Taiwan South Korea India (Urban) United Arab Emirates United Arab
Emirates

7.0

3.9 17.4 16.4 15.5

5.2 6.2 5.4 3.6

0.9 1.5

-2.2 -0.5 -1.6

Asia Indonesia Malaysia (Peninsular) Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Personal Care
Asia/MAT Q1 2023 – % Value Growth vs YA Q1 2022 Q1 2023

Personal Care 9.4 8.3 8.4 9.0

4.9
0.4 1.0 1.2 0.0 0.0

-1.1
-4.5

Chinese Mainland Taiwan South Korea India (Urban) United Arab Emirates United Arab
Emirates

20.3
14.9 15.9
1.4 7.0 7.4
6.1
3.5 3.4

-0.2 -1.0 -2.8 -3.0 -3.2

Asia Indonesia Malaysia (Peninsular) Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Chinese Mainland
Resilience in macro economy New ways of shopping Rising demand for out-door
consumption
Although the economy was under Interest commerce and O2O thrived With the optimisation of the COVID
unprecedented challenges in 2023 but also together with proximity channels, while control policy, consumption began to
showed resilience, the target set for 2023 mainstream offline channels - hyper & recover, but challenges remain. Consumer
was positive but still cautious. large super was impacted by logistic sentiment also turned positive, with rising
disruptions. The fast growth of O2O and demand for away-from-home.
the interest in e-commerce benefit the
“Local” retail eco-system and fulfil the
rising instant purchase needs.

CHANNEL PERFORMANCE
Channel Importance – % Value Shopping Occasions Spend/Trip
MAT Q1’23 vs Q1’22

Super 1% 1%

13
13
25 CVS 4% 3%
13 25
25
14 14 14
Q1 ’21 Q1’ 22 3 Q1 ’23 Hyper -10%
3 3 4%

15 17
27 27
3
3
15 Grocery 7% 2%
27 3
Ecommerce 7% -4%

Work Unit/Gift -1% 0%

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Taiwan
FMCG stabilised in the post- Personal Care performed E-commerce continued to be
pandemic relatively well among sectors promising

As the pandemic gradually subsided, While the pandemic less restricts Although Taiwanese shoppers restarted
consumer demand for FMCG turned flat, consumers’ daily lives, demand for dairy their social lives, their dependence on e-
with a year-on-year growth rate of 2.6% and beverages declined and was commerce is still increasing, as we
in the first quarter of 2023. Both the food relatively low in 2023Q1. Personal care, observed growth in online shopping
and non-food sectors saw a slowdown in including health and beauty categories, occasions and online spending per trip.
growth. performed well and played as a leader Particularly, health food and skincare
in driving the FMCG market. were the main contributors that
accelerated online sales growth.

CHANNEL PERFORMANCE
Channel Importance – % Value Shopping Occasions Spend/Trip
MAT Q1’23 vs Q1’22

Hyper
23 24 Super
23 24 24
27

Q1 ’22 Q1 ’23 CVS

Q1 ’21 4
4
4
4
4 16
13
3
6 3
5
18 4 Drug Stores
19 19 5
4
18 Direct Sales
PX Mart

Ecommerce

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India (Urban)

Indian economy grew by 5.9% in Q1 of 2023, To beat the inflationary pressure, Indian E-commerce sees outrageous growth in MAT
higher than the 5.1% recorded in the previous consumers downsize their spending per trip Q1’23 after registering rapid growth in the
quarter. However, FMCG consumption isn’t across all purchase channels. As FMCG prices previous two years. An increase in value share
positive yet but is on the path to recovery as hike, HHs cut down on their volumes across for online channels was seen from 0.4% in
the decline has reduced vs prev. QTR. While categories like jams, ketchup, butter/ cheese, MAT Q1’21 to 1.6% in MAT Q1’23.
Value continues to grow as Inflation hovers talcum powder, hair oils, floor cleaners etc. At
around 6% to 7%, leading to a rise in the price the same time, consuming biscuits, salty snacks,
of essential items like oil, rice & spices. beverages, toilet soaps, hair wash etc, do not
get compromised.

CHANNEL PERFORMANCE
Channel Importance – % Value Shopping Occasions Spend/Trip
MAT Q1’23 vs Q1’22

Super 21% -10%

8 7 Kirana/
15% -6%
8 7 Paan-Beedi
9 6

Chemist -1% -3%

Q1’21 Q1’22 Q1’23

Network
6% -12%
82 Marketing
81
81
Online 137% -11%
Shopping

Others 7% -5%

Supermarkets Kirana/ Chemists Network Online Others

Paan-Beedi Marketing Shopping

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South Korea
The FMCG market grew due to The ‘Healthy Pleasure’ trend E-commerce continues to rise
inflation expanded to the beverage in both the food and non-food
market sector
Although consumer inflation slowed, rigid Drinking carbonated drinks has been E-commerce continues to show the
core inflation and uncertainties impact considered one of the biggest enemies of highest growth rate among all channels
consumer propensity to FMCG purchases health care. Demand for ‘zero sugar’ with increased shopping occasions. Both
in Korea. FMCG value rose by 4.2% with drinks is gradually increasing in Korea with food and non-food categories are
price uplift, while volume declined by 4.1% the ‘Healthy Pleasure’ trend. Consumers contributing to the growth of online.
with continuous contraction in shopping try to care for their health and pursue
frequency. pleasure simultaneously, even when
drinking beverages.

CHANNEL PERFORMANCE
Channel Importance – % Value Shopping Occasions Spend/Trip
MAT Q1’23 vs Q1’22

3
Hyper -3% 4%

4 23
4 24 Super
25 -7% 3%
3 33 36
0
Q1 ’21 Q1 ’22 Q1 ’23
Other Modern 0%
3%
6 24 22 Trade
6 20
12 12
6 Traditional
-1% 10%
12 Trade

Internet 7% 6%

Non-store -18% 0%
Hyper Super Other Traditional Internet Non-Store
Modern Trade
Trade

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United Arab Emirates
The economy shows resilience Shoppers are actively Hypermarkets are adapting
with encouraging signs for the rationalising in the face of well; online shopping depth
FMCG sector price inflation increasing
Despite the decline in headline GDP from Individual consumers continue to Hypermarkets adapt well to shopper
the oil output cut, non-oil sectors, including rationalise spending by reducing volume behaviour shifts, while promotions seem
FMCG, remain strongly positive, with a and buying fewer packs per trip in food, less effective. Significant potential for
robust capital market signalling further beverages, and personal care categories, growth exists in UAE online shopping,
encouraging signs for the UAE economy. necessitating a fresh look at portfolio particularly among higher SEC and
management. Emiratis.

CHANNEL PERFORMANCE
Channel Importance – % Value Shopping Occasions Spend/Trip
MAT Q1’23 vs Q1’22

Total Carrefour
-8% 5%

20

22
Total Lulu
-9% 4%
21
34 36 39

Q1’21 Q1’22 Key Named

Q1’23 3% 4%
17 16 15 Hypermarkets
8 8 7
13 11
9 Key
-10% 10%
9 Supermarkets
6
11
Key-8% -1%
Cooperatives

Others 4% 7%

Total Carrefour Total Lulu Key Named Key Named Key Named Others
Hypermarkets Supermarkets Cooperatives

*Key Hypermarkets - Nesto Hypermarket, Safeer/Al Safeer Hypermarket, K.M.Trading, Mega Mart, Big Mart Hypermarket
*Key Supermarkets - Al Madina Supermarket, Al Maya, West Zone, Choitrams, Talal Supermarket, Spinneys, Al Manara Supermarket
*Key Cooperatives - Union Coop. Society, Abu Dhabi Coop. Society, Sharjah Coop. Society, Emirates Coop. Society, Al Mushrif Coop. Society, Al Ain 16
Coop. Society, Bani Yas Coop. Society
*Others – Baqalas/Minimarkets, Newly added stores (e.g Viva, Shaklan, Big Bazar) and Remaining stores (Pharmacies, Specialty Stores and Others)
Indonesia
Resilient economy Steady for the festive Price-driven growth
season

In Q1 '23, the GDP displayed resilience with Steady growth in consumer spending was In the food & beverage segments,
steady growth at 5% and stable household also seen this quarter vs last year, with spending growth is mainly driven by price,
consumption compared to the previous more spending for FMCG, transport, and while home care and personal care
quarter, suggesting relatively healthy fashion, as might be attributed to this manage to grow volume; hence essential
macroeconomic indicators. year’s festive season. to formulate the price-pack strategy to
secure shopper recruitment.

CHANNEL PERFORMANCE
Channel Importance – % Value Shopping Occasions Spend/Trip
MAT Q4’22 vs Q4’21

4 6
Hyper + Super -7% 4%
4 6 17
3 7 18
18 -3% 3%
Q4 21 3 Q4 22 4 Mini Markets
Q4 20 3
68 68 Traditional 1% 5%
69 Trade
Online
40% -4%
(under ‘Others’)

Hyper + Super Mini Markets Traditional Specialty Others

Trade store

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Malaysia (Peninsular)
The normalisation of Malaysians spend discreetly Proximity stores grew, while
household spending amid rising inflation concerns eCommerce slowed down
The Malaysian Consumer Sentiment Index Increased mobility post-pandemic impacts With increased mobility, offline channels are
drops below the threshold by 6.1 points QoQ In-home consumption of groceries and seeing recovery driven by more occasions,
to 99.2 in Q1 of 2023, lower than the same diaries while households and toiletries grew. while Internet dropped significantly.
quarter in 2022 (108.9). Rising inflation With price hikes across different categories, Proximity channels like Supermarkets and
concerns and a decline in employment drive Malaysian shoppers are prudent with Mini Markets remain vital and resilient
the lack of optimism. Consumer spending is spending. Consequently, causing shoppers during these inflationary times – being key
expected to return to more sustainable to down-trade to cheaper brands or channels for shoppers to pick up smaller
spending after the spending boom “spending categories and downsize the volume quantities with lower spending.
revenge” post-pandemic. purchased.

CHANNEL PERFORMANCE
Channel Importance – % Value Shopping Occasions Spend/Trip
MAT Q1’23 vs Q1’22

Hyper 4% -4%
7
5 18
7 18
2 6 6 Super
4 7 5
2% 0%
5 0
14 Q1 21 14 Q1 22 13 Q1 23 Mini 2% 4%
10 4 11 39
0 12 40 General Trade -10% -2%

Drug Beauty -3%

21%
& Pharmacy

E-commerce -22% 8%
Hyper Super Mini General Drug Ecommerce Others
Trade Beauty &
Pharmacy

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Thailand

CHANNEL PERFORMANCE
Channel Importance – % Value Shopping Occasions Spend/Trip
MAT Q1’23 vs Q1’22

Hyper
9 12
6 Super
9
9 12 3 12
13 6
4
4
12
4 12
Q1 23
CVS
Q1 21 Q1 22
38
18
38
18 19 H&B Stores
37

PVS
Direct Sales

Ecommerce
Hyper Super CVS H&B PVS Direct Ecommerce Others
Stores Sales

19
Philippines
GDP growth slows down Filipino shoppers spend more Proximity stores remain
amidst high inflation on staples important

The Philippine economy continues to grow, Filipino shoppers maintain their purchases Neighbourhood channels remain
but growth is slower than the previous after the holidays, but spending on food important amidst inflation, such as SSS,
quarter, coinciding with higher inflation and beverage stabilises as shoppers Groceries, and DS, where shoppers can
(7.6%) in March 2023. However, the prioritise staples, such as Instant Noodles. conveniently access and purchase smaller
inflation rate is softening, but despite the quantities with lower cash outlay to cope
improvement, shoppers are expected to with rising prices.
remain cautious of their spending.

CHANNEL PERFORMANCE
Channel Importance – % Value MAT Q1’23 vs Q1’22 Shopping Occasions Spend/Trip

Super

Hyper

Q1 ‘22
Q1 ‘23 Groceries
Q1 ‘21
Drug Stores

Direct Sales
CVS
Traditional Trade
Super Hyper Groceries Drug Stores Direct Sales CVS Traditional Others
Trade

20
Vietnam (Urban)
Bumpy economic start offset Beverages and personal care Positive retail growth
by holiday month won the Tet 2023 season across the board

Vietnam posted a softer GDP growth of Beverages and Personal Care are driving The biggest holiday in Vietnam meant that
3.3% in Q1 2023, lower than the projected the stronger growth of FMCG value in Q1 all retail channels experienced healthy
target of 5.6% and its weakest growth this year. The comeback of celebratory growth in Q1 due to a surge in demand for
since Q3 2020. Despite the slow GDP categories this Tet 2023 period boosts the shopping. Speciality stores and Online
growth, FMCG recorded a strong value performance of the entire Beverages sector, recorded increased in both frequency and
boost vs YA thanks to a Vietnamese New mainly thanks to Soft Drinks, Coffee & Beer. value spent per trip.
Year completely free of Covid-restrictions.

CHANNEL PERFORMANCE (Urban 4 Cities)

Channel Importance – % Value Shopping Occasions Spend/Trip
MAT Q1’23 vs Q1’22

Street Shops
5
7

7
6 Wet Market
4 5 12
9 11
8 Specialty Stores
Q1 21 53 7 Q1 22 54 6
Q1 23 52
7
5
7
9
6
6
5

6
Hyper
7

Super
Mini Stores

Street Wet Specialty Hyper Super Mini Stores Online Others Online
Shops Markets Stores

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Vietnam (Rural)
Room for growth in Rural Personal Care as a growth Increased preferences for
Vietnam driver modern trade

Rural
Total consumers
FMCG postedshowan strong
overallconsumption
value growth In Rural Vietnam,Despite
all sectors showed solidfor a modest
still accounting Modern trade channels (Hyper & Supper
levels, suggesting plenty of room
vs. YA both in Urban 4 cities and for
Rural volume growth infraction
Q1. Personal Care is the and Mini stores) are steadily growing in
of retail channels' value share,
manufacturers and brands to drive
areas, driven mainly by an increasing moreprice highest growth sector,
modern with
tradea 26%
andincrease importance to rural consumers with
online are growing
penetration in Rural
paid. Rural areas areas.promising signs
showed in volume driven appeal
by the Skincare and
in rural Vietnam. continuous
Mini Stores are growth in frequency and
as volume consumption increased, albeit at Makeup categories. spending.
becoming a potentially important format
a slower rate than the price increases. as both frequency and spend per trip grow.

CHANNEL PERFORMANCE (Rural)

Channel Importance – % Value Shopping Occasions Spend/Trip
MAT Q1’23 vs Q1’22

Street Shops -1% 8%

5
2 2
2
4
32
22 3 Wet Markets 5% 6%
4
32 11 11
13 Q1 23
Q1 21 Q1 22 Specialty Stores 22% 21%

75 78 74
Hyper & Super 33% 7%

Mini Stores 34% 22%

Online 37% -7%

Street Wet Specialty Hyper & Mini Online Others
Shops Markets Stores Super Stores

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FOR FURTHER INFORMATION, PLEASE CONTACT

Steven Lien – Regional ASIA Marketing Director

✉ [email protected]

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