Asia Pulse - Q2 2023

We’re excited to introduce the Q2 2023 edition of Asia Pulse.

During the second quarter of 2023, the FMCG sector in Asia displayed robust growth, registering a 2.6% value increase. Despite supply chain disruptions and uncertainties across all markets, the industry has shown remarkable resilience, charting a positive upward trajectory.

This latest report presents a comprehensive overview of the in-home FMCG sector in the Asia-Pacific region. Our analysis delves into individual markets, providing valuable insights into their performance. Discover the growth stories of each country, as we explore some of the highlights.

• Chinese Mainland

In the first half of 2023, e-commerce continued to develop steadily, with the highly competitive landscape undergoing accelerated changes. Traditional e-commerce platforms struggled to grow, while interest e-commerce remained in rapid growth.

• Taiwan

As the pandemic subsided, out-of-home (OOH) food service grew substantially while the FMCG food category weakened. People resumed social activities, triggering greater demand for personal care, especially cosmetics – making the category FMCG’s main driver in Q2.

• India

Consumers are shopping more frequently, with food and beverages driving the rise in trips. The increase in shopping occasions is being led by the e-commerce channel. As a result of making more trips, shoppers have started experimenting with brands, and their average pack sizes have shrunk.

• South Korea

Due to an uplift in average price, the FMCG market continued to show an increase in value along with a downturn in volume. Meanwhile, thanks to a weakening downtrend of shopping frequency, the decline in volume slowed in Q2 compared to MAT Q2’23.

• United Arab Emirates

A balanced interplay between costs and consumption, along with a thriving property market and growing demand in the non-oil sector – including FMCG – bodes well for the UAE’s economy.

• Indonesia

The country’s strong and resilient economy is reflected in a slower inflation rate of 3.5%,  combined with steady consumer confidence. FMCG growth during this year’s festive season was at its slowest for five years, but the uplift remained high.

• Malaysia

Modern trade is growing strongly, mainly mini markets, which continue to attract shoppers due to their convenience and better pricing. The fastest-growing channel is drug and pharmacy, driven by an influx of shoppers.

•  Thailand

Convenience stores continue to grow, as consumers shop for in-home FMCG through this channel due to its proximity, attractive promotions, and convenience. On the other hand, local channels experienced a decline due to the lack of government support programmes during COVID.

• Philippines

The Philippine economy remains in growth, but the pace is slower than the previous quarter, coinciding with higher inflation (7.6%) in March 2023. While the inflation rate is softening, shoppers are expected to remain cautious in their spending.

• Vietnam

Although GDP growth picked up to 4.14% in Q2, the economy remains lacklustre. Inflation has cooled down; however, retail sales growth has slowed due to weakened domestic demand from the a proportion of consumers being impacted by rising living costs.

Stay up to date with the latest insights and developments in the Asia-Pacific FMCG sector. Download the most recent edition of Asia Pulse through the button at the top of this page.

Note: The Asia Pulse Q2 2023 report excludes Saudi Arabia due to local panel enhancement.