Asia Pulse - Q4 2023

Welcome to the Q4 2023 edition of Asia Pulse.

In the fourth quarter of 2023, Asia’s FMCG sector stood strong, maintaining similar growth figures to the previous year at a robust 3.5%.

Spanning 11 markets, the report reveals a common rising trend in the beverages sector which can be seen across the entire region, whereas in other sectors the key trends are unique to each market’s conditions.

Market highlights:

• Chinese Mainland

Walmart and Yonghui increased their market share in the midst of fierce competition in 2023, while Wumart, the SPAR Group, and Hongqi Chain maintained their share at a stable level. Regional retail chains have emerged as strong competitors, winning share from the national giants.

• Taiwan

People are spending more time outside, which has triggered increased demand for beverages and led to an upturn in this category. Consumers have also increased their food service expenditure, which has affected home cooking-related categories. The trend for venturing out more frequently is driving growth in sales of personal care products, particularly cosmetics.

• India

Household shopping occasions across all major channels grew in 2023. The growth in frequency indicates that households are experimenting more. This brings an opportunity for brands to ‘meet’ their buyers more often.

• South Korea

Korea is facing demographic changes due to low birth rates, and an aging population. An increase in single-person households and empty nesters represents the largest increase in FMCG spending among all life stages – with a rise in spend of 19.7% and 18.8% respectively.

• United Arab Emirates

In 2023, shoppers shifted their priorities, marking a clear change in consumer behaviour. Dairy and beverages took centre stage as shoppers moved their priorities away from personal care to these sectors.

• Indonesia

The main factor contributing to growth across all socioeconomic segments continues to be the consistent rise in prices, resulting in a stabilisation in shopping frequency. This means brands and manufacturers must capitalise on every shopping opportunity to attract new buyers.

• Malaysia

Steady growth is observed across key channels such as supermarkets, mini markets, and drug, beauty, and pharmacy, primarily supported by higher prices. Nevertheless, consumption is dwindling in a number of channels, with higher prices driving shoppers towards those that offer competitive pricing or extensive promotions.

• Thailand

More occasions and OOH activities have led to lower in-home consumption for cooking products and beverages, and a reduced need for home care products, while demand for personal care started to resurface. Within packaged food, consumers are still looking for convenient snacks and meals to eat at home. Limited budgets are steering them to look for more affordable choices in some categories.

• Philippines

As the economy enjoys lower inflation and unemployment rates, Filipino shoppers continue to spend warily as the strain of shouldering higher prices for the past two years now takes its toll. Shoppers continue to prioritise spending on essentials like food & beverage and transport.

• Vietnam

Vietnam’s in-home FMCG sector saw steady but cautious year-on-year growth, with urban spend primarily driven by price increases. However, rural areas indicate greater potential for volume growth. A closer look at quarterly performance shows a gradual decline in value growth, specifically in the Urban 4 area.

Stay up to date on the latest insights and developments in the Asia-Pacific FMCG sector by accessing the most recent issue of Asia Pulse via the download button at the top of this page.

Note: All editions of Asia Pulse 2023 have excluded Saudi Arabia due to local panel enhancement.