FMCG Monitor Q2 2023

Kantar Indonesia's FMCG Monitor is a quarterly publication that provides an extensive analysis of the Indonesian FMCG In-home market's performance and up-to-date trends across sectors. By conducting regular weekly surveys with consumers across the nation, we aim to deliver a comprehensive understanding of the market dynamics.

The GDP growth has been solid in the past six quarters at 5, which is mainly driven by household consumption showing a high resilience and stable economy in the past two years. A strong economy is reflected with slowing down inflation at 3.5% and steady consumer confidence captures the resilience of the economy, indicating an effort to slow down the inflation rate and maintain the confidence level.

It's imperative for industry players to keep up with the trend to navigate the growth way in to close the year well. This quarter’s highlights for FMCG:

• Household expenditures have stabilized, but with the arrival of the festive season and the start of the new academic year, there is a possibility of reallocating savings towards mudik transportation and education.
• Growth is still driven by price increases and slowing down in YTD with limited growth of volume, suggesting coping mechanism of inflation might affect category prioritization and opting for more affordable products
• Zooming into the festive season, this year shows the slowest growth in the past five years, but the uplift remains high suggesting the celebration remains but needs to push beyond festive occasions to compensate for the full-year growth