Asia Pulse Q2 2021

Spend is increasing across all FMCG categories, according to our new Asia Pulse report which examines the data from Q2 2021.

Total FMCG value sales rose by 4.5% year on year, an improvement on last year’s growth of 3.1% over the same period. Beverages was the star performer, with a 6.1% increase in spend; a big turnaround compared with 2020 when value sales dropped by 3.1% due to the first wave of COVID-19 hitting the region.

Food, dairy, home care and personal care also achieved growth of between 3.9 and 4.8 percentage points each. Home care sales climbed by 4.1%, with growth remaining high following 2020’s peak increase of 8%, indicating that hygiene concerns due to the pandemic remain high.

Growth across Asia Pacific was largely driven by shoppers in the Chinese Mainland, where FMCG value sales grew by 4.2% compared with the same period in 2020. Only the UAE and the Philippines reported declines, of 5.1% and 4.8% respectively.

Reviewing the performance of each market within APAC, the report highlights some major trends, including: 

• The Philippines: As mobility restrictions eased, shoppers returned to their favoured sari-sari stores (mom and pop stores), but remain open to smaller formats.

• Chinese Mainland: Out-of-home (OOH) food and beverages are recovering well as consumers return to their regular routines, with growth of 15.1% in Q2.

• Taiwan: A new wave of COVID-19 helped to drive total FMCG sales upwards, as shoppers stayed at home and stockpiled goods.

• South Korea: The beverages category grew significantly due to restrictions on OOH, with the majority of growth coming from online channels.

• India (Urban): Dairy reported the fastest value growth, followed by personal care.

• Indonesia: People shopped less often, but compensated for this with bigger baskets and higher spend.

• Malaysia: For the first time ever, shoppers bought more food than non-food online in Q2 of 2021, as COVID-19 cases soared.

• Thailand: Financial support provided through government subsidy programmes encouraged shoppers to spend more; the take-home FMCG market grew by 2.7%.

• Vietnam: Emerging channels including online and mini-markets have gained share.