Asia Pulse: Q2 2022

See how the FMCG industry performance moves in Q2 across the region

The economic turbulence from inflation across Asia is still present, with price increases witnessed in many markets. FMCG value spending in the region can still post healthy growth, with a maintained level of 3%. The growth driver mainly comes from the Southeast Asia region, which is 1.2 points higher than the overall region’s FMCG value.

The food sector continues to lead market growth, doubling from 2.0% in Q2 2021 to 4.8% in 2022. The Home Care category has seen a particularly strong upward movement in its growth rate during the second quarter, up 5% from 3.4% the previous year.

Reviewing the performance of each market in depth, the report reveals some key insights.

• Chinese Mainland: Competition has been heated up for Modern Trade retailers since offline shopping has faced more significant challenges resulting from COVID. With this, shopping habits have developed toward faster, closer, and lighter occasions.
• Taiwan:  Though the pandemic has eased, shoppers keep their pandemic shopping behaviour—lower frequency, higher spend per trip—which seems to be the new normal.
• South Korea: Online channel kept expanding its share with double-digit growth and solidified its position as a leading channel in the FMCG market.
• India (Urban): To tackle inflation, consumers seek promotions, experiment with brands, shift to unbranded products, purchase smaller packs and move to mass products.
• Indonesia: Although consumers had to adjust to higher inflation during Ramadan, the celebration remains as the festive uplift for FMCG this year is back to the pre-pandemic level.
• Malaysia (Peninsular): FMCG managed to grow marginally, supported by higher average prices. Food, Dairy and Home Care segments grew from higher consumer spending per trip.
• Saudi Arabia: In a quarter of Ramadan, shoppers are reducing their volume, especially in the Food and Beverage sectors, but still spending 10.6% more. 
• Thailand: While the inflation rate is driving market value growth, it also results in buyers buying a smaller number of products at a lower price.
• The Philippines: Shoppers are returning to traditional trade and proximity channels, particularly sari-sari stores. Spending in SSS has surpassed pre-pandemic spending.
• Vietnam: Spending on in-home FMCG rises in Q2 2022 thanks to the increase in average price paid; however, volume consumption remains low.
• United Arab Emirates: Shoppers have ramped up their effort to manage their wallets by reducing their purchase volume by 6% this quarter.

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