Asia Pulse: Q4 2022

We’re excited to announce the release of the Q4 2022 edition of Asia Pulse, our quarterly update on the FMCG industry in the Asia region. Despite inflation, FMCG in Asia grew by 3.1%, maintaining a stable level compared to the same quarter the previous year.

In this latest report, we capture the highlights of the in-home FMCG market in the region as a whole, and market by market as follows:

• Chinese Mainland

Consumer FMCG purchases in major Chinese cities rapidly rebounded at the end of December 2022. The market is expected to recover in Q2 of 2023, with opportunities for brands in health, convenience, pleasure, and indulgence, particularly in lower-tier cities and towns.

• Taiwan

Online FMCG sales went up by 20% in Q4 versus the previous year. The health supplement and facial skincare categories were the biggest contributors to this growth.

• India

Beverages is the only sector where both volume and value see sturdy growth. While food, home care and personal care sectors grew in value they declined in volume. The fastest value growth was seen in categories including chocolates, soft drinks, and ready-to-eat mixes.

• South Korea

Thanks to a strong digital infrastructure, the online channel gained in importance, and now accounts for a 35% share of total FMCG value. While other channels marked subpar performance in frequency, online successfully increased shopping occasions due to its convenience.

• United Arab Emirates

Indicators for 2022 have pointed to a strong economy in UAE. The first half of 2023 may see a slowdown in oil GDP, but the government’s agenda and Dubai's transformational projects offer support for non-oil sectors, including FMCG.

• Indonesia

In most sectors, price increase remains the growth driver, which means it is important for brands to anticipate category prioritisation. However, the home care sector has managed to grow volume, indicating that smaller packs are gaining traction.

• Malaysia

Spending remains cautious, with shoppers planning carefully, and prioritising saving for a future downturn. In-home FMCG spend per trip grew slightly, with household and personal care outperforming the total food sector. However, consumers are making fewer trips overall.

• Thailand

For in-home FMCG, convenience stores continued to grow after COVID, when consumers built a habit of shopping via this channel due to its proximity, good promotions, and convenient experience. Local channels, which benefited from government subsidy programmes during COVID, lost some share to hypermarkets.

• Philippines

Although FMCG spending remained higher during the 2022 holidays than the previous year, shoppers are starting to deprioritise personal care and continue spending on food and beverages due to inflation.

• Vietnam

In 2022, Vietnam's economy recorded impressive GDP growth of 8%, the highest in over a decade. However, the economy felt the impact of global inflation, with the consumer price index (CPI) rising significantly in 2022 and further increases anticipated in 2023, putting pressure on purchasing power.

Note: The Asia Pulse Q4 2022 has excluded Saudi Arabia due to local panel enhancement.