Asia Pulse: Q3 2024

As the third quarter of 2024 came to a close, the FMCG industry across Asia continued to show promise, with value growth reaching 3.4% – a clear improvement on the 2% increase in Q3 of last year. This upward trend underscores the region's resilience, and its ability to navigate shifting market conditions and evolving consumer needs.

Market highlights:

Chinese Mainland

China's FMCG market remained steady in Q3. The beverage and household cleaning categories maintained good momentum, growing by 5.5% and 5.1% respectively.

India (Urban)

Inflation and disruption caused FMCG volume growth to slow down in the last quarter; a contrast to 2023 when it was urban consumers propelling volume growth.

Indonesia

An increase in trip size is driven mainly by upper-class shoppers, indicating a trend of stocking up, with more volume per trip and fewer trips overall.

Malaysia

Minimarkets and online grew strongly due to their price-competitiveness. The internet has also become a source for ranges not easily found offline, such as bulk packs.

Philippines

Shoppers are purchasing from an increased number of categories, including pantry staples such as cooking oil and water, and non-food items like shampoo.

South Korea

The frozen food and sauce/seasonings segments are the major contributors to the expansion of the food sector, driven by affordability and convenience.

Taiwan

Consumers are elevating themselves through FMCG, pursuing inner and outer beauty. This has led to strong performance among health foods and personal care.

Thailand

Online channels led by TikTok and Shopee, together with modern trade – such as national supermarkets and convenience stores – have continued to gain share.

United Arab Emirates (UAE)

Shopping frequency has increased significantly, but consumers are spending less per trip as they purchase more at lower-cost stores.

Vietnam (Urban)

Growth has either stalled or declined across sectors, as consumers spend cautiously due to uncertainty around external factors beyond their control.

Vietnam (Rural)

While FMCG growth appears to be more stable in rural areas, most sectors are struggling to achieve volume growth. Personal care continues to record robust growth.