Asia Pulse - Q2 2024

Welcome to the Q2 2024 edition of Asia Pulse.

As we progress through 2024, Asia’s FMCG sector is maintaining its resilience with a stable value growth rate of 3.5%, consistent with the first quarter of the year.

The beverages sector continues to lead this growth, while food and homecare have sustained the momentum they built last year.

This report spans 11 markets, capturing the key trends and dynamic shifts that are shaping the region's FMCG landscape.

Market highlights:

Chinese Mainland

In the first half of 2024, the general trend of FMCG in e-commerce remained relatively stable compared to the same period last year. Interest-based e-commerce continued to expand its consumer base, with 37.2% of Chinese households purchasing groceries on Douyin, surpassing Pinduoduo in market penetration.?

Taiwan

The food category, which was impacted by the recovery of the food and beverage industry after the pandemic, has overcome the stagnation of the past two quarters to show growth of 3.4% in Q2. ?Meanwhile, the non-food categories continued their growth trend with a 5.8% value increase.

India

FMCG grew by 7% in value and 5.5% in volume over the year. Volume growth has revived, while value grows at a slower pace compared to last year. In the previous year, there was a significant gap between value and volume growth (with value growing faster), which now has diminished, as inflationary pressures subside. FMCG volume increases are seen across sectors, with beverages leading the growth.

South Korea

In Q2, South Korea's Foodservice Industry Index recorded a figure of 75.6, signalling a reduction in dining out. Concurrently, value in the in-home food sector has maintained consistent growth, particularly within the sauce/paste/seasoning and frozen food categories. This trend is primarily driven by consumers seeking more budget-friendly options in response to prolonged inflation.

United Arab Emirates

Compared to the previous year’s post-Ramadan period, the UAE’s spend index decreased in Q2, while volume remained steady. This shift is driven by lower prices. Shoppers restocked products from several categories in May, one month after Ramadan.

Indonesia

Although prices decreased slightly in Q2, this reduction has not translated into higher volume growth, either recently or in a year-on-year comparison. With inflation stabilised, higher purchase levels remain shoppers’ primary strategy for managing their overall spending, while they also continue to switch to cheaper products.

Malaysia

In-home expenditure remains stable, with growth in packaged groceries, beverages, and toiletries, although the dairy sector has not yet recovered. Increased spending in Q2 is attributed to festivities such as Chinese New Year and Raya. However, shoppers continue to seek promotions, downsize, and trade down due to cost pressures.

Thailand

As Thai consumers spend more time out-of-home, the demand for in-home cooking  products and beverages continues to slow, while personal care categories are growing.? Due to their limited budgets, consumers have started to shift towards more affordable choices in some categories. They are also seeking more convenient packaged snacks to eat at home.

Philippines

With inflation easing, Filipino shoppers sustained spend on FMCG in Q2, with broad-based growth across most regions and socio-economic classes. However, consumer confidence is weaker due to rising commodity prices, lower incomes, fewer jobs, and issues with traffic and public transport, leading them to adjust and rationalise their product choices.?

Vietnam

Despite general optimism, reflected by 80% of urban Vietnamese households anticipating economic growth in the next 12 months, consumer spending on in-home FMCG has not increased. In fact, the total value of urban FMCG purchases has declined, primarily due to stagnant food and beverage spending.

Stay updated with the latest insights and trends in the Asia-Pacific FMCG sector by accessing the Q2 2024 edition of Asia Pulse. Click the download button at the top of this page to explore key developments across 11 markets, and discover emerging opportunities in the region.

Note: The Asia Pulse Q2 2024 edition excludes Saudi Arabia due to local panel enhancement.