ASIA Pulse #3 - August 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: 

• 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%.

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

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