1. Issue 2・ September 2022
Data period: MAT Q2 2022
WORLDPANEL DIVISION
ASIA’S FMCG MARKET AT A GLANCE
2. KEY HIGHLIGHTS ACROSS ASIA
CHINESE MAINLAND
FMCG Maintained Stable Growth During
Q2
In the second quarter of 2022, the FMCG
industry saw stable growth, with a new
category landscape developing under COVID.
COVID heavily reassigned each growth
driver's weight and reshaped the outlook's
outlook landscape for FMCG. Food and
Homecare led the trend through Q2.
Competition in Modern Trade Heats Up
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.
New Retail Gained Ground on the
Lockdown
O2O and other new retail formats are well
placed to meet the need for convenience,
safety and quick delivery of fresh products,
the demand for which has been significantly
heightened both during and post lockdown.
TAIWAN
Rise of Inflation and COVID
The rise of COVID cases in April 2022
restrained the growing momentum of
Taiwan’s macro economy, but Q2 2022 GDP
still showed 3.1% growth due to the lower
base from the previous year. Inflation has
become more apparent in Taiwan, given
that the YoY CPI growth rate in June reached
the highest point in 14 years, and the pace is
expected to decrease starting from July.
FMCG Two Pillars – Food and Home Care
The FMCG market had a growth rate of
5.8%, which was still driven by two pillars-
the Food and Home Care sectors.
Shopper Behaviors Reach New Normal
Shoppers keep lowering their shopping
frequency and tend to spend more money
per trip throughout the pandemic. Though
the pandemic has become less harmful in
Taiwan, shoppers are observing these
shopping behaviours, which seems to reach
a new normal.
SOUTH KOREA
Korean Economy Grew at Faster Pace in
Q2
Korea’s economy grew faster in the second
quarter of 2022. Its GDP grew 0.7%
compared to the previous quarter. On a
year-on-year basis, the GDP in the second
quarter expanded by 2.9%. Economic
growth accelerated as private spending
increased due to the eased COVID-19
restrictions.
Growth Drivers – Personal Care &
Household Care
Personal Care and Household Care showed
an upsurge in value sales compared to the
previous year. Sales of Skincare and Color
Cosmetics rebounded with the recovery of
consumer sentiment toward beauty
products. In addition, the demand for
Household Care uplifted with trip spending
increase.
Ecommerce as the Largest Channel
The online channel kept expanding its share
with double-digit growth and solidified its
position as a leading channel in the FMCG
market. Within eCommerce, Personal care
and Beverage were the top two drivers for
growth.
INDIA URBAN
Macro Economy
India observes a 4% growth in value, which is
led by the increase in average price. Inflation
has hit 7.6% multiple times in the last 30
months. Consumers have seen spending on
essentials; however, they reduce spending on
leisure while the covid 3rd wave does not
hamper mobility to the extent the first two
waves did.
Consumer Behavior in response to
Inflation
Consumers are seen spending on Food &
Beverages; however, they have started
rationalising spending on Personal Care &
Home Care. To tackle inflation, consumers
seek promotions, experiment with brands,
shift to unbranded products, purchase
smaller packs and move to mass products.
Ecommerce is Emerging
FMCG in Ecommerce is growing
exponentially. Though it only contributes 1%
to Indian FMCG in-home value share, it is a
developing habit among households.
2
3. KEY HIGHLIGHTS ACROSS ASIA
SAUDI ARABIA
Oil windfall boosts the economy, but
inflation rates
The largest Petro-state economy is enjoying
significant windfalls from heightened PPB,
but the benefit trickling down to the private
sector has been limited so far in 2022. An
increase in average price paid of 13% this
quarter vs SPLY has been majorly unlucky for
the value-seeking shoppers.
Shoppers spend sky-rockets even after
they resist with less volume
A quarter of Ramadan still saw shoppers
reducing their purchase volume, especially in
the Food and Beverage sectors, but still
spent 10.6% more.
Modern Trade Up from Value Seeking
Modern Trade quarterly spending grew 11%
vs SPLY, outgrowing traditional trade, driven
by shoppers switching traditional trade trips
to modern trade stores. And not surprising
that the key influencer is MT’s most
comprehensive presentation of offers and
promotions.
UNITED ARAB EMIRATES
The economy is strong, and inflation is
impacting shoppers
Oil, real estate and tourism are all up in the
UAE, indicating some rebound from COVID
and Russia / Ukraine war double jeopardy.
However, shopping baskets are 10% more
expensive this quarter vs SPLY giving sticker
shock to UAE shoppers, who were enjoying
some protection from government control on
high essentials prices.
Acutely cautious UAE shoppers kept
spending in check by sacrificing volume
UAE shoppers have ramped up their effort to
manage their wallets by reducing
their volume of purchases by 6% this quarter.
They are picking up less Food, beverages and
especially Dairy (10% less vs SPLY)
The diverse profile of shoppers
necessitates the brand owners to dig
deeper
UAE shoppers are quite diverse and evolving.
Brand owners need to be sensitive to the
specific nature of the market, constantly
monitor the trends and be proactive in
reaching most households with solutions for
highly differentiated need states.
INDONESIA
Improved Macro-economy
Indonesian GDP growth is accelerated
compared to the previous quarter. Recovery
in household consumption is seen due to the
ease of COVID-19 restrictions and the Festive
season in April-May. Relatively higher
consumer confidence has been seen since
the pandemic, showing a great willingness to
spend with some adjustments due to higher
inflation.
Festive Season in Inflationary Time
Although consumers had to adjust to higher
inflation, the celebration remains as the
festive uplift for FMCG this year is back to
the pre-pandemic level, suggesting the
excitement returns to the previous time.
Suitable Pricing Strategy
The price increase affects all consumer
groups, as seen in higher spending, mainly
by higher prices, suggesting a pricing
strategy might be adjusted to maintain
shoppers’ recruitment.
MALAYSIA (PENINSULAR)
Embracing Inflationary Pressures
The Consumer Sentiment Index in Q2’22
declined by 23 points to a four-quarter low
of 85.9%, driven by a lacklustre employment
outlook and rising prices due to overall
inflation of raw materials. The index’s decline
is expected to result in a tightening of overall
consumer spending.
FMCG Continues to Grow
Nevertheless, FMCG managed to grow
marginally, supported by higher average
prices due to inflation. Packaged groceries,
dairy and home care segments grew from
higher consumer spending per trip.
Changing Channel Landscape
Online and minimarket channels continue to
grow. Online channels gained from increased
trips and penetration, while minimarkets
benefited from higher spending per trip and
increased penetration.
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4. KEY HIGHLIGHTS ACROSS ASIA
THAILAND
Further Slow Down in In-Home FMCG Growth
In-Home FMCG growth in Q2 2022 shows a
further slowdown from small government
subsidies to no government support in Q2/2022.
Although a higher level of inflation is driving the
market value growth up, it is also resulting in
shoppers becoming more cautious in spending
less disposable income. More occasions from
Out-Of-Home also contributed to the slowdown
in Q2 2022.
Inflation Trend Continuation
Q2/2022 also recorded a higher inflation rate
than Q1/2022. While the inflation rate is driving
market value growth, it also results in buyers
buying a smaller number of products at a lower
price. This results from consumers having less
disposable income, so they became more
selective and cautious about their spending,
shown in smaller basket sizes and categories.
Variety of channels for cheaper choices
With less disposable income and higher inflation,
buyers are becoming more selective about the
products they choose to buy. The same trend
also applies to where they shop as well. Buyers
are shopping at more channels in search of more
cost-effective choices from different places.
PHILIPPINES
Economic Growth
Philippine economy grew by 7.4% for the second
quarter of 2022, slower than last year’s growth of
12.1%. Consumer confidence improves but
watches out as inflation is still rising in Q2 2022.
This year, more Filipinos are employed, with a
94% employment rate. This is higher than last
year’s employment rate of 92.3%
Shopping Behaviour
As the economy improves in Q2 2022, shoppers
are spending more across all FMCG sectors, with
Personal Care leading recovery this quarter.
Shoppers across regions and SECs have become
more confident with their spending, but we also
need to watch out as recent inflation may put
budget constraints forward.
Importance of Proximity Stores
Shoppers are returning to traditional trade and
proximity channels, particularly sari-sari stores.
Spending in SSS has surpassed pre-pandemic
spending.
VIETNAM
New Wave of Challenge
GDP thrives in Q2 2022; however, due to the
prolonged Ukraine-Russia conflict, Vietnam’s
economy is affected to some degree, resulting in
a Consumers Price Index of 3% this quarter,
potentially posing a new wave of challenges in
the upcoming months.
Consumer Perspective Toward Inflation
With the global political situation becoming
tenser, Vietnam is indirectly affected by the
scenario, resulting in rising concern about prices
and costs, especially oil price, which has
increased to the 2nd highest concern in Urban 4
cities in Q2 2022.
Increasing in Average Price Paid for FMCG
Spending on in-home FMCG rises in Q2 2022
thanks to the increase in average price paid;
however, volume consumption remains low.
Online & Mini Stores Strengthen Their
Position
Emerging channels continue to strengthen their
position additionally with the increase in
spending per trip and shopping occasions in both
Urban 4 cities and Rural. 4
5. Q2 2022 | Summary Asia
% Value Change FMCG – MAT Q2 2022 vs. Year Ago
Asia Northeast Asia West & South Asia Southeast Asia
Total
Chinese
Mainland
Taiwan South Korea
India
(Urban)
Saudi Arabia UAE Indonesia
Malaysia
(Peninsular)
Thailand Philippines
Vietnam
(Urban)
Vietnam
(Rural)
FMCG Total 3.0 2.0 5.8 5.5 3.9 5.7 -1.1 6.4 0.4 3.0 1.2 5.3 8.6
Food 4.8 3.7 11.8 3.3 4.7 5.7 -0.4 10.5 1.3 5.1 3.7 18.3 17.8
Beverages 2.5 2.8 -5.2 5.7 10.5 4.3 -0.8 1.0 -3.5 2.8 2.4 -3.3 -6.4
Dairy 1.1 -0.4 0.6 -2.1 -2.0 8.9 -2.7 6.7 1.0 0.0 -3.6 6.4 15.8
Home Care 5.0 6.9 16.6 8.6 1.9 1.8 -2.3 1.5 2.5 -3.3 1.6 -0.6 6.1
Personal
Care
0.6 -1.1 6.6 12.9 0.2 2.3 -0.3 4.8 -1.0 -4.1 -1.3 -1.6 4.2
Growth ≤ -0.5% -0.5% < Growth ≤ 5% Growth > 5%
O V E R V I E W
5
6. FMCG Growth in Asia: YOY
Asia/MAT Q2 2022 – Value Spend Growth vs YA
3,4
2,0
5,7
3,6 3,4
4,2
3,0
4,8
2,5
1,1
5,0
0,6
FMCG Food Beverages Dairy Home Care Personal Care
O V E R V I E W
Q2 2021 Q2 2022
6
7. FMCG Growth in Asia: YOY
Asia/MAT Q2 2022 – Value Spend Growth vs YA
FMCG Food Beverages Dairy Home Care Personal Care
Southeast Asia
North Asia
West & South
Asia
2,8 3,3
0,1
1,0 1,4
4,2
8,7
0,2
4,4
0,8 1,0
8,0 8,0 7,0 7,0 6,6
10,6
3,9 4,6
6,9 5,7
1,6 0,4
2,8
-0,2
6,4
4,4
3,5 4,2
2,5
3,9
2,7
-0,4
7,3
0,6
O V E R V I E W
8.2
Q2 2021 Q2 2022
7
8. FMCG
Asia/MAT Q2 2022– % Value Growth vs YA
FMCG
3,4 3,0
Chinese Mainland Taiwan South Korea India (Urban) Saudi
Indonesia Malaysia (Peninsular) Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)
Asia
United Arab
Emirates
2,5 3,5
5,2
9,3 9,4
-4,6
2,0
5,8 5,5 3,9
5,7
6,1 6,5
2,7 3,5
5,0
6,4
0,4
3,0
1,2
5,3 8,6
-7.8
-7.8
Q2 2021 Q2 2022
8
9. Food
2
1.9
Chinese Mainland Taiwan South Korea India (Urban) Saudi
Indonesia Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)
Asia
United Arab
Emirates
-1,8
5,0
11,5
8,3
12,4
-5,0
3,7
11,8
3,3 4,7 5,7
8,7
10,2
3,1
-2,1
5,1 4,4
10,5
1,3
5,1 3,7
18,3 17,8
Food
-8.6
Asia/MAT Q2 2022– % Value Growth vs YA Q2 2021 Q2 2022
Malaysia (Peninsular)
9
10. 3.1
2,5
Chinese Mainland Taiwan South Korea India (Urban) Saudi
Indonesia Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)
Asia
United Arab
Emirates
5,9
2,8
12,0
8,3
10,4
-9,1
2,8
-5,2
5,7
10,5
4,3
-0,8
6,2
2,6
7,3
-3,4
5,2
0,8
1,0
-3,5
2,8 2,4
-3,3
-6,4
Beverages
Beverages
Asia/MAT Q2 2022– % Value Growth vs YA Q2 2021 Q2 2022
Malaysia (Peninsular)
10
11. 3,6
1,1
Chinese Mainland Taiwan South Korea India (Urban) Saudi
Indonesia Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)
Asia
United Arab
Emirates
4,7
0,4
4,4
19,9
8,7
-3,4
-0,4
0,6
-2,1 -2,0
8,9
-2,7
4,7 4,1
-1,9
-8,8
-0,3
6,1
6,7
1,0 0,0
-3,6
6,4
15,8
Dairy
Dairy
Asia/MAT Q2 2022– % Value Growth vs YA Q2 2021 Q2 2022
Malaysia (Peninsular)
11
12. 3,4
5
Chinese Mainland Taiwan South Korea India (Urban) Saudi
Indonesia Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)
Asia
United Arab
Emirates
4,0
-6,6
2,2
8,8
2,7
-3,6
6,9
16,6
8,6
1,9 1,8
-2,3
1,5
3,3 4,5
-7,8
3,7 4,9
1,5 2,5
-3,3
1,6
-0,6
6,1
Home Care
Home Care
Asia/MAT Q2 2022– % Value Growth vs YA Q2 2021 Q2 2022
Malaysia (Peninsular)
12
13. 4,2
0,6
Chinese Mainland Taiwan South Korea India (Urban) Saudi
Indonesia Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)
Asia
United Arab
Emirates
5,4 6,2
-9,0
12,8
6,1
-1,5
-1,1
6,6
12,9
0,2 2,3
-0,3
4,8 4,0
1,6
-10,8
5,5
12,8
4,8
-1,0
-4,1
-1,3 -1,6
4,2
Personal Care
Personal Care
Asia/MAT Q2 2022– % Value Growth vs YA Q2 2021 Q2 2022
Malaysia (Peninsular)
13
14. Chinese Mainland
Spend/Trip
Shopping
Occasions
MAT Q2’22 vs Q2’21
1%
0%
-6%
-2%
20%
1%
Super
CVS
Hyper
Grocery
Ecommerce
Work Unit/Gift
1%
3%
4%
1%
-10%
-2%
25
3
16
3
27
14
13
25
3
17
3
25
14
13
26
3
19
3
20
15
14
Q2 ’22
Q2 ’20
Super CVS Hyper Grocery Ecommerce Work
Unit/Gift
Others
Channel Importance – % Value
Q2 ’21
14
18. Saudi Arabia
*Modern Trade - Supermarkets, hypermarkets and minimarkets that are part of an organised retail chain (e.g. Panda, Othaim, etc.).
*Lower Trade - Baqalas and minimarkets that are not part of organised retail chains and have 1 - 2 check-out counters.*
*Pharmacy - Store selling healthcare products and medicines, offering both OTC and prescription medication.
*Wholesale - Shopping channels mainly meant for bulk purchases, selling mostly to small retailers.
*Others - Stores dealing in some specific categories like Chocolate (e.g. Patchi), Juice Parlours, Roastery (Coffee), Honey, Poultry Shops, etc.
Modern Trade
Lower Trade
Pharmacy
Wholesale
Others
Spend/Trip
Shopping
Occasions
Channel Importance – % Value
MAT Q2’22 vs Q2’21
18
6%
1%
-8%
-20%
3%
7%
4%
1%
27%
-1%
51
31
1
7
11
48
32
1
9
11
46
34
1
9
11
Modern
Trade
Lower
Trade
Pharmacy Wholesale Others
Q1 ’20
Q2 20 Q2 21 Q2 22
19. United Arab Emirates
*Key Hypermarkets - Nesto Hypermarket, Safeer/Al Safeer Hypermarket, K.M.Trading, Mega Mart, Big Mart Hypermarket
*Key Supermarkets - Al Madina Supermarket, Al Maya, West Zone, Choitrams, Talal Supermarket, Spinneys, Al Manara Supermarket
*Key Cooperatives - Union Coop. Society, Abu Dhabi Coop. Society, Sharjah Coop. Society, Emirates Coop. Society, Al Mushrif Coop. Society, Al Ain
Coop. Society, Bani Yas Coop. Society
*Others – Baqalas/Minimarkets, Newly added stores (e.g Viva, Shaklan, Big Bazar) and Remaining stores (Pharmacies, Specialty Stores and Others)
Total Carrefour
Total Lulu
Key Hypermarkets
Key Supermarkets
Others
Key Cooperatives
Spend/Trip
Shopping
Occasions
Channel Importance – % Value
MAT Q2’22 vs Q2’21
19
21
16
9
11
6
36
21
17
8
12
7
35
22
16
7
14
8
33
Total Carrefour Total Lulu Key Named
Hypermarkets
Key Named
Supermarkets
Key Named
Cooperatives
Others
-6%
-4%
5%
-10%
-13%
-2%
13%
5%
-4%
1%
10%
7%
Q1 ’20
Q2 20 Q2 21 Q2 22
20. 6
17
4
69
4
7
19
3
67
3
Indonesia
Q1 ’21
Q1 ’20
Hyper + Super
Mini Markets
Traditional
Trade
Online
(under ‘Others’)
Q2 20
-9%
0%
0%
46%
5%
6%
7%
0%
Hyper + Super Mini Markets Traditional
Trade
Specialty
store
Others
Spend/Trip
Shopping
Occasions
Channel Importance – % Value
Q2 21 Q2 22
7
18
3
68
3
MAT Q2’22 vs Q2’21
20
21. Malaysia (Peninsular)
18
40
12
14
4
5
7
20
41
11
14
4
4 7
23
40
9
15
42 7
Hyper
Super
Q2 22
Q2 21
Q2 20
Channel Importance – % Value
Hyper Super Mini General
Trade
Drug Beauty
& Pharmacy
Ecommerce Others
-13%
-8%
3%
-8%
-7%
53%
Spend/Trip
Shopping
Occasions
General Trade
Drug Beauty
& Pharmacy
Ecommerce
Mini
5%
8%
6%
9%
6%
-12%
MAT Q2’22 vs Q2’21
21
23. Philippines
21,9
5,3
7,4
3,6
1,2
0,7
48,9
10,9
24,8
5,6
7
3,5
1,3
0,7
46,3
10,8
27
5,4
5,9
4,2
1,7
0,5
42,1
13,1
Channel Importance – % Value Spend/Trip
Shopping
Occasions
MAT Q2’22 vs Q2’21
Super
Hyper
Groceries
Drug Stores
Direct Sales
CVS
Q2 22
Q2 21
Q2 20
Super Hyper Groceries Drug Stores Direct Sales CVS Traditional
Trade
Others
Traditional
Trade
-1.9
-15.2
-14.5
-2.2
-4.2
-3.7
-6.5
*Traditional Trade- Sari-Sari Stores, Market Stalls
Others- Gifting, Online, Meat Shop, Water Refilling Station, Peddlers, Personal Care Store, Department Store
4,4
-4,1
4,6
5,9
2,6
3,5
4,3
23
24. Vietnam (Urban 4 cities)
54
6
5
5
7
12
7
6
52
9
7
6
7
9
5 5
54
9
7
7
8
8
3 5
Channel Importance – % Value | MAT Spend/Trip
Shopping
Occasions
Street Shops
Wet Market
Speciality
Stores
Super
Hyper
Mini Stores
Q2 22
Q2 21
Q2 20
Street ShopsWet
Market
Speciality
Stores
Hyper Super Mini Stores Online Others
Online
-9%
-42%
-23%
-32%
-13%
7%
44%
18%
21%
10%
12%
10%
29%
5%
MAT Q2’22 vs Q2’21
24
25. Q2 22
77
11
4
22
1,93
Street Shops
Wet Market
Speciality
Stores
Hyper &
Super
Mini Stores
Online
Vietnam (Rural)
Spend/Trip
Shopping
Occasions
Channel Importance – % Value | MAT
-3%
-20%
6%
-18%
13%
19%
Q2 21
Q2 20
MAT Q2’22 vs Q2’21
76
13
32222
75
14
33114
Street
Shops
Wet
Market
Speciality
Stores
Hyper &
Super
Mini
Stores
Online Others
14%
19%
14%
16%
7%
12%
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26. Kantar is the world’s leading data, insights and
consulting company.
We have a complete, unique and rounded understanding
of how people think, feel and act; globally and locally in
over 90 markets. By combining the deep expertise of our
people, our data resources and benchmarks, and our
innovative analytics and technology, we help our clients
understand people and inspire growth.
www.kantar.com
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Steven Lien – Regional ASIA Marketing Director
FOR FURTHER INFORMATION, PLEASE CONTACT
FIND OUT MORE AT
✉ steven.lien@kantar.com
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