Kantar Worldpanel - www.kantarworldpanel.com

Q2 2014 Consumer Insights Emerging Market

28/10/2014

Consumer Insights Emerging Markets Report, our regional publication on FMCG trends. We are in weekly contact with your consumers across countries in global. We follow trends, combining a macro view with finest data details.

Some key findings in this reports are:

  • Despite the World will grow less than expected in 2014, Emerging Markets remain the main contributors to global growth.
  • Kantar Worldpanel forecasts that FMCG will grow 7.2% in emerging markets in 2014 -1.5 point slower than the previous year.
  • FMCG slows down in Asia, half the growth than 2 years ago. Latam takes the lead in terms of growth.
  • Packaged food is the sector hit the most.
  • Healthy beverages growing strong, Ready-to-Drink tea top riser.
  • ASIA

    • Kantar Worldpanel forecasts 4.1% growth in Asia in 2014
    • Domestic demand has slowdown in Asia, households are still spending more than previous years, but the pace of growth has gone down:
      • FMCG spend has decelerated in all Asian markets -except for India - driven by low income households.
      • Consumers in many countries reduce discretionary category buying and buy less often. Food sector the sector hit the most.
      • Countries decelerating the fastest are Taiwan, Thailand, Vietnam and Malaysia.
      • The Philippines already contracting spend (-1.8%), the only emerging market decreasing.
      • Indonesia´s growth remains healthy at 15%, although slower than in 2013 (18.6%).
    • E-commerce keeps growing fast especially in Korea and China.
    • International retailers experiencing fierce competition from local players.
    • BeautyFirst: Personal care basket continues growing strong in Taiwan, Indonesia, India, Philippines, Thailand and Vietnam. Make-up, skincare, facial tissues and liquid soaps keep recruiting shoppers
    • Household cleaning categories with specific usage on the rise in several countries: toilet cleaners, insecticides, air fresheners, floor cleaners, wet tissue, fabric enhancers.

    LATAM

    • Latam takes the lead in terms of Growth, households expand spending on FMCG goods by 13%. Kantar Worldpanel forecasts 14% growth by the end of the year 2014.
    • This is mainly driven by a higher Food Inflation that have lately accelerated in Brazil and Mexico; besides the high levels of Argentina and Venezuela.
      • All countries purchasing more volume than in 2013, except for Chile and Venezuela.
      • 48% of categories in Latam show a volume growth in the second quarter of the year
      • Personal Care doubles the speed of growth, with highlight for hair conditioners, hair treatments, make up and mouthwash
      • Dairy products gain importance in households budget, mainly powdered milk, condensed milk & yogurt
      • The trend is to shop less often and spend more per trip in most markets.
    • The level of economic activity in Latin America continues to grow at a slow pace in 2014, a regional growth of 2.0% is projected for 2014 according to IMF

Have an insightful reading!

Q2 2014 Consumer Insights Emerging Market

Get in touch

Soon Lee, Lim
General Manager - Kantar Worldpanel Indonesia

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