Q2 2014 Consumer Insights Emerging Market
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.
- 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 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!