Asia Pulse: Q1 2025

As 2025 began, Asia exhibited measured economic growth with a 2.8% increase in FMCG value during Q1. This reflects a cautious but steady performance compared to the previous quarter, though it sits slightly below the growth seen in Q1 last year.

No single sector or region dominates the story this quarter; each market and category has its own unique trajectory. The beverages sector continues to expand in some markets, while other categories like home care and food hold steady. In contrast, personal care and dairy have struggled to maintain growth in several markets.

Covering 11 markets, this report delves into the key trends and evolving consumer behaviours that are shaping Asia’s FMCG landscape.

Market highlights:

• Chinese Mainland

China’s FMCG market had a positive start to 2025, with value sales increasing by 4.2% year-on-year in the first quarter, driven by the festive holidays and the return of family visits. Consumption in lower-tier cities grew by 5.9%, while the town-level market saw volume growth of over 10%.

• Taiwan

Building on the previous quarter’s strong momentum, FMCG value increased by 9%. Food and non-food categories grew by 8% and 11% respectively, driven by higher consumer spending over the past year. 2025 presents several uncertainties – including tariffs and political tensions – that may affect market performance.

• India

FMCG value grew 7.1% in Q1, with volume increasing 4.4% and average price 2.5%. Both value and volume growth were slower than 2024. Inflation is easing overall; however affluent shoppers moved spend towards categories outside FMCG – like travel, dining out, and lifestyle experiences – while lower income households prioritised essentials.

• South Korea

While purchase frequency declined across all food sectors, household and personal care grew, primarily led by skincare cosmetics. This was fuelled by the rising popularity of K-beauty. Skincare products such as creams and essences, valued for their anti-aging benefits, significantly contributed to the overall growth of cosmetics.

• United Arab Emirates

Shoppers in the UAE bought more groceries in Q1 of 2025, led by strong Ramadan sales and steady population growth. More categories are growing than declining, reflecting shoppers’ optimism despite economic pressures.

• Saudi Arabia

FMCG volumes recovered due to population growth as inflation eased, with households shopping more frequently despite tighter basket sizes. Price drops across most categories – driven by higher promotions in modern trade retailers, as they sought to compete with discounters – have led to a decline in spending.

• Indonesia

FMCG growth in Q1 slowed down compared to last year, while volume contracted for the first time, suggesting that recent economic pressures have really challenged shopper spending. Consumers responded by buying more volume to get better value for money, or switching to cheaper products.

• Malaysia

Malaysia’s inflation rate eased to 1.4% in March 2025, driven by softer prices in accommodation and restaurants. However, a continued decline in shopping trips highlights a deeper behavioural shift: shoppers are prioritising value over frequency, reflecting sustained caution amid ongoing economic strain.

• Thailand

Despite the recovery of take-home FMCG in the second half of 2024, the market slowed down again in Q1. This suggests that shoppers have advanced purchase with government subsidy and led to a delayed purchase, combining with possible pressure from household debt. The absence of additional government subsidy in 2025 is likely to result in low or flat growth.

• Philippines

While most FMCG mega-sectors were trending positively in the short term, dairy continued to lag in Q1. Consumption of easy-to-prepare food and beverage categories slowed, whereas seasonal products remained on the rise – even after the holidays.

• Vietnam

Vietnam posted its strongest first quarter performance in five years, with a rise in the consumer price index (CPI) driven by essentials such as food and food services, housing, utilities and healthcare. In-home FMCG showed a slight recovery, with the Tet holiday delivering a moderate boost.