Asia Pulse Q1 2022: Take-Home FMCG Posted Slower Growth
Asia: Take-Home FMCG Posted Slower Growth Due to Omicron Wave and Inflation
FMCG in Asia maintains positive growth of 2.3% in the first quarter of 2022. This slowdown from the same period in 2021 (4.1%) is bolder in Dairy, Food, and Personal care categories.
In terms macro economy, the surge of inflation is evidently seen across market, impacting consumers behavior in various measurements such as spend per trip and basket size. Our experts have talked about how brand can lead amidst this inflationary time, you can read the report here and watch the on-demand webinar here.
Reviewing the key highlights of each markets this quarter:
- Chinese Mainland: The first quarter of 2022 saw a robust FMCG growth but witnessed a slowdown in March due to the surge in Omicron cases and the implementation of lockdown.
- Taiwan: Although macro economy’s momentum slowing down, FMCG kept having a growth rate of 6.3%, which was still mainly driven by the Food sector.
- South Korea: Online mall showed sustained growth and due to the upsurge in confirmed cases of Omicron, more consumers were able to utilize the online mall services.
- India (Urban): As inflation soars, consumption trends are witnessing an adverse impact. FMCG volumes remain stable as compared to last year while value grows marginally by 4%.
- Indonesia: Despite consumer confidence picking up, the inflation trend started to be seen as an impact of the supply chain crisis and higher festive demand, which can hold the spending.
- Malaysia: In-home consumption begun to normalize in Q1’22 after experiencing double digit growth in 2020 before stabilizing in 2021, leading to fewer and smaller shopping trips.
- Thailand: With less disposable income, inflation, and less in home demand for consumption, the basket size stopped growing and consumers are more careful about their spending.
- The Philippines: With favorable conditions, as expected shoppers spend more this quarter vs last year. Consumers spend more on Food, Beverage, and Household Care.
- Vietnam: Consumers’ demand for in home FMCG remains low due to the cut-down of volume consumption. The market growth is mainly driven by the increase of average paid price.
Reach out to us to have a full picture on your category and brand performance across Asia.
Get in touch
Get in touch
DOWNLOAD REPORT DOWNLOAD REPORT