ASIA’S FMCG MARKET AT A GLANCE

Issue 2・ June 2022

Data period: MAT Q1 2022

WORLDPANEL DIVISION

CHINESE MAINLAND
A Full Recovery Remains Uncertain
The first quarter of 2022 saw a robust FMCG
growth but was driven by the surge in
Omicron cases and the implementation of
lockdown measures, and a slowdown was
witnessed in March.
The Consistent Growth of Ecommerce
Ecommerce kept its triumphant progress
throughout the first 12 weeks. The
consistent driving force was the increase in
purchase frequency.
The New Retail Goes On
O2O kept climbing during the first quarter,
but the growth substantially varies across
city tiers.
As a consequence of certain supply chain
adjustments, more penetration growths of
community group buy occurred in the
eastern and southern China.
KEY HIGHLIGHTS ACROSS ASIA
TAIWAN
Macro Economy
The growth of Taiwan’s economy slowed
down in 2022 Q1 due to the impact of
Omicron and weather. Though the
macroeconomy’s momentum was slowing
down, FMCG remained at a growth rate of
6.3%, which was still mainly driven by the
Food sector. In addition, the Home Care
sector also contributed to the growth.
Recovery of Home Care
Home Care had recovered from the loss in
2021 Q4 and continued to grow, which was
led by paper products since shoppers
increased their consumption volume.
Ecommerce Strives Occasions
Ecommerce kept growing with double
digits via the increased shopping occasions
though shoppers decreased their basket
size. Within eCommerce, nearly every
sector had strong growth performance,
and Food and Personal Care were the two
primary sources of the growth.
SOUTH KOREA
A Slowdown in Economic Growth
Korea’s economy grew at a slower pace
mainly due to the restrictions imposed to
prevent the fast spread of Omicron and the
effects of high inflation. Its GDP expanded a
seasonally adjusted 0.7% in the first quarter
from the last quarter of 2021. Economy
growth decelerated due to the sluggish
corporate investment and consumer
spending as Omicron led people to refrain
from outdoor activities.
Increase in demand for Personal Care
The Personal Care sector increased as
skincare products recovered due to the
increased demand and interest in skin
recovery. In addition, the value sales of Color
Cosmetics manifested a rebound compared
to Q1 ’21.
Importance of Online Mall
Online mall showed sustained growth, and
due to the upsurge in confirmed cases of
Omicron, more consumers were able to
utilise the online mall as it expanded more
deliverable items along with convenience and
fast delivery system.
INDIA URBAN
As inflation soars, consumption trends are
witnessing an adverse impact. Manufacturers
have increased product prices or reduced
pack grammage. FMCG volumes remain
stable as compared to last year while value
grows marginally by 4% (PY witnessed a 10%
value growth).
Personal Care and Home Care categories
remain stagnant versus the previous year in
both value and volumes. While Food &
Beverages managed to grow but at a slower
rate than last year. All top 5 fastest growing
categories in value are related to Food &
Beverages (Chocolates, Breakfast cereals,
Bottled Soft Drinks. Salty Snacks and
Noodles)
Households are seen spending less per trip
across all channels. Online shopping and
supermarket channels observe a faster
decline in consumer spending than other
channels.
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SAUDI ARABIA
FMCG Value Up Driven by Inflation
Overall, FMCG value remains up in 2022,
driven by the increase in average price paid
of 8.0% (after the VAT increase from 5% to
15% last quarter, this time the double
jeopardy hits as commodity prices rise
sharply since the R/U conflict).
Volume Down Driven by Fewer Trips
The Consistent price increase of more than
6% per quarter in the last three quarters or
more contributes to a “sticker shock” to the
shopper and puts pressure on their wallet.
FMCG volume is hence down & generally
flat, a result of the planned reduction in
shopping occasions in 2022.
Modern Trade Up from Value Seeking
Modern Trade spends (+11%) outgrowing
traditional trade, driven by shoppers
switching traditional trade trips to modern
trade stores (particularly Panda) with
shoppers putting more in the basket when
conducting modern trade trips – influenced
by promotions (a whopping 70% of MT
spend is now on the deal! Up from 64% in
last quarter).
KEY HIGHLIGHTS ACROSS ASIA
UNITED ARAB EMIRATES
Take Home FMCG Purchasing Down
Take home spending (-4.0%) down, a
persistent trend in the country in the last few
quarters, driven by fewer shopping trips
(frequency down by 4%, which was preceded
by a whopping 11% drop), with a relatively
flat basket size not making up for this.
Inflation has started to pick up, even though
consumer confidence remains strong.
Shopping trips continue to drop
Shoppers continue to make fewer trips (down
6.7%) even though they do not change the
types of shops they visit. Not many value-
seeking behaviours were seen until Q1, 2022
and shoppers are not driven excessively by
promos and offers.
Shoppers rationalizing even on food & dairy
Shoppers consciously manage their spending
by reducing their volumes and spending in
most categories. Essential categories volume
has been cut down due to the impact of
inflation, such as dairy (-10%) and food (-
8%).
INDONESIA
The Recovery Continued
The recovery continued with improvement in
household consumption from last quarter,
suggesting a positive outlook for consumers’
confidence to spend.
The Wave of Inflation
Despite consumer confidence picking up, the
inflation trend started to be seen as an
impact of the global supply chain crisis and
higher demand during festive, which can
hold the spending.
Sector Performance
Food was the primary sector impacted by
inflation, driven by cooking oil. The shopping
trip of Home Care and Personal Care was
adjusted with a bigger package and less
frequency. However, personal care sees an
opportunity for premiumisation as both
basket size and spending was improved.
MALAYSIA
Positive Sentiments
The Consumer Sentiment Index in Q1’22 grew
by 11.7 points to reach 108.9%, with expected
employment improvements contributing to
the recovery. The index's uplift further
supported current income and the economy's
financial outlook.
Transitioning towards the Endemic Phase
In-home consumption began to normalise in
Q1’22 after experiencing double-digit growth
in 2020 before stabilising in 2021, leading to
fewer and smaller shopping trips. However,
packaged groceries remained the fastest
growing segment over the last two years,
indicating that in-home consumption is here
to stay.
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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 KEY HIGHLIGHTS ACROSS ASIA
THAILAND
Slow Down in In-Home FMCG Growth
In-Home FMCG growth in Q1 2022 is showing a
slowdown due to the significantly smaller scale
of the government subsidy campaign resulting
in lower disposable income and less spending.
This caused the consumers to become more
cautious about their spending. Combined with
the lower covid restrictions, consumers spend
more time out-of-home and less in-home. All
contributed to the slowdown in Q1 2022.
Inflation is Around the Corner
A higher inflation rate is expected to contribute
to the growth from Q1 2022 onwards. However,
this will cause the consumers to become more
selective and cautious about how they buy and
consume goods. This will change in all aspects
from quantity, price, and channels they buy
from.
Selective & Value for Money
With less disposable income, inflation, and less
in-home demand for consumption, the basket
size stopped growing, and consumers are
becoming more careful about their spending.
The number of categories is expected to decline,
and consumers will start to shop at channels
with better value/deals, such as Hypermarket or
Supermarket.
PHILIPPINES
Economic Growth
The Philippines economy grew by 8.3% for
the first quarter of 2022, an improvement
from the -3.9% last year. More Filipinos also
continue to find more jobs, with the
unemployment rate downing 5.8%.
Recovering FMCG
With favourable conditions, as expected,
shoppers spent more this quarter vs last year.
Shoppers from NCR, NLUZ, Visayas, and
Mindanao among Class ABC1, D, and E
homes are spending more for the first
quarter of 2022 vs the previous quarter.
Consumers spend more on Food, Beverages,
and Household Care.
Importance of Proximity Stores
SSS remains the preferred channel of
Filipinos, but there is continuous recovery for
Hyper/Supers. Top Hyper/Supers grow share
save for Gaisano.
VIETNAM
New Wave of Challenge
Despite the uncertain times of COVID-19
and the Ukraine-Russia conflict, GDP in Q1
2022 sustains a stable growth coupled with
CPI is under 2%. However, Vietnam's
economy will likely face a new wave of
challenges in the upcoming months.
FMCG Market Cool Down
In Q1 2022, consumer demand for the in-
home FMCG remains low due to the cut-
down of volume consumption. The increase
in average paid price mainly drives the
market growth.
Emerging Channels are Expanding
As of Q1 2022, 22% of FMCG spending has
been made in emerging channels, including
Online, Mini-stores and Specialty Stores in
Urban 4 key cities, which are also
expanding fast towards Rural.
Understanding how shoppers purchase
FMCG in these channels is crucial for both
brands and retailers to capture more
growth.
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Full year 2021 | Summary Asia OVERVIEW

% Value Change FMCG – MAT Q1 2022 vs. Year Ago Growth ≤ -0.5% -0.5% < Growth ≤ 5% Growth > 5%

Asia Northeast Asia West & South Asia Southeast Asia

Chinese India Vietnam Vietnam
Total Taiwan South Korea Saudi Arabia UAE Indonesia Malaysia Thailand Philippines
Mainland (Urban) (Urban) (Rural)

FMCG Total 2.3 1.2 6.5 4.2 4.2 3.7 -4 5.9 0.0 1.6 0.4 5.0 7.1

Food 2.4 0.2 14.5 2.7 5.2 3.3 -4.6 8.8 1.6 5.5 1.4 18.9 14.7

Beverages 3.4 4.0 -1.7 5.6 8.8 4.2 -2.2 1.6 -5.2 5.4 3.9 -4.3 -7.1

Dairy 1.1 0.1 3.2 -1.1 2.4 5.8 -6.5 6.3 -0.8 0.6 -5.7 6.1 14.3

Home Care 3.9 5.3 13.0 6.8 1.6 0.4 -3.4 0.9 1.5 -2.6 2.4 -1.5 3.6

Personal
Care
1.4 0.3 5.1 8.3 1.2 1.2 -0.4 6.1 -1.0 -2.1 0.3 -2.3 5.1

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FMCG Growth in Asia: YOY OVERVIEW

Asia/MAT Q1 2022 – Value Spend Growth vs YA Q1 2021 Q1 2022

5.2
4.6
4.1 4.3
3.9
3.4 3.6
3.1
2.3 2.4
1.4
1.1

FMCG Food Beverages Dairy Home Care Personal Care

6
FMCG Growth in Asia: YOY OVERVIEW

Asia/MAT Q1 2022– Value Spend Growth vs YA Q1 2021 Q1 2022

6.2 5.7
3.9 4.4 3.9
3.7 3.7
North Asia 1.7
2.7
0.9 1.3
0.2

10.7 11.4
9.4 9.4 8.9
5.9 5.9
West & South 3.4 4.2 3.1
1.1 1.0
Asia

8.2
3.7 6.7
2.7 0.5 1.0 1.5 3.3 0.5 2.3
0.1
Southeast Asia
-1.7

FMCG Food Beverages Dairy Home Care Personal Care

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FMCG
Asia/MAT Q1 2022– % Value Growth vs YA Q1 2021 Q1 2022

12.4
FMCG 7.0
9.8
6.5
3.4 4.2 4.2 3.7
1.2 1.7

-1.4
-7.8

Chinese Mainland Taiwan South Korea India (Urban) Saudi United Arab
Emirates

4.1 11.4
7.7 5.9 6.5 7.5 7.1
2.3 2.8 5.0
1.6 0.4

0.0

-7.8

Asia Indonesia Malaysia Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Food
Asia/MAT Q1 2022– % Value Growth vs YA Q1 2021 Q1 2022

16.7 17.4
Food 14.5
8.6
3.5 5.2 3.3
1.0 2.7 1.1
0.2

-8.6

Chinese Mainland Taiwan South Korea India (Urban) Saudi United Arab
Emirates

4.6 19.4 18.9

14.7
1.9 12.6 10.6
8.8 9.8
6.5 5.5
1.6 1.4

-3.6

Asia Indonesia Malaysia Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Beverages
Asia/MAT Q1 2022– % Value Growth vs YA Q1 2021 Q1 2022

Beverages 13.0
8.8
13.2
5.6 4.4 4.2
2.8 4.0 0.9

-1.7 -2.2
-10.0

Chinese Mainland Taiwan South Korea India (Urban) Saudi United Arab
Emirates

5.5 7.3 6.5 5.4 3.9 6.1

3.4 1.6 0.1
3.1

-5.2 -4.3
-7.1
-12.6

Asia Indonesia Malaysia Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Dairy
Asia/MAT Q1 2022– % Value Growth vs YA Q1 2021 Q1 2022

26.9
Dairy
11.3
4.5 6.6 5.8
3.2 2.4 3.4
0.1 0.5

-1.1 -6.5

Chinese Mainland Taiwan South Korea India (Urban) Saudi United Arab
Emirates

14.3
4.3 10.4 8.8
7.0 6.3 4.4 6.1
0.6
1.1
-0.8 -1.0
-5.7
-10.0

Asia Indonesia Malaysia Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Home Care
Asia/MAT Q1 2022– % Value Growth vs YA Q1 2021 Q1 2022

13.0
Home Care 7.0 6.8
11.9
5.3
3.0 1.6 3.2
0.4

-5.2 -3.8 -3.4

Chinese Mainland Taiwan South Korea India (Urban) Saudi United Arab
Emirates

5.2
3.9 8.1
2.9 1.7 3.4 2.4 2.5 3.6
0.9 1.5

-2.6 -1.5

-15.0

Asia Indonesia Malaysia Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Personal Care
Asia/MAT Q1 2022– % Value Growth vs YA Q1 2021 Q1 2022

14.2
Personal Care 5.8
2.8 5.1
8.3 6.4
0.3 1.2 1.2

-0.4
-5.0
-11.4

Chinese Mainland Taiwan South Korea India (Urban) Saudi United Arab
Emirates

15.5
6.1 7.4 5.1
3.6 3.7 2.2 0.3
1.4
-1.0 -0.8 -2.1 -2.3

-19.8

Asia Indonesia Malaysia Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)

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Chinese Mainland

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’22 vs Q1’21

Super 0% -1%
13
24
14 13 CVS 1% -1%
27 25
14
14
15
Q1 ’20 3
Q1 ’21 3 Q1 ’22 3 Hyper -6% 3%
18
19 19 25
3
4 17 Grocery -6% -3%
27
3
Ecommerce 25% -13%

Work Unit/Gift 4% -5%

Super CVS Hyper Grocery Ecommerce Work Unit/Gift Others

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Taiwan

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’22 vs Q1’21

Hyper

Super

CVS
Q1 ’20 Q1 ’21 Q1 ’22
Drug Stores

Direct Sales

PX Mart

Ecommerce

15
South Korea

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’22 vs Q1’21

Hyper -3% 5%
4
24
5 4 Super -6% 2%
26 25
33
27 30
Other Modern
Q1 ’20 Q1 ’21 Q1 ’22 Trade
0% 2%

6 23 6 24
13 12 22 Traditional
-6% 3%
6 Trade
12
Internet 15% 1%

Non-store -13% 19%

Hyper Super Other Modern Traditional Internet Non-Store
Trade Trade

16
India (Urban)

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’22 vs Q1’21

1
1 Supermarkets 27%-6%
7
1 1 0
1 4 Kirana/
1
9% -4%
0 9 07 Paan-Beedi
4 4

Q1 20 Q1 21 Q1 22 Chemist -14% -4%

83 84 Network
7% 2%
Marketing
84
Online
Online -8%
42%
Shopping
Shopping

Others 9% -4%
Supermarkets Kirana/ Chemist Network Others Online
Paan-Beedi Marketing Shopping

17
Saudi Arabia

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’22 vs Q1’21

Modern Trade

Lower Trade

Pharmacy

Wholesale

Others

*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. 18
*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.
United Arab Emirates

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’22 vs Q1’21

Total Carrefour

Total Lulu

Key Hypermarkets

Key Supermarkets

Key Cooperatives

Others

*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 19
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)
Indonesia

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’22 vs Q1’21

Hyper + Super -7% 5%

4 6

3 7 3 7 18
18 18
Mini Markets 0% 3%
Q1 20 3 Q1
Q1 ’20
21 3
Q1
Q1 ’21
22 4

67 68
68 Traditional 0% 7%
Trade

Online
(under ‘Others’) 101% 0%

Hyper + Super Mini Markets Traditional Specialty Others

Trade store

20
Pen. Malaysia

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’22 vs Q1’21

Hyper -14% 4%
7
6 18
4
7 4 7 Super -7% 7%
52 25 4 20

15 15 15
Q1 20 Q1 21 Q1 22
Mini 5% 4%
8 11
39 41
12
40
General Trade -7% 6%

Drug Beauty -8% 4%

& Pharmacy

Hyper Super Mini General Drug Beauty & Ecommerce Others

Trade Pharmacy Ecommerce 80% -15%

21
Thailand

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’22 vs Q1’21

Hyper -14% 4%
11 12
5 Super -4% 3%
11 17 11 14
3 3 4
5 4 14
15 CVS 0% 3%
Q1 20 14 Q1 21 Q1 22
34 35 17
H&B Stores 10% 1%
16
2 1 17
36
1 PVS -6% 10%

Direct Sales -10% 8%

Ecommerce 61% -15%

Hyper Super CVS H&B PVS Direct Ecommerce Others
Stores Sales

22
Philippines

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’22 vs Q1’21

Super

Hyper

Groceries
Q1 20 Q1 21 Q1 22
Drug Stores

Direct Sales

CVS

Traditional
Trade

23
Vietnam (Urban 4 cities)

Shopping
Channel Importance – % Value | MAT Occasions Spend/Trip
MAT Q1’22 vs Q1’21

Street Shops -7% 15%

4
7
Wet Market -39% 17%
33 44 11
8 9
7 Speciality
7 -15% 7%
8 Q1 20 Q1 21 5 Q1 22 Stores
55 7 53 54
7 7 7 Super -12% 8%
9 9
6
6 Hyper -35% 10%

Mini Stores 9% 26%

Online 58% 1%
Street Shops Wet Speciality Super Hyper Mini Stores Online Others
Market Stores

24
Vietnam (Rural)

Shopping
Channel Importance – % Value | MAT Occasions Spend/Trip

Street Shops -2% 13%

5 1
32
5 52
33 33 11
Wet Market -19% 14%
14 13
Q1 20 Q1 21 Q1 22
Speciality
2% 11%
75 75 Stores
78
Direct Sale 0% -28%

Modern Trade 19% 14%

Street Shops Wet Market Speciality Direct Sale Modern Trade Others
Stores

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FOR FURTHER INFORMATION PLEASE CONTACT

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