2024_Asia_Pulse_Q1_2024_Kantar

Worldpanel by Kantar
DATA PERIOD:
MAT Q1 2024
MARKETS:
Chinese Mainland | Indonesia | South Korea | Malaysia |
Philippines | Thailand | Taiwan | Vietnam | India | UAE
Welcome to Asia Pulse
As we stepped into the first quarter of 2024, the FMCG industry in •

Asia continued to demonstrate its resilience with a growth rate of •
3.5%, marginally surpassing the previous year's performance. This •
steady growth reflects the region's ability to adapt and thrive
amidst evolving economic conditions.
In this latest edition of Asia Pulse, we explore the compelling • •

stories of innovation, persistence, and strategic agility that are • •
• •
shaping the FMCG industry across the APAC region. We uncover
essential trends and adaptive measures that can unlock new
opportunities for brands aiming to succeed in this ever-changing
market.
• •
• •
If you’re interested in delving deeper into these insights, or • •
exploring opportunities to collaborate, we are here to support you • •
in navigating and thriving in this dynamic environment. • •
2
Q1 2024 | Summary Asia OVERVIEW
% Value Change FMCG – MAT Q1 2024 vs. Year Ago Growth ≤ -0.5% -0.5% < Growth ≤ 5% Growth > 5%
Asia North Asia West & South Asia Southeast Asia

Chinese India Malaysia Vietnam Vietnam
Total Taiwan South Korea UAE Indonesia Thailand Philippines
Mainland (Urban) (Peninsular) (Urban) (Rural)
FMCG Total
Food
Beverages
Dairy
Home Care
Personal
Care
3
FMCG Growth in Asia: YOY OVERVIEW
Asia/MAT Q1 2024 – Value Spend Growth vs YA Q1 2023 Q1 2024
9.2
7.7
4.6 4.8 5.0

3.5 3.4
3.0
1.9
-0.2 -0.5
-1.2
FMCG Food Beverages Dairy Home Care Personal Care
4
FMCG Growth in Asia: YOY OVERVIEW
Asia/MAT Q1 2024 – Value Spend Growth vs YA Q1 2023 Q1 2024
10.9
7.8
2.8 3.7 3.0 3.0 3.9
North Asia 1.4 0.2
-1.3 -2.0
-3.9
14.5 13.8
9.6 9.4 8.9 8.4 8.8
8.0 7.8 7.7
West & South 4.4
3.5
Asia
8.5 7.0 7.1

6.3 6.5
5.2
Southeast Asia 3.4 3.1 3.6 3.6 4.0
2.0
FMCG Food Beverages Dairy Home Care Personal Care
5
FMCG
Asia/MAT Q1 2024 – % Value Growth vs YA Q1 2023 Q1 2024
12.7
11.0
FMCG 8.3 2.4
5.9
4.3
3.4
1.7 2.5
1.0
0
-0.7
Chinese Mainland Taiwan South Korea India (Urban) United Arab Emirates United Arab
Emirates
13.8 14.5
3.0 3.5 8.7
4.7 4.5 5.4 5.5
2.8 2.3
-0.6 -2.0 -2.0
Asia Indonesia Malaysia (Peninsular) Thailand Philippines Vietnam (Urban 4) Vietnam (Rural)
6
Food
Food 14.6
7.7 7.7 8.5 8.5 3.7
3.3 4.4
1.5 1.8
0.0 0.0
Emirates
18.7
4.6
3.4
5.8 6.1
3.2 4.2 3.6
1.8 1.8
-3.6 -2.9 -3.6

-4.5
7
Beverages
Beverages 11.7 10.7 10.6

6.8
3.4 3.5
1.2 0.1 0.0 0.0
-0.1
-4.6
Emirates
9.2
4.9 22.2 23.2
13.9
9.5 10.2
3.9 3.6
0.8 1.7
-0.9 -4.2 -1.2
8
Dairy
12.0 11.4
Dairy
4.6
0.7 1.6
0.0 0.0
-1.1 -2.1
-2.8
-5.8 -4.3
Emirates
16.2
9.3
6.9 5.7
4.0 2.5
2.3
-0.2 -0.5
-1.1 -1.0
-4.3 -4.7
-6.2
9
Home Care
17.7
Home Care 13.9
8.6 9.6
5.9
3.4
1.2 1.1 0.0 0.0
-2.1
-7.1
Emirates
7.7
5.0
17.3 16.4 15.5
12.5
5.2 6.6 6.3
3.1 4.3
0.0
0.0
-3.0
Taiwan’s classification update: Starting from 2023Q4, facial tissue, wipes, diapers, pads, and liners were reclassified to Home Care category. The definitions of data for
10
previous year has been synchronized.
Personal Care
14.7
12.3
Personal Care 9.9
8.6 8.8 7.9
3.1
0.0 0.0
-1.5 -1.0
-5.3
Emirates
20.3
14.9 15.9
1.9 9.7
7.0 5.7 7.1 7.0
4.8
1.8
0.1
-1.2
-0.9
11
Chinese Mainland
A steady recovery in FMCG Club format continues to Douyin surpasses Pinduoduo
perform exceptionally well in penetration
China’s FMCG market maintained a modest
recovery in the first quarter of 2024, with The membership store format continued its Douyin continues to maintain its rapid
year-on-year sales growth of 2.6%. The high performance, with sales growing by development. In the first quarter of 2024,
eastern region showed more positive growth, more than 20% year-on-year. Both over 28% of Chinese households
increasing by 7% compared to the same international and local membership stores purchased FMCG on the platform, with
period last year, demonstrating its economic are no longer limited to first-tier and new purchase frequency also showing
vitality and the strength of consumer first-tier cities, and their location strategies significant growth.
purchasing power. are becoming more refined.
CHANNEL PERFORMANCE
Channel Importance – % Value Shopping Occasions Spend/Trip
MAT Q1’23 vs Q1’24
Super 6% -1%
12
12
25 CVS 9% -4%
12 24
14
24
13 13
Q1 ’22 3 Q1’ 23 3 Q1 ’24 3 Hyper -10% 2%
17 16
30
29 2 3
14 Grocery 1% 4%
30 3
Ecommerce 13% -9%
Work Unit/Gift 2% 0%
12
Taiwan
Consumer demand stabilises Shoppers increase spend per trip Online channel continues to gain
importance
Following a flat performance in the previous Although purchase frequency decreased, Online shopping has grown significantly in both
quarter, the FMCG market has resumed its consumer demand was evident in the increased food and non-food categories, with increases in
growth trajectory. The food sector halted its spending per shopping trip, indicating no reduction both frequency and spending. Consumers'
decline with growth of 0.7%, while the non-food in households’ overall expenditure. In categories spending has increased across various online
sector achieved high growth momentum (+6.8%). like laundry products, consumers are spending shopping channels, including B2C and company
more to meet advanced needs. Personal care is websites, indicating that shoppers are not
also recovering, due to increased spending in face confining themselves to a single type.
care categories.
CHANNEL PERFORMANCE
MAT Q1’24 vs Q1’23
Hyper
Super
Q1 ’23 Q1 ’24 CVS

Q1 ’22
PCS
Drug Stores
Direct Sales
Ecommerce
Note: Starting from 2023Q3, we have revised the channel classification by incorporating PX Mart into Super and separating PCS (Personal Care Store) from the Drug Store. 13
India (Urban)
Inflation in India came down to below 5% after 10 In terms of value, household care and personal care Household shopping occasions grew across all
months in March 2024. The economy continues to grew faster than grocery and beverages. However, major channels in Q1, with the fastest growth
show consistent growth, and FMCG performance in terms of volume, grocery and beverages grew achieved by chemist shops and online platforms.
has also improved since last year. The key drivers of fastest, with the former led by atta/flour, while In addition, consumers are spending more per trip
value growth are increased spending and other staples in the food sector are under stress. For across the channels they visit. However, basket
frequency. beverages, volume growth was driven by bottled size in terms of volume hasn’t improved,
soft drinks. indicating continuing caution among shoppers.
CHANNEL PERFORMANCE
MAT Q1’24 vs Q1’23
Super 13% 7%
Kirana/
2 7 8
Paan-Beedi 7% 5%
27 7
17 7
Chemist 21% 6%
Q1’22 Q1’23 Q1’24
Network
Marketing -9% 6%
82 81
81 Online
Shopping
19% 7%
Others 5% 7%
Supermarkets Kirana/ Chemists Network Online Others
Paan-Beedi Marketing Shopping
14
South Korea
Inflation drives FMCG expansion Increased focus on single-person Online penetration exceeds 90%
and senior households
As of March 2024, the consumer price inflation Single-person households account for 34.5% of Online continues to show significant performance
rate in Korea stood at +3.1%. Amid increasing the total population in Korea. Consequently, growth, maintaining a double-digit growth rate.
economic pressures, the FMCG market has there is an increasing need for small packaging Notably, the penetration of online FMCG
experienced growth in both value and volume. and small-sized products, leading to changes in shopping has expanded to 91.5% of the
This is attributed to the expansion of consumer consumer trends. Additionally, as the country population, indicating that nearly all households
spending due to rising prices, and an increase in approaches a super-aged society, economically are making purchases through both online and
the frequency of purchases driven by more at- empowered active seniors are emerging as a key offline channels.
home consumption. consumer group.
CHANNEL PERFORMANCE
MAT Q1’24 vs Q1’23
2
Hyper 1% 8%
23
3
4 23 Super
24 -2% 5%
33 36 39
Q1 ’22 Q1 ’23 Q1 ’24
Other Modern 5%
20 10%
22 19 Trade
6 6
12 12
Traditional
6 -5% 14%
12 Trade
Internet 17% 3%
Non-store -23% 20%

Hyper Super Other Traditional Internet Non-Store
Modern Trade
Trade
15
United Arab Emirates
Ramadan significantly impacts Softening price inflation boosts Shoppers look for more value as e-
shopping patterns dairy segment commerce spend increases
In Q1 of 2024 shopping frequency increased As price rises eased, shoppers increased their E-commerce penetration is strong, with half of
substantially due to Ramadan, but spending purchases of dairy products. The personal care UAE’s households shopping online and
per trip remained stable. Consumers made segment on the other hand, especially some increasing their spend. This trend underscores
more frequent purchases without increasing premium personal categories, are still being the preference for convenience and affordable
their total expenditure. deprioritised by consumers. prices.
CHANNEL PERFORMANCE
MAT Q1'24 vs Q1'23
Carrefour -4% 2%
12 20 -8% 1%
11 Lulu
10 20
10
21 10 10
Co-ops -11% 9%
Q1'22 Q1'23 Q1'24
16 16 14
23 24 Other
8% -1%
6 Hypermarkets
12 7
13 24
6 Other
3% 2%
14 Supermarket
s
Baqala /
-5% 8%
Grocery
All Others 0% 5%
Carrefour Lulu Co-ops Other Other Baqala / All
Hypermarkets Supermarkets Grocerie Others
s
*Other Hypermarkets - Nesto Hypermarket, Safeer/Al Safeer Hypermarket, Al Madina Hypermarket, Big Mart Hypermarket, Ansar Gallery etc.
*Other Supermarkets – Nesto Sypermarket, Viva, Al Madina Supermarket, Al Maya, West Zone, Choitrams, Talal Supermarket, Spinneys, Baqer Mohebi etc.
*Key Cooperatives - Union Coop. Society, Abu Dhabi Coop. Society, Sharjah Coop. Society, Emirates Coop. Society, Al Mushrif Coop. Society, Al Ain Coop. Society, Bani Yas Coop. Society etc. 16
*Others –Pharmacies, Specialty Stores, Zoom, Modern Bakery, Amazon, Noon, Talabat etc.
Indonesia
Recovery continues for overall Prioritisation is influenced by the Niche opportunity to capture more
FMCG festive season e-commerce shoppers
FMCG has shown signs of recovery, with To control their overall expenditure, shoppers are Growth in modern trade remains constrained,
increasing volume growth and spending per trip. compensating for increased spending on basic whereas general trade’s growth is being driven by
Although year-on-year growth appears limited, needs by allocating less of their budget to saving price rather than volume. Specialty stores and e-
these trends suggest that recovery will potentially and parties. Higher spending on durable goods in commerce are becoming the preferred channels
continue. Volume growth is mainly driven by Q1 can be attributed to the festive season, which for categories like baby products, beauty, and
increasing purchase levels, and shoppers’ might have been boosted by THR – the annual personal care, presenting the opportunity to
downtrading behaviour is softening, indicating a festive incentive from employers. attract and recruit new shoppers.
healthier growth trajectory.
CHANNEL PERFORMANCE
MAT Q1'24 vs Q1'23
5 6
16
Hyper + Super 6% -3%
4 6
4 6 17
18 -1%
Q1 23 3 Q1 24 4 Mini Markets 3%
Q1 22 3
68 69 Traditional 1% 3%
69 Trade
Online
51% 2%
(under ‘Others’)
Hyper + Super Mini Markets Traditional Specialty Others

Trade store
17
Malaysia (Peninsular)
More cautious spending amongst In-home expenditure remains stable Extensive promotions and
Malaysians despite pessimistic spending competitive pricing win shoppers
In Q1 of 2024, Malaysia experienced a slight uptick The easing of food & beverages prices has driven Consistent growth is evident in key channels like
in inflation at 1.8%, but there was a slowdown in an increase in in-home expenditure. There is supermarkets, mini markets, and drug, beauty &
price increases within the food & beverages sector. growth in packaged groceries, beverages, and pharmacy, mainly supported by larger purchases.
Consumer sentiment took a dip, declining from toiletries, while the dairy sector continues to be Online has rebounded strongly due to more
89.4 points in Q4 2023 to 87.1 points. This indicates impacted. Shoppers are still spending cautiously, occasions, albeit with lighter purchases. With
expectations that will lead towards a more cautious however, making fewer trips and deprioritising inflation ongoing, Malaysians are inclined to favour
approach to spending in the future. non-essential categories. channels that offer competitive prices and
promotions.
CHANNEL PERFORMANCE
MAT Q1’24 vs Q1’23
Hyper -11% 9%
10 16
10 17 6
9 6 Super -2% 5%
17
7 7
7
6
Q1 22 Q1’23 Q1’24
12 10 Mini 13% -1%
9
3
11 8 12 39
39
13 General Trade -18% 8%
Drug Beauty 5%
7%
& Pharmacy
E-commerce 35% -17%

Hyper Super Mini General Drug Ecommerce Others
Trade Beauty &
Pharmacy
18
Thailand
Thai consumers are becoming more cautious in The demand for in-home consumption of cooking Modern trade has started to regain share again,
their spending due to high levels of household products is slowing, along with home care especially the key chain supermarkets. Provision
debt and reduced government support through products, as consumers spend more time out of stores are also continuing to recover thanks to
subsidies. Furthermore, with the increase in out- their homes. At the same time, the need for consumers’ preference for shopping locally.
of-home (OOH) occasions, the demand for personal care is recovering. Limited household Meanwhile, other local supermarkets and
take-home groceries is declining back to pre- budgets are causing a shift to more affordable convenience stores are losing share in the take-
COVID levels. choices in some categories. Within packaged home market. The e-commerce channel is also
food, consumers seek more convenient snacks continuing to gain share.
and meals to eat at home.
CHANNEL PERFORMANCE
MAT Q1’24 vs Q1’23
Hyper
7 10
7 Super
8 11 3 13
9 11 6
5 3
3
13
13
Q1 24
CVS
Q1 22 Q1 23
38
19
37 20
39
19 H&B Stores
PVS
Direct Sales
Ecommerce
Hyper Super CVS H&B PVS Direct Ecommerce Others
Stores Sales
19
Philippines
Increased festive spend is sustained Post holiday, shoppers spend more Inflationary conditions continue to
on personal care and home care improve
Better economic conditions – with improved GDP, categories
higher employment, and manageable inflation – Average price increases in the majority of FMCG
boosted Filipinos’ confidence to make heavier Last holiday season, shoppers purchase less of
categories have already dropped below 10%, and
purchases of in-home FMCG during the holiday personal and home care categories. However, this
as inflation eases further shoppers are continuing
season in Q4 of 2023, and this continued into the quarter, they are increasing their spending in
to buy more volume while rationalising their
start of this year. Their in-home spend has these categories while maintaining spend on
product choices.
remained at a similar level to the festive period, other mega categories vs Q4 2023.
and is 10% higher compared with Q1 of 2023.
CHANNEL PERFORMANCE
MAT Q1’23 vs Q1’24
Super
Hyper
Q1 ‘23
Q1‘24 Groceries
Q1 ‘22
Drug Stores
Direct Sales
CVS
Super Hyper Groceries Drug Stores Direct Sales CVS Traditional Ecommerce Others
Traditional
Trade Trade
20
Vietnam (Urban)
Vietnam’s GDP expanded by 5.66%, slower than Fuelled by a positive economic outlook, The online channel’s value share is steadily
in Q4 of last year but the strongest Q1 growth Vietnamese consumers are more hopeful about growing, driven by increasing shopping frequency,
since 2020. The momentum to reach the the country’s economic progress. Despite positive and positioning e-commerce as the future engine
government’s 2024 economic targets is solid; signs, however, their spending has not caught up of FMCG expansion. Modern trade and online
however, policies and efforts are needed to and FMCG growth in the main urban areas has both gained short term share in Q1 in major
respond to persistent headwinds and internal remained stagnant. urban areas, thanks to a boost from shopping
challenges.
during the Tet festival.
CHANNEL PERFORMANCE
MAT Q1’24 vs Q1’23
Street Shops -2% 0%
9
7 Wet Market -3% 0%
7 11 12
11
7 6
Q1 23 Q1 24 Specialty Stores -3% 6%
5
Q1 22 5 52
6 50
54
6 6 5
6
7 6 Hyper 4% 3%
7
Super 0% 2%
Mini Stores 10% 1%
Online 40% -7%

Street Wet Specialty Hyper Super Mini Stores Online Others
Shops Markets Stores
21
Vietnam (Rural)
Rural records steady growth Decline in alcoholic beverages Modern formats grow popular
account for half of FMCG loss
In Vietnam’s rural areas packaged foods grew Modern store formats and online platforms are
modestly, while beverages suffered a decline in A slowdown in sales of alcoholic beverages, catching the attention of rural shoppers, and
the year leading up to Q1 2024. Volume despite the holiday season, accounts for a major have steadily taken share from traditional trade
purchased in Q1 dipped across nearly all sectors proportion of Q1’s FMCG decline in both urban over the years. Thanks to improved commerce
except home care, compared to the same period and rural areas. This was due to stricter infrastructure and the ubiquity of smart devices,
last year, indicating that the Tet 2024 shopping enforcement of Decree 100, which regulates online is poised to be the route to market for
season failed to boost growth. driving under the influence of alcohol. smaller brands, granting them access to a vast
consumer base.
CHANNEL PERFORMANCE
MAT Q1’24 vs Q1’23
Street Shops 3% 0%
3
2 4
222 5
3 222
4 Wet Markets 1% 1%
11 11 11
Q1 22 Q1 23 Q1 24
Specialty Stores 20% -3%
78 74
72
Hyper & Super 4% -3%
19% 37%
Mini Stores
Online 41% -8%

Street Wet Specialty Hyper & Mini Online Others
Shops Markets Stores Super Stores
22
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consulting company.
We have a complete, unique and rounded understanding

of how people think, feel and act; globally and locally in
over 90 markets. By combining the deep expertise of our
people, our data resources and benchmarks, and our
innovative analytics and technology, we help our clients
understand people and inspire growth.
FIND OUT MORE AT

www.kantar.com
www.linkedin.com/company/worldpanelbykantar
FOR FURTHER INFORMATION, PLEASE CONTACT
Steven Lien – Regional ASIA Marketing Director

steven.lien@kantar.com
23

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Worldpanel by Kantar

As we stepped into the first quarter of 2024, the FMCG industry in •

In this latest edition of Asia Pulse, we explore the compelling • •

Asia North Asia West & South Asia Southeast Asia

Asia/MAT Q1 2024 – Value Spend Growth vs YA Q1 2023 Q1 2024

4.6 4.8 5.0

FMCG Food Beverages Dairy Home Care Personal Care

Asia/MAT Q1 2024 – Value Spend Growth vs YA Q1 2023 Q1 2024

8.5 7.0 7.1

FMCG Food Beverages Dairy Home Care Personal Care

-0.6 -2.0 -2.0

7.7 7.7 8.5 8.5 3.7

-3.6 -2.9 -3.6

Beverages 11.7 10.7 10.6

4.9 22.2 23.2

-0.9 -4.2 -1.2

Q1 ’23 Q1 ’24 CVS

Non-store -23% 20%

Hyper + Super Mini Markets Traditional Specialty Others

E-commerce 35% -17%

Street Shops -2% 0%

Mini Stores 10% 1%

Online 40% -7%

Online 41% -8%

We have a complete, unique and rounded understanding

FIND OUT MORE AT

FOR FURTHER INFORMATION, PLEASE CONTACT

Steven Lien – Regional ASIA Marketing Director

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