Overall FMCG spend in the APAC region was up 2.8% during Q4, compared to an increase of 4.8% the year before. This masks significant differences though, with food the big winner across the region, enjoying growth of 6.5% compared to 2.8% the previous year. In contrast, the beverages sector was in a decline of 3.8% compared to a growth of 2.9% the year before, and personal care grew only 0.9%, compared to 8.9% in 2019.
Reviewing the performance of each country in depth, the report shows some key insights:
- China Mainland: With the stable recovery of China Mainland’s economy, its GDP increased by 2.3% year-on-year; the disposable income of urban residents grew by 3.5%, and the FMCG market gradually recovered from the COVID-19 epidemic.
- Taiwan: Taiwanese shoppers spent more time at home, with more home cooking or party occasions. “Cooking as a necessity” has become the hot new words in FMCG.
- South Korea: The online channel continues to grow in Korea, with fiercer competition as hypermarkets enter the online market. Many online platforms are now marketing themselves as one-stop shopping destinations.
- Indonesia: FMCG has grown in 2020 as households have re-prioritised their spend resulting in FMCG growing at a higher rate compared to 2019. The driver of this growth is coming from the food sector, which grew significantly.
- Malaysia: The economy contracted by 5.6% in Q4, largely due to COVID-19 forcing strict semi lockdowns, which effected economic activity. FMCG has grown 12% in Q4, a 10.3 percentage point increase from last year, driven by people staying at and working from home.
- Thailand: The number of shopping trips has been declining for the past seven years, while basket size has gradually increased. People stocking up at the beginning of the first lockdown in Q1 contributed to this trend. In Q4, when there was government subsidy program, spend per trip showed growth in both urban and rural areas.
- Philippines: Among the top 10 categories, instant noodles and family/adult milk are the best performing. After recovering in Q3, the non-food sector slowed down in Q4.
- Vietnam: FMCG in 2020 showed a stronger growth, mainly driven by the impact of COVID-19. Almost all sectors grew at a faster pace with the packaged food sector the biggest winner.
To read more about these trends and explore the data, download the report through the form below or reach out to our team.