ASIA’S FMCG MARKET AT A GLANCE

Issue 2 | June 2021

Worldpanel Division
KEY HIGHLIGHTS ACROSS ASIA
CHINESE MAINLAND
#FastRecoveringEconomy
The National Bureau of Statistics released year-
on-year GDP growth figures of 18.3% for the
first quarter of 2021. With the pandemic under
effective control and the economy getting
stronger, the FMCG market has been recovering
very well.
#StrongGrowthinFMCGMarket
In Q1 of 2021, the FMCG market grew by 10.5%
year-on-year, which is a 3.1% increase
compared with the same period in 2019 –
before the COVID-19 outbreak.
#EmergingOOHMarket
The out-of-home FMCG market grew rapidly by
38.9% year-on-year in Q1 of 2021, on a par with
the growth rate during the same period in 2019.
This indicates that Chinese Mainland’s out-of-
home consumption has made a strong recovery.
TAIWAN
#EconomicVshapeRecovery
Taiwan’s GDP is forecast to grow more
than 8% between 2021 and 2023 – a new
10-year high. In Q1 of 2021 FMCG growth
remained stable at 2.7%.
#NewHeightsforEcommerce
In Q1 of this year ecommerce powered
up to become the channel with the third
highest FMCG value share in the market,
with spend growing 13% after a double-
digit rise in the total number of online
shops. This indicates that Taiwanese
shoppers are getting used to purchasing
FMCG products online.
#CleansingSustainsGrowth
In the first quarter of 2020 sales growth
in home care came mainly from the
panic-buying of paper products. This year,
only the household cleansing category
managed to sustain growth, with a 1%
increase in spend.
SOUTH KOREA
#SlowPaceofRecovery
Korea’s economy grew by 1.8% compared
to the previous year, with the CCSI
(Composite Consumer Sentiment Index)
slowly recovering and reaching 100 for the
first time since January 2020.
#ChangesinWaysofShopping
Confirmed cases of COVID-19 continue to
increase, driving a change in shoppers’
purchase patterns. Some are buying more
from nearby supermarkets and online,
while others prefer to buy products in
bulk at club hypermarkets such as Costco.
#ShiftinConsumerNeeds
The pandemic has also led to changes at a
category level. Shoppers have spent more
on home-cooking categories, such as
cooking oil and sesame oil, with major
growth coming from the online channel.
In contrast, the cosmetics market is
declining, mainly driven by the decrease in
both frequency and volume per trip as
people wear less make-up.
INDIA URBAN
#Down-trading
It is estimated that India’s GDP will decline
by -7.5% for FY 20-21, mainly due to the
adverse impact of COVID-19. However,
household spend on FMCG has surged
due to an increase in in-home
consumption.
#PositivePerformance
Food and dairy have reported strong
growth, as an effect of consumers working
from home and staying in. Households are
also concerned about hygiene, resulting in
increased spend for home care and
personal care.
#ChangingShopperBehaviour
FMCG companies made bigger packs
easily available to households who were
spending more per shop across channels
in order to avoid multiple trips during the
pandemic.
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KEY HIGHLIGHTS ACROSS ASIA
SAUDI ARABIA
#TheSurgeinFMCG
While families are spending more on FMCG due to
COVID-19 and the increase in VAT, they are trying
to balance their household budget by purchasing
lower volumes.
#DifferencesinConsumerBehaviours
There are significant differences in the way people
from different ethnicities have reacted to these
stringent times. Locals and more affluent families
are spending more and making fewer shopping
trips, while expat Asians and less affluent
households are purchasing smaller baskets.
#ProximityMatters
Lower trade channels have held their ground
despite a loss in footfall, due to bigger basket sizes
– indicating that proximity matters to shoppers.
Modern trade is now gaining market share back
from wholesale.
UNITED ARAB EMIRATES
#FMCGBasketShrunk
The overall FMCG basket has shrunk in
terms of both spend and volume, as
families try to balance their household
budget.
#ShopLessOften
Fewer shopping trips are a common trend
across all ethnicities and levels of affluence,
and bigger basket sizes have been unable
to compensate for the loss in spend.
#CuttingSpend
Most retailers, barring LuLu, have seen
spend drop due to shoppers making fewer
trips, as well as a decreasing buyer base.
INDONESIA
#SignsOfRecovery
Indonesia’s GDP continued to contract in
Q1 of 2021, but we are seeing signs of
recovery. Household consumption is also
recovering, in parallel with a rise in
consumer confidence and increased
mobility.
#RationalisedSpending
Shoppers are rationalising their FMCG
spend, while maintaining the same number
of shopping trips. With continued
restrictions on outdoor activity,
households are opting for higher in-home
consumption and bigger packs to manage
their budgets.
#SpotlightOnOnline
Despite being small, the online market in
Indonesia is gaining in importance and is
expected to grow further in the future in
line with what we are seeing in other
South-East Asian markets.
MALAYSIA
#SentimentsImproved
The Consumer Sentiment Index
improved to reach 98.9% in Q1 of 2021
as the national immunisation
programme got underway. However,
there are still growing jitters over rising
prices.
#IncreasedInhomeOccasion
FMCG continues to grow year-on-year
as the COVID-19 pandemic stretches on.
All sectors grew at a faster pace than in
2020, particularly packaged groceries,
due to more in-home occasions.
#ChangingChannelLandscape
Online and supermarkets have been
the biggest winners during the
pandemic. But while online gained from
an increase in number of trips and
penetration, supermarkets mainly
benefited from higher spend per trip, in
addition to increased penetration.
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KEY HIGHLIGHTS ACROSS ASIA
THAILAND
#GovernmentSubsidy
Since the last quarter of 2020 the government has
launched various subsidy programmes designed to
provide Thai shoppers with more financial support.
This is encouraging them to spend more, which
helped the take-home FMCG market to grow by 2.9%
in Q1 of this year.
#ChannelShift
Thai shoppers have shifted to shop at provision
stores and local supermarkets/CVS as they are able
to use the funds provided through government
subsidy programs at these outlets. This has led to a
decline in hypermarkets’ share of FMCG spend.
#Selective&StockUp
Fewer shopping trips with bigger basket sizes
continues to be the trend. Thai shoppers are not only
selective about where they buy but also what
category/brand they buy. Winning each basket
becomes more challenging for both retailers and
brands as there are fewer chances for them to be
selected.
PHILIPPINES
#ChallengedEconomy
COVID-19 has brought the Philippines to its
longest recession in more than 20 years.
Although the decline has slowed, GDP
continues to contract, and recovery might
still be more challenging than expected.
#CautiousSpending
Filipinos continue to reduce their in-home
FMCG spending. However, the food sector
remains resilient as shoppers’ top priority.
#Omnishoppers
As quarantine measures ease up, shoppers
are now able to access more channels.
Traditional stores are starting to revive as
well.
VIETNAM
#EconomicOverview
Economic growth has recovered during Q1
of 2021, coupled with an improvement in
consumer confidence.
#SlightDeclineinFMCG
The FMCG market posted in a slight decline
in Q1 of 2021 compared with the peak of
Q1 2020, which was driven by COVID-19.
However it still shows strong growth
compared to the same period in 2019, pre-
pandemic.
#OnlineBooming
The online channel is increasing its share of
retail value, outstripping more established
channels in both urban and rural areas.
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Q1 2021 | Summary Asia

% Value Change FMCG – MAT Q1 2021 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 5.0 4.8 2.7 7.1 9.8 11.6 -2.1 7.7 11.4 2.9 -9.4 6.5 7.5

Food 6.0 2.5 6.0 15.9 8.6 15.6 -0.3 12.5 19.5 6.5 -4.4 10.6 9.8

Beverages 3.5 3.3 4.8 11.7 4.4 13.2 -10.4 5.5 7.3 6.5 -10.9 6.1 0.2

Dairy 5.1 5.7 1.9 6.1 25.4 11.2 3.4 7.0 10.4 -1.0 -7.5 4.4 8.8

Home Care 5.8 8.3 -3.2 4.7 11.9 3.0 -3.8 2.9 1.7 3.4 -14.2 2.5 8.1

Personal Care 4.1 6.6 -0.9 -8.7 11.9 6.5 -5.0 3.8 2.2 -0.8 -17.9 7.4 15.5

5
FMCG Growth in Asia: YOY

Q1’20 Q1’21
Asia/MAT Q1 2021 – Value Spend Growth vs YA

7.7
6.0 5.8 5.9
5.0 5.1
4.1
3.4 3.1 3.5
2.4

-0.1

FMCG Food Beverages Dairy Home Care Personal Care

6
FMCG Growth in Asia: YOY

Asia/MAT Q1 2021– Value Spend Growth vs YA Q1’20 Q1’21

9.2
7.2 6.2
5.0 4.6 5.6 4.7
4.2
2.8 2.2 1.9
North Asia

-3.8

10.7 11.5
9.2 9.0 8.9
5.9 6.4 7.2
West & South 4.2 4.1
1.5 0.5
Asia

4.9 4.9 7.4 5.9 4.5 5.1 4.1

2.8 2.1
0.9 0.1
Southeast Asia
-1.5

FMCG Food Beverages Dairy Home Care Personal Care

7
FMCG
Asia/MAT Q1 2021 – % Value Growth vs YA Q1’20 Q1’21

FMCG 7.1
9.8
11.6

4.8 4.5 5.2

2.8 2.7 2.1 1.9 3.5

-2.1

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

5.0 11.4
3.4 9.1 7.7 8.1 8.9 7.5
6.5
3.7 2.9
0.4 0.6

-9.4

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

8
Food
Asia/MAT Q1 2021 – % Value Growth vs YA Q1’20 Q1’21

15.9 15.6
Food
8.6
5.8 6.0 6.2
2.5 4.2 4.0 4.0
1.6

-0.3

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

6.0
19.5
3.1 12.5 11.8 10.6 9.8
8.7 8.1
4.7 6.5
1.6

-0.1
-4.4

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

9
Beverages
Asia/MAT Q1 2021 – % Value Growth vs YA Q1’20 Q1’21

Beverages 11.7 13.2

4.8 3.6 4.4

3.3 2.4 2.6
0.7

-1.2
-4.7
-10.4

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

9.9
3.5 5.5 7.3 7.7 6.5 6.1 5.2
1.1 1.5 0.2

-1.5
-1.0 -10.9

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

10
Dairy
Asia/MAT Q1 2021 – % Value Growth vs YA Q1’20 Q1’21

25.4
Dairy
10.9 11.2
5.7 5.2 6.1
2.2 1.9 3.4
0.1

-3.1 -1.3

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

5.1 14.8
10.4 10.4 9.9 8.8
2.4 7.0
4.4
0.2

-0.8 -1.0
-4.8
-7.5

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

11
Home Care
Asia/MAT Q1 2021 – % Value Growth vs YA Q1’20 Q1’21

11.9 12.4
Home Care 9.5 8.3 7.6 7.5 6.7
4.7 3.7 3.0

-3.2 -3.8

Chinese Mainland Taiwan South Korea India (Urban) Saudi United Arab
Emirates
7.7
5.8
8.4 7.3 7.5 5.0 8.1
2.9 1.7 3.4 2.5 2.5
0.9

-14.2

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

12
Personal Care
Asia/MAT Q1 2021 – % Value Growth vs YA Q1’20 Q1’21

11.9
Personal Care 7.4 6.6 6.7 6.5 5.5
2.0 1.8

-0.9 -1.1
-5.0
-8.7

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

5.9 15.5
13.0 11.4
4.1 8.6 7.4
3.8 4.8
2.2 0.8

-1.4 -0.8

-17.9

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

13
Chinese Mainland

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’21 vs Q1’20

Super 2% -2%
12
24
13 12 CVS 8% -3%
25 26

19
19
24 Q1 ’19 2 Q1 ’20 2
Q1 ’21 2 Hyper -6% 1%

19 19 19
14 3 3 17 Grocery -9% -6%
23 2
Ecommerce 51% -9%

Work Unit/Gift 5% -9%

Super CVS Hyper Grocery Ecommerce Work Unit/Gift Others

14
Taiwan

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’21 vs Q1’20

Hyper -5% 7%

24 Super -5% 4%
27
23 23
31 30
CVS -2% 11%
Q1 ’19 5 Q1 ’20 4 Q1 ’21 4
6 4
9 6 10 6 4 Drug Stores -8% 7%
3 3
13
19 19 6
3
Direct Sales -13% 2%
19

PX Mart -4% 3%

Hyper Super CVS Drug Stores Direct Sales PX Mart Ecommerce Others
Ecommerce 25% 2%

15
South Korea

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’21 vs Q1’20

Hyper -5% 6%
4
24
6 5 Super 3% 7%
27 26 30
23 27
Other Modern
Q1’19 Q1 ’20 Q1 ’21 2% 0%
Trade
6
6 23
14 24 Traditional
13 5% 4%
6 24
Trade
12
Internet 24% -4%

Non-store -21% -7%

Hyper Super Other Modern Traditional Trade Internet Non-Store
Trade

Hypermarkets: Non Club Hyper (Emart, Homeplus etc) & Club hyper (Costco etc)
Supermarkets: Franchise Supermarket & Small Supermarket,
Online: Open market, social commerce, hypermarket online etc
Non store: Direct sale, tv/homeshopping/catalog, delivery
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Modern Trade: Outlet, department st, cvs, drugstore, health&beauty shop, organic store, food mart, pharmacy, duty free shop
Traditional: Mom&pop, agency, traditional market, butcher’s, side dish market, hair salon
India (Urban)

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’21 vs Q1’20

1
1 Supermarkets -9% 19%
7 4
1 1
1 1
11 3 9 4 Kirana/
-5% 17%
Paan-Beedi
Q1 ’19 Q1 ’20 Q1 ’21
Chemist 22% 20%
83 83

84 Network
-18% 7%
Marketing

Others -12% 0%
Supermarkets Kirana/ Chemist Network Others
Paan-Beedi Marketing

17
Saudi Arabia

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’21 vs Q1’20

Modern Trade 0% 10%

1
9
1
9 1 9 1
1 1 Lower Trade -4% 15%

Q1 ’19 46 Q1 ’20 47 Q1 ’21 47

36 34
34 Pharmacy 2% 11%

Wholesale 27% 6%

Others 18% 18%

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 Q1’21 vs Q1’20

Total Carrefour -19% 21%

21
Total Lulu -5% 13%
21 22 35
32 33
Q1 ’19 15
Q1 ’20 Q1 ’21 Key Hypermarkets -14% 18%
15 17
9 8 8
15 8 Key Supermarkets
14 -11% 4%
8
8
13
Key Cooperatives -2% 8%

Others -6% 10%

Total Carrefour Total Lulu Key Named Key Named Key Named Others
Hypermarkets Supermarkets Cooperatives

*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 Coop. Society, Bani 19
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 Q1’20 vs Q1’21

3 7 Hyper + Super -7% 7%

3 8 3 8
18
19 18
Mini Markets 0% 6%
Q1 ’19 Q1 ’20 Q1 ’21 4
3 4
67 67
68 Traditional
1% 7%
Trade

Online (under ‘Others’) 74% -8%

Hyper + Super Mini Markets Traditional TradeSpecialty store Others

20
Pen. Malaysia

Shopping
Channel Importance – % Value (MAT) Occasions Spend/Trip
MAT Q1’20 vs Q1’21

Hyper -15% 13%

6
4
4 22
7 6
42 25 42 25 Super 0% 15%
15 15
15
Q1 ’19 Q1 ’20 Q1 ’21
General Trade -9% 8%
47 47

50 Drug Beauty &

-7% 4%
Pharmacy

Ecommerce 50% -12%

Hyper Super General Trade Drug Beauty & Ecommerce Others
Pharmacy

21
Thailand

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’21 vs Q1’20

Hyper -11% -1%

11 14
3 Super 0% 10%
12 17 11 17 4
2 3
5 5
15 CVS -3% 9%
Q1 ’19 13 Q1 ’20 14 Q1 ’21
34 34 H&B Stores -9% -6%
16 16
2 2 35 17
PVS -2% 9%
1

Direct Sales -7% 0%

Ecommerce 54% -7%

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

22
Philippines

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’21 vs Q1’20

Super -19% 16%

5

27 Hyper -21% 18%

6 6
26 26
Groceries -16% 26%
Q1 ’19 Q1 ’20 Q1’21
6 6
50 50
51 6
6 6 Drug Stores -34% 22%
4 4
12 12
7
11
4 Direct Sales -49% 5%

CVS -31% 35%

Traditional
-13% 5%
Super Hyper Groceries Drug Stores Direct Sales CVS Traditional Others Trade
Trade

23
Vietnam (Urban 4 cities)

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’21 vs Q1’20

Street Shops -2% 6%

5
4
9 Wet Market -2% 12%
6 3 5
62 8
6 6 7 Speciality
-3% 1%
8 Q1 ’19 Q1 ’20 Q1 ’21 Stores
8 54 53
56 7
7 7 Super -3% 4%
9 9 7
9 Hyper 3% 5%

Mini Stores 14% 6%

Online 72% -9%

Street Shops Wet Market Speciality StoresSuper Hyper Mini Stores Online Others

24
Vietnam (Rural)

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q1’21 vs Q1’20

Street Shops 0% 7%
4
3 3
3
2231 33
42
13 Wet Market -2% 5%
16 14
Q1 ’19 Q1 ’20 Q1 ’21
Speciality
13% 16%
76 75 Stores
75

Direct Sale -3% 13%

Modern Trade 25% -16%

Street Shops Wet Market Speciality Stores Direct Sale Modern Trade Others

25
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Thank you

For further information please contact:

Charles Chow – Head of Marketing Asia

Charles.Chow@kantar.com

Nguyen Thi Nhu Ngoc – Project Leader

NhuNgoc.NguyenThi@kantar.com