ASIA’S FMCG MARKET AT A GLANCE

Issue 4 | November 2021

Worldpanel Division
KEY HIGHLIGHTS ACROSS ASIA
CHINESE MAINLAND
#UncertainGrowthProspects
While the market had been steadily
recovering since the second quarter of
2020, stagnation in the latest two quarters
has brought a higher level of uncertainty
around the growth prospects for the full
year of 2021.
#O2OFurtherIntegrated
Instant retail (O2O) has maintained a
strong growth trend since 2020. The latest
Kantar Worldpanel figures indicate that
57% of urban households used O2O home
delivery services to purchase FMCG in the
first nine months of this year.
#OOHContinuestoRebound
The out-of-home Food and Beverage
market in China's upper-tier cities
continued to rebound, with year-on-year
growth of 4.4% in Q3. Beer, Packaged
Beverages and On-premise Drinks made
major contributions to this growth.
TAIWAN
#StrongMomentumFromFood
Taiwan’s GDP for Q3 of 2021 grew by 3.8%
versus last year and 0.6% versus Q2, mostly
due to exporting. Though the government
lifted COVID-19 restrictions in July, people
still tended to avoid dining out and
purchased more food products to eat at
home. The growth momentum in Food
remained strong in Q3, driving the growth
of total FMCG.
#NewHeightsforEcommerce
Ecommerce took off during the outbreak of
the pandemic that hit in May and continues
the growth to Q3 that makes its share
reach 15%. Taiwanese shoppers across all
categories and age groups are becoming
more used to purchasing FMCG products
online.
#PersonalCareRecovery
As people spent more time staying at home
following the May outbreak, some focused
greater attention on caring for their skin
and body. As a result, categories like
Bodycare, Hair Treatment and Mouthwash
helped to drive recovery in the Personal
Care sector.
SOUTH KOREA
#LivingWithCovid
Due to increasing COVID-19 cases and
tough restrictions, Korea’s economic
growth slowed in the third quarter, with its
GDP expanding 0.3%, down from a 0.8%
gain tallied in the second quarter.
However, as Korea made the transition to
‘Living with COVID-19’, and achieved a
high vaccination rate, consumption is
forecasted to pick up, with the economy
expected to regain momentum in the
fourth quarter.
#GrowthofOOH Drink
Out-of-home drink is growing significantly
as people tend to consume more
beverages outside. In-home beverage
consumption is likely to decrease,
therefore, due to the relaxation of
regulations and ‘Living with COVID-19’.
#FallinDemandforHMR
As Korea began ‘Living with COVID-19’,
out-of-home consumption increased,
ultimately leading to a decrease in
demand for home meal replacement
(HMR) in the home. However, as HMR
moves toward premiumisation, the market
will grow due to its improved quality of
taste.
INDIA URBAN
#RoadToEconomicRecovery
GDP grew by 7.9% in Q3 of 2021, and is
expected to grow 10 to 10.5% in FY 22.
Many economic growth indicators are
suggesting a faster-than-expected revival
in economic activities. The FMCG market
has also been performing well..
#ChangeinPurchaseBaskets
FMCG grew by 7% in the third quarter,
which is the same as the previous year.
There has been a change in households’
purchase baskets. Last year, growth was
driven by internal and external hygiene
categories like Hand Sanitisers, Floor
Cleaners and Toilet/Bathroom Cleaners.
This year, as life returns to normal, the
categories driving growth are Chocolates,
Bottled Soft Drinks and Cereals.
#IncreaseinShoppingTrips
As the country has now opened back up,
households have increased the number of
shopping trips they make – mainly to
Supermarkets and Kirana Stores – while
spend per trip remains stable across all
channels..
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KEY HIGHLIGHTS ACROSS ASIA
SAUDI ARABIA
#EveryFMOTMatters
Fewer shopping trips mean fewer
opportunities for manufacturers and retailers
to interact with the shopper. This means
brands need to ensure that every FMOT (first
moment of truth) counts in their favour, to
enable them to enter the shopper’s basket.
#HaveaCredibleRTB
Shoppers make conscious choices between
‘need to have’ and ‘nice to have’. A credible
RTB (reason to buy) will help brands become
more meaningful, salient and different in
order to stand out amongst the competition.
#DrivePromoEfficiency
The FMCG industry needs to make a call on
how effective the current mechanics are in
driving long-term growth. Establishing win-win
partnerships between manufacturers and
retailers will be the game changer.
UNITED ARAB EMIRATES
#EveryFMOTmatters
Fewer shopping trips mean fewer
opportunities for manufacturers and
retailers to interact with the shopper.
So, we need to ensure that every FMOT
(First moment of truth) counts in our
favor to enable us to enter the
shopper’s basket.
#HaveacredibleRTB
Shoppers make conscious choices
between “need to have” and “nice to
have” à having a credible RTB (reason
to buy) will help you become more
meaningful / salient and different in
order to stand out amongst the
competition.
#DrivePromoEfficiency
We need to take a call on how effective
the current mechanics are in driving
long-term growth. Establishing win-win
partnerships between manufacturers
and retailers will be the game changer.
INDONESIA
#2ndWaveRestriction
Economic recovery has been slightly
halted due to the stricter restrictions
put in place as the coronavirus Delta
variant spread in Indonesia. GDP has
grown modestly, at 3.5%, from a low
base last year, while households across
social classes are expanding allocation
for non-primary sectors.
#OnlineBeauty
The Beauty sector’s double-digit
growth in online channels has been
driven by more buyers purchasing
more units. This growth is mostly
driven by skincare categories such as
Toner, Face Masks, and Facial
Moisturisers.
#FindtheOpportunities
The FMCG market posted 6% growth
in Q3 2021, which is slower than last
year. For the rest of this year, it is
important that brands can find
opportunities to stay ahead and close
the year strong.
MALAYSIA
#DeadlyCovid19
As expected, with the reduction in
COVID-19 cases and the high
vaccination rate, CSI improves and
now is over the optimistic threshold
after 3years, similarly for the
employment index. The economy is
opening, leading to a positive
outlook in terms of employment and
finances, and we can expect
shoppers to beef up their shopping
plans in the coming months.
#ImpactofLockdown
FMCG grew at a slightly slower pace
this year. All sectors continued to
record growth except Beverages, as
the implementation of second and
third national lockdowns affected
festivity-driven categories such as
Alcoholic Drink, Isotonic Drink and
CSD.
#ChangingChannelLandscape
Online and Supermarkets have been
the biggest winners during the
pandemic. Penetration for the two
biggest winners – convenience store
99Speedmart and ecommerce
platform Shopee – reached an all-
time high in the last month.
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KEY HIGHLIGHTS ACROSS ASIA
THAILAND
#Co-PayforTheLocalChannels
‘Co-pay’ is the government subsidy program that
supports local channels (Provision Stores, Local
Supermarkets/CVS). This has led to a shift in
channels used by Thai shoppers and an increase in
basket size during the pandemic. After first being
introduced in Q4 2020 and ended in Q1 2021, Co-pay
was brought back in Q3-Q4 2021. However, the
growth in take-home FMCG is expected to slow down
in Q4 compared to the high peak of same period last
year when Co-pay was first introduced.
#PayMore,GetMoreForModernTrade
The new government subsidy programme ‘Pay More,
Get More’ was introduced in Q3-Q4 2021, with the
purpose of driving the economy by encouraging
higher income groups to spend more. This
programme benefits Modern Trade, both big and
small formats, and is helping the channel to gain
back share this quarter.
#Selective&StockUp
Consumers continue to purchase larger basket sizes
while reducing shopping trips as the stock up trend
continues during COVID-19. However, this has not
resulted in an increase in the number of categories
and brands being bought. Thai consumers are still
selective.
PHILIPPINES
#EconomicExpansionMode
Despite the emergence of the Delta
variant and new lockdown restrictions,
the economy in the Philippines has
managed to post a stronger
performance than it did a year ago. This
means that the country is likely to reach
its annual growth target.
#TighteningBelts
Filipino shoppers are reducing their
FMCG spending by making fewer
shopping trips, as lockdown restrictions
remain in place.
#ProximityStores
Households continue to value traditional
trade and proximity stores over other
channels.
VIETNAM
#EconomicOverview
The huge Wave 4 outbreak of COVID-19
brought many challenges for the country,
resulting in a sharp GDP decline in Q3
coupled with an increase of CPI.
#FMCGSlowdown
FMCG spending levels remain higher than
normal, driven by another peak in the
purchase of packaged foods during periods
of lockdown in Wave 4.
#ConvenienceisKing
The growth of Minimarket and Online formats
are continuing to surge, while Hyper-Super
and Wet Markets are losing share, mainly
due to operational disruption caused by
stricter restrictions.
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Q3 2021 | Summary Asia

% Value Change FMCG – MAT Q3 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 3.6 3.1 6.2 5.2 7.1 4.3 -7.1 5.9 5.5 3.4 -5.3 3.4 5.0

Food 2.8 -1.2 10.9 8.1 7.1 5.4 -7.3 8.6 9.9 6.9 -1.5 11.5 7.1

Beverages 5.3 6.4 2.9 10.0 8.9 5.6 -8.1 3.9 -1.5 6.8 -2.5 1.0 -4.0

Dairy 3.1 3.9 2.8 2.8 12.3 4.9 -7.9 5.9 3.6 -0.5 -10.6 2.2 8.7

Home Care 3.3 4.9 -1.7 3.4 5.3 -1.6 -7.6 0.5 1.3 3.3 -7.1 -2.0 3.2

Personal
Care
4.7 5.1 7.6 -1.5 7.2 1.5 -4.6 4.5 3.2 0.3 -9.9 0.0 13.1

5
FMCG Growth in Asia: YOY

Q3’20 Q3’21
Asia/MAT Q3 2021 – Value Spend Growth vs YA

7.7
5.3 5.3
3.6 4.2
3.2 2.8 2.7 3.1 3.3 2.7

-3.1

FMCG Food Beverages Dairy Home Care Personal Care

6
FMCG Growth in Asia: YOY

Asia/MAT Q3 2021– Value Spend Growth vs YA Q3’20 Q3’21

9.1
6.6
3.5 4.3 3.8 4.5 4.7
2.2 1.6 2.4
0.7
North Asia
-5.7

9.6 9.3
7.2 7.1 8.2
5.2 5.9 5.9 5.5
West & South 2.0 2.9 3.1
Asia

6.5 5.9
3.9 4.2
Southeast Asia 2.8 2.3 2.9
1.5 0.9 1.0 0.9 1.0

FMCG Food Beverages Dairy Home Care Personal Care

7
FMCG
Asia/MAT Q3 2021 – % Value Growth vs YA Q3’20 Q3’21

FMCG 9.3
6.2 6.7 7.1 5.7
4.8 5.2 4.3
1.8 3.1 2.7

-7.1

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

3.2 3.6 10.8 10.3

8.8 8.5
5.9 5.5 5.0
3.4 3.4
1.2

-6.3 -5.3

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

8
Food
Asia/MAT Q3 2021 – % Value Growth vs YA Q3’20 Q3’21

14.2
Food 6.9
10.9 12.2
8.1 7.1 8.5
5.6 5.4
2.8

-1.2
-7.3

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

5.3
20.4
2.8 14.3 14.0
11.0 9.9 11.5
8.6 6.9 7.1
4.1

-4.4 -1.5

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

9
Beverages
Asia/MAT Q3 2021 – % Value Growth vs YA Q3’20 Q3’21

Beverages 10.0 8.9 8.1

6.6 5.6
6.4
2.9
1.5

-0.4

-7.4 -5.7 -8.1

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

5.3 7.9 7.4 6.8

5.6
3.9
0.8 1.0 2.0

-1.5 -2.5
-4.0
-9.4
-3.1

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

10
Dairy
Asia/MAT Q3 2021 – % Value Growth vs YA Q3’20 Q3’21

Dairy 19.6
12.3
7.3 7.0
3.9 2.9 2.8 2.8 4.9
1.5 2.0

-7.9

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

11.7 14.5
9.2 7.3 8.7
2.7 3.1 5.9 3.6 2.2

-0.5
-3.3 -3.7
-10.6

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

11
Home Care
Asia/MAT Q3 2021 – % Value Growth vs YA Q3’20 Q3’21

Home Care 9.4

7.3 6.8
11.0 11.1
4.9 5.3 4.3
3.4

-1.7 -1.6
-7.6

Chinese Mainland Taiwan South Korea India (Urban) Saudi United Arab
Emirates
7.7

3.3 10.5
6.2 6.4
4.8 3.3 3.2
0.5 1.3 0.7

-2.0
-6.2 -7.1

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

12
Personal Care
Asia/MAT Q3 2021 – % Value Growth vs YA Q3’20 Q3’21

Personal Care 7.6

10.2
7.2 6.4
3.8 5.1 5.2
1.5

-0.1 -1.5
-4.6
-7.2

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

11.8 11.7 13.1

4.2
6.6
2.7 4.5 3.2
1.0 0.3

-1.9 0.0

-10.1 -9.9

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

13
Chinese Mainland

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q3’21 vs Q3’20

Super -2% -2%

13
25
14 13 CVS 6% -3%
26 26
14
15
17
Q3 ’19 3 Q3 ’20 3 Q3 ’21 3 Hyper -9% 0%

19 23 18
17
3 3 16 Grocery -12% -9%
27
3
Ecommerce 36% -13%

Work Unit/Gift 6% -9%

Super CVS Hyper Grocery Ecommerce Work Unit/Gift Others

14
Taiwan

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q3’21 vs Q3’20

Hyper -11% 14%

26 24 Super -12% 8%
23 28 24
31
CVS -4% 8%
Q3 ’19 5 Q3 ’20 5 Q3 ’21 4
6 4
9 6 12 6
4 Drug Stores -14% 18%
3 3 15
19 20 6
3
Direct Sales -12% 14%
19

PX Mart -8% 7%

Hyper Super CVS Drug Stores Direct Sales PX Mart Ecommerce Others
Ecommerce 30% 1%

15
South Korea

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q3’21 vs Q3’20

Hyper -2% 6%
4
24
6 4 Super -3% 2%
27 25
32
25 29
Other Modern
Q3’19 Q3 ’20 Q3 ’21 Trade
1% -2%
6 6
23 24
14 13
Traditional
22 -2% 2%
6 Trade
12
Internet 22% -4%

Non-store -15% 6%
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
16
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 Q3’21 vs Q3’20

1
1 Supermarkets 13% 3%
7 4
1 1
1
1
10 3 8 4 Kirana/
4% 3%
Paan-Beedi
Q3 ’19 Q3 ’20 Q3 ’21
Chemist -2% 3%
83 84

84 Network
6% 4%
Marketing

Others 7% -6%
Supermarkets Kirana/ Chemist Network Others
Paan-Beedi Marketing

17
Saudi Arabia

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q3’21 vs Q3’20

Modern Trade 5% 6%
12

11 11 8
8 Lower Trade -5% 5%
9 1
1 1
45
Q3 ’19 Q3 ’20 45
Q3 ’21 48

Pharmacy 4% 7%
34 33
32

Wholesale -3% 11%

Others 23% 7%

Modern Trade Lower Trade Pharmacy Wholesale All Others

*Modern Trade - Supermarkets, hypermarkets and minimarkets that are part of an organized retail chain (e.g., Panda, Othaim, etc.).
*Lower Trade - Baqalas and minimarkets that are not part of organized 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.
*All Others - Stores dealing in some specific categories like Chocolate (e.g., Patchi), Juice Parlours, Roastery (Coffee), Honey, Poultry Shops, etc. and Home delivery
United Arab Emirates

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q3’21 vs Q3’20

Total Carrefour -11% 9%

19
Total Lulu -3% 4%
20 20
38
35 35
Q3 ’19 14 Q3 ’20 15 Q3 ’21 15
Key Hypermarkets -9% 12%

8 9 7 8
16 15 Key -15% -2%
9 Supermarkets
6
13
Key Cooperatives -14% 6%

Others -4% 8%
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 Q3’21 vs Q3’20

4 7 Hyper + Super -6% 5%

2 8 4 7 17
18 18
Mini -3% 3%
Q3 ’19
3
Q3 ’20
4
Q3 ’21 4 Markets
67
67
68 Traditional
0% 8%
Trade

Online
102% -5%
(under ‘Others’)
Hyper + Super Mini Markets Traditional Specialty store Others
Trade

20
Pen. Malaysia

Shopping
Channel Importance – % Value (MAT) Occasions Spend/Trip
MAT Q3’21 vs Q3’20

Hyper -13% 8%
7
5 21
4
7 3 7
52 25 4 24 Super 1% 7%
15 15 15
Q3 ’19 Q3 ’20 Q3 ’21
General Trade -6% 7%
46 48

49 Drug Beauty -4% 5%

& Pharmacy

Ecommerce 140% -15%

Hyper Super General Trade Drug Beauty & Ecommerce Others
Pharmacy

21
Thailand

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q3’21 vs Q3’20

Hyper -21% 0%
11 12
4 Super -3% 13%
11 17 11 16 4
2 3
5 4 15
CVS -4% 10%
Q3 ’19 13 Q3 ’20 14
Q3 ’21
34 34 H&B Stores 4% -6%
16 16
2 1 17
36
1
PVS -4% 16%

Direct Sales -9% 4%

Ecommerce 54% -12%

Hyper Super CVS H&B Stores PVS Direct Sales E-commerce Others

22
Philippines

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q3’21 vs Q3’20

Super -19% 4%
4
24 Hyper -12% 7%
6 6
27 27
Groceries 2% 7%
Q3 ’19 Q3 ’20 Q3’21 6
50 5 49 6
5 6 54 Drug Stores -26% 4%
4 7
12 12 4
3
11 Direct Sales -24% 7%

CVS 9% 10%

Traditional
-3% 8%
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 Q3’21 vs Q3’20

Street Shops -4% 8%

5
5
Wet Market -19% 9%
26 4 5 10
7 8
6 Speciality
7 -5% 2%
6 Stores
8 Q3 ’19
55 8
Q3 ’20 53 Q3 ’21 53
7 7 7 Super -12% 3%
9 9
6
7 Hyper -19% 5%

Mini Stores 11% 17%

Online 63% -8%

Street Shops Wet Market Speciality Stores Super Hyper Mini Stores Online Others

24
Vietnam (Rural)

Shopping
Channel Importance – % Value Occasions Spend/Trip
MAT Q3’21 vs Q3’20

Street Shops -1% 9%

1
2 5
3
2
23 3 33
52
12 Wet Market-11% 5%
15 14
Q3 ’19 Q3 ’20 Q3 ’21
Speciality
8% 11%
76 75 Stores
77
Direct Sale 1% -14%

Modern Trade 22% -6%

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