FMCG MONITOR / An integrated view of Indonesia FMCG market

MAT FY 2021 (In Home Consumption - National)

 EXECUTIVE SUMMARY

1 2 3 4 5 6

MARKET FMCG SHOPPER SEGMENT RETAILERS EMERGING

UPDATE PERFORMANCE BEHAVIOUR PERFORMANCE SNAPSHOT TRENDS
Indonesia’s economy FMCG growth was Higher spending and Food and personal care Traditional Trade Internet’s relevancy
was slowly recovered softer than 2020 and bigger basket size were spending were higher remained prominent and gets stronger among
shown by 5.02% growth shopping trip remained seen among middle to due to bigger basket size, omnichannel behavior is FMCG shoppers.
in the last quarter. The challenging, suggesting lower class buyers who extending the need to seen with promising Brands need to be
recovery was supported higher importance to drove the overall growth offer value for money growth from Online stand out and craft
by loosened Covid-19 win over the limited trip hence important to proposition and channel hence strong strategies to reach
restrictions and rising with bigger trip size. optimize recruitment reformulate recruitment presence across online their shoppers on the
vaccinations rate. strategy beyond upper strategy for each and offline stores internet.
class category. become a hygiene
factor.

2
 FEATURED FOCUS:
REACHING YOUR SHOPPERS
ON THE INTERNET
Internet’s relevancy among FMCG main shoppers EDITOR’S NOTE
Not only Internet is one of the most popular media in Indonesia, it’s The integrality of internet in consumers’ daily
life is no longer perceived as opportunity, but
also the only channel that able to grow in the past years unlike the
mandatory. As such, brands need to be stand
rest of media. The growth is faster in 2021, where the new normal out and craft strategies to make the most of
lifestyle with distant or remote activities is adopted. internet.

In our latest media study report, we explore on

99 99 98 96 how brands can leverage the trends, understand
their audience, and propose effectively to their
% HHs for Media usage | Total Indonesia| In home
71
consumers. You can read the full report here or
61 62 get in touch with us to find your ways in
47 reaching your shoppers on the internet.
47
36 36 31 29
18 14 18
7 11 8 Sugiharto Yosaputra
4
Media Study Lead
TV Internet Radio Newspaper Magazine Kantar, Worldpanel Division
2018 2019 2020 2021

3
 INDONESIA ECONOMY GROWTH
Indonesia’s economy was slowly recovered shown by 5.02% growth in the last quarter. The
recovery was supported by loosened Covid-19 restrictions and rising vaccinations rate.

INDONESIA GDP INDONESIA GDP

GROWTH RATE % ANNUAL GROWTH RATE %

5,1 5,2 5,02

GDP Growth
7,07 Q3 21 Q4 21
YoY%
3,69
5,02 Household
1.02 3.55
Consumption
3,51
Investment 3.76 4.49
Government
0.62 5.25
Spending
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Q4 '20 Q1 ' 21 Q2 '21 Q3 '21 Q4 '21 Export 29.16 29.83
-0,74
Import 29.95 29.60
-2,19 -2,07

Source: Trading Economics, Central Bureau on Statistics (BPS) 4

 INDONESIAN CONSUMERS
Price was inflated during the last quarter of 2021 while the exchange rate was slightly
better. With good progress on pandemic handling, CCI was improving to close the gap
with pre-pandemic level
INFLATION RATE CONSUMER CONFIDENCE INDEX (CCI) USD EXCHANGE RATE

126
2,72 118

97
1,87 14.343

13.880 14.025

Dec '19 Dec '20 Dec'21 Dec'19 Dec'20 Dec'21 Dec '19 Dec '20 Dec'21

Source: Trading Economics, Central Bureau on Statistics (BPS) 5

 4
w
/e
20
4 19
w /0
/e 1/
27
20
4 19

Value
w /0
/e 2/
24
20
4 19

Frequency
w /0
/e 3/
24
20

Price per unit

4 19
/0

Volume (units)
w
/e 4/
21
20

FMCG IN HOME
4 19
w /0
/e 5/
19
20
4 19
w /0
/e 6/
16
20
4 19
w /0
/e 7/
14
20
4 19
w /0
/e 8/
11
20
4 19
w /0

3%
4%
8%

-1%
/e 9/
08
20

FY 2019
4 19
w /1
/e 0/
06
20
4 19
w /1
/e 1/
03
20
4 19
w /1
/e 2/
01

1%
20

5%
4%
9%
4 19
w /1
/e 2/ FY 2020
20 29
4 20
w /0
/e 1/
26
20
4 20
w /0
/e 2/
23
20
4 20
/0
PRE COVID

w
/e 3/
2%
3%
5%

22

-2%
20
4 20
FY 2021

w /0
/e 4/
19
20
4 20
w /0
/e 5/
17
20
20
4 /0
w 6/
Festive
Covid &

/e 14
20
4 20
w /0
/e 7/
12
20
4 20
FMCG PERFORMANCE

w /0
/e 8/
16
20
4 20
w /0
/e 9/
13
20
4 20
w /1
/e 0/
11
20
4 20
w /1
/e 1/
08
20
4 20
w /1
/e 2/
06
20
4 21
w /0
/e 1/
20 03
4 21
w /0
/e 1/
31
20
4 21
w /0
/e 2/
28
20
21
4 /0
w 3/
/e 28
20
4 21
w /0
/e 4/
25
20
4 21
w /0
/e 5/
23
20
4 21
w /0
Festive

/e 6/
20
20
4 21
w /0
/e 7/
18
20
4 21
w /0
/e 8/
15
20
4 21
w /0
/e 9/
12
20
4 21
w /1
/e 0/
aligned with better macroeconomy condition and modest growth of household spending

20 10
4 21
w /1
/e 1/
07
20
4 21
w /1
/e 2/
05
20
21
/0
In comparison to the pre-pandemic level, the growth was still in recovery mode which was

1/
02
Source; FMCG in Home | Indonesia Urban + Rural.
6
 FMCG PERFORMANCE
In 2021, Growth was still softer than 2020 and shopping trip remained challenging despite mobility
has been gradually recovered, suggesting higher importance to win over the limited trip with bigger
trip size.
FMCG IN HOME | INDONESIA URBAN+RURAL | 12 weeks YOY trend

VALUE, VOLUME & FREQUENCY, UNITS BOUGHT &

PRICE SPEND PER TRIP
Price per Unit Units Bought per Shopping Trip
Value
No of Shopping Trips
Volume (Unit) 20
20 Spend per Shopping Trip FMCG IN HOME Full Year Full Year
2020 2021
15
15 Value 9% 5%
10
Volume (units) 5% 2%
10
5 Price per unit 4% 3%
5
0 Frequency 1% -2%

0
-5
19 0 0 0 20 1 1 1 21
20 20
2 02 02 20 20
2 02 02 20 19 0 0 0 1 1 1 21
2 2 2 2 2 02 02 20 2 02 02
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20 20 2 2 20 1 20 2 2 20
Q4 Q1 Q2 Q3 Q4 Q Q2 Q3 Q4
FMCG IN HOME | INDONESIA URBAN+RURAL | MAT YoY

7
 CONSUMER PURCHASE BEHAVIOUR
Higher spending and bigger basket size were seen among middle to lower class buyers who drove
the overall growth indicating that FMCG is still relevant for the cohort hence important to optimize
recruitment strategy beyond upper class

Value Buyer Frequency Spend per Trip (IDR) Volume per Trip (Units) Price per Unit (IDR)
Share % Share %
250 300 350 20000 40000 10 20 2000 4000

NATIONAL HH
100 100 EXPENDITURE -2% +5% +2% +3%

37 26 SES A&B -1% +2% +1% +1%

40 40 SES C
-3% +6% +3% +3%

23 34 SES DE
-2% +7% +2% +4%

FULL YEAR 2020 FULL YEAR 2021 FMCG IN HOME | INDONESIA

URBAN+RURAL

8
 20
19
20 / 01/
1 9 27
20 / 02/
1 9 24
20 / 03/
1 9 24
20 / 04/
1 9 21
20 / 05/
1 9 19
20 / 06/
1 9 16
20 / 07/
1 9 14
20 / 08/

HOME CARE
1 9 11
20 / 09/
1 9 08
20 / 10/
1 9 06
20 / 11/
1 9 03
20 / 12/
1 9 01
2 0 / 12
20 / 29
2 0 /0 1
20 / 26
2 0 /0 2
20 / 23
Value Trend – 4 weekly

2 0 /0 3
20 / 22
2 0 /0 4
20 / 19

PERSONAL CARE
2 0 /0 5
20 / 17
20 /0 6/
2 0 14
during the pandemic

20 / 07/
2 0 12
20 / 08/
2 0 16
20 / 09/
2 0 13
20 / 10/
2 0 11
20 / 11/
2 0 08
20 / 12/
2 1 06

TOTAL DAIRY
20 / 01/
2 1 03
20 / 01/
2 1 31
20 / 02/
2 1 28
20 / 03/
2 1 28
20 / 04/
2 1 25

FOOD
20 / 05/
2 1 23
20 / 06/
2 1 20
20 / 07/
2 1 18
20 / 08/
2 1 15
20 / 09/
2 1 12
20 / 10/
2 1 10
20 / 11/
2 1 07
BEVERAGES

20 / 12/
2 1 05
/0
1/
02
CARE

FOOD
FMCG

DAIRY
PERSONAL

BEVERAGES
HOME CARE
FMCG SEGMENTS PERFORMANCE

8%

8%
8%

8%

6%
9%
FY 2019

9%

5%

8%
8%
6%

13%
FY 2020

5%

1%
5%

5%

8%
sectors were catching up, especially beverages which were impacted the most due to low mobility

-0.1%

Source; FMCG in Home | Indonesia Urban + Rural.

FY 2021
The food sector was back to the pre-pandemic level after the spike during the lockdown, while other

Value Growth by Segments vs LY | FY 2019-2021

9
 FMCG SEGMENTS PERFORMANCE
In the past two years, food and personal care spending were higher due to bigger basket size,
extending the need to offer value for money proposition and reformulate recruitment strategy for
each category.
Frequency Volume per Trip (Unit) Spend per Trip (IDR) Price per Unit (IDR)
100 200 300
5 10
0 10.000 20.000 0 5.000 10.000
HOME CARE
-4% +5% +2% -3%

PERSONAL CARE
-2% +3% +5% +1%

DAIRY
-1% +2% +3% +1%

FOOD
-2% +2% +8% +6%

BEVERAGES
-5% +4% +4% -0.1%

FULL YEAR 2020 FULL YEAR 2021 FMCG IN HOME | INDONESIA

URBAN+RURAL

10
 SNAPSHOT CHANNELS
Traditional Trade remained prominent and omnichannel behavior was seen with promising growth
from Online channels hence strong presence across online and offline stores becomes a hygiene
factor.
Occasion % Purchase Behavior Across Channel
2 3 Penetration % Frequency Volume per Trip (Unit) Spend per Trip (IDR)
100 200 400 10 20 0 50.000 100.000

Total Trade
-2% +2% +5%
Channel +0%
Other Channels HSM +3% +6%
-4% -8%
83 83
Traditional Trade Minimarket
-0.3% -2% +3%
-5%
Total
Specialty Store* Traditional
0% +3% +7%
Trade -2%
TOTAL MT Specialty Store
+8% +5% +3%
Minimarket -7%
5 5
Online 0% -4%
8 8 +51% +36%
2 2 HSM
FY 20 FY 21
FULL YEAR 2020 FULL YEAR 2021 FMCG IN HOME | INDONESIA
URBAN+RURAL

*Specialty Store: Depot Air Isi Ulang, Drug Store, Personal Care, Baby Store, Cosmetics Store, Milk Store 11
TV has been a mandatory media
and the Internet become more
relevant for the upper-middle- Indonesian
class at a young age living in key
households
cities.
are living in
This suggests an opportunity to extend the multiscreen
reach of millennials beyond key cities and
the upper class with bigger room to grow.
Download full report here

100% HOUSEHOLDS

0%
NATIONAL Millenials Gen X (35- Gen S NATIONAL Urban Key Urban Rural NATIONAL SES AB SES C SES DE
(<=35yo) 55yo) (56+yo) Cities Secondary
Cities
TV PENETRATION INTERNET PENETRATION

Source: Kantar, Worldpanel Media Profile, FMCG Main Shoppers, National Indonesia, MAT Aug 2021 12
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Click on the cover to listen
 TERMS GLOSSARY

TRADE CHANNEL DEFINITION IN HOME CONSUMPTION

Specialty Store Milk Store, Baby Store, Cosmetics Store, Drug Store, The consumption of FMCG products within home of panelist after the
Apothecary, Refill Water Kiosk purchase made and being reported in In Home dairy

Internet based marketplace which displays products Category Tracked 90+ (Exclude tobacco and fresh food)
Online
virtually via dedicated websites that can be accessed Scope Indonesia Urban + Rural
anytime. No direct face-to-face transaction occurs in Household representatives 68 Million
the purchasing process.
OUT OF HOME CONSUMPTION
MEASUREMENT DEFINITION The consumption of FMCG products outside panelist home and it is
consumed right away after the purchase made at the shop. The panelist
Penetration The percentage of households do purchase at least
will bring the used pack as proof of consumption and being reported in
once in a given period of time
out of home dairy.
Frequency The average number of shopping trips made to
purchase the product in a given period of time Category Tracked 22
List of Categories Ready to Drink (RTD) RTD coffee; isotonic drink;
Occasion / Trip The actual number of purchase occasion / shopping
D tea; energy drink; RTD juice; RTD milk;
trip in a given period of time
carbonated soda drink; mineral water; cultured
Spend per Trip The average amount that buyers payed in a single milk; soya milk; yoghurt drink; health food drink;
shopping trip Ready to Eat (RTE) potato snack; extruded snack;
chocolate; ice cream; candy; cold cereal; biscuits;
Volume per Trip The average volume that buyers purchased in a single
cup noodle; RTE sausages; chewing gum
shopping trip
Price per Unit The average price that buyers payed for a single unit Scope Indonesia Urban

Individual representatives 130+ million from the same Household

14
Kantar is the world’s leading data, insights and consulting company
We understand more about how people think, feel, shop, share, vote and
view than anyone else. Combining our expertise in human understanding
with advanced technologies, Kantar’s 30,000 people help the world’s
leading organizations succeed and grow.

These findings are based on Worldpanel FMCG data. In Indonesia, Kantar

monitors in home and out of home consumption, in the FMCG front, every
single week. We track household purchases of over 90 different FMCG
categories across food and nonfood. Our in-home data represents 68
million of Indonesia Urban and Rural Household population. Our out of
home data represents 130 million of Indonesia Urban population.

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15