The changing dynamicsof Thailand’s grocery market
The impact of inflation has resulted in significant price rises,with 14 categories hit harder than average.
Inflation is not a country specific issue; it is a global phenomenon that could drive the economy of any market into stagnation, or even recession. Although grocery is a sector that’s made up of categories that are necessary to consumers, it cannot be denied that the impact of inflation has been huge – with price rises ranging from a 0.5% increase for rice, to a 31% increase for cooking oil.
There are 14 FMCG categories that have experienced higher inflation than the average, with cooking oil, soybean sauce, detergent, mouthwash, canned fish and infant formula impacted the most. Brands and manufacturers in these categories need to pay more attention to price strategies and offering value for money, to ensure consumers can still afford their products and don’t trade down to lower-tier versions.
Consumers in each area of the country have been impacted differently.
In Greater Bangkok, they have more flexibility in their spending, with only 5% feeling that their financial situation is significantly worse compared to last year.
