Welcome to Asia Brand Footprint 2024
Welcome to the 2024 edition of Brand Footprint Asia.
This report unveils the brand choices made by the region’s shoppers in 2023, using Kantar Worldpanel’s unique Consumer Reach Point (CRP) methodology. This combines data on population, penetration, and consumer choices (frequency) to determine the most-chosen brands.
This year, we examine the brand choices of 11 Asian markets where we operate our consumer panels, covering 85% of the region’s GDP and more than 4,500 brands.
In addition to this regional report, which provides a consolidated view of Asia’s key markets, you can read our market-specific local reports to get a zoom-in view of how consumers within each country purchase FMCG brands.
In 2023, as the world started to recover from COVID-19, the total value of the global FMCG sector grew by 8.6%. However, inflation soon began to impact the Asian markets, and as a result the region saw stable growth of 3.7%, while spend per household remained flat at US$828, an increase of 1%.
Asian consumers favour local brands – which account for a 77.6% share of the region’s total CRPs – especially in North Asia (81.6%) and South Asia (81.4%).
North Asia: Navigating the New Dynamics
The North Asian countries showcase major shifts in consumer behaviour and market dynamics. China's FMCG market is experiencing a moderate recovery, with a focus on innovation and adapting to changing shopper preferences.
Taiwan has seen a move towards more social and active lifestyles post-COVID-19, and this has influenced spending habits. Economic challenges and inflation have led to conservative consumer behaviour in Korea, impacting both food and non-food sectors.
Southeast Asia: Embracing Change and Innovation
In the Southeast Asian markets, the FMCG industry is demonstrating resilience. Indonesia is showing signs of recovery, with volume growth starting to come back after the high price inflation of the previous year when volumes were stagnant. There is also a renewed emphasis on delivering value to consumers, and innovation in product offerings.
In the Philippines, the contribution made by volume to FMCG growth is on the rise. While cash outlay remains an important consideration for shoppers, they are also looking for new forms of value. Malaysia faces challenges from inflation, which is driving brands to innovate and improve consumer engagement strategies. A slowdown in Vietnam's economy has pushed household shopping behaviour toward a decline in purchased volume, despite inflation easing towards the year-end.
South Asia: Diverse Markets, Diverse Strategies
The South Asian markets reflect diverse growth patterns and evolving consumer preferences. Growth and diversity in shopper choices are highlighted in India’s FMCG sector, with brands adapting to changing market dynamics. Bangladesh is grappling with inflation, which is influencing household spending habits towards a focus on essential items.
Sri Lanka shows signs of recovery following a period of economic turmoil, with consumers prioritising value and innovative product offerings amidst ongoing financial challenges.
How do brands grow?
In this report, we are introducing Kantar’s new ‘Blueprint for Brand Growth’ framework. Through our research, we have found that brands grow by being meaningfully different to more people. Brands must identify how to promote stronger functional and emotive connections, and define strategic opportunities to build difference.
We have decoded the three growth drivers of brand growth:
Predispose More People: Increase purchase probability by building the right perceptions to make your brand mentally available and meaningfully different.
Be More Present: Optimise marketing investments in the customer journey, range, distribution, pack, pricing, promotions, and other activities to capture consumer choices.
Find New Space: Identify new motivations, occasions, categories, and services to expand into with meaningfully different innovation and communication.
You can read the brand stories in our reports to understand how brands are putting these growth accelerators into action.
We hope you enjoy reading this report as much as we enjoyed creating it.
