RESILIENCE UNCOVERED:
ASIA'S FMCG REVIVAL

Welcome to the

Brand Footprint Asia 2023

report

Welcome to the "Brand Footprint Asia 2023" Report

This year's report dives into the vibrant and complex world of Asia Pacific's Fast-Moving Consumer Goods (FMCG) landscape, covering eleven markets and representing 85% of GDP. Using comprehensive purchasing data provided by Kantar Worldpanel, we highlight the essential "moment of truth" during the consumers' purchase journey.

Following a tumultuous period due to the global pandemic, 2022 brought a new wave of change as markets began to reopen, all while grappling with rising inflation. In the face of these economic challenges, brands - particularly those in the FMCG sector - demonstrated resilience and creativity in their strategies, paving the way for growth and evolution.

CHINESE MAINLAND

In China, the world's largest market, FMCG brands showed remarkable resilience amid the pandemic and cautious consumer environment in 2022. Adapting swiftly to evolving consumer needs, these brands fine-tuned their product portfolios, implemented strategic pricing, and enhanced their omnichannel presence. A notable increase in health-conscious consumption further catalyzed growth in the health-related categories. Read on

SOUTH KOREA

In Korea, the FMCG food sector shrank in 2022 due to the pandemic and inflation, leading to reduced consumer confidence. However, premium non-food sectors grew. The FMCG market's potential lies in consumers reassessing brand loyalty and spending habits amid higher prices. Read on

TAIWAN

In Taiwan, the demand for convenience products and snacks increased as people began socialising and returning to their normal way of life post covid, which rejuvenated the beauty sector. Health-conscious Taiwanese consumers helped to boost the health sector, particularly in innovative vitamins and supplements. Read on

INDONESIA

Indonesia’s economy has shown resilience to the effects of the pandemic and continuous inflation. It has maintained GDP growth as consumers adjusted their spending habits and priorities, such as upper and middle-class consumers opting for larger packs, while lower-class consumers switched to more-affordable brands. Read on

MALAYSIA

The post-pandemic shifts in 2022 impacted Malaysia's FMCG sector. Consumers, looked for budget-friendly options, reduced grocery spending, which led to a 1% decline. Despite the challenges, some brands excelled in attracting and retaining customers amid a saturated market. Read on

PHILIPPINES

In the Philippines, post-pandemic life began in 2022. Consumer started shopping in categories that had been neglected during the pandemic and increased spending across all sectors. Shoppers have sought value to offset the effect of inflation by switching to affordable brands, downsizing, and shopping in sari-sari stores. Household brands still dominate, but those with strong value propositions have also thrived. Read on

THAILAND

In Thailand, inflation impacted the grocery sector, prompting FMCG companies to adjust their pricing strategies and provide value. Consumers spent less, made fewer purchases, and prioritised outdoor and health-related products. Brands must understand the changing of demographics, as well as the needs of consumers to remain competitive. Read on

VIETNAM

In the year after the pandemic, sectors like beverages and non-foods in Vietnam rebounded from the two-year restrictions. However, increasing prices challenged cost-conscious consumers. As FMCG prices rose, by Q1 2022 consumers started adopting cost-saving strategies like buying less, switching channels, seeking cheaper options or try to absorb the price increase. Read on

INDIA

In India, the economy rebounded strongly after the pandemic and associated stringent lockdowns in 2021. The following year, India effectively managed global inflation with minimal impact on the economy. Consumers responded by buying smaller packs more often, which significantly reduced the number of brands they could choose from. Read on

SRI LANKA

Sri Lanka emerged from the pandemic but faced a severe economic crisis in 2022, including hyperinflation and a 75% currency depreciation, disrupting the FMCG sector. Consumers adopted various cost-saving measures such as reducing consumption and opting for cheaper brands, smaller packs, and unbranded options. Read on

BANGLADESH

Bangladesh successfully navigated the pandemic, but economic headwinds followed bringing rising global commodity prices and uncertainty due to the war in Ukraine. Shoppers have tried to manage their wallets in different ways, including switching to prominent local brands, sticking to the most relevant pack sizes or buying bigger packs wherever possible. Read on

A critical insight from this year's report is that increasing penetration remains a key driver of brand growth. Many of the brands that climbed the rankings owe their success to growing penetration, underscoring its importance in brand strategy. We have identified that the most successful brands use four core growth levers: improving their market presence, expanding into more categories, innovating to cater to targeted and emerging needs, and creating more moments of consumption and usage occasions.

In this report, we will delve into the details of these market highlights and explain in-depth the local dynamics and strategies that sparked growth. this report provides a 360 look at the Asia Pacific FMCG landscape - from stories of resilience in Indonesia and Vietnam, to lessons about brand growth in India and China, to exploring the tactics that led to success in Malaysia and Thailand.

Alongside our main findings, we encourage you to explore the individual market reports, which provide a deeper dive into each of the 11 markets. Happy reading! We hope these insights inform your strategies and inspire success in the year ahead.