2022 was shaped both the pandemic and inflation. The FMCG market - particularly the food category – experienced a slowdown due to declining consumer confidence in response to rising inflation.
As people gradually returned to life outside their homes and inflationary pressures continued, there has been a drop in consumer reach points (CRPs) in the food category. Nonetheless, the non-food market - especially personal items and household outdoor products - has grown through increased consumption of premium or niche segments.
We believe the potential of the Korean FMCG market will depend on how consumers reassess their brand loyalties and change what they buy as they adjust to higher prices.
Consequently, CRP has declined as consumers cut back on their spending, as the in-home market appears with a conservative consumption trend. With the decreased CRP negatively affecting, consumption is presumed to be on a shrinkage.
