Kantar Worldpanel, the global expert in shoppers’ behavior, recently revealed a 3 percent growth in the total FMCG (fast moving consumer goods) market in Asia in the past 12 months ending June 2017 (July 2016 to June 2017). This is based on data tracked by Kantar Worldpanel for its Consumer Insights study, which covers households in Asian countries such as China, Taiwan, South Korea, India, Saudi Arabia, Malaysia, Thailand, Vietnam, and the Philippines.
The personal care category (e.g. hair care and skin care products) registered the highest growth in the continent at 7.4 percent. Home care (e.g. detergent and dishwashing soap) spend was ranked second with an increase of 2.8 percent, while dairy (e.g. cheese and milk products) and food (e.g. canned food and chips) categories followed closely with 2.5 percent and 2.3 percent growth, respectively. However, beverage (e.g. alcohol and juice products) was the lone category that experienced a 0.4 percent decline during the period covered by the study.
Southeast Asian Situation
In Southeast Asia (specifically Malaysia, Thailand, Vietnam and the Philippines), the total FMCG value spend grew by 2.4 percent in the same period as compared to the previous year. Additional data from Kantar Worldpanel showed that home care ranked the fastest growing category with 4.1 percent followed by food with a 3.2 percent increase in value spend. Similar to the rest of Asia, the beverage category decreased by 0.2 percent based on combined data from all four countries in Southeast Asia.
Meanwhile, the Philippine FMCG market, ranked second in Southeast Asia, with a 3 percent growth in the second quarter of 2017, following Vietnam with a 4.9 percent growth in the same period. Thailand’s FMCG shopping value spend increased by a modest one percent, while Malaysia dipped by 0.5 percent.
The Philippine Scene
In the local front, the Kantar Worldpanel Consumer Insights study revealed that the FMCG value spend in nearly all categories has shown steady growth. Confirming that Filipinos love to eat, the Philippines saw a growth of 4.3 percent in the food category and 4.4 percent in the dairy category. Homecare saw an even higher percentage growth in value spend at five percent, while personal care increased by 3 percent. Beverage purchases in the country also declined by 1.5 percent, although still higher than the rest of Asia.
“While Kantar Worldpanel research shows that Philippines consumers are a bit more cautious with their grocery spend today compared to previous years, Filipinos are still spending more than most of our Southeast Asian neighbours. This is not surprising as our economy remains vibrant with forecasts of continued economic growth in the next few years,” Lourdes Deocareza, Kantar Worldpanel New Business Development Head, said.