Consumers demand proof and performance over provenance

Smaller local indie brands are driving growth in Asia’s beauty market. They’re successfully winning buyers and spend from the big established players, by meeting new consumer needs and delivering real results.

Beauty continues to outperform overall FMCG growth in Asia, led by the ‘Emerging 30’. These brands are reshaping expectations with sharply-focused benefits, ingredient-led innovation, and advanced delivery technologies. Their prize has been explosive growth – with spend up a huge 117% in South Korea, 98% in Thailand, and 82% in Indonesia.

The fact is, Asian beauty consumers don’t value a brand’s heritage as much as they once did. Instead, they make decisions based on evidence that products will work, and on true performance.

The Emerging 30 are successfully earning trust and credibility by employing three core strategies:

1. Addressing and creating new demand spaces – with precision benefits like brightening, pore care, early anti-aging, and make-up infused with skincare ingredients.
2. Ingredient-first messaging – communicating active ingredients in ways that consumers understand and believe. Retinol, niacinamide, and PDRN dominate the conversation, while familiar components are being recombined in novel ways.
3. Beyond skin-deep delivery – developing innovative methods that ensure the ingredients reach the right skin layer. These include encapsulation, boosters, spicules, and technologically advanced beauty devices.

As 2025 draws to a close, the global discussion around sustainability continues to evolve, particularly across Europe and the United States, where political debate around green energy and inclusive initiatives has grown louder. However, Worldpanel by Numerator’s latest Who Cares? Who Does? report reveals that, while opinions may differ in some markets, a large number of consumers across the world remain engaged and committed to making environmentally conscious choices in their everyday lives.

The share of Eco-Actives, those consumers who are most committed to living sustainably, has stayed fairly steady, dropping just slightly from 24% to 23%. This resilient group now represents around $613 billion in global FMCG value, offering a significant growth opportunity for brands. Meanwhile, Eco-Considerers, who care about the environment but take fewer actions, remain at 40%, and Eco-Dismissers, who show little or no interest in sustainability, have risen slightly to 38%.

Across regions, Asia Pacific experiences a decline 17% of Eco-Actives, with Indonesia showing  a twofold increase at 11% which may reflect recent shifts in the political conversation around green policies.

Climate change remains a key concern

When asked about the environmental and societal challenges, number one concern for global is water pollution and water climate change, each at 46%. Meanwhile according to Indonesians, the most concerning is plastic waste at 67%. Most common actions that Indonesians take to address the plastic waste is by using refillable drinking bottles (62%, on par with global), and opting for refill pack (56%, +2pts versus global).

What prevents the consumer from acting

Price remains a significant barrier - only 19% claim to be open to paying more for purchasing product that they trust was better for the environment. They rather opt for simpler packaging (52%) or bring their own packaging (49%).

According to Natalie Babbage, Global Product Director for PanelVoice at Worldpanel by Numerator: “Many are happy to bring their own packaging, choose simpler designs or pay a small deposit for refillable containers, but far fewer are prepared to pay a premium. This shows that brands need to balance cost, performance and environmental responsibility if they want to win over more shoppers.”

Packaging continues to serve as a strong signal of sustainability, as consumers recognise that materials such as aluminium and glass are fully recyclable without even reading the label. The impact work being carried out to improve supply chains is less widely understood and therefore less front of mind. Brands need to find ways to weave this into their broader brand narrative.

Inspiration from the global, some companies are already showing what is possible. UK personal care brand Wild has turned refillable deodorants into a mainstream choice by combining sustainability with strong design and effective performance. The brand has diverted 80 tonnes of single-use packaging from landfill and achieved 62% year-on-year growth, six times faster than the category, proving that environmental responsibility and commercial success can go hand in hand.

Brands that make eco-friendly products affordable, practical and trustworthy will not only help tackle one of the biggest challenges we face but also build stronger relationships with their customers.

Not only are Indonesian baby care shoppers downtrading to lower-cost options, but the country’s birth rate is falling. This means that recruiting new buyers cannot be relied on alone as a route to growth. 

There are pockets of opportunity to be found across the market, for mainstream and premium brands alike. In this new report from Worldpanel by Numerator – From Cradle to Cart – we reveal where they are. 

We share the strategies that will help you to fight back against the downtrading trend – such as combining reach with affordability – and make focused investments in innovation and retail strategies. 

In the report, we’ll deepen your understanding of shoppers and their behaviour, as well as crucial market trends. You’ll learn about:

• The high-potential shopper segments and regions
• How to win buyers in key cities, secondary cities, and rural areas
• The standout segments showing rapid growth
• Retail dynamics across Indonesia – and which channels present the greatest opportunities
• The evolving role of promotion in creating value.

Worldpanel Indonesia’s FMCG Monitor is a quarterly publication that tracks the in-home FMCG market across diverse categories in Indonesia. By engaging with shoppers nationwide on a weekly basis, we deliver actionable insights into market dynamics and emerging trends. 

Key highlights from this quarter:

Changing consumer habits and local market dynamics are driving uneven growth across Asia’s FMCG landscape. In Q2 of 2025, spend in the region’s FMCG sector grew 2.5% year-on-year, marking a slight deceleration compared to Q1. The food and beverages category led the growth, while home care outperformed personal care.

North Asia recorded steady progress with a 1.6% increase in value sales, driven mainly by food and beverages and home care. Southeast Asia experienced a slight deceleration compared to the previous quarter, growing 3.2% across most sectors. South and West Asia led the region with an impressive 8.3% growth, largely fuelled by India’s strong performance.

This report explores key consumer trends across 11 Asian markets, offering insights into how shoppers are spending, how category preferences are evolving, and where new growth opportunities are emerging.

Market highlights:

• Mainland China

China‘s FMCG market continued its soft growth in the first half of 2025, across all sectors except for dairy. The lower-tier cities, especially town and county-level markets, remained key growth engines.

• South Korea

Korea’s FMCG market recorded growth of 3.8% in Q2, a slowdown from the double-digit expansion of a year ago. The limited increase appears largely attributable to inflation, which has elevated average basket values. At the same time, the economic downturn has prompted consumers to tighten spending, resulting in lower purchase frequency.

• Taiwan

Following the robust rebound in 2024, growth momentum is gradually easing. FMCG value expanded by 7.8% in Q2 of 2025, down from 8.8% in Q1. Food and non-food sectors show similar trends, indicating the market may be settling into a more stable trajectory after the post-Covid volatility. Full-year growth is likely to normalise between +0% and 5%.

• Indonesia

FMCG is growing at a slower pace compared to last year, and volume continues to contract, suggesting a real challenge to shopper spending. A polarisation trend is evident as shoppers cope with price increases: they are either buying more to save more, or shifting to more affordable products.

• Malaysia

Malaysia’s monthly inflation rate eased to 1.2% in May 2025. In Q2, despite falling average prices and ongoing festive promotions, FMCG spending remained limited. This suggests a more fundamental shift in shopper behaviour, with value-consciousness starting to outweigh the draw of promotional offers.

• Philippines

The FMCG landscape continues to follow a positive long-term trend, albeit with a softer short-term uptick in value sales. Volume-driven growth has softened, but overall value is still increasing due to factors such as rising prices or consumers opting for more premium options.

• Thailand

Shoppers bought a greater number of categories and spent more on in-home FMCG in the second half of 2024, resulting in a decline in the first half of 2025. Due to the lack of strong government subsidy, low FMCG growth is expected for the rest of the year. Household income and levels of debt are unlikely to change much.

• Vietnam

Vietnam’s urban FMCG market posted its strongest first-half growth in 15 years, showing resilience amid global trade uncertainties. Price increases – mainly in food, foodstuffs, and electricity – contributed to this trend. By contrast, rural areas saw a sharper value decline after Q1’s holiday-driven boost, as consumers reduced purchase volumes despite paying higher average prices.

• India

Urban FMCG volume grew 4.6% in Q2, marking a slowdown from the 5.5% growth recorded in the previous year. Macro-economic factors may be prompting consumers to spend more cautiously, impacting overall consumption patterns. This shift in behaviour is particularly evident in discretionary categories, where consumers are opting for smaller pack sizes, such as milk drinks and coffee.

• Saudi Arabia

Growth is not coming from bigger baskets or higher frequency, but from population expansion (+5.5%). This means demand is tied to how many households are buying, not to purchasing power.

• United Arab Emirates

Overall FMCG volume has risen, driven by population growth and seasonal demand, though volume-per-buyer remains flat across most sectors except home care. With 59% of categories now back in volume growth, the key opportunity lies in recruitment – making entry easy with accessible packs and sustaining retention during seasonal peaks.

Stay updated with the latest insights and trends in the Asia-Pacific FMCG landscape by accessing the Q2 2025 edition of Asia Pulse. Click the download button at the top of this page to explore key developments across 11 markets and uncover growth opportunities tailored to the diverse dynamics of the region.

Today’s beauty consumers are more informed, expressive, and demanding than ever. They’re investing in advanced skincare, flawless makeup, and salon-quality hair care at home. The game has changed: it’s no longer about reaching more people. It’s about unlocking more value from each one. 

Ready to see what’s ahead?

Dive into our latest report, Indonesia Beauty Kaleidoscope 2025, where we decode the new growth formula and reveal how your brand can thrive in this evolving landscape.

Start unlocking deeper shopper value and discover how your brand can stay ahead in Indonesia’s dynamic beauty market.

In Worldpanel’s new Festive FMCG in Indonesia 2025 report, we take an in-depth look at the complex economic environment that shaped the season – exploring how shoppers spent more frugally without sacrificing the festive spirit.

We answer key questions including:

• Have shoppers’ festive priorities evolved?
• Which categories peaked during the period?
• Are lower-class or upper-class shoppers driving the increase in spend?
• How do behaviour and preferences vary across regions?
• Are offline channels still the primary destination for festive shopping?

The report also puts the latest gifting trends under the spotlight, and shares how gift packs can drive trial, conversion and loyalty.

Finally, we explain how all categories can leverage the 2026 festive season by staying relevant to shoppers, and resonating with their evolving priorities.

As 2025 began, Asia exhibited measured economic growth with a 2.8% increase in FMCG value during Q1. This reflects a cautious but steady performance compared to the previous quarter, though it sits slightly below the growth seen in Q1 last year.

No single sector or region dominates the story this quarter; each market and category has its own unique trajectory. The beverages sector continues to expand in some markets, while other categories like home care and food hold steady. In contrast, personal care and dairy have struggled to maintain growth in several markets.

Covering 11 markets, this report delves into the key trends and evolving consumer behaviours that are shaping Asia’s FMCG landscape.

Market highlights:

• Chinese Mainland

China’s FMCG market had a positive start to 2025, with value sales increasing by 4.2% year-on-year in the first quarter, driven by the festive holidays and the return of family visits. Consumption in lower-tier cities grew by 5.9%, while the town-level market saw volume growth of over 10%.

• Taiwan

Building on the previous quarter’s strong momentum, FMCG value increased by 9%. Food and non-food categories grew by 8% and 11% respectively, driven by higher consumer spending over the past year. 2025 presents several uncertainties – including tariffs and political tensions – that may affect market performance.

• India

FMCG value grew 7.1% in Q1, with volume increasing 4.4% and average price 2.5%. Both value and volume growth were slower than 2024. Inflation is easing overall; however affluent shoppers moved spend towards categories outside FMCG – like travel, dining out, and lifestyle experiences – while lower income households prioritised essentials.

• South Korea

While purchase frequency declined across all food sectors, household and personal care grew, primarily led by skincare cosmetics. This was fuelled by the rising popularity of K-beauty. Skincare products such as creams and essences, valued for their anti-aging benefits, significantly contributed to the overall growth of cosmetics.

• United Arab Emirates

Shoppers in the UAE bought more groceries in Q1 of 2025, led by strong Ramadan sales and steady population growth. More categories are growing than declining, reflecting shoppers’ optimism despite economic pressures.

• Saudi Arabia

FMCG volumes recovered due to population growth as inflation eased, with households shopping more frequently despite tighter basket sizes. Price drops across most categories – driven by higher promotions in modern trade retailers, as they sought to compete with discounters – have led to a decline in spending.

• Indonesia

FMCG growth in Q1 slowed down compared to last year, while volume contracted for the first time, suggesting that recent economic pressures have really challenged shopper spending. Consumers responded by buying more volume to get better value for money, or switching to cheaper products.

• Malaysia

Malaysia’s inflation rate eased to 1.4% in March 2025, driven by softer prices in accommodation and restaurants. However, a continued decline in shopping trips highlights a deeper behavioural shift: shoppers are prioritising value over frequency, reflecting sustained caution amid ongoing economic strain.

• Thailand

Despite the recovery of take-home FMCG in the second half of 2024, the market slowed down again in Q1. This suggests that shoppers have advanced purchase with government subsidy and led to a delayed purchase, combining with possible pressure from household debt. The absence of additional government subsidy in 2025 is likely to result in low or flat growth.

• Philippines

While most FMCG mega-sectors were trending positively in the short term, dairy continued to lag in Q1. Consumption of easy-to-prepare food and beverage categories slowed, whereas seasonal products remained on the rise – even after the holidays.

• Vietnam

Vietnam posted its strongest first quarter performance in five years, with a rise in the consumer price index (CPI) driven by essentials such as food and food services, housing, utilities and healthcare. In-home FMCG showed a slight recovery, with the Tet holiday delivering a moderate boost.

Get up to date with the latest insights and trends in the Asia-Pacific FMCG sector by accessing the Q1 2025 edition of Asia Pulse.

Click the download button at the top of this page to explore key developments across 11 markets, and uncover growth opportunities tailored to the diverse dynamics of the region.

As we closed 2024, the FMCG sector in Asia continued to demonstrate economic resilience, with a stable value growth rate of 2.7%. The beverages sector remains the key growth driver, while the food and home care categories are sustaining their momentum. This report covers 11 markets, highlighting the key trends and evolving consumer behaviours that have shaped the region’s FMCG landscape throughout the year.

Market highlights:

• Chinese Mainland

The development of the Chinese mainland’s FMCG market remained stable in 2024. While the beverage category saw significant growth, the personal care category continued to decline, but this slowed in the fourth quarter. The dairy category continued to face considerable growth challenges.

• Taiwan

Shoppers appreciate the convenience and affordability of online shopping, keeping e-commerce on a strong growth trajectory (+15%). However, they also continue to enjoy the in-store shopping experience, with the performance of hypermarkets (+7%) and supermarkets (+5%) improving from stable to strong.

• India

The impact of inflation on household FMCG consumption remains moderate. Volume sales in the sector grew by 4.6% in Q4 of 2024; however, the pace of growth is slower compared to the 8% seen in Q4 2023. In the urban region, volume growth in the food sector was hampered in the second half of 2024 by a notable surge in price inflation.

• South Korea

The FMCG market in Korea has been growing steadily, with a 6.6% value increase at the year-end. This was driven by an expansion in consumers’ basket size. Meanwhile, the decline in frequency observed in Q3 continued.

• United Arab Emirates

As consumers grapple with rising living costs, they are trying to find ways to get more value – opting for a higher frequency of shopping trips, with smaller baskets. Spend within discounters is rising sharply, making a strategic approach essential for driving brand growth. Consumers from all socio-economic groups visited discounters in 2024.

• Saudi Arabia

Despite an expanding economy and relatively low inflation, Saudi Arabia's FMCG sector is struggling to achieve healthy growth. The influx of white-collar expatriates has contributed to an overall increase in FMCG volume, yet this has not translated into robust value growth across categories. Shoppers remain price-conscious, with spending patterns shifting toward essential goods and promotion-driven purchases.

• Indonesia

Supermarkets are the main drivers of penetration growth, bringing in new shoppers to the modern trade channel. At the same time, e-commerce complements traditional retail by attracting additional shoppers and strengthening the shift toward omnichannel shopping.

• Malaysia

Shoppers have been making fewer visits across various shopping channels, but offsetting this by increasing their spend per trip. Foot traffic in minimarkets has continued to rise, driven by the appeal of consistently low prices and convenience. However, this seems to result in a lower growth in spend per trip compared to other channels.

• Thailand

Take-home FMCG is finally recovering following two years of decline, led mostly by an increase in basket size and frequency. However, shoppers are switching to smaller pack sizes to avoid spending too much.

• Philippines

Filipinos’ top channels – sari-sari stores and hyper/supermarkets – remained stable in Q4 of 2024. Smaller channels like direct sales, discounters and e-commerce have driven overall growth, indicating that shoppers’ behaviour is becoming more omni-channel in nature.

• Vietnam

Vietnam recorded a stellar economic performance in 2024, with strong GDP growth of 7.09%, demonstrating resilience despite the economic impact of typhoon Yagi. Overall consumer confidence in economic prospects improved from 2023, but has not yet recovered to pre-COVID levels in 2019.

Stay updated with the latest insights and trends in the Asia-Pacific FMCG sector by accessing the Q4 2024 edition of Asia Pulse. Click the download button at the top of this page to explore key developments across 11 markets, and discover emerging opportunities in the region.

Kantar Indonesia's FMCG Monitor is a quarterly report that provides insights into the performance of the in-home FMCG market across various sectors in Indonesia, along with key trend highlights. By engaging with shoppers nationwide on a weekly basis, we offer a comprehensive understanding of market dynamics.

Key highlights from this quarter:
 

• Indonesia’s total FMCG value grew by 7% over the last year, primarily driven by the higher spend per trip and volume rebound from early 2024, suggesting brands might drive higher spending in some categories and optimize pack-price strategy to cope with price increase.

• Household spending grew by 7.3%, driven mainly by essentials like fresh food and FMCG. Less allocation is seen for some pockets such as saving which is caused by higher economic pressures.

• Beauty remains the ‘darling’ of FMCG with double-digit growth and the rebound in festive-driven food and dairy categories drive the overall FMCG growth. Personal care and home care sector can only maintain the growth by coping with the price increase.

• Supermarkets are the main drivers of HSM penetration growth, bringing in new shoppers to the channel. At the same time, e-commerce complements traditional retail by attracting additional shoppers and strengthening the shift toward omnichannel shopping.

We invite you to explore the report to discover insights that can support your brand’s strategic choices. If you have any questions or would like to discuss the findings further, please don’t hesitate to contact us.

As Indonesia steps into 2025, the FMCG industry is at the forefront of transformation, brimming with opportunities for growth. Kantar Worldpanel’s latest FMCG Outlook Indonesia 2025 report unpacks the key trends, consumer behaviors, and market dynamics that will shape the industry in the coming year.

From pantry essentials to beauty products, Indonesian shoppers are redefining the market with evolving preferences. The report reveals how brands can thrive amidst these shifts by embracing innovation, optimizing channel strategies, and staying attuned to socio-economic changes.

Key insights include:

• The increasing importance of capturing middle-class growth while meeting the demands of sophisticated upper-class consumers.
• The continuous expansion of household budgets for pantry staples, with a focus on affordability and premiumization.
• The rapid rise of digital platforms transforming how beauty products are shopped and consumed.

Dive deeper into what 2025 holds for FMCG players in Indonesia and uncover actionable strategies to drive your business forward.

Ready to shape your strategy for the future?

• Read the full report to uncover in-depth insights and recommendations.
• Watch our webinar series to hear from Kantar experts and industry leaders.
• Book a conversation with us to tailor these insights to your business needs.

Stay ahead of the curve and make 2025 your year of growth with Kantar Worldpanel.

As the third quarter of 2024 came to a close, the FMCG industry across Asia continued to show promise, with value growth reaching 3.4% – a clear improvement on the 2% increase in Q3 of last year. This upward trend underscores the region's resilience, and its ability to navigate shifting market conditions and evolving consumer needs.

Download the latest Asia Pulse from Kantar Asia's Worldpanel Division for detailed updates across 11 key markets – and uncover new growth opportunities.

Market highlights:

Chinese Mainland

China's FMCG market remained steady in Q3. The beverage and household cleaning categories maintained good momentum, growing by 5.5% and 5.1% respectively.

India (Urban)

Inflation and disruption caused FMCG volume growth to slow down in the last quarter; a contrast to 2023 when it was urban consumers propelling volume growth.

Indonesia

An increase in trip size is driven mainly by upper-class shoppers, indicating a trend of stocking up, with more volume per trip and fewer trips overall.

Malaysia

Minimarkets and online grew strongly due to their price-competitiveness. The internet has also become a source for ranges not easily found offline, such as bulk packs.

Philippines

Shoppers are purchasing from an increased number of categories, including pantry staples such as cooking oil and water, and non-food items like shampoo.

South Korea

The frozen food and sauce/seasonings segments are the major contributors to the expansion of the food sector, driven by affordability and convenience.

Taiwan

Consumers are elevating themselves through FMCG, pursuing inner and outer beauty. This has led to strong performance among health foods and personal care.

Thailand

Online channels led by TikTok and Shopee, together with modern trade – such as national supermarkets and convenience stores – have continued to gain share.

United Arab Emirates (UAE)

Shopping frequency has increased significantly, but consumers are spending less per trip as they purchase more at lower-cost stores.

Vietnam (Urban)

Growth has either stalled or declined across sectors, as consumers spend cautiously due to uncertainty around external factors beyond their control.

Vietnam (Rural)

While FMCG growth appears to be more stable in rural areas, most sectors are struggling to achieve volume growth. Personal care continues to record robust growth.

Join Kantar Worldpanel Indonesia for an exclusive 7-part webinar series, kicking off live on 11 December.

This annual flagship event will give you critical insights into:

• The evolving priorities of FMCG shoppers.
• Shoppers’ behavior and coping mechanism to the economic pressures across social economic classes
• Emerging channel preferences to manage spending priority, including modern and digital formats.
• Strategies to navigate key growth factors like inflation and GDP trends.

Zoom in on six key sectors: Personal Care, Home Care, Food, Baby, Beauty, and On-the-Go.

Discover what has shaped shopper behavior this year and prepare for the future.

Don’t miss your chance to uncover actionable insights for 2025!

Are your brand strategies aligned with Indonesia’s unique approach to consumer health?

Join us for an exclusive webinar based on Kantar Worldpanel’s Who Cares? Who Does? research series, featuring insights from Indonesia’s market.

This session will highlight findings from our latest report, Wellness Worldwide: How Mental and Physical Health Are Shaping Habits Around the World, with a special focus on Indonesia. Learn how your brand can resonate with health-conscious Indonesian shoppers.

Here’s what you’ll learn:

• Indonesians' unique wellness mindset: Explore why 39% of Indonesians belong to the Health Active segment, far above the global average, and what this means for brands.
• Daily health habits: Understand how Indonesians incorporate health into their daily lives and what they prioritize.
• Overcoming barriers: Learn how brands can address challenges in education, availability, and accessibility of healthy products to better meet shoppers’ needs.

This webinar is perfect for:

• Marketing Directors looking to tap into Indonesia’s growing wellness trends.
• Brand Managers wanting to connect their products with health-conscious consumers.
• Strategists seeking actionable insights to align with Indonesia’s evolving health landscape.

Kantar Indonesia FMCG Monitor is a quarterly report offering insights into the performance of the Indonesian in-home FMCG market across sectors, along with key trend highlights. We engage with shoppers weekly across the country to deliver a thorough understanding of market dynamics.
 

Key highlights from this quarter:
 

• FMCG growth remains around 6%, with a slight recovery driven by volume growth in recent periods. This recovery is primarily due to larger trip sizes, with no improvement in shopping frequency, highlighting an increased urgency for brands to optimize every shopping occasion.

• Shoppers' responses mainly focus on getting better value for money, primarily by purchasing larger volumes. Switching to cheaper products also remains a common coping strategy amidst relatively stable inflation.

• The increase in trip size is driven mainly by upper-class shoppers, indicating a trend of stocking up with more volume per trip and fewer shopping trips overall. This suggests that brands should focus on availability and make the most of every shopping occasion.

• The growth in HSM penetration is primarily driven by supermarkets, which are attracting new shoppers to the channel. Meanwhile, e-commerce continues to complement traditional retail by drawing in additional shoppers and reinforcing the trend toward omnichannel shopping.

We invite you to explore the report to discover insights that can support your brand’s strategic choices. If you have any questions or would like to discuss the findings further, please don’t hesitate to contact us.

• 5-Year Growth: Beauty sector has been resilient and continuously growing over the past five years and remains a promising trajectory.
• Emerging Trends: From specialised skincare to hair treatment booms and festive season surges, we’ve got it all covered.
• O+O Strategy: Learn why balancing online and offline presence is crucial to winning today’s beauty shoppers.
• Consumer Insights: Tap into the aspirations of shoppers from all walks of life, from Gen Z to the affluent upper-middle class.
• Growth Opportunities: Discover how brands can extend accessibility beyond major cities and leverage festive season momentum.

As we progress through 2024, Asia’s FMCG sector is maintaining its resilience with a stable value growth rate of 3.5%, consistent with the first quarter of the year.

The beverages sector continues to lead this growth, while food and homecare have sustained the momentum they built last year.

This report spans 11 markets, capturing the key trends and dynamic shifts that are shaping the region's FMCG landscape.

Market highlights:

Chinese Mainland

In the first half of 2024, the general trend of FMCG in e-commerce remained relatively stable compared to the same period last year. Interest-based e-commerce continued to expand its consumer base, with 37.2% of Chinese households purchasing groceries on Douyin, surpassing Pinduoduo in market penetration.?

Taiwan

The food category, which was impacted by the recovery of the food and beverage industry after the pandemic, has overcome the stagnation of the past two quarters to show growth of 3.4% in Q2. ?Meanwhile, the non-food categories continued their growth trend with a 5.8% value increase.

India

FMCG grew by 7% in value and 5.5% in volume over the year. Volume growth has revived, while value grows at a slower pace compared to last year. In the previous year, there was a significant gap between value and volume growth (with value growing faster), which now has diminished, as inflationary pressures subside. FMCG volume increases are seen across sectors, with beverages leading the growth.

South Korea

In Q2, South Korea's Foodservice Industry Index recorded a figure of 75.6, signalling a reduction in dining out. Concurrently, value in the in-home food sector has maintained consistent growth, particularly within the sauce/paste/seasoning and frozen food categories. This trend is primarily driven by consumers seeking more budget-friendly options in response to prolonged inflation.

United Arab Emirates

Compared to the previous year’s post-Ramadan period, the UAE’s spend index decreased in Q2, while volume remained steady. This shift is driven by lower prices. Shoppers restocked products from several categories in May, one month after Ramadan.

Indonesia

Although prices decreased slightly in Q2, this reduction has not translated into higher volume growth, either recently or in a year-on-year comparison. With inflation stabilised, higher purchase levels remain shoppers’ primary strategy for managing their overall spending, while they also continue to switch to cheaper products.

Malaysia

In-home expenditure remains stable, with growth in packaged groceries, beverages, and toiletries, although the dairy sector has not yet recovered. Increased spending in Q2 is attributed to festivities such as Chinese New Year and Raya. However, shoppers continue to seek promotions, downsize, and trade down due to cost pressures.

Thailand

As Thai consumers spend more time out-of-home, the demand for in-home cooking  products and beverages continues to slow, while personal care categories are growing.? Due to their limited budgets, consumers have started to shift towards more affordable choices in some categories. They are also seeking more convenient packaged snacks to eat at home.

Philippines

With inflation easing, Filipino shoppers sustained spend on FMCG in Q2, with broad-based growth across most regions and socio-economic classes. ?However, consumer confidence is weaker due to rising commodity prices, lower incomes, fewer jobs, and issues with traffic and public transport, leading them to adjust and rationalise their product choices.?

Vietnam

Despite general optimism, reflected by 80% of urban Vietnamese households anticipating economic growth in the next 12 months, consumer spending on in-home FMCG has not increased. In fact, the total value of urban FMCG purchases has declined, primarily due to stagnant food and beverage spending.

Stay updated with the latest insights and trends in the Asia-Pacific FMCG sector by accessing the Q2 2024 edition of Asia Pulse. Click the download button at the top of this page to explore key developments across 11 markets, and discover emerging opportunities in the region.

Note: The Asia Pulse Q2 2024 edition excludes Saudi Arabia due to local panel enhancement.

Kantar Indonesia's FMCG Monitor is a quarterly report that provides insights into the performance of the Indonesian FMCG In-home market across sectors and highlights the latest trends. We continuously engage with consumers on a weekly basis across the country to provide you with comprehensive insights into the market.
 

Key highlights from this quarter:
 

• FMCG growth is softening following a substantial increase in Q1 2024 driven by festive and election periods. Although prices have decreased slightly in Q2, this reduction has not translated into higher volume growth, both recently or in YoY comparison.
• With stabilised inflation, higher purchase levels remain the primary response for shoppers to manage their overall spending, while changing to cheaper products also continues to happen.
• Volume growth has been constrained across socioeconomic statuses (SES), mainly in lower SES, with no improvement in frequency. This suggests a more competitive battle for brands to win every shopping occasion and increase basket size to drive growth.
• The 2024 festive season in Indonesia saw a significant uplift in spending. This growth was also coupled with the 2024 election period, which had already set a higher baseline for consumer spending. The upward trend reflects renewed confidence and a greater willingness to spend during this period of celebration.

We encourage you to delve into the report to uncover insights that can help guide your brand's strategic decisions. If you have any questions or wish to discuss the findings in more detail, please feel free to reach out to us.

Globally, 2023 marked the second-highest FMCG value growth in more than a decade, with total spend increasing by 8.6% over the year. In Asia, the picture was somewhat different. The watchword was ‘stability’, with annual growth of 3.7%, compared with 3.4% the previous year. Spending per household remained flat at US$828, an increase of 1%.

These are the headline discoveries unveiled in the 2024 edition of Kantar Worldpanel’s Asia Brand Footprint report. This comprehensive analysis covers 11 Asian markets, representing 85% of the region’s GDP, and more than 4,500 brands.

The most chosen FMCG brands in Asia

Brand Footprint examines the 232 billion brand choices made by Asian 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.

The top 5 most chosen brands in 2024 are:

Decoding Asian shoppers’ brand choices

Focusing on the number of brand choices made across Asia, we see an increase in total CRPs of 3.6% over the last year – almost exactly matching FMCG value growth (3.7%). South Asia has primarily driven this uplift.

Regarding the size of brands, 43% of CRPs are from small (with penetration between 1-10%) and medium (penetration 10-30%) brands. A notable 87% of growing brands are small and medium-sized. 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%).

Decoding brand success

The Brand Footprint study has identified the key drivers of brand growth in Asia, and how top brands are successfully leveraging these to stay competitive and ahead in the market.

A remarkable 89% of all brands that grew in the last year did so by gaining penetration. In 2023, more than half (53%) of the brands that increased their CRPs in Asia combined greater penetration with increased purchase frequency. Improving penetration alone was successful for 36%, while only 11% grew by upping frequency.

The highest performing brands in the Brand Footprint ranking demonstrate the importance of understanding consumer behaviour and optimising their strategies. To learn from them, and set a course for success in the coming year ahead, brands must:

• Set realistic penetration growth targets, based on their size.
• Position themselves effectively as markets continue to polarise, to Predispose More People to buy.
• Optimise their omnichannel strategy to Be More Present.
• Develop a deep understanding of consumption occasions in order to Find New Space.

 To explore the full insights, read the 2024 edition of the Brand Footprint Asia report:

Click to read Asia Brand Footprint 2024 - c

Click to read Meta Sea CMM Study 2024

Brands that successfully maintain relevance in shoppers' baskets manage to expand their buyer base and outpace competitors in growth. Establishing a robust presence and delivering relevant innovations for shoppers are fundamental to accelerated growth. By becoming a meaningful brand that offers enhanced value to consumers, brands can distinguish themselves from the competition. Furthermore, identifying new opportunities to address emerging needs within existing categories or expanding category assortments can serve as potent levers for growth.

Some interesting brand stories from this year's Brand Footprint study:

• Le Minerale

Rising 26 positions from last year, Le Minerale successfully entered the top 100 in this year's Brand Footprint rankings. Le Minerale's strategy of offering various packaging sizes, enhancing presence and accessibility, allows the brand to meet the diverse needs and preferences of consumers, ensuring that everyone can enjoy its benefits in various moments.

• Milku

First introduced as a bottled milk product in 2020, Milku has made it into the top 100 of the Brand Footprint rankings this year. The key characteristics of Milku are that it is made from Belgian cow's milk, comes in packaging sizes that meet consumer preferences (200ml), and is priced affordably for consumers. With this strategy, Milku has successfully reached more than 40% of Indonesian households, making it the chosen liquid milk product for children.

Read the complete report for more insights and brand stories - get in touch with us for more learnings about brands in Indonesia.

A Season of Anticipation and Excitement

This year's festive season, spanning from March 12 to April 11, was highly anticipated and welcomed with excitement by consumers across all levels of society. The Indonesian government laid out a structured plan to accommodate what was expected to be the biggest homecoming (mudik) in the nation's history, with significant improvements to highways and roads in both Java and Sumatra to handle the increased flow of travelers.

Economic Recovery and Consumer Confidence

As the country’s economy continues to recover from recent global disruptions, Indonesian consumers are feeling more financially secure and increasingly confident in taking on debt, aided by the rise of online loans. This behavior is evident as many prioritize debt repayment during the festive season. Nonetheless, FMCG spending remains a top priority, reflecting a strong inclination to maintain festive traditions and meet essential needs.

Key Highlights of the Festive Report Indonesia 2024

• Economic Insights: Gain an understanding of how economic recovery is driving higher consumer spending.

• Spending Priorities: Discover which FMCG categories are topping the list during this festive period.

• Consumer Confidence: Learn about the impact of rising online loans and debt repayment trends.

• Category Knowledge: Explore detailed insights into the most popular product categories and emerging trends.

• Strategic Recommendations: Get actionable strategies to leverage these insights and maximize your impact this festive season.

We believe this report will be an invaluable resource for you and your team as you navigate this festive season. If you have any questions or need further information, please feel free to reach out.

 As 2024 began, Asia continued to demonstrate its economic resilience with growth in FMCG spend of 3.5%, slightly higher than the previous year. Notably, the beverages sector led this growth with an impressive 9.2% rise in value sales, compensating for slower growth in the Dairy and Home Care sectors.

This report spans 10 markets, highlighting the dynamic shifts and trends across the region.

Market highlights:

Chinese Mainland

China’s FMCG market maintained a modest recovery in the first quarter of 2024, with year-on-year sales growth of 2.6%. The eastern region showed more positive growth, increasing by 7% compared to the same period last year, demonstrating its economic vitality and the strength of consumer purchasing power.

Taiwan

Although purchase frequency decreased, consumer demand was evident in the increased spending per shopping trip, indicating no reduction in households’ overall expenditure. In categories like laundry products, consumers are spending more to meet advanced needs. Personal care is also recovering, due to increased spending in face care categories. 

India

Household shopping occasions grew across all major channels in Q1, with the fastest growth achieved by chemist shops and online platforms. In addition, consumers are spending more per trip across the channels they visit. However, basket size in terms of volume hasn’t improved, indicating continuing caution among shoppers. 

South Korea

Single-person households account for 34.5% of the total population in Korea. Consequently, there is an increasing need for small packaging and small-sized products, leading to changes in consumer trends. Additionally, as the country approaches a super-aged society, economically empowered active seniors are emerging as a key consumer group.

United Arab Emirates

In Q1 of 2024 shopping frequency increased substantially due to Ramadan, but spending per trip remained stable. Consumers made more frequent purchases without increasing their total expenditure.

Indonesia

Growth in modern trade remains constrained, whereas general trade’s growth is being driven by price rather than volume. Specialty stores and e-commerce are becoming the preferred channels for categories like baby products, beauty, and personal care, presenting the opportunity to attract and recruit new shoppers.

Malaysia

The easing of food & beverages prices has driven an increase in in-home expenditure. There is growth in packaged groceries, beverages, and toiletries, while the dairy sector continues to be impacted. Shoppers are still spending cautiously, however, making fewer trips and deprioritising non-essential categories.

Thailand

The demand for in-home consumption of cooking products is slowing, along with home care products, as consumers spend more time out of their homes. At the same time, the need for personal care is recovering. Limited household budgets are causing a shift to more affordable choices in some categories. Within packaged food, consumers seek more convenient snacks and meals to eat at home.

Philippines

During the festive season, Filipino shoppers purchased more per trip, but maintained the same number of trips. They prioritised spending on food, beverage and dairy, as highlighted in the boost in sales of soft drinks, bottled water, family milk, and cooking oil.

Vietnam

Fuelled by a positive economic outlook, Vietnamese consumers are more hopeful about the country’s economic progress. Despite positive signs, however, their spending has not caught up and FMCG growth in the main urban areas has remained stagnant.

Stay informed about the latest insights and trends in the Asia-Pacific FMCG sector by accessing the newest edition of Asia Pulse. Simply click the download button at the top of this page.

Note: The Asia Pulse Q1 2024 report excludes Saudi Arabia due to local panel enhancement.

Kantar Indonesia's FMCG Monitor is a quarterly report that provides insights into the performance of the Indonesian FMCG In-home market across sectors and highlights the latest trends. We continuously engage with consumers on a weekly basis across the country to provide you with comprehensive insights into the market.

Key highlights from this quarter:

• Stagnating household consumption is translated into stable CCI, despite a higher inflation rate and the weakening exchange rate influenced by the global economy and trade dynamics.
• FMCG has shown signs of recovery this quarter, with increasing volume growth and spending per trip. Although year-on-year growth appears limited, these trends suggest a potential continuation of the recovery.
• Growth across socioeconomic statuses (SES) continues to be driven by price, with frequency stabilizing at a new baseline. This underscores the importance of optimizing each shopping occasion for brands to recruit shoppers.
• In year-over-year comparisons, growth in the F&B sector proves challenging, largely fueled by price rather than volume. In contrast, personal care, particularly in the beauty segment, presents an opportunity to encourage higher spending through premiumization

You can peruse the report to gain insights that will aid your brand in making informed decisions. If you have any questions or would like to discuss further, please do not hesitate to reach out to us.

FMCG primary shoppers' behaviour with their media consumption habits, aiding in the segmentation of your media plans.

Further questions that we can answer with Media Profiler study: 

1. Does the media preference among heavy, medium and light buyers of the category differs?
2. Which digital activity are preferred by our brand buyers or competitor buyers?
3. Does my brand buyers are more digital savvy than my competitor buyers? How different are they in the way the consume media?
4. What are the topic interests of our target buyers/competitor buyers in different application?
5. How far do I have to implement different media platform focus to reach different target buyers in different region?

To give you a picture of how the study looks like, you can get the Volume 2 PDF and see how it unfolds for Baby Personal Care.

In the fourth quarter of 2023, Asia’s FMCG sector stood strong, maintaining similar growth figures to the previous year at a robust 3.5%.

Spanning 11 markets, the report reveals a common rising trend in the beverages sector which can be seen across the entire region, whereas in other sectors the key trends are unique to each market’s conditions.

Market highlights:

• Chinese Mainland

Walmart and Yonghui increased their market share in the midst of fierce competition in 2023, while Wumart, the SPAR Group, and Hongqi Chain maintained their share at a stable level. Regional retail chains have emerged as strong competitors, winning share from the national giants.

• Taiwan

People are spending more time outside, which has triggered increased demand for beverages and led to an upturn in this category. Consumers have also increased their food service expenditure, which has affected home cooking-related categories. The trend for venturing out more frequently is driving growth in sales of personal care products, particularly cosmetics.

• India

Household shopping occasions across all major channels grew in 2023. The growth in frequency indicates that households are experimenting more. This brings an opportunity for brands to ‘meet’ their buyers more often.

• South Korea

Korea is facing demographic changes due to low birth rates, and an aging population. An increase in single-person households and empty nesters represents the largest increase in FMCG spending among all life stages – with a rise in spend of 19.7% and 18.8% respectively.

• United Arab Emirates

In 2023, shoppers shifted their priorities, marking a clear change in consumer behaviour. Dairy and beverages took centre stage as shoppers moved their priorities away from personal care to these sectors.

• Indonesia

The main factor contributing to growth across all socioeconomic segments continues to be the consistent rise in prices, resulting in a stabilisation in shopping frequency. This means brands and manufacturers must capitalise on every shopping opportunity to attract new buyers.

• Malaysia

Steady growth is observed across key channels such as supermarkets, mini markets, and drug, beauty, and pharmacy, primarily supported by higher prices. Nevertheless, consumption is dwindling in a number of channels, with higher prices driving shoppers towards those that offer competitive pricing or extensive promotions.

• Thailand

More occasions and OOH activities have led to lower in-home consumption for cooking products and beverages, and a reduced need for home care products, while demand for personal care started to resurface. Within packaged food, consumers are still looking for convenient snacks and meals to eat at home. Limited budgets are steering them to look for more affordable choices in some categories.

• Philippines

As the economy enjoys lower inflation and unemployment rates, Filipino shoppers continue to spend warily as the strain of shouldering higher prices for the past two years now takes its toll. Shoppers continue to prioritise spending on essentials like food & beverage and transport.

• Vietnam

Vietnam’s in-home FMCG sector saw steady but cautious year-on-year growth, with urban spend primarily driven by price increases. However, rural areas indicate greater potential for volume growth. A closer look at quarterly performance shows a gradual decline in value growth, specifically in the Urban 4 area.

Stay up to date on the latest insights and developments in the Asia-Pacific FMCG sector by accessing the most recent issue of Asia Pulse via the download button at the top of this page.

Note: All editions of Asia Pulse 2023 have excluded Saudi Arabia due to local panel enhancement.

Media Profiler helps you to:

• Reach your target consumer at the right place and time
• Profile your target audience or brand loyalists
• Make decisions based on actual purchases rather than on their socio demographic profile
• Analyse the real consumption of your audience

Some questions that Media Profiler can address:

• Which media preferred by specific category buyers?
• When is the most effective time in targeting specific category buyers?
• What Digital Activity do my target shoppers visit the most ?
• And What kind of Apps do they use ?
• Which channel or day part is best for my target shopper?

To give you a picture of how the study looks like, we’re launching a series of facts collection. You can access the first volume via this link or at the top-right button of this page.

As this study is linked to the real purchase of your buyers, you can use this study to equip your future media strategies to be more effective and right on target.

In the next part, we will uncover examples of how can Kantar Worldpanel Media Profiling can help clients to understand which media best reaches Baby Personal Care target audience.

If you want to explore on how to build a more shopper centric media strategies, get in touch with us.

Kantar is continuously in contact with your consumers on a weekly basis and across the country. Through FMCG Monitor, we provide an overview of the Indonesian FMCG In-home market and its evolution across sectors and highlights of the latest trends.

As we went past more than one year of inflation wave, we see some dynamics change in Indonesian buyers' shopping behaviors. There are several factors that influence this dynamic, including price increase and increased mobility. Read our latest edition of FMCG monitor to learn the dynamic among Indonesian consumers.

Key highlights from this edition:

• Shoppers have generally absorbed the price increases and carried on increasing volumes. However, shifting product mix to cheaper alternatives is observed.
• The main factor contributing to growth in various socioeconomic segments continues to be the consistent rise in prices, resulting in stabilizing shopping frequency. Therefore, brands and manufacturers must capitalize on every shopping opportunity to attract new shoppers. 
• Within the F & B and Dairy sectors, achieving volume growth is proving to be a challenge as price increase continues, thus recruitment efforts may focus on price and pack strategy. 
• Aside from the conventional retail channels, digital commerce continues to grow, mainly in the beauty and personal care sector, hence needing a seamless omnichannel strategy to reach more shoppers. 
• As the Festive season is around the corner, most brands are kickstarting their strategies for the season. It becomes essential to understand your shoppers’ behavior during the festive season, so you can strategize a more tactical recruitment. 

Each year, Kantar Worldpanel releases an extensive report that delves deep into the region’s dynamic FMCG industry. This comprehensive analysis not only highlights the latest trends, but also provides insights into consumer purchasing behaviour. Spanning across five sectors, it offers a detailed evaluation of the landscape of each. 

In this report, we unravel the complexities of the FMCG sector amidst economic pressures from macro and sectoral perspectives. We divide the report into two parts:

1. The Shape of Indonesia’s FMCG Landscape
2. Closer Look into Sector Dynamics
   • Seizing opportunities at every step of the baby’s journey?
   • Exploring the complexion of beauty and the foundation of personal care?
   • Harmony beyond Home Care: From basic to ‘feel good’?
   • From pocket to pantry: Aspiration and experimentation?
   • The Out-of-Home sector: Beyond home, beyond refreshment?

Preceding this report, our leaders have shared their thoughts on their respective expertise in an on-demand Web Series. If you haven’t had a chance to watch it, you can register now and watch the series at your convenience.

Ready to elevate your strategies to navigate amidst the ever-evolving landscape of the FMCG industry? Our team of experts is here to guide you through the intricacies of market trends, consumer behavior, and strategic innovations.

In the third quarter of 2023, the FMCG industry in the APAC region continued its impressive upward trajectory with a growth rate of 1.4%. Delving into the dynamics of 11 markets, the report reveals a landscape in which the West and South Asia regions have emerged as primary growth drivers, while other areas within Asia are playing catch-up.

Market highlights:

• Chinese Mainland

Compared to the same period last year, the value share of the top 10 retailers in modern channels collectively declined by 4%, indicating further fragmentation. Major retailers are exploring new strategies such as premiumisation, digitalisation, and localisation to break through in this competitive landscape.

• Taiwan

While the performance of food sector remained steady overall, the leisure food and chocolate categories saw increased sales, due to the ability of brands to resonate well with consumers. Demand for health supplements cooled, while growth in dairy lacked momentum. On the other hand, personal care and cosmetics made a significant contribution to the FMCG market’s overall growth.

• India

FMCG consumption has grown at a healthy pace of 3.1%, compared to 2.6% in the period ending June 2023. Beverages is the fastest growing sector at 5.7%, led by the milk food drinks category. Grocery has the second fastest growth at 5.2%, driven by categories like chocolate, atta, and breakfast cereals.

• South Korea

The online channels continued to show positive growth even after the Korean government declared an end to COVID-19. Online channels achieved the highest growth in shopping occasions, and maintained the biggest trip basket among key channels, indicating that a continual increase should be expected.

• United Arab Emirates

Market dynamics are compelling retail behemoths Carrefour and Lulu to innovate in order to remain relevant amid shifting consumer behaviours. Rising stars like discounter Viva and new hypermarket players such as Nesto are gaining market share and reshaping expectations by offering value-driven alternatives.

• Indonesia

Ongoing price rises remain the primary driver of growth across different socioeconomic segments, and are driving lower shopping frequency. This means it is important for brands and manufacturers to leverage every shopping occasion to recruit new buyers.

• Malaysia

Higher prices continue to be the primary catalyst driving spending growth. In response, consumers are strategically managing their spending by reducing the size of their shopping baskets and eliminating non-essential ‘nice to have’ categories.

• Thailand

As Thai consumers started to resume out-of-home (OOH) activities following COVID-19, the demand for take-home groceries reduced. In addition, Thai households still have a high level of debt and are benefiting less from government subsidies, making them cautious in their spending.

• Philippines

As Filipinos spend more OOH, they are keeping control of their FMCG budgets by constantly reviewing their product and channel choices. Shoppers are also compromising by making more trips, but spending less on every purchase occasion.

• Vietnam

Although price rises are cooling off, this remains the key driver behind FMCG’s growth. Meanwhile, volume growth has hit a standstill across many sectors, except the non-food categories. Channel-wise, the value contribution of traditional trade is shrinking over time, paving the path for the development of online and mini stores.

Stay updated on the latest insights and developments in the Asia-Pacific FMCG sector by accessing the most recent edition of Asia Pulse through the download button at the top of this page.

Note: The Asia Pulse Q3 2023 excludes Saudi Arabia due to local panel enhancement.

In the dynamic FMCG landscape in Indonesia in 2024, market players are navigating the challenge of macroeconomic situation, and adapting strategies to shape the industry's trajectory. Despite the continued inflationary pressures, the overall FMCG market is witnessing resilience to keep striving.

In this webinar series, you will find the answers to some intriguing questions:

1. How has economic uncertainty influenced the FMCG industry?
2. In the face of economic challenges, how are consumers balancing their household budget allocations?
3. How do people use online shopping and what other channels are they using alongside traditional retail?
4. What impacts do Millennials and early Gen Z have on the products and trends in the FMCG industry?
5. Why is it important for the FMCG sector to be innovative, and how does being adaptable help brands succeed in challenging economic times?

In addition to the FMCG dynamic, we delve deeper into the trend of each sector, including Food, Personal Care and beauty, Baby, Home Care, and Out of Home sectors. Make sure you join our series to underscore the sector's adaptability and determination to thrive amidst continued economic pressures and shape your brands’ growth.

Save your seat!

Glimpse of key insights from this quarter:

• Household spending allocation remains on basic needs such as food, FMCG, Utilities, and Transportation, which drive the spending growth, indicating spending rationalization might happen for those essentials.
• Growth is still driven by price increases and recovery on volume growth has not been seen yet in this quarter, suggesting shoppers might still hold their spending as a coping mechanism.????
• Within the F & B and Dairy sectors, achieving volume growth is proving to be a challenge as price increase continues, thus recruitment efforts may focus on price and pack strategy. 
• Aside from the conventional retail channels, there is potential value in broadening our presence and establishing a cohesive omnichannel strategy to reach more shoppers. 

Glimpse of insights from the report:

• Between Cooking Oil and Instant Noodle as Staples, shoppers are adjusting their spending and make fewer shopping trips rather than reduce what they buy across these two categories.
• Cooking Aid is the main category for in-home cooking and has shown a modest yet resilient volume growth year on year. This resilience - even in the more mobile post-pandemic world - underlines the segment’s continued relevance in households.
• The growth of Processed Foods is mainly being driven by double digit growth in Frozen Food, while the growth of Canned Food and Instant Soup still need to catch up to reach double digit growth.

Read the report to uncover actionable insights that can guide your strategy.

During the second quarter of 2023, the FMCG sector in Asia displayed robust growth, registering a 2.6% value increase. Despite supply chain disruptions and uncertainties across all markets, the industry has shown remarkable resilience, charting a positive upward trajectory.

This latest report presents a comprehensive overview of the in-home FMCG sector in the Asia-Pacific region. Our analysis delves into individual markets, providing valuable insights into their performance. Discover the growth stories of each country, as we explore some of the highlights.

• Chinese Mainland

In the first half of 2023, e-commerce continued to develop steadily, with the highly competitive landscape undergoing accelerated changes. Traditional e-commerce platforms struggled to grow, while interest e-commerce remained in rapid growth.

• Taiwan

As the pandemic subsided, out-of-home (OOH) food service grew substantially while the FMCG food category weakened. People resumed social activities, triggering greater demand for personal care, especially cosmetics – making the category FMCG’s main driver in Q2.

• India

Consumers are shopping more frequently, with food and beverages driving the rise in trips. The increase in shopping occasions is being led by the e-commerce channel. As a result of making more trips, shoppers have started experimenting with brands, and their average pack sizes have shrunk.

• South Korea

Due to an uplift in average price, the FMCG market continued to show an increase in value along with a downturn in volume. Meanwhile, thanks to a weakening downtrend of shopping frequency, the decline in volume slowed in Q2 compared to MAT Q2’23.

• United Arab Emirates

A balanced interplay between costs and consumption, along with a thriving property market and growing demand in the non-oil sector – including FMCG – bodes well for the UAE’s economy.

• Indonesia

The country’s strong and resilient economy is reflected in a slower inflation rate of 3.5%,  combined with steady consumer confidence. FMCG growth during this year’s festive season was at its slowest for five years, but the uplift remained high.

• Malaysia

Modern trade is growing strongly, mainly mini markets, which continue to attract shoppers due to their convenience and better pricing. The fastest-growing channel is drug and pharmacy, driven by an influx of shoppers.

•  Thailand

Convenience stores continue to grow, as consumers shop for in-home FMCG through this channel due to its proximity, attractive promotions, and convenience. On the other hand, local channels experienced a decline due to the lack of government support programmes during COVID.

• Philippines

The Philippine economy remains in growth, but the pace is slower than the previous quarter, coinciding with higher inflation (7.6%) in March 2023. While the inflation rate is softening, shoppers are expected to remain cautious in their spending.

• Vietnam

Although GDP growth picked up to 4.14% in Q2, the economy remains lacklustre. Inflation has cooled down; however, retail sales growth has slowed due to weakened domestic demand from the high proportion of consumers being impacted by rising living costs.

Stay up to date with the latest insights and developments in the Asia-Pacific FMCG sector. Download the most recent edition of Asia Pulse through the button at the top of this page.

Note: The Asia Pulse Q2 2023 report excludes Saudi Arabia due to local panel enhancement.

Unveiling 5 Key Beauty Movements

1. Advancement within Basic: Discover how consumers are embracing advanced skincare experiences, leading to impressive value growth and a shift towards cutting-edge ingredients.
2. Higher Needs for Going Out, Higher Needs for UV Sunscreen: Uncover the post-pandemic surge in demand for Face Sunscreen and explore the diverse range of formats catering to Indonesian beauty enthusiasts.
3. The Come Back of Make Up: Explore the revival of makeup trends post-mask mandate, with Face Makeup and Eye & Lip products gaining renewed popularity.
4. Emerging Trend in Hair: Learn how the return of mobility has sparked a triple-digit growth in hair fragrance, appealing to both non-hijabi and hijabi consumers alike.
5. Available All Around: Dive into the growing explorative nature of beauty shoppers, with a rise in omnichannel buyers and the continued coexistence of online and offline shopping experiences.

• Household expenditures have stabilized, but with the arrival of the festive season and the start of the new academic year, there is a possibility of reallocating savings towards mudik transportation and education.
• Growth is still driven by price increases and slowing down in YTD with limited growth of volume, suggesting coping mechanism of inflation might affect category prioritization and opting for more affordable products
• Zooming into the festive season, this year shows the slowest growth in the past five years, but the uplift remains high suggesting the celebration remains but needs to push beyond festive occasions to compensate for the full-year growth

Join us as we delve into the preferences and behaviours of Asian consumers, revealing the winning brands known as the "Most Chosen Brands."

In this report, you will learn about:

1.      Asian Consumers' Response to Post-Covid Reopening and Inflation

As the world grappled with the aftermath of the pandemic, Asian consumers showcased their resilience and adaptability. We meticulously examine how consumers in the region responded to the evolving landscape, particularly in the context of post-pandemic reopening and inflationary pressures. Gain valuable insights into shifting consumer behaviours and expectations during these uncertain times.

2.      Global vs. Local vs. Super vs. Small Brands: A Comparative Analysis

The battle for consumer attention and loyalty rages on, pitting global giants against local champions and everything in between. Our engaging comparative analysis reveals which types of brands are thriving in the ever-competitive Asian market. Discover the factors that propel brands to success, whether they are international powerhouses, homegrown gems, super brands, or nimble small-scale enterprises.

3.      Most Chosen FMCG Brands in Asia and Local Winners in 11 Markets

Which FMCG brands hold the key to Asian consumers' hearts and wallets? In this section, we present a comprehensive list of the most chosen FMCG brands across the region. Additionally, we spotlight the local champions in each of the 11 markets. Explore the reasons behind their popularity and understand how they have built lasting connections with consumers.

4.      Unlocking Success Factors of Industry Leaders: Sunsilk, Lay's, Sprite, and More

Certain brands seem to possess the superpower when it comes to captivating consumers. We take a dive into the success stories of iconic brands like Sunsilk, Lay's, Sprite, and others, uncovering the strategies and unique aspects that have propelled them to the top. Gain valuable insights into their marketing approaches, product innovation, and customer engagement strategies that set them apart from the competition.

The Asian consumer landscape is ever-evolving, influenced by many factors. From the response to global events like Covid to the emergence of local heroes in various markets, understanding these trends and insights is crucial for brands seeking to impact the region.

As you delve into the detailed analysis provided in this report, may you uncover valuable opportunities to connect with Asian consumers and build brands that resonate deeply with their preferences and aspirations.

To access the report, click on the link on the upper right of this page.

• Chinese Mainland

Interest commerce, O2O thrived with proximity channels, while mainstream offline channels - hyper & large super- wereimpacted by logistic disruptions. The fast growth of O2O and the interest in e-commerce benefit the “Local” retail eco-system and fulfil the rising instant purchase needs. 

• Taiwan

As the pandemic gradually subsided, consumer demand for FMCG turned flat, with a year-on-year growth rate of 2.6% in the first quarter of 2023. Both the food and non-food sectors saw a slowdown in growth. 

• India

To beat the inflationary pressure, Indian consumers downsize their spending per trip across all purchase channels. As FMCG prices hike, HHs cut down on their volumes across categories like jams, ketchup, butter/ cheese, talcum powder, hair oils, floor cleaners etc.

• South Korea

Drinking carbonated drinks has been considered one of the biggest enemies of health care. Demand for ‘zero sugar’ drinks is gradually increasing in Korea with the ‘Healthy Pleasure’ trend. Consumers try to care for their health and pursue pleasure simultaneously, even when drinking beverages. 

• United Arab Emirates

Hypermarkets adapt well to shopper behaviour shifts, while promotions seem less effective. Significant potential for growth exists in UAE online shopping, particularly among higher SEC and Emiratis. 

• Indonesia

Steady growth in consumer spending was also seen this quarter vs last year, with more spending for FMCG, transport, and fashion, as might be attributed to this year’s festive season. 

• Malaysia

With increased mobility, offline channels are seeing recovery driven by more occasions, while Internet dropped significantly. Proximity channels remain vital and resilient during these times –key channels for shoppers to pick up smaller quantities with lower spending. 

• Thailand

For in-home FMCG, convenience stores continued to grow in 2023, as consumers continued to shop through this channel due to its proximity, attractive promotions, and convenience. On the other hand, local channels experienced a decline due to the lack of government support programs during the COVID period.

• Philippines

The Philippine economy continues to grow, but growth is slower than the previous quarter, coinciding with higher inflation (7.6%) in March 2023. However, the inflation rate is softening, but despite the improvement, shoppers are expected to remain cautious of their spending. 

• Vietnam

Beverages and Personal Care are driving the stronger growth of FMCG value in Q1 this year. The comeback of celebratory categories this Tet 2023 period boosts the performance of the entire Beverages sector, mainly thanks to Soft Drinks, Coffee & Beer. 

Keep yourself informed about the most recent developments and knowledge in the FMCG sector in Asia by exploring the latest issue of Asia Pulse using the download button in this page’s upper section. 

Note: The Asia Pulse Q1 2023 has excluded Saudi Arabia due to local panel enhancement.

For the past year, rising prices have fuelled the value growth of many FMCG categories. Meanwhile, underlying volumes have often taken a hit as shoppers have responded to inflation by dropping categories entirely or by buying them less often or in smaller pack sizes.

However, as inflation cools the value growth of FMCG is going to decelerate, and ultimately stagnate, unless volume growth returns. In Ready, Steady, Shop! Volume 3 we saw how Indonesia’s inflation was cooling off towards the end of 2022 and here we see the same trend emerging in the Philippines as we move into 2023. The time to act is now!

So how do brands (and categories and retailers…) generate volume growth? Three words:

Penetration Is King.

It is a well-known fact that the brands with the highest penetration will capture the largest share of category volume. Therefore, achieving volume growth is inextricably linked to finding and attracting more shoppers. In fact, 90% of brands that grow volume did so via increasing their annual penetration level.

In the current climate of low volume growth whoever understands what drives penetration for their brand and also where their next group of buyers is, will gain the competitive advantage to thrive once price inflation-led growth comes to an end.

Shopper Magnet from Kantar has been designed specifically for this purpose, leveraging our continuous shopper behaviour data to understand each brand’s “penetration magnetism” in two ways:

1. Past drivers of penetration change: Quantifying the factors that most influence shoppers entering and leaving your brand.

2. Future sources of penetration growth: Uncover current penetration ceiling of your brand and identify “white space” opportunities for your portfolio.

Despite the economic hurdles, numerous FMCG brands showcased impressive resilience in expanding their shopper base. The Most Chosen Brands lineup for 2023 includes brands that have not only weathered the storm but also experienced substantial growth. By swiftly adapting to changing market dynamics and implementing impactful innovations, these brands have captured the attention and loyalty of Indonesian shoppers.

Click to read Indonesia Brand Footprint 2023

Two of successful brand story this year:

• Cimory

Cimory has grown to become a brand chosen by over 40% of households in Indonesia. One of the factors contributing to Cimory's success is the availability of its products across various shopping channels. Additionally, the innovative flavors and unique formats of its yogurt products add value for consumers when choosing the Cimory brand. The expansion from liquid milk to the yogurt category has significantly impacted the number of buyers. This year, Cimory successfully made it into the top 100 FMCG brands with an additional 6.7 million households as new buyers in 2022.

• Ultra Milk

Ultra Milk has been present for over 50 years and continues to be among the top consumer choice in Indonesia. Its presence has grown stronger by increasing its buyer base and continually recruiting new buyers. According to Brand Footprint 2023, Ultra Milk has received the "Most Chosen Liquid Dairy Brand" award by increasing the number of buyers by 2.2 million households. One of Ultra Milk's success factors in recruiting buyers is the brand's ability to increase the number of buyers across various age groups through its main variants, including full cream, chocolate, and strawberry.

Read the complete report for more insights and get in touch with us for more learnings about brands in Indonesia.

In our next series, we will uncover whether these two segments attract different demographic profiles, so stay tuned for more insights. 

We believe that staying ahead of the curve is key to success in today's rapidly changing market. With our expertise and insights, we can help you navigate the Indonesian market and find new opportunities for growth.  

Questions we can help you to answer: 

• Who should a brand’s target audience be?
• Who are my most important consumers?
• Who should be buying more of my brand?
• Are my buyers occasional buyers?
• Who is leaving / entering a brand?
• How has my new trial rate changed over time? Which activities attract new buyers???????

Don't hesitate to contact us if you have any questions or if you would like to explore above questions or you have more curiosity in mind. 

In this report's quarter, it is seen the growth of GDP, Inflation and FMCG value is set to be steady at 5%. This condition calls for industry players to strategize more aggressively through strategies that resonate with each consumers' demographics.

This quarter’s highlights:

• The FMCG shows a resilient growth of 5%, consistent with last year. A slowing down spend per trip suggests opting for smaller packs or more affordable products may be a strategy to maintain overall spending.
• Price increases continue to be the growth driver across SES, presenting greater challenges for lower-class consumers who are experiencing a declining shopping frequency.
• Expanding online presence looks to be a valuable opportunity as it is the only channel experiencing consistent growth in gaining more buyers and increasing frequency.

In this latest report, we capture the highlights of the in-home FMCG market in the region as a whole, and market by market as follows:

• Chinese Mainland

Consumer FMCG purchases in major Chinese cities rapidly rebounded at the end of December 2022. The market is expected to recover in Q2 of 2023, with opportunities for brands in health, convenience, pleasure, and indulgence, particularly in lower-tier cities and towns.

• Taiwan

Online FMCG sales went up by 20% in Q4 versus the previous year. The health supplement and facial skincare categories were the biggest contributors to this growth.

• India

Beverages is the only sector where both volume and value see sturdy growth. While food, home care and personal care sectors grew in value they declined in volume. The fastest value growth was seen in categories including chocolates, soft drinks, and ready-to-eat mixes.

• South Korea

Thanks to a strong digital infrastructure, the online channel gained in importance, and now accounts for a 35% share of total FMCG value. While other channels marked subpar performance in frequency, online successfully increased shopping occasions due to its convenience.

• United Arab Emirates

Indicators for 2022 have pointed to a strong economy in UAE. The first half of 2023 may see a slowdown in oil GDP, but the government’s agenda and Dubai's transformational projects offer support for non-oil sectors, including FMCG.

• Indonesia

In most sectors, price increase remains the growth driver, which means it is important for brands to anticipate category prioritisation. However, the home care sector has managed to grow volume, indicating that smaller packs are gaining traction.

• Malaysia

Spending remains cautious, with shoppers planning carefully, and prioritising saving for a future downturn. In-home FMCG spend per trip grew slightly, with household and personal care outperforming the total food sector. However, consumers are making fewer trips overall.

• Thailand

For in-home FMCG, convenience stores continued to grow after COVID, when consumers built a habit of shopping via this channel due to its proximity, good promotions, and convenient experience. Local channels, which benefited from government subsidy programmes during COVID, lost some share to hypermarkets.

• Philippines

Although FMCG spending remained higher during the 2022 holidays than the previous year, shoppers are starting to deprioritise personal care and continue spending on food and beverages due to inflation.

• Vietnam

In 2022, Vietnam's economy recorded impressive GDP growth of 8%, the highest in over a decade. However, the economy felt the impact of global inflation, with the consumer price index (CPI) rising significantly in 2022 and further increases anticipated in 2023, putting pressure on purchasing power.

Stay up to date with the latest trends and insights in the FMCG industry in the Asia region by checking out the latest edition of Asia Pulse via the download button at the top of this page.

Note: The Asia Pulse Q4 2022 has excluded Saudi Arabia due to local panel enhancement.

With prices still rising faster than wages, shoppers are continually making tough decisions to manage their household grocery budget. Kantar’s Worldpanel division can now reveal exactly how these decisions are impacting categories across FMCG. 

By continuously tracking what shoppers are putting in their baskets, and where they are shopping, it is possible to identify and quantify the actions being taken in response to rising prices:

How inflation is impacting and reshaping your category is clearly revealed once these individual responses are summed up for the millions of households in each market. 

Let’s have a look at an example below from Indonesia, where Total FMCG inflation has fallen to 6% in Q4 22 from a peak of 12% in Q2 22. What is immediately apparent is that Indonesian shoppers have absorbed a lot of the price increases, as shown by the yellow bars. Crucially there hasn’t been a net drop in FMCG volumes, in fact category repertoires have increased (blue bars). Where Indonesian shoppers are trying to offset rising prices is via downgrading, actively seeking out lower priced products than they have been buying previously. One concern for the industry is that this downgrading trend is increasing despite the rate of inflation cooling off. 

It is vital that manufacturers and retailers have a clear view of the shopping decisions reshaping their priority categories, and take a shopper-centric approach to decision-making relating to price increases, promotional support, assortment, innovation etc. 

Please do not hesitate to contact us if you have any inquiries or would like to discuss further opportunities for your brand.

And for more insights into the evolving needs and behaviours caused by social and economic challenges in Southeast Asia please watch our recent webinar “Under Pressure in Southeast Asia: What marketers need to know now for strategic planning”.

This quarter, the report highlights the importance of preparing for scenarios to come amidst the high inflation rate that seems to continue. There are several factors to be mindful of when prospecting FMCG growth, such as consumer confidence, spending, food inflation, residence mobility, and GDP growth rate.

Some highlights in this quarter:

1. FMCG growth is seen at 7% a steady growth from the previous quarter as inflation pressures continues.

2. The price increase is still the main driver for higher consumer spending across SES.

3. Spend growth is mainly driven by price increases across offline channels, yet online (digital commerce) continues to grow from more shoppers

Indonesian consumers buying less and downtrading to cope with inflationary pressures  

In this report, we delve into the sector of Beverages, including Dairy and Non-Dairy products.

The impulse purchase of Beverages sector is significantly influenced by the level of mobility. Now that consumers are gaining back their activities outside of their home, there opportunies raising up for brands to leverage.

Some key highlights of the issue:

• Impulse purchase has grown continuously over the past three years, particularly in Sumatra.
• Recent improvements in shopper recruitment and growth have been seen in both RTD dairy and non-dairy beverages.
• The core buyers of RTD dairy are kids aged 10 and below while the older groups dominate the non-dairy segment 

As Asian markets continue to survive inflation, FMCG consumers are spending more carefully. Shoppers are feeling the squeeze on their wallets and are using different strategies to adapt depending on the local economic situation where they live. 

Asian economies continued to survive in the third quarter of 2022, with some markets enjoying growth. FMCG spending in APAC grew by 4.2%, which is higher than the 3% growth seen during the previous quarter. In Mainland China, Taiwan, India, Indonesia, and Thailand, people are shopping more often in e-commerce, but are spending less each time.

This latest report brings you the regional picture of in-home FMCG during Q3 2022, as well as highlights from across the eleven key Asian markets.

Asian FMCG market at a glance

Every year, as the expert in understanding consumers’ behaviour in the FMCG industry, Kantar is relentlessly providing our clients and partners a state-of-the-art paper that covers big themes, key trends, and insights.

It’s a pleasure to let you know that our annual Indonesia FMCG Outlook has been made available on-demand for you.

Lineup 

• Session 1 - FMCG: Changing Consumer Behaviour amidst Inflation Pressure

Hosted by Venu Madhav, Managing Director

Register here 

• Session 2 – General Care

Hosted by Evita Nirmalasari, NBD Director

Register here 

• Session 3 – Baby Sector

Hosted by Delia Nugraheni, Account Director

Register here 

• Session 4 – Food Sector

Hosted by Helmy Herman, Account Director

Register here 

• Session 5 – Beverages

Hosted by Andi Siswanto, Senior NBD Director

Register here

We will launch the complete report publication for Indonesia FMCG Outlook 2023, make sure you get notified when it's published by registering here.

Asia leads the world in eating out and ‘eating out at home’, with South Koreans averaging 148 ordered meal orders per year, an increase of 13% year over year. Thai and Chinese people make up the top three, averaging more than 100 orders per year. In Europe, the British lead the way with 67 orders per year, up 40% year over year.

Dining out has recovered to pre-pandemic levels in value-terms, although not in the number of visits which remains at about 80% of 2019-levels. On each visit to a restaurant, people are spending, on average 15% more compared to H1 2019. Quick Service restaurants are the big winners in the category, growing 21% in revenue compared to H1/2019. Full-service restaurant revenues are still down 7% compared to pre-pandemic levels, while pubs, bars and café revenue is still down 1% vs 2019.

Meal delivery, which exploded during the pandemic, having attracted venture capital funding around the world, has become a post-pandemic staple for many households. While in Europe, penetration rates have slipped back from their pandemic peaks, in all measured countries, they are still higher than their early 2020 levels. Across Europe’s capital cities, more than half of people order food delivery at least once per month. More than 90% of suburban population in South Korea, China and Thailand order home delivery at least once per month. 

Food delivery aggregators now dominate the home delivery scene, accounting for more than half of all deliveries in every measured market except Mexico. In China the top aggregators are Meituan and Eleme. In Great Britain, Uber Eats and Just Eat lead, while in Spain, Just Eat and Glovo are market leaders. 

Growth in frequency of orders has been key to the success of the food delivery industry. Across Asian metropoles, more than one in three consumer order at least weekly. In European capitals, the number of people ordering at least weekly has doubled since the beginning of 2020. The number of Londoners ordering up to three times per month has grown from 14% to 25% in two years.   

Other key findings of the report, which surveyed 15,000 people in 10 countries on a research on top of Worldpanel’s Out-of-Home consumer panel, include:

• People choose to dine out or ‘eat out, at home’ for lunch or dinner every 4 days on average vs every 6 days last year.
• One in 4 meal delivery orders is triggered by treating ourselves or children’s suggestions.
• Pizza is the most ordered food delivery in Paris, Madrid and São Paulo. Brits prefer ordering burgers, while Asians and Mexicans prefer their local cuisine.
• People visit coffee shops almost as much as they did before (91% recovery in value through on-premise sales).

“The past two years taught us the true meaning of disruption and adaptability,” said Javier Sánchez, Foodservice Industry expert, Worldpanel Division, Kantar. “As we navigate increasing financial volatility, we expect consumers to become even savvier with their money. The battle for loyalty will continue the hardest to win across the industry. Becoming meaningfully different through deeper insights that enable innovation and new types of eating experiences is the only way for the food services industry to continue its post-pandemic recovery path.”

Amidst the inflation that seemingly remains high from these times onwards, it's imperative for FMCG brands to prepare and create strategies for scenarios to come. In prospecting FMCG growth, there are many factors that one needs to mindful of: inflation rate, consumer confidence, consumer spending, food inflation, residence mobility, and GDP growth rate.

Some highlights in this quarter:

1. Inflation pressure continues along with higher exchange rates, which might drive a setback in consumer confidence.
2. Price increase remain as the main driver for spending growth in most sectors except for home care.
3. Winning every shopping occasion become more essential across channels as frequency is not improving.

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Inflation in South-East Asia presents huge challenges for the FMCG industry, pushing brands to be aware that shoppers, categories, and markets are responding differently to the pressure of rising prices. This playbook will explain how FMCG brands should react to South-East Asia’s rising inflation.

The playbook covers the following:

• Shoppers’ reaction to the inflation

Shoppers, of course, will have different reactions when facing rising prices. There are three factors that marketers will want to consider as they develop their strategies, which are covered in the playbook.

• Markets, categories, and shopper understanding

How much demand for each category will be affected by inflation will depend on whether it’s classed as an essential ‘need’ or a nice-to-have ‘want’. The former might include necessity categories like cooking oil and eggs, while the latter could include indulgent or occasional treats like hair conditioners.

• Choosing the right strategy

There are five options for boosting performance in an inflation-driven market; each has its condition and perks. Understanding how cash-strapped shoppers are encouraged or discouraged when selecting a brand is important for brands to choose the right strategy in each market.

It's that time again when retailers and manufacturers come together to kick-off their joint business plans for the coming year, and Kantar is here to ensure both parties keep the all-important shopper at the centre of the JBP process.

Why is a shopper-centric approach to joint business planning important? Because the shoppers of any given retailer in Southeast Asia are highly promiscuous, spending much more of their FMCG wallet elsewhere with other named account retailers, online, in traditional trade outlets etc.

Let’s look at an example:

Retailer A is a top-5 modern trade player in Thailand which runs a highly successful loyalty card program, rewarding millions of its shoppers every time they shop for FMCG inside its stores. However, despite these benefits, Retailer A’s shoppers are only 15% “loyal” with the $600m they spend in Retailer A’s stores dwarfed by the whopping $3.2 billion (i.e. the remaining 85% of their FMCG wallet) they spend outside its stores.

And Retailer A is not a unique case: the average loyalty of the top 5 modern trade retailers in Thailand is 13% with no one managing to capture more than 20% of their shoppers’ FMCG wallets.

On the plus side, low loyalty means huge potential gains. By fully understanding what is in the baskets of Retailer A’s shoppers when they shop outside of its stores, the retailer and its suppliers can develop more effective strategies to tap into the $3.2 billion that is currently being missed.

If you are keen to know more about how shoppers shop inside and out of store please reach out. Our experts are available to discuss how Kantar can help you today with shopper-centric joint business planning.

Our latest report illustrates the macro environment in key APAC beauty markets, and takes a deep dive into how these twin forces drive consumer decisions.

Worldpanel by Kantar has released its latest annual Beauty Trends in Asia report, unveiling the insights behind beauty shoppers’ decisions. Covering nine Asian markets – Mainland China, South Korea, Taiwan, Thailand, India, Indonesia, Malaysia, the Philippines, and Vietnam – it looks at trends in the facial skincare, colour cosmetics, hair care and body care categories.

Asian consumers are known for being agile and adaptable in the face of change. Never has this been more vividly demonstrated than in the last year. Like much of the world, the APAC region has been under the influence of two major forces – inflation, and post-pandemic recovery.

Learning to live with inflation

The inflationary surge isn’t being felt as hard across Asia as it is in the US, EU or UK. The rate of inflation rate has gone as high as 9.6% in the EU, and 9.1% in the US, compared to 7.7% in Thailand – the most impacted market in our study – and just 2.5% in Mainland China.

In Mainland China, South Korea, Taiwan and Thailand inflation is a relatively new phenomenon, and is giving rise to more extreme behaviours than can be seen in most South-East Asian markets. Consumers there are familiar with the experience of rising prices, and are likely to be more adaptable in their purchase patterns.

Post-pandemic positivity 

The factors affecting the beauty sector are not all negative. The end of the pandemic in most markets has been a positive for many shoppers. People want to celebrate. Beauty, a key element in the joy of going out again, has benefited.

As a result, the market is almost stable: in Q2 of this year data from Kantar’s household panels revealed a drop of just 0.1% in total beauty spend compared with the same quarter in 2021.

In the Beauty Trends in Asia 2022 report, we look at three key trends, through the lens of the specific markets in which they are particularly strong:

• Sophistication in affordable beauty in Malaysia, the Philippines, Thailand, and Vietnam 

Here we see value decline year-on-year based on the relative levels of inflation in each market, with drops in sales of between 1% and 5%. Consumers can be won even here, however, with brands willing to lower trial barriers and make affordable beauty a reality. There remains a desire to try new formats and products.

• Continuous premiumisation in Mainland China and Taiwan 

Despite minimal inflationary pressure in Mainland China (3.6%) and Taiwan (2.5%), rising concerns about the pandemic and mobility constraints caused by the lockdown led to a 5% drop in value sales in Taiwan and -1% in China for the year ended June 2022 compared to the previous year. In both markets, mask-wearing is still mandatory in public spaces. However, it appears that some facial skincare categories are being picked up by shoppers as the ‘new lipstick’, to satisfy their desire for a little bit of luxury even while their daily lives are disrupted, and disposable income decreases.

• Resilient beauty in Indonesia, South Korea and India 

With total value growth of between 5% in Indonesia and 8% in both India and South Korea, these markets did experience inflation but benefited more from the post-pandemic lift. As a result beauty purchases continued to rise. The challenge for brands here is to determine what beauty add-ons will encourage consumers to drive further growth.

Asia is not a homogeneous region. Inflation may be changing consumer behaviour and priorities, but it’s doing this in different ways in different markets.

The counter-trend to inflation is, of course, post-pandemic optimism, with consumers eager to make new memories and get out once again.

The impact of inflation depends on local shoppers’ experience of rising prices, while the post-pandemic bounce will be influenced by how restricted consumers were during peak moments of concern.

Understanding the balance between these two opposing pressures is critical to knowing where to invest the marketing budget, and which messages are likely to be most engaging.

In Kantar, we are committed to bring you relevant innovation to carry impactful solutions for your business. 

Throughout all these events, we observe shoppers across APAC continuously adjusting their FMCG purchasing to deal each new challenge. And the brands and retailers with the deepest understanding of FMCG shopping behaviours have been best placed to win hearts, minds – and baskets!

Looking to the future, we expect to see further upheaval in FMCG shopping behaviours. Therefore, shopper-centric decision making will continue to be more important than ever, ensuring brands and retailers achieve their growth targets by delivering what the shopper wants and needs.

Join us on our journey through these changes as we launch Ready, Steady, Shop! - a monthly series of bite-size insights into FMCG shopping behaviours, uncovering opportunities and pockets of growth, and leaving with some food for thought.

Read the report below, of if you'd like to have the PDF version, you can download it from the link at the right-top of this page.

Headwinds for Online FMCG?

Anyone from Kantar’s Worldpanel division will tell you “Penetration is King” and that has certainly been true for Online FMCG growth across APAC.

Looking at the charts below, Online sales have increased in parallel with an increase in the proportion of shoppers using this channel to purchase FMCG.

Other indicators, such as frequency of shopping Online or average Online basket size, have had less of an influence on the channel’s sales up to now.

Is this about to change though?

Look again at the charts and you will see that the penetration index is plateauing in these 4 markets. In other words, the influx of new shoppers Online is drying up and some Online shoppers are lapsing.

The food sector continues to lead market growth, doubling from 2.0% in Q2 2021 to 4.8% in 2022. The Home Care category has seen a particularly strong upward movement in its growth rate during the second quarter, up 5% from 3.4% the previous year.

Reviewing the performance of each market in depth, the report reveals some key insights.

• Chinese Mainland: Competition has been heated up for Modern Trade retailers since offline shopping has faced more significant challenges resulting from COVID. With this, shopping habits have developed toward faster, closer, and lighter occasions.
• Taiwan:  Though the pandemic has eased, shoppers keep their pandemic shopping behaviour—lower frequency, higher spend per trip—which seems to be the new normal.
• South Korea: Online channel kept expanding its share with double-digit growth and solidified its position as a leading channel in the FMCG market.
• India (Urban): To tackle inflation, consumers seek promotions, experiment with brands, shift to unbranded products, purchase smaller packs and move to mass products.
• Indonesia: Although consumers had to adjust to higher inflation during Ramadan, the celebration remains as the festive uplift for FMCG this year is back to the pre-pandemic level.
• Malaysia (Peninsular): FMCG managed to grow marginally, supported by higher average prices. Food, Dairy and Home Care segments grew from higher consumer spending per trip.
• Saudi Arabia: In a quarter of Ramadan, shoppers are reducing their volume, especially in the Food and Beverage sectors, but still spending 10.6% more. 
• Thailand: While the inflation rate is driving market value growth, it also results in buyers buying a smaller number of products at a lower price.
• The Philippines: Shoppers are returning to traditional trade and proximity channels, particularly sari-sari stores. Spending in SSS has surpassed pre-pandemic spending.
• Vietnam: Spending on in-home FMCG rises in Q2 2022 thanks to the increase in average price paid; however, volume consumption remains low.
• United Arab Emirates: Shoppers have ramped up their effort to manage their wallets by reducing their purchase volume by 6% this quarter.

We value your thoughts; if you have any builds or suggestions on how we can make the Asia Pulse report more relevant and actionable to your business, please do not hesitate to contact us.

In these exclusive webinars, Kantar’s beauty experts from across Asia will share insights on how shoppers are living through the age of inflation, and where the most significant opportunities lie for beauty brands seeking to grow in the region.

In this webinar, we’ll take a detailed look at the current beauty landscape in Asia, including:

• A birds-eye view of the macroeconomics 
• The impact of inflation by Asian markets
• Beauty consumers’ priority in categories & how it is evolving now
• How consumers react to premiumisation in beauty offers 
• Key brands & products leading the trend

Join our webinar

Asia Beauty Trends 2022

Understanding the Behaviour of Asia’s Beauty Shoppers in the Age of Inflation

Date: Wednesday 21 September
Duration: 60 minutes

Time

• 15:00 – 16:00 South Korea
• 14:00 – 15:00 Mainland China, Malaysia, Philippines & Taiwan
• 13:00 – 14:00 Indonesia, Thailand & Vietnam
• 11:30 – 12:30 India

In the second quarter of 2022, we experienced an uplift for the Festive season. For the first time after the pandemic occurred, people were able to go to their hometown to be reunited with their loved ones. With this wave of homecoming, we record the biggest celebration in term of consumers’ spending in their FMCG wallet. 

Some highlights in this quarter:

1. This quarter, inflation hits all sectors beyond food hence category prioritization become the next challenge for brands to stay in shoppers’ basket.
2. The price increase affects all consumers group as seen in higher spending contributed mainly by higher prices, suggesting a pricing strategy might be adjusted to maintain shoppers’ recruitment.
3. Anticipating shoppers’ prioritization can leverage omnichannel behaviour by strong availability of core SKUs in key channels, defining both online and in-store presence, and ride the growth of specialty stores.

Discover more FMCG trend across categories in Indonesia to stay ahead.

The massive homecoming moments signalled a bigger celebration in terms of consumers’ spending including FMCG categories despite the inflation waves that were starting to hit the country. This report will take you to the key highlights on how you can prepare for next year’s season.

1. Extended homecoming
2. Extended excitement from upper-class consumers
3. Extended recovery of festive categories
4. Extended relevancy of proximity channels
5. Extended Gifting occasion
6. Extended brand communication

FMCG in Asia maintains positive growth of 2.3% in the first quarter of 2022. This slowdown from the same period in 2021 (4.1%) is bolder in Dairy, Food, and Personal care categories.

In terms macro economy, the surge of inflation is evidently seen across market, impacting consumers behavior in various measurements such as spend per trip and basket size. Our experts have talked about how brand can lead amidst this inflationary time, you can read the report here and watch the on-demand webinar here.

Reviewing the key highlights of each markets this quarter:

• Chinese Mainland: The first quarter of 2022 saw a robust FMCG growth but witnessed a slowdown in March due to the surge in Omicron cases and the implementation of lockdown.
• Taiwan: Although macro economy’s momentum slowing down, FMCG kept having a growth rate of 6.3%, which was still mainly driven by the Food sector.
• South Korea: Online mall showed sustained growth and due to the upsurge in confirmed cases of Omicron, more consumers were able to utilize the online mall services.
• India (Urban): As inflation soars, consumption trends are witnessing an adverse impact. FMCG volumes remain stable as compared to last year while value grows marginally by 4%.
• Indonesia: Despite consumer confidence picking up, the inflation trend started to be seen as an impact of the supply chain crisis and higher festive demand, which can hold the spending.
• Malaysia: In-home consumption begun to normalize in Q1’22 after experiencing double digit growth in 2020 before stabilizing in 2021, leading to fewer and smaller shopping trips.
• Saudi Arabia: Consistent price increase of more than 6% per quarter in the last 3 quarters or more, contributing to a “sticker shock” to the shopper and putting pressure on their wallet.
• Thailand: With less disposable income, inflation, and less in home demand for consumption, the basket size stopped growing and consumers are more careful about their spending.
• The Philippines: With favorable conditions, as expected shoppers spend more this quarter vs last year. Consumers spend more on Food, Beverage, and Household Care.
• Vietnam: Consumers’ demand for in home FMCG remains low due to the cut-down of volume consumption. The market growth is mainly driven by the increase of average paid price.
• United Arab Emirates: Shoppers consciously managing their spends by reducing their volumes and spends in most categories. Essential categories have also been cut down.

Our latest Asia Brand Footprint publication unveiling the ranking of the region’s most chosen FMCG brands is now available!

Kantar’s annual Asia Brand Footprint reveals how consumers around the region are buying FMCG brands today, highlighting the opportunities that remain for brands to improve their position.  With the impact of lockdowns and restrictions and the road to recovery of economies across Asia, this is your essential guide to brand growth.

This year’s special edition features a birds-eye view of the decade – what shopper behaviors have emerged and which ones have stayed consistent. According to the Asia Brand Footprint rankings published today, the Asia market has proven to hold huge potential for brands to grow, as we have seen the number of households grow by 24%, with an increase of around 140 million households.

Join us as we explore the 2022 Asia Brand Footprint interactive publication which includes: 

• The Evolution of Consumers' Choices in Asia
• The rankings of the Most Chosen Brands and the Fastest Growing Brands
• Local brands success stories and the reasons behind their success

Read the report

Also available:
Microsite with our interactive data tool for exploring global, regional and sector rankings.

In this report, we conclude that there are three keys in conquering the current stage of the industry:

1. Stay relevant to beauty consumers by providing the right benefits

2. Embrace normalcy by adapting to beauty hybrid trend

3. Operate within Omnichannel to match purchasing habits

Brand Footprint is Kantar's annual study that measures which brands are most often chosen by consumers. Brand Footprint Indonesia covers over 550 brands across five FMCG sectors: namely food, beverages, dairy products, home care, and body care. This year's Indonesia Brand Footprint study covers 97% of the total households in urban and rural representing around 68 million households.

The study uses Consumer Reach Point (CRP) as the underlying data to rank the brands. CRP refers to the number of households that bought the brand (penetration) and the number of times the brand was purchased (consumer choice). In other words, the CRP value can indicate how close is a brand to the consumers.

For brands to increase their CRP and become closer to their consumers, Kantar concluded that there are five keys to leverage:

1. More targets: by opening access to a wider target consumer, brands can improve their position in the market. One of the ways for brands to implement this strategy is by responding to the needs of a wider target consumer, for example in terms of socio-economic status and age group.
2. More presence: brands can expand geographical presence to be closer to more consumers, it is also important for brands to be present across different channels to improve their availability with an omnichannel strategy.
3. More categories: brands can stretch across different categories to attract shoppers whose needs are not met by the existing portfolio; hence the brand can offer more choices to consumers.
4. New needs: brands can recognize new needs in the market and proceed to establish a new segment or category and widen the consumers’ choice. 5
5. More moments: brands can create more moments or shopping occasions to stay relevant in shoppers’ baskets and stay close to consumers’ hearts.

In the first quarter of 2022, we saw the continued recovery with improvement in household consumption from last quarter, suggesting a positive outlook for consumers’ confidence to spend despite the signs of inflation that have arrived in Indonesia. 

Some highlights in this quarter:

1. Despite consumer confidence picking up, the inflation trend started to be seen as an impact of the global supply chain crisis and higher demand during festive, which can hold the spending.
2. Mid-low consumers got impacted the most by the inflation as their cash outlay is more limited than upper class, important to redefine recruitment strategies to cater to these cohorts.
3. Pricing strategy may be adjusted in GT as the most affected channel by inflation, especially with a small pack size and higher unit price.

Discover more FMCG trend across categories in Indonesia to stay ahead.

At the start of 2021, we knew that the extraordinary growth observed in 2020 was an effect of the restrictions on movement around the globe and not a trend.

By the end of the year we saw a slowdown in global value growth to just +2.1%, a similar growth rate we experienced pre-COVID. Whilst we also observed the continued steady growth of ecommerce globally but signs of stagnation in Western Europe.

In 2022 with rising inflation and the war in the heart of Europe, understanding these impacts on shopping behaviour and the retail structure is critical to shape effective strategies going forward.

Read the report

Watch the webinar English | Spanish

After two years of uncertainty living under the pandemic, we thought we will finally see a new normal in Asia. However, before this happens, we are now hit by another challenge of inflationary pressure that is affecting both consumers and brands. 

Looking across the key markets in Asia, we are indeed seeing price increase seen across most markets with volume slowdown. Shoppers in Chinese Mainland, Indonesia and Philippines are potentially switching to cheaper products. 

The good news is, we are still expecting FMCG to grow in 2022.

Across South East Asia markets, we are projecting that Q4’22 growth will be around 3% despite price increase as likely due to the opening of local economy. 

Understanding how shoppers will react to price and inflationary pressure will help in determining our brand growth strategies and in this paper we will be looking at the different behaviours that shoppers will potentially demonstrate during uncertain times across FMCG categories. Some of the key potential shopper reactions to categories are:

1. Increase/reduce in Overall Category Volume
2. Increase/reduce in Choice of Segments
3. Switch Channels
4. Increase/reduce Promotional Reliance
5. Switch brands or move to Private Label
6. Changes in Product Mix (segment, pack sizes)
7. New/Lost Buyers

In addition, we have enlisted key industry views from our key partners who each excel in their sector: Friesland Campina, Coca Cola, Mars Wrigley and Unilever who will also be sharing their insights and views on how brands can cope with inflation and continue to reach consumers during these times.

Don’t miss out, download your copy on the right side of this page.

Our understanding of the complex beauty market will help you stay ahead of category trends to drive sustainable growth for your business.

Our experts will partner with you to get under the skin of the consumer trends driving value in the market. This will enable you to spot the best innovation opportunities, accurately quantify them, tailor communications and marketing, and be seen as a true expert in your categories.

Predict what will happen next in-store

Our panels cover both purchase and usage of beauty and personal care products, giving you a 360º view of the consumer journey. From there, you can optimise your strategy based on a deeper understanding of the levers of growth.

Know your consumers

Our market-leading data helps brands and retailers to target consumers more precisely, through understanding their behaviour at an individual level. We help you reach the right person with the right offer or product.

Kantar’s Beauty and Personal Care panels cover every price point, from the mass market to prestige brands. Our data and insights will help you navigate the complexities of the global beauty industry and the consumer behaviour that drives it – giving you the competitive edge to win in today’s ever-changing markets.

Read the publication

Watch the webinar

This latest report from Worldpanel Division comprises of further details of the five main takeaways:

1. Ride the rise of experimental home cooking and stay alert with the mobility trend.
2. Offer high convenience for shopping with strong availability in mom-and-pop store and peddlers in urban areas.
3. Leverage higher spending in online channels to drive bigger basket size mostly in urban key cities.
4. Accelerate the adoption of healthier ingredients by providing relevant innovations
5. Offering healthy ingredients should be supported by the presence in urban key cities and its communication.

If you'd like to explore your opportunities in Pantry essential categories and beyond, you can contact us via this page or reach out to your usual contact in Kantar.

The market growth is mainly driven by the rebound of Beverages sector, particularly in Chinese Mainland.

FMCG performance across sectors, in general, enjoyed healthy growth. Dairy and Personal Care showed an improved growth in North Asia while flatting or slowing down in other areas. Meanwhile, Food and Home Care cooled down its year-on-year growth pace after last year’s pick-up.

In terms of retail landscape, Online kept the good momentum in 2021 with a robust increase in both FMCG value sales and number of purchases across the region.

Reviewing the performance of each market in-depth, the report reveals some key insights:

• Chinese Mainland: The growth in e-commerce channels slowed down in 2021 due to the traffic peaking and diversion from the new digital formats.
• Taiwan: Ecommerce kept growing with double-digit growth over years and is now the 3rd largest channel in Taiwan FMCG market since shoppers are getting used to shop online.
• South Korea: Personal Care especially skincare products showed an upsurge in value thanks to the increased demand for skin recovery.
• India (Urban): Consumers made more shopping trips yet less spend in each trip, rationalizing their spends by shifting to small packs.
• Indonesia: Shoppers have spent more on home-cooking categories, such as cooking oil and sesame oil, with major growth coming from the online channel.
• Malaysia: FMCG sustained at a higher level after double digit growth in 2020 with Packaged Foods being the fast growing sector.
• Thailand: Consumers continue to purchase larger basket sizes while reducing shopping trips as the stock up trend remains during COVID-19.
• The Philippines: Filipinos continue to prioritize food staples and home & hygiene essentials, but they also deprioritized some categories already stocked up in 2020 such as baking products.
• Vietnam: Convenient retail formats including Online and Minimarket kept winning consumers' choice amid the social distancing periods.

The holy month is just around the corner and consumers in Indonesia are preparing for the festive season.

On the same spirit, brands can tap into this momentum to amplify the uplift. Check out below key pillars from our experts in welcoming the season and get in touch with us if you’d like to explore more.

The report will also explore on OOH recovery trend in Indonesia with the opportunities that lie ahead.

There are three key points suggested by this report to influent shoppers' purchase decision:

1. Infuse into the recovery mode by maximizing opportunities in each age group, area, channels, and occasion.

2. Identify the preferred occasion for each category and deliver the right message to specific shopper profile and occasion 2 segment.

3. Indulge the occasion with unique proposition to be stand out among the crowd and emphasize the reason to buy to lead the purchase.

Read the complete article to find out more about the global snacks and non-alcoholic drinks market, download the full Q4 Out-of-Home barometer and reach out to our experts through this page.

Kantar is continuously in contact with your consumers on a weekly basis and across the country. Through FMCG Monitor, we provide an overview of the Indonesian FMCG In-home market and its evolution across sectors and highlights of the latest trends.

In the full year 2021 edition, the economy and FMCG industry has shown a good trajectory to recover, yet shoppers remain prudent with their spending and low shopping frequency become a new normal.

Read our latest edition of FMCG monitor to learn the dynamic among Indonesian consumers.

Some highlights in this quarter:

1. Indonesia’s economy was slowly recovered shown by 5.02% growth in the last quarter. The recovery was supported by loosened Covid-19 restrictions and rising vaccinations rate.
2. FMCG growth was softer than 2020 and shopping trip remained challenging, suggesting higher importance to win over the limited trip with bigger trip size.
3. Higher spending and bigger basket size were seen among middle to lower class buyers who drove the overall growth hence important to optimize recruitment strategy beyond upper class
4. Food and personal care spending were higher due to bigger basket size, extending the need to offer value for money proposition and reformulate recruitment strategy for each category.
5. Traditional Trade remained prominent and omnichannel behavior is seen with promising growth from Online channel hence strong presence across online and offline stores become a hygiene factor.
6. Internet’s relevancy gets stronger among FMCG shoppers. Brands need to be stand out and craft strategies to reach their shoppers on the internet. 

Kantar Indonesia’s Worldpanel Division invites you to ponder over what to expect next year. With first class insights, we serve you a comprehensive outlook to help you establish the future-proof strategies for your brands.

This outlook is divided into five sections, specific to below topics:

FMCG: Expect the Unexpected

The resilience of the FMCG industry has been rock-solid throughout the pandemic. Now that the circumstances are evolving, the growth can be more expansive. It's essential for brands to leverage opportunity in accelerating growth throughout 2022.

Cherish the Right Moments in the Baby Industry

The Baby industry undergoes a healthy growth throughout 2021. Parents are putting their babies’ needs into their priority among other household needs. Optimising the right moments to be in alignment with different needs across baby’s age is key to succes in Baby categories.

Grow Beyond the Basics in Home and Personal Care

Home and Personal Care sector are forecasted to experience growth in 2022. There are key factors that brands can adopt to secure the growth by being adaptive to the dynamic shoppers’ mobility and new level of hygiene-related needs. 

Spice It Up to The Next Level: Food and Snack 2022

The food sector is able to maintain its growth this year despite the slower pace from the stay-at-home period last year. With the rising mobility of the consumers, it’s natural to see the slow-down of the home cooking occasion and its impact to the Food sector. It's time for brands to take the growth to the next level as the trend in the Food sector is healthy and ready to be nurtured. 

Quench The Thirst for Growth

As we are stepping out of the restricted mobility period, the beverage and dairy sectors trend has been dynamic within the pandemic period with various activities across consumers' age. Seize the opportunities available in the Beverage categories trends, and be prepared for growth.

Read the report for complete insights and watch the on-demand webcast before 14 March.

We sat down with Gabrielle Angriani as the Communication Lead at PRAISE and discussed some of the challenges for sustainable initiatives in the FMCG industry. 

Enjoy the episode and reach out to us if you'd like to talk further about sustainability in FMCG.

Our takeaway is to pick a low hanging fruit to unlock the opportunities for your #brand

Stay tuned for the full report of the #FMCG Outlook #Indonesia 2022 – it’s coming to you soon!

Understand more about FMCG Shopper media profile in our latest release, through these key points:

• Trends Leverage

Lay out the trends of the Internet space to seek opportunities for you to tap in. As Fashion has been the trendy one on the Internet, other products like FMCG are attracting more attention from the shoppers. Now that the trends are expanding, FMCG brands can ride trend to reach their consumers.

• Audience and Activities Understanding

Internet is now an integral part to consumers’ daily life; they use it for varied activities such as networking, entertainment, and shopping. Understanding audience’s preference and activities is important for brands to figure out winning strategies in the digital world.

• Propose with Purpose

Incremental growth of the Internet in the past years has been a strong sign for brands to join the crowd. To succeed, brands need to propose their message and values at the right time and place, with the right message, to the right segment. In addition, proposing the message should also align with brand purpose and values to reach the long-term objectives.

Listen to the episode here.

The year 2022 is just around the corner.

Kantar Indonesia’s Worldpanel Division invites you to ponder over what to expect next year. With first class insights, we serve you a comprehensive outlook to help you establish the future-proof strategies for your brands.

This webcast series has five episodes, specific to below topics:

1. FMCG: Expect the Unexpected
2. Cherish the Right Moments in the Baby Industry
3. Grow Beyond the Basics in Home and Personal Care
4. Spice It Up to The Next Level: Food and Snack 2022
5. Quench The Thirst, Growth Comes First

We are almost 2 years into the pandemic and whilst we observe certain countries opening up and going back to normally, in most countries we had just battled one of the fiercest waves of Covid-19. This recent surge in cases has led a move back into the in-home economy and despite the effort to ramp up vaccination, mobility restriction is expected to continue for the next 6 – 12 months.

Shopper behaviour will continue to change and knowing how shoppers are adapting and evolving will continue to be important. Hence, the question of understanding how to win in Festive has now become critical in order to be ahead of the game.

In this publication we will be examining the following

1. How festive are Asians and how important is it to FMCG since Covid-19? How much more would consumers spend during festive vs the average months of the year?
2. What are the key drivers of shopping behavior during Festive?  Do we see higher frequency, more transactions, or more spend?
3. In terms of products and categories, has consumer preference changed? Are there new sectors that have risen in importance due to the pandemic?
4. Who are the key cohorts that is key to reach during festive? Do the lower income or SEC spend as much as the higher income during festive?
5. Where are the key channels to reach to drive festive sales?

We will also be hearing from local market experts on what the key lookouts for 2022 would be, in order to help us navigate the new normal.

Total FMCG value sales grew by 3.6% compared to the same period last year. Beverages shone brightly as the fastest growing sector, recovering rapidly with a 5.3% increase in value, mainly driven by the Chinese Mainland market.

Nutritional and hygiene categories are still benefiting from the pandemic, with value sales in Dairy and Personal Care rising by 3.1% and 4.2% respectively. Meanwhile, Food and Home Care slowed down following their peak in 2020.

Convenient channel formats – especially ecommerce – continue to perform well, leading growth in the APAC region with a double-digit increase in transactions. 

Reviewing the performance of each market in depth, the report reveals some key insights:

• Chinese Mainland: Instant retail (O2O) has maintained a strong growth trend since 2020, with 57% of urban households using O2O home delivery services to purchase FMCG in the first nine months of this year.
• Taiwan: Taiwanese shoppers have become more used to purchasing FMCG products online, across all categories and age groups. 
• South Korea: In-home beverage consumption is likely to decrease in the coming months as COVID-19 restrictions ease.
• Indonesia: Despite a slowdown, Food and Dairy continue to lead the market’s total FMCG growth.
• Malaysia: All sectors continue to record growth except Beverages, due to the implementation of a national lockdown in 2021.
• Thailand: Consumers keep reducing their shopping trips, with larger basket sizes a result of stockpiling during the pandemic.
• The Philippines: Households continue to value traditional trade and proximity stores over other channels.
• Vietnam: The level of FMCG spending remains higher than before the pandemic, driven by another peak in the purchasing of packaged foods during periods of lockdown in the country’s fourth wave of COVID-19.

How much do you know about male grooming?

Check out below facts and let's connect with us to explore further.

 Watch our short video to learn more facts and get in touch with us if you’d like to explore more.

In Module 2 of our Retail & Shopper Insights series, we deep dived into the eCommerce development across the region zooming into the key stages of the shopper journey, exploring the next source of frontier for growth and how online can drive incrementality.

In this module 3, we will be looking specifically at brick and mortar stores which have been resilient through the pandemic era to the surprise of key industry experts. This channel still contributes to about 80% value to FMCG. And with mobility restrictions that will continue into 2022, we expect to see the current behaviour of larger trips to keep momentum, but with frequency of shopping will continue to be challenged.

We breakdown the analysis, looking into big format modern trade channels (hypermarkets and supermarkets) and proximity channels (minimarkets, convenience stores and general trade). It is key to understand the difference in missions and categories mix across the different channel types.

Understanding the different roles of categories and having the right mix and assortment (including efficiency of promotions) will become even more crucial, against the changing basket missions due to the continuity of ‘stay at home’ and consumers being cautious. Creating the right shopper experience and engagement is also key to how big format modern trade will continue to evolve and sustain.  

Our key partner experts across both key manufacturers (Nestle, PepsiCo & Reckitt Benckiser) and retailers (Dairy Farm Group & Lazada) continues to provide insight and food for thought into our last and final module for the year on brick and mortar stores.

In Q3, we experienced the 2^nd wave of the covid-19 cases uplift and the restrictions that followed. As people had to limit their trips, they reprioritize their shopping basket with cautious spending. Read our latest edition of FMCG monitor to learn the dynamic among Indonesian consumers.

Some highlights in this quarter:

1. The economy is expanding softer by 3.51% due to the stricter restrictions amidst the spread of coronavirus Delta variants in Indonesia.
2. Household is expanding allocation for non-primary sectors with higher secondary needs allocation happens across cohorts.
3. As the occurrence of mobility restrictions (PPKM) started in early July, buyers were becoming more cautious and shop less frequent. Middle to upper class shoppers continue to improve their basket size and spending power as they shop less frequent. Shoppers are sparing bigger basket for Home Care, Personal Care, and Dairy, whereas spending remains high for Food and Beverages.
4. Traditional trade remains the key channel with opportunity to grow further in Online Channel and Specialty Store as well.

Discover more FMCG trend across categories in Indonesia during pandemic times to stay ahead.

In this report, we discuss on the stories of:

• Understanding the preference of buyers
• Extending presence in specific channels
• Winning the slim opportunity in newborn stage
• Adapting to the share of wallet in toddler stage

The Worldpanel division of Kantar in Asia will be hosting an exclusive webinar featuring its Beauty experts from the region, who will be sharing insights on where the greatest opportunities lie for Beauty brands seeking to grow in APAC.

In this webinar we will take a detailed look at the current beauty landscape in Asia, including:

• The evolution of online vs offline environments
• Who is buying beauty online?
• Key beauty products consumers are purchasing
• Biggest platforms, how they are developing and how shoppers use them

What you will takeaways from this webinar:

Where to focus investment. We will explain how to select and prioritise the digital platforms that will work best for your brand. Is it more profitable to focus on the top two or three? Or should you be present across them all?

Which types of shoppers you should target. Taking into account the platform, and the ‘evolutionary’ stage the buyer is at. We will also describe how to reach new addressable markets, including the growing Boomer and Silver segments.

How to deliver sustainable growth. Our Beauty experts will share strategies for increasing digital sales while protecting offline business, ensuring growth is incremental. And we’ll explore how to win new buyers while retaining existing ones. Should you use ecommerce to drive trial? Or to strengthen loyalty, example by encouraging trade-up?

The route to category captaincy. Through examining your competitors, to determine opportunities to source growth and increase your brand’s share of the market. Excellent for new or emerging beauty brands looking to capitalize and grow market share.

A comprehensive report is yours! At the end of the webinar, each participant will receive a detailed report with all the data and insights across markets in Asia. This will provide you with the competitive edge to drive brand growth into 2022.  

3 November 2021

16:00 – 17:30 (Singapore time)

SGD$120 per participant

CLICK HERE TO REGISTER

In Module 1 of our Retail & Shopper Insights series, we examined the channel landscape in the region, identifying the drivers of growth and the diverse strategy required of brands and retailers across the region - simply because we cannot average Asia.

In this module, we deep-dive into the stages of eCommerce development across the region and how understanding occasions along these different stages along with search and entertainment needs are important in helping us sharpen our online growth strategy. We will also provide examples of key initiatives to drive growth to inspire brands and retailers to act on the next opportunity for shopper growth.

Driving incremental growth is key and insights reveal that highly penetrated categories online exhibit a strong overlap with other offline channels. It will be important to understand how the right portfolio and promotional mix that will best bring incrementality is critical both to manufacturers and retailers.

Our key partner experts across both key manufacturers (Nestle & Reckitt Benckiser) and retailers (Dairy Farm Group & Lazada) continues to provide insight and food for thought into this eCommerce module.

The question remains, how do we make it easy for shoppers to shop online to drive wider reach & recruitment, and more importantly how do we continue to ensure that eCommerce brings incremental growth to our business?

Stay with us to embark on this journey to unlock key opportunities and pockets of growth via our Omnichannel Asia series.

Inside the pages of this report, you will read about:

1. How our Eco-Segmentation has changed, with critical insights into the behaviour of the Eco Actives.
2. Which brands are currently resonating with consumers as being more environmentally positive than the competition, and how does this impact performance.
3. We talk to industry experts, including Bill Marshall, Global Director, Futures and Sustainability at Unilever, and Chris Sellers, CEO at Water Unite.

Listen to the episode here.

Check out these 5 things to know about Indonesia's Beauty Online Shoppers and do get in touch with us if you'd like to explore more.

Almost a year and a half into the pandemic and whilst we observe certain countries opening up, in most countries we continue to battle one of the fiercest wave of Covid-19. This recent surge in cases has led a move back into the in-home economy for many countries across Asia and despite the effort to ramp up vaccination, mobility restriction is expected to last between 6-12 months.

Shopper behavior will continue to change and knowing how shoppers are adapting and evolving will continue to be important as we navigate through these unprecedented times. Both manufacturers and retailers cannot emphasize further the importance of the need to make shopper-based data decisions to understand what shopper want.

In this 1st module (over a series of 3 modules) we have sought key industry views from across both key manufacturers and retailers as well as looked at how shoppers are now evolving across both eCommerce and Brick & Mortar to give us insight into the evolving omnichannel landscape.

The question remains, how will the future look for eCommerce and Brick and Mortar as mobility restrictions continue and when the pandemic eases?

Join us to embark on this journey to unlock key opportunities and pockets of growth via this Omnichannel Asia series.

Get in touch with us if you'd like to explore your opportunity and read our first module on Winning Ominchannel Asia.

How do we harness the opportunity to grow in the rest of 2021?

Read our report to explore your windows to grow ahead.

Total FMCG value sales rose by 4.5% year on year, an improvement on the 3.1% growth seen over the same period in 2020. This was largely driven by shoppers in the Chinese Mainland, where spend grew by 4.2%. Only the UAE and the Philippines reported declines.

Focusing in on nine individual countries, the report highlights some major trends, including:

• Chinese Mainland: Out-of-home (OOH) food and beverages are recovering well as consumers return to their regular routines, with growth of 15.1% in Q2.
• South Korea: The beverages category grew significantly due to restrictions on OOH, with the majority of growth coming from online channels.
• Indonesia: People shopped less often, but compensated for this with bigger baskets and higher spend.
• Malaysia: For the first time ever, shoppers bought more food than non-food online in Q2 of 2021, as COVID-19 cases soared.
• Vietnam: Emerging channels including online and mini-markets have gained share.

We value your feedback, if you have any builds or suggestion on how we can make the #ASIAPulse report more relevant and actionable to your business, please do not hesitate to contact us.
 
Note: We have officially changed the name of this report to ASIA Pulse since early this year. Previously known as Consumer Insights Asia, the special quarterly report from the Worldpanel division of Kantar.

In this year’s festive report, Kantar explore on the stories of the trends:

• Categories shift in regards to embracing the new normal
• Gifting occasions
• Shopping trips and channel preference
• Brands’ communication

Kantar is continuously in contact with your consumers on a weekly basis and across the country. Through FMCG Monitor, we provide an overview of the Indonesian FMCG In-home market and its evolution across sectors and highlights of the latest trends.

In Q2, we experienced the festive season and its uplift. Different from last year's celebration which was more isolated, the activity this year is getting to a new normal phase. With more activities outside the house, consumers' consumption in this year's festive is unique compared to the previous years. Check out this edition to read a glimpse of the festive trends.

Some highlights in this quarter:

Over the years, Ultra Milk has been evolving as a brand. Listen to this episode to find out how Ultra Milk’s agile ways in order to keep their pace to be ahead of the time.

With this significant growth, the call for #FMCG brands to nurture their online shoppers is getting louder.

Our Account Manager, Ratu Zahra, talked with Albert Dinata, Marketing Director from PT Sasa Inti about how Sasa harnesses its closeness to their consumers and beyond by shifting their brand's perception (and other interesting strategies).

Listen to the episode here.

• The big themes that appear among FMCG brands are health, hygiene, and accessibility.
• The food sector dominates the top brands list and the fastest growing brands list in 2020.
• The extra-protection trend in terms of health and hygiene was an important focus among brands in personal care and home care sector.

Brand Footprint is the annual study from Kantar that measures the brand choice made by the Indonesian consumer. Brand Footprint covers five FMCG sectors, including food, beverage, dairy, home care, and personal care. Brand Footprint’s rank this year represents 97% of Indonesia’s 68 million households both in urban and rural area.

Brands are ranked based on Consumer Reach Point (CRP). CRP is a matrix that combines the number of households buying any particular brand (penetration) and number of times the brand is being purchased (consumer choice). In order to increase your CRP amidst this uncertain time, your brand needs to be adaptive to your consumers from multiple aspects: preference in the use and benefit of a product, availability across relevant channels, the right price point and the pack size, expansion to other categories, and other factors that can influence the consumers’ decision to purchase your brand.

Key findings from the Brand Footprint 2021:

• The top five most chosen FMCG categories, namely instant noodle, biscuits, instant coffee, detergent, and seasoning have a special bond with consumers in Indonesia with at least 95% penetration for each category. This means that 95 out of 100 households in Indonesia have purchased the category.
• The food sector in 2020 dominated the top 10 most chosen brand rank and also among the top 10 fastest growing brand rank. This condition is influenced by the pandemic situation that makes people do their activities at home, including eating and cooking at home.
• Indomie remains the 1^st choice of consumers in Indonesia and takes the 7^th place in Global Brand Footprint 2021. Indomie is the top-most chosen among household as staple food with seasoned taste that is suitable with everyone’s palate be it in Indonesia and overseas.
• Seasoning products like Sasa, Masako, Royco, and Bango became the top selection for Indonesia’s consumer through the year 2020 as the aid to the cooking activities at home which becoming more popular during the stay-at-home period.
• As the pandemic occured in 2020, people’s preference in home care and personal care sector showed a positive trend in products that offer extra protection from health and hygiene point of view.
• Ekonomi is one of the fastest growing brand in the top 20 rank. Ekonomi offers extra protection for the family in terms of  hygiene and affordable value.
• Playing in several categories is also one of the key factors for brands to have a strong presence and consumer base. Brands like Lifebuoy (8^th place), Frisian Flag (9^th place), and Indofood (12^th place) secured their position in the top 20 rank by being available in several categories in their respective sectors.

Also available:

Listen – interview with Albert Dinata, Marketing Director, Consumer Acquisition and Retention from PT Sasa Inti

Microsite with our interactive data tool for exploring global, regional and sector rankings.

Find out the genuine, truthful, comprehensive answers in the third episode of Future Proof Indonesia, where we conversed with a seasoned marketer from Kraft Heinz Indonesia.

Listen here. 

Kantar’s annual Asia Brand Footprint reveals how consumers around the region are buying FMCG brands today, highlighting the opportunities that remain for brands to improve their position. Based on billions of real shopping decisions across 23,500 brands in 54 markets – representing 73% of the global population and 89% of gross domestic product (GDP), this is your essential guide to brand growth.

This year’s edition is, once again, an excellent guide for brands’ growth. According to the Asia Brand Footprint rankings published today, shopper behaviour has been shaken up by lockdowns and new consumer concerns around health and the environment with a significant impact on the fortunes of FMCG brands across Asia. The 2021 Asia Brand Footprint interactive publication includes:

• Overview of how FMCG brands grew in 2020 across Asia
• The rankings of the Most Chosen Brands and the Fastest Growing Brands
• Local brands success stories and the reasons for their success

We invite you to dip into the Asia Brand Footprint to explore the insights and rankings from this year’s publication.

Also available:

Microsite with our interactive data tool for exploring global, regional and sector rankings.

Check out below infographic to learn the difference or if you’d like to explore more, do get in touch with us.

The food sector continues to lead market growth, doubling its value gain from 3.1% in Q1 2020 to 6% in 2021. The dairy category has seen a particularly strong upward movement in its growth rate during the first quarter, up 5.1% from 2.4% the previous year. In line with the positive performance of the overall FMCG market, the beverages sector has experienced a rebound, achieving value growth of 3.5% compared to a drop of -0.1% the year before. In contrast, a slowdown in growth was observed across non-food sectors.

Reviewing the performance of each market in depth, the report reveals some key insights.

• Indonesia: Shoppers are rationalising their FMCG spend, while maintaining the same number of shopping trips. With continued restrictions on outdoor activity, households are opting for higher in-home consumption and bigger packs to manage their budgets.
• Chinese Mainland: The National Bureau of Statistics has released year-on-year GDP growth figures of 18.3% for the first quarter of 2021. With the pandemic under effective control and the economy getting stronger, the FMCG market here has been recovering very well.
• Taiwan: In Q1 of this year ecommerce powered up to become the channel with the third-highest FMCG value share in the market, with spend growing 13% thanks to a double-digit increase in the total number of online shops. This indicates that Taiwanese shoppers are getting used to purchasing FMCG products online.
• South Korea: COVID-19 has had a noticeable impact on consumers’ FMCG baskets. Shoppers have spent more on home-cooking categories, such as cooking oil and sesame oil, with major growth coming from the online channel. In contrast, the cosmetics market is declining, mainly driven by the decrease in both frequency and volume per trip as people wear less make-up.
• Malaysia: Online and supermarkets have been the biggest winners during the pandemic. But while online gained spend from an increase in number of trips and penetration, supermarkets mainly benefited from higher spend per trip, in addition to increased penetration.
• Thailand: Since the last quarter of 2020 the government has launched various subsidy programmes designed to provide Thai shoppers with more financial support. This is encouraging them to spend more, which helped the take-home FMCG market to grow by 2.9% in Q1 of this year.
• Philippines: The country’s GDP is still contracting, which indicates that recovery might prove to be more challenging than originally expected. Filipinos continue to reduce their in-home FMCG spending, however, the food sector remains resilient as shoppers’ top priority.
• Vietnam: Economic growth has recovered during Q1 of 2021, and this trend is coupled with an improvement in consumer confidence. The online channel is increasing its share of retail value, outstripping more established channels in both urban and rural areas.

Before we go into our Eid celebration, let's take a look at how margarine and cheese revolves around the festivity.

Kantar is continuously in contact with your consumers on a weekly basis and across the country. Through FMCG Monitor, we provide an overview of the Indonesian FMCG In-home market and its evolution across sectors and highlights of the latest trends.

As we went past more than 1 year of pandemic, we see some dynamics change in Indonesian buyers' shopping behaviors. There are several factors that influence this dynamic, including government regulations, COVID-19 cases development, and movement restrictions. Read our latest edition of FMCG monitor to learn the dynamic among Indonesian consumers.

Some highlights in this quarter:

1. Indonesia’s GDP is still struggling for the fourth consecutive quarter but it is slowly moving towards getting into the positive growth territory
2. Households still prioritizing their spending with allocation for Fresh Food and FMCG while controlling their spends on Entertainment, Travel and Eating Out.
3. Shoppers are rationalizing the price they pay in purchasing FMCG products. More affluent shoppers grow their basket size and spending faster at the expense of maintaining their shopping trips.
4. Proximity channel remains prominent for FMCG shoppers, while Online channel continuing its fast growth.
5. Discover more Online channel's FMCG buyers composition and their preferences.

Our Media Expert Solutions at Worldpanel Division, Sugiharto Yosaputra, meticulously explains the media study done by Kantar and how brands can utilize the study.

Enjoy your listen here!

Proudly sharing you our Impulse Purchase 101 series to explore its trends. Check out the first piece below where we explore on how each age group in Indonesia manifest their preferences.

There are some learnings we found on this road of recovery among Indonesian beauty shoppers. We see that diversity is a trend among shoppers, which can be seized as an open opportunity for brand owners to tap into.

Check out our latest publication upon the beauty industry to learn how brands can diversify their strategy during this recovery phase. 

In this first episode, our General Manager, Venu Madhav, had a 10-minute conversation with our Marketing Director, Fanny Murhayati. They kick-started the podcast with an overall look to the Indonesia’s market trend both to the past year and the coming year.

Tune in to Future Proof Indonesia’s Spotify to listen to our first episode and don’t forget to follow us to get your notification when a new episode drops in.

Enjoy the podcast and have a great week ahead!

Indonesians are expected to celebrate modestly like the year before. Gifting tradition will still be alive with more thoughtful choice of goods.

• Indonesia: FMCG has grown in 2020 as households have re-prioritized their spends resulting in FMCG growing at a higher rate compared to 2019. The driver of this growth coming from the food sector which grew significantly compared to other sectors.

• Taiwan: Taiwanese shoppers spent more time at home with more home cooking or party occasions that “cooking necessity” as new keyword in FMCG.

• South Korea: Online continues to grow in Korea, with fiercer competition as Hypermarkets entering the online market. Many online platforms are now marketing themselves for one stop shopping destination.

• China Mainland: With the stable recovery of China Mainland‘s economy, China Mainland’s GDP increased by 2.3% year-on-year; Dispensable income of urban residents increased by 3.5%, and the FMCG market gradually recovered from the COVID-19 epidemic.

• Malaysia: Malaysian economy contracted by -5.6% in Q4, this is largely due to the Covid-19 forcing strict semi lockdowns which weighted on economic activity. FMCG has grown +12% in Q4, a 10.3 percentage point increase from last year driven by measures of staying and working from home.

• Thailand: Number of shopping trips have been declining for past 7 years, while basket size gradually increased. Stocking up at the begging of first lockdown in Q1 contributed to the trend. In Q4 when there was government subsidy program, spend per trip showed growth in both Urban and Rural.

• Philippines: Among the top 10 categories, instant noodles and family/adult milk are best performing. After recovery in Q3, the Non-Food sector slows down for Q4.

• Vietnam: FMCG in 2020 showed a stronger growth, mainly driven by the impact of COVID-19. Almost all sectors grew at a faster pace with Packaged Food sector being the biggest winner.

Still in the spirit of IWD’s month, let’s take a look at how the beauty industry has revolved over the past year. Some categories are contested harder than the other; the brands who have made it are the ones who were able to empower themselves to spin the trends and challenges into their benefits.

Enjoy your watch and get in touch with us if you’d like to explore more.

Never have a year been like 2020, where FMCG market had encountered such a rocky road. But nevertheless, the Indonesia's FMCG market survived with a positive growth that's higher compared to last year. 

We have compiled the in insight learnings from 2020 and how it becomes the keys to 2021 in our latest thought leadership.

And now you can watch our 3-minute video summary recapping the 9 essentials to win this year.

In the attached, we will be look at:

• Total Asia (and by market) how would 2021 FMCG look like.
• Thailand has experienced an all-time high in FMCG value and growth (in the past 5 years) and this has been partly driven by the government subsidies in aiding local SMEs. This in turn has shifted the tide of the balance of Modern Trade vs Traditional trade as well.
• Growth between local, regional and multinational FMCG players vary by market – as you would see across Taiwan and Malaysia. Hence, the importance to delve deeper by market and set the right benchmarks and spot the right trends/need states.
• How functional beverages (loaded with vitamins) are fast growing in a market like Thailand as well.
• Plus, a deeper emphasis on the Indonesian market on:

• Fast growing categories.
• How proximity stores have now grown 4X faster and ahead of business as usual (BAU).
• A quick read on the differences between the affluent vs lower income shoppers in market.
• And gifting – how it has changed in 2020.

Successful brands are the ones who triumphed the existing barriers within the category due to the pandemic situation; such as the movement restrictions and the stay-at-home period. Adjustments in product offerings and channels availability has been made and it was game-changing. The advancement of technology and communication also has its own chunk of contribution to the green rapport of FMCG.

Gear your brand up to another road in 2021 and enjoy your read!

Kantar is continuously in contact with your consumers on a weekly basis and across the country. Through FMCG Monitor, we provide an integrated overview of the Indonesian FMCG market and its evolution across sectors and highlights of the latest trends.

Indonesians have been living alongside COVID-19 for almost a year, and there have been a lot of adjustments and efforts to adapt made by government, manufacturers, and shoppers. How are these changes reflected in Indonesian's buyers shopping behaviors?

Some highlights in this issue:

• Indonesia’s economy growth is still in the negatives for the third consecutive quarter, with overall spending declining among consumers.
• Households reprioritizing their needs. While limiting spending for travel and education, consumers are still allocating more for Food and FMCG.
• FMCG market year on year are still growing positively. Consumers are increasing their trip size while reducing their shopping occasions to accompany their restricted movement. They are more frequent in buying food and dairy, to accompany their stay at home activities.
• Brick and mortar stores remain as the preferred channel, despite the growing of online channel.
• Find out more on which categories are still growing and the on-the-go market highlight

Staying at home with the loved ones have been Indonesian families' wholesome habits. Keeping the members comfortable to do their daily activities and extra-caring on their health is becoming the priority.

These new habits come with a new trend of consumption, too. Some categories are struggling, some categories remains their priority; for examples convenient food and hygiene products.

Key highlights in this issue:

• FMCG in Asia maintains positive growth of 3.1% in Q3 2020. This is a slight slowdown from the same period in 2019 (4.8%). The slowdown is more apparent in North and Southeast Asia.
• The food sector is leading the FMCG market, achieving an appetising growth of 5.2%, compared to 3.4% in the same period last year. This is attributed to more cooking and eating occasions at home across almost all markets during COVID-19.
• Home care maintains its momentum with a growth of 7.6% for this quarter, which could be explained by consumer preferences for hygiene and cleaning products to defend themselves from COVID-19.
• The beverage and personal care sectors were also impacted by the pandemic. Beverages suffered a decline of 3%, mainly driven by mainland China. Meanwhile, personal care grew but at slower pace: 2.6% compared to 8.4% in Q3 2019. This was due to the negative performance in the top beauty markets of North Asia including Korea, Taiwan, and mainland China.
• Online shopping for FMCG products is thriving everywhere. Ecommerce is the fastest growing channel and gaining more of the total retail landscape across markets from North to Southeast Asia.
• Across the region, each market displays a different growth rate both for FMCG as a whole and across sectors. This is in line with the impact COVID-19 has had on movement, market trade structures (for example ecommerce) and the purchasing power of consumers in respective markets (read more about this in What Now, What Next).

It is mandatory to have a customized media touchpoint strategy to better target each groups.

Watch our video summary from our latest thought leadership to find out how FMCG can benefit from the consumers’ digital behavior.

E-commerce has always been in accelerating mode, even before the C-19 times. Have you jumped in to this mode?

Reach out to our team if you'd like to discuss how we could help you grow.

Kantar is continuously in contact with your consumers on a weekly basis and across the country. Through FMCG Monitor, we provide an integrated overview of the Indonesian FMCG market and its evolution across sectors and highlights of the latest trends.

There have been a lot of adaptation made by government and manufacturers post six months since the first covid19 case announced in Indonesia. How are these reflected in Indonesian's shopping behavior

Some highlights in this issue:

• With COVID-19 lockdown measures affecting economic growth, consumers are still maintaining low confidence levels.
• Consumers continue to prioritize their spending, by allocating more money for Fresh Food and FMCG
• The increase of spend allocation for FMCG is reflected in FMCG’s growth. Buyers purchase more items and spend more. Lower SES showing the modest growth, as they are facing higher financial tension.
• Shoppers are adjusting their purchase behavior, by purchasing more item within each trip.
• As people avoid going to crowded places, the shift to proximity channels becomes more prominent. Proximity channels’ role for impulse shopping is slowly shifting as we see more “grocery” categories being purchased there

Is using less plastic enough? Should we change our packaging materials? Or should we be a change agent by educating and creating new habits? While offering solution can be done by anyone, tailoring the best one requires a thorough understanding on Indonesian these sentiments.

Who Cares, Who Does is a global consumer study from Kantar on attitudes and actions towards sustainable living and reducing environmental waste. Kantar just released the findings on the 2^nd edition of this study.

In this Webinar we will be sharing:

• The findings for Indonesia and what has changed since the 1^st survey done last year.
• Uncover whether there is a gap between what people say (i.e whether they care about environmental issues) and the actions they take.
• What role can manufacturers play to meet the expectations of the consumers.

Watch our on-demand webinar on Who Cares, Who Does: Indonesia 2020 webinar, which was live on Thursday, 22^nd Oct, 3 PM JKT.

How do we look and resort to this window? Just like other consumptions in this pandemic, on-the-go consumption is also shifting in the direction that we need to explore.

Here are the key areas that brands need to keep in mind:

• Maintain physical and mental availability. Traditional trade is still important, we need to ensure our brand can still reach our retail partners and consumers across the country.
• More than ever, we need to understand how have consumers re-prioritized their purchases. Understand what the trigger and barrier are to purchase across our brand buyers. 
• De-aggregate. Generalizing could mean lost opportunity. Deep slice of market, demography, and segment is important for us to properly map risk and opportunity areas.

Delve into how Indonesians’ on-the-go consumption has changed during this pandemic phase in this article.

What was also different in festive 2020? How about their spending preference and their category prioritization during 2020 festive?

Explore more on how Indonesian celebrate festive this year in our latest article

Through this report, Kantar will examine some of the commonly asked questions we have been receiving across the Asia region i.e. the “What Now” comprising of the questions of:

• Global vs Local brands – who won?

In addressing these questions, the report will be showcasing some market examples to help bring to light some key practical actions to consider moving into the post COVID-19 future i.e. “What Next”. 

Download the report on the right side of this page.

Kantar is continuously in contact with your consumers on a weekly basis and across the country. Through FMCG Monitor, we provide an integrated overview of the Indonesian FMCG market and its evolution across sectors and highlights of the latest trends.

 How are Indonesians consumers adapting during the COVID-19 pandemic, and how are these changes reflected in festive season? In this edition of FMCG Monitor, we will take a look at how these are reflected in consumers’ behaviors.

 Some highlights in this issue:

• Indonesian consumers are starting to gain back their confidence as the government starts to ease lockdown measures.
• Shoppers are prioritizing Fresh food, FMCG and Savings, while spending on clothes, travel and eating out are reduced.
• The increase of share of wallet can also be seen across segments. Shoppers are purchasing more on convenient food, healthy and cleaning category.
• With COVID-19 precautions to keep physical distance, shoppers are starting to shift to proximity channels. 
• Despite the growth, 2020 FMCG uplift during festive is slower compared to last year 2020 festive. Several festive categories are enjoying the momentum

Explore the growth rules for brands in baby market

In the Indonesian urban edition, we cover up to 85% of total urban households, which represents 30 million households

The consumer choice observe the amount of households purchase of a brand (market penetration) and coincidence of the brands being purchased (frequency). Brand Footprint covers FMCG sectors, e.g. food, beverages, home care, dairy, health and beauty products

Several important findings:

• Highlight on the Most Chosen Brands globally
• The ranking of the Most Chosen Brands in Indonesia urban
• Key levers for growth and top brand success stories
• Some brands reaction during Covid-19

 We hope you find this report insightful, and feel free to get in touch for further information.

In this special edition of FMCG Monitor, we will take a look how at consumers’ behaviors in the past month, while also looking at how it is reflected on the yearly trend.

Some highlights in this issue:

• The impact of the government’s restrictive measures was reflecting on market condition. The economic outlook was softened, reflected by the inflation rate and consumer confidence index level
• FMCG’s performance was still growing, as people increased their shopping occasion in early of Ramadan
• Dairy and food segments were benefiting the most during #StayAtHome, due to rise of snacking and cooking at home
• Being advised to stay home makes nearby channels such as minimarket and traditional trade are more preferable.

The annual ranking, which focuses on the long term performance of brands, includes a special analysis on how the biggest brands are faring during the current pandemic, with early signs showing that they are winning in relative terms.

Key findings include:

A shift in favour to the top 25 global FMCG brands

• 424 billion brand choices were made throughout the year, representing a 2.6% increase in CRPs (Consumer Reach Points) compared to 2018.
• Global brands grew CRPs by 2% in 2019 compared to zero% growth in 2018, but this wasn’t enough to beat out local brands which grew CRPs by 3.1% around the world.
• Global brands now account for one in three (34.1%) brand choices around the world, while local/regional brands account for two in three (65.9%) of the brands placed in shopping baskets.
• The biggest global brands responded best to the challenge posed by local brands in the past few years, showing their most successful growth rate than in any previous Brand Footprint. 20 of the top 25 (80%) ranked brands achieved growth in 2019, compared to 48% in 2018.
• The top 50 Global brands accounted for 15.5% of all brand choices made in 2019 and accounted for 24% of the growth in items purchased.
• Three top 50 brands (Pond’s, Vim and Brooke Bond) achieved a global penetration gain of 1% or more – meaning an additional 14 million new customers each. Every 0.1% penetration gain globally is an extra 1.4m shoppers.

Top 10 most chosen brands globally 

Source: Kantar’s Brand Footprint report 

More brands than ever chosen over 1 billion times

• There are now 40 brands around the world that are placed in consumers’ shopping baskets more than one billion times per year. In addition to the 22 Global ‘billionaire brands’, the number of local billionaire brands has grown from 14 to 18. All 18 are either Indian or Chinese.
• Five global brands joined the billionaires club: Brooke Bond, Head & Shoulders, Kinder, Heinz and Oreo.
• Coca-Cola remains the world’s most chosen brand on the planet, picked from the shelves over 6bn times during the year; followed by Colgate in second place (chosen 4bn times) and Maggi in third (3bn times).

India a key lever of growth

• In the latest ranking India was the country that contributed the most growth for 13 of the top 25 ranked brands. This compares to 8 of the top 25 in 2018, demonstrating the nation’s increasing importance to brand success.
• The unique shopping habits of Indian consumers become more evident in 2019, with FMCG brands being bought more often across the country and in smaller quantities.
• Homegrown brands like Patanjali and Dabur increased their nationwide penetration in 2019, challenging the dominance and growth of leading market players and underlining the global popularity of natural and ayurvedic beauty products

Sector winners and losers

• Across all FMCG sectors competition got tougher. Overall just 46% of brands achieved CRP growth in 2019 compared to 47% of brands in 2018, 49% in 2017 and 52% in 2016.
• CRPs in the dairy sector grew by 0.7%, with global brands losing market share to local brands for the second successive year.
• The food sector grew by 2.7% during the year while market share between global brands and local brands remained unchanged at 27.6%/72.4%.
• In the Beverage sector growth by global brands outperformed growth by local brands. As a result global players increased their market share to 38.4%
• Coca-Cola gained momentum for the first time since 2013, now picked from the shelves over 6.0 bn times in a year, with a much-improved performance.
• The health and beauty sector was the fastest growing category by CRP growth with an increase of 6.1%. Local brands benefited slightly more from the growth compared to global brands. Global brands now account for 59.6% of brand choices down 0.6% vs 2018, a second successive loss of share. 

 

Find out more

To learn more about Kantar’s Brand Footprint, explore the data and request more information, please visit www.kantar.com/brandfootprint.

Watch the webinar here.

 

Notes for editors

About Kantar Brand Footprint: Kantar’s annual Brand Footprint study is based on research from 74% of the global population; a total of one billion households in 52 countries across five continents—covering 85% of the global GDP. As part of the study, Worldpanel tracks more than 22,900 brands across beverages, food, dairy, health and beauty and homecare.

• The impact of COVID-19 on brand choice
• 2019 in numbers
• The ranking of the Most Chosen Brands globally
• The success of bigger brands
• Success stories from global and local brands around the world

Sign up for the webinar on 20th May and get a closer view on growth opportunities for your brand in the FMCG market.

Several highlights:

• Korea: How did shoppers/consumers behave during the Swine Flu, MERs outbreak and how different is it compared to COVID-19?
• Taiwan: Being an ‘exemplary’ country on tackling COVID-19; how did FMCG fair?
• Philippines: With a distinct ‘Rich and Poor’ divide in the market, how are these SECs coping?
• Role of promotion for categories on the path to recovery in China. Be reminded on assessing the right depth, frequency, lever!
• E-commerce versus Brick and Mortar channel in lockdown – who is winning on the longer run in Indonesia?
• Our Beauty panel in China – with personal care being one of the more severely impacted categories – how is it recovering post lock down?
• Plus our other favorite key slides and updates on Out-of-Home purchasing, etc.

Explore more on this.

With the first cases of COVID-19 in Indonesia confirmed in March 2^nd, just nearing the end of Q1 2020, how are consumers navigating through this unprecedented times?

Some highlights in this issue:

• As we face uncertainties due to the pandemic, consumers are starting to worry about the economic outlook and losing their confidence, with different concerns depending on their demography.
• FMCG remains important for households, while they are cutting spending for entertainment purposes.
• More affluent consumers are spending more and buying more items in each shopping trip, while consumers from lower class are rather unaffected.
• Accessibility is key to shopping during social distancing. Online channel is getting more traction, though most purchases are still done in traditional trade.

With the advice to not to go outside of their homes, it seems like eating is becoming the preferable activity, with comfort eating categories growing faster than others.

It is a highly uncertain time for both consumers and brands as the COVID-19 outbreak has already forced significant behavioural changes. When was the last time 75% of Indonesians spent most of their time at home? What would these unprecedent changes lead to? How will behaviours change over the next few months? What would be the underlying anxieties & attitudinal changes?fdJoin our experts: Nadya Ardianti, Adisti Bramanti, Plaban Mohanty, Karthik Narayan, and Adji Saputro, as they share COVID-19 impact to Indonesia market and how brands should react:

• Learning from China (as the first market affected by COVID-19 and come out of it), and what similarity and difference we can expect in Indonesia
• How are Indonesians feeling? What differentiates them from other neighbouring countries?
• How are we shopping now and how is it likely to change?
• How brands should react
• What signals about brands should we be monitoring even closely now?
• What tone & manner would be appropriate for your advertising now?
• What types of innovation should brands be looking at?
• Should I cut media spend? and more.

Several highlights from the report:

1. COVID-19 is creating a sense of disruption to shoppers lives. With large scale social restrictions, shoppers are forced to adapt their daily routines.
2. Economic impacts are starting to kick in as a result of less commercial activities thus income. This leads to an even higher concern towards financial condition that continue to grow among all demographic cohorts.
3. Although shoppers are still confident about the availability and feasibility of getting household products, the lower SES tends to be less certain.

Explore more with Kantar

Some key highlights:

• Indonesian households are becoming more concerned. They feel that situation is impacting their daily routine.
• Worries are crawling up to the upper SES and urban households, and households with kids in school.
• Although more than ¾ of households are still confident towards the availability of products, fear of product scarcity is growing.

 Several other highlights:

1. On average, the impact of COVID19 outbreak is still moderate to low
2. The situation appear more worrying for the lower SES and in Rural Areas.
3. Presence of Household with kids raise higher concerns toward the outbreak

Almost half (48%) of consumers in the region are ‘hugely concerned’ about the impact of COVID-19 on their day-to-day lives. Understandably, people living in countries with the highest number of cases are feeling most vulnerable to the virus, with 75% in Korea and 60% in Japan saying that they are concerned, and their lives have been disrupted. The level of trust in the way the government is handling the crisis is very low in Korea (39%) and Japan (9%). In Singapore, where only 33% are concerned, 78% say that they trust in the government’s approach to handling the crisis.

Kantar analysis covering the stock price evolution of over 100 consumer goods companies across Asia shows that only a small group of corporations managed to improve their value since COVID-19 started spreading uncertainty across the region. Consumers and markets are waking up to the economic threat posed by COVID-19, as attested by global stock markets including Asia sinking even deeper.

Travel less, eat in and stream content more

The study shows how people are adjusting their lifestyles to reduce the risk from COVID-19. The industry that has been hardest hit by the outbreak is travel, with 59% of people saying that they have decided to travel less to stay safe. This is followed by 52% saying that they are less likely to eat out, and the same number (52%) saying that they are avoiding socialising outside of the house. Instead, people are choosing to stay in, with 42% streaming more content, 33% hosting get-togethers at home and 30% ordering in food. 

Purchase behaviours have also shifted as the threat from the virus has grown. The most apparent development has been the rise in ‘panic purchases’ in many countries, with around one in three (30%) saying that they worry about running out of essentials and buy more than usual, leaving shelves empty. This is highest in Japan where 64% of people admit to this behaviour. 

Surge in shopping online, hygiene and health categories

The study also reveals a 32% increase in online shopping across these markets over the past two months as people avoid crowded supermarkets or use e-commerce channels to get their hands on items that are out of stock in physical stores. Koreans have the highest increase in online shopping (41%). Online grocery platforms and food delivery services saw the highest increase, resulting in many providers having to adjust their strategies to deal with the demand. In contrast, shopping in retail outlets has been reduced by 35% over the same period. 

Predictably, categories associated with hygiene and health have seen the biggest rise in purchases, with 48% of people saying they are buying more personal hygiene items such as face masks and hand sanitiser, 45% buying more health and nutritional items such as vitamins to improve immunity, and 40% reporting that they are spending more on home cleaning products. On the other hand, people are spending less on alcoholic beverage (30%), a trend also seen during the SARS epidemic. In addition, fewer people are buying luxury items (27%) and meat and seafood (21%).

The study also highlights how COVID-19 is resulting in consumers with a heightened focus on products and services that are ‘safe to use’, especially when it comes to the Food and Beverage category and Consumer Goods. In addition, they are looking for brands that have enhanced health and wellbeing benefits to help build a strong defence against the virus. There is also demand for the insurance sector to create more products geared at covering health and wellness in times of crisis. 

*This is based on an online survey of 3,000 consumers between the ages of 18 and 60 across six countries in the region: Singapore, Indonesia, Philippines, Korea, Japan and Thailand. Fieldwork was conducted between 25 and 27 February 2020. Kantar’s panel data and social media analysis over the period between 18 Dec and 27 February 2020 complements the survey. 

Some highlights in this issue :

• Indonesia's annual economic growth eased and was at its weakest pace, as investment, household consumption & government spending all grew at a slower pace.

• Consumers are spending more during their shopping trip and it is more pronounced among upper class consumers, indicating purchase for bigger packs.

• Across categories showed positive performance from higher purchase trip, especially Home Care category, while Beverages is driven by higher consumption of affordable categories.

• Momentum for minimarket in driving more values and traffic, resulting in less shopping trips in other channels.

The Future of Convenience Stores in Taiwan and the Philippines
 
Global FMCG value share by channel indicates Convenience Stores (CVS) now account for only 4.2% with a healthy growth of 2.5%, and it’s forecasted that there will be not much change by 2025 in terms of value contribution.
 
However, we see a huge potential of growth for CVS across Asian markets. In our latest Asia Consumer Insights report we put the spotlight on Taiwan and the Philippines jointly with other topics:

• Q3 2019 Asia FMCG Overview
  • Asia FMCG maintains a stable growth of 4.7% in Q3 2019.
  • All key sectors observe positive performance with non-food sector continuously growing ahead of total FMCG market.

• The spotlight of the quarter
  • The difference in the development level of CVS retail format between Taiwan and the Philippines.
  • Identifying challenges and opportunities for future growth of CVS in Asia to acquire new shoppers.

Launched today, major trends uncovered by the study reveal:

Digital is delivering for the takeaway sector

• Delivery and take-away are rapidly growing their OOH share. Across the UK, France and Spain they now account for 12.3% of total outside the home spend.
• This growth is being heavily influenced by the introduction of new technology for food deliveries, which is significantly increasing spend per meal.
• As a result, the gap between price of home cooked and takeaway meals is widening. France is the starkest example, where price increases from €4.70 per meal when food is prepared at home to €17.70 when ordered for home delivery or take-away; UK €4.20 to €16.20 and Spain €4.00 to €15.30.

Speciality coffee culture is booming

• Appetite for hot drinks on the go shows no sign of abating, with the UK (44%) and Spain (43%) leading the way in percentage of wallet share.
• Coffee represents 80% of spend globally within the hot drinks category, with the UK accounting for 51% of that value.
• People are moving to more expensive, newer coffee offers which have a higher price index; in the UK, 19% of consumed coffee is a speciality drink in 2019 compared to 7% in 2017, with flat whites accounting for 7% of consumption.

Maria Josep Martínez, Global Director Out-of-Home and Usage Foods, Worldpanel Division, Kantar, commented “Continued economic uncertainty appears to be having a minimal impact on consumer wallets, with customers willing to spend their money in takeaway and food delivery rather than cooking at home. While this is actually adding value for the entire OOH market, this clearly remains a threat to traditional retailers who must consider different strategies for capturing OOH growth in 2020 and beyond. For those willing to take on the challenge, the rewards will be significant.”

Data for ‘Winning food & drink occasions Out-of-Home’ report was gathered using Kantar’s unique mobile app which records every snack and non-alcoholic drink bought for consumption outside the home—whether that’s on the go, at the place of purchase, in the workplace, or otherwise. To create a comprehensive view of the OOH market, the study looked not only at what products are purchased – and where – but when the purchase was made and whether it was for sharing or for individual consumption. Information for the report covered ten markets globally: Brazil, China, France, Indonesia, Mexico, Portugal, Spain, Thailand, the UK and Vietnam.

Download our new publication, watch the webinar or contact our experts through the buttons at the right of this page and discover what brands can do to grow out-of-home.

Some highlights in this issue :

• Indonesia's annual economic growth eased to its weakest pace as investment, household consumption & government spending all rose at a slower pace.

• Shoppers have started rationalizing their FMCG spending following a recovery of shopping trips while shrinking their basket size post festive period.

• Frequency remains the biggest challenge across consumers looking at YOY performance, and price rather influenced higher spend per purchase occasions.

• Availability in proximity channels remain critical across FMCG categories. Minimarket is growing in importance, yet GT still contributes the most.

• Q2 2019 Asia FMCG Overview
• Asia FMCG achieved a healthy growth by +4.8% in Q2 2019, slightly stronger than Q2 2018.
• Non-food sector, including both home care and personal care, continues to lead the FMCG market growth in Asia.
   
•  The spotlight of the quarter
• FMCG performance during Ramadan creates a sizeable uplift among Indonesians, while a soft decline in Malaysia.
• Uncovering major similarities and differences between Indonesia and Malaysia to optimise strategies in order to win consumers in Ramadan.

The fast-moving consumer goods (FMCG) industry is facing its own battle with plastic, and public outcry has led to a response from some of the most prominent brands around the world. Supermarket chains have done away with single-use plastic bags, while many manufacturers have taken steps to reduce or remove plastic packaging at point of sale or in their supply chain.

Our research found that nearly half (48%) of all consumers worldwide expect manufacturers to take the lead, saying they have the most responsibility to act on these issues. And making changes to account for this is clearly a matter of ‘when’, rather than ‘if’, for all businesses.

But, how much do shoppers really care? Are their criticisms and wishes reflected in their own purchase behaviour? Which regions, countries and demographics are most engaged with reducing their plastic consumption? Where does the opportunity lie for retailers and manufacturers?

Kantar, in collaboration with Europanel and GfK, has surveyed more than 65,000 people in 24 countries— exploring how they feel about the use of plastics by FMCG companies. What makes this study unique is our ability to compare their answers with our panellists’ real purchase behaviour, to truly understand how they change their shopping baskets and their relationship with the brands they are choosing.

That said, retailers and manufacturers can’t expect consumers to jump to their brand purely for their green credentials— and being ‘green’ or sustainable means different things in different markets. By understanding the ‘green gap’ between those who say they care, and those that actually do something about it, we can unlock the opportunities of environmental concern—and help brands play an important role in shaping our future planet.

Download the report through the link in the right and watch the webinar on-demand.

Some highlights in this issue :

• FMCG shows higher spending & expanding basket size despite less number of shopping trips. Better festive uplift this year also contributed to the growth.

• Higher affluent consumers are driving the FMCG growth, due to increase in spend per trip even though number of shopping trips are declining.

• Basket size expansion is seen mainly in the Home care & Beverages segments.

• Online has grown tremendously in terms of buyer base as shoppers choose to shop through this channel more often.

How can we adapt in this changing channel landscape? 

Discover the latest on our Omnichannel report, our localized study highlighting Indonesia's FMCG retail market landscape, changes in retail strategy, opportunities in E-commerce, and a forecast on future growth.

This year Kantar is proud to introduce the new look of our Consumer Insights Asia, a quarterly report conducted by Worldpanel Division that provides at-a-glance key FMCG performance indicators across the region and the spotlight of the quarter. Through this spotlight, we reveal consumer insights, trends, and opportunities that arise within the region.

In the Quarter 1 2019 edition, the spotlight is on China and Vietnam, with the growth opportunities in FMCG presented by the Lunar New Year occasion.
 
Key highlights from this issue:

• Q1 2019 Asia FMCG overview:
  • FMCG in Asia saw an overall positive growth by 4.1% in Q1 2019, slightly slower compared to Q1 2018.
  • China Mainland continues to lead the growth for Northeast Asia at 5% while the Philippines leads the growth for Southeast Asia at a stellar 12%.

• The Spotlight of the Quarter:
  • FMCG spending during the Lunar New Year season takes up 18% and 14% value sales of the full year performance in China Mainland and Vietnam respectively.
  • From total value sales during the Lunar New Year occasion, a significant proportion is gifting. However, top categories for gifting differ for these two markets.
  • Modern trade channels such as hypermarkets and supermarkets are the preferred shopping places for consumers during Lunar New Year, with e-commerce also emerging as the fastest growing channel for this occasion.
  • Consumers have new aspirations in celebrating Lunar New Year in recent years thanks to the increase in disposable income.

We reveal four recommendations for brands and retailers to better capture the Lunar New Year spending spree. 

While GDP growth has been stablein recent years, growing on average +3.5% per year, FMCG growth has been slowing—from +6% to +2.1% since 2012. The table below may suggest growth in every region, but the data alone does not always tell the whole story. In fact, 2018 saw a continued slowdown in every market we’ve analysed—other than China Mainland and the US.

Source: Kantar

The fragmentation of the FMCG landscape continues apace. Across the channels we’ve analysed, there is an obvious divide between those doing well and those struggling to keep up. E-commerce is far outstripping any other medium—achieving 20.3% growth in 2018, accelerating on its 15% growth in 2017.

Source: Kantar

Our publication Winning Omnichannel – Finding growth in reinvented retail explores where to grow and how to win in a context in which global sales grew just 2.1%. This is our most comprehensive Omnichannel study yet, based on data from across 47 countries, representing 83% of GDP providing a unique picture of retail & shopper dynamics across the globe.

Download our new publication, watch the webinar or contact our experts thought the links at the right of this page and learn how to make the most of these findings for your business.

Brand Footprint is the annual ranking of the Most Chosen Global and Indonesian FMCG brands. Global study represents the power of brands encompassing 20,000 brands in 49 countries across 5 continents – representing 72% of the global population.

In the Indonesian urban edition, we cover up to 85% of total households, which represents 29 million within the urban areas of Indonesia.  

You may also visit our Microsite for additional information on country specific rankings or sector rankings.

We hope you find this report insightful, and feel free to get in touch for further information.

Some highlights in this issue :

• Household consumption shows stable growth for Q1 2019 where FMCG performance is also showing similar condition with shoppers started expanding their basket size
• Expanding basket size is seen across categories. Upper and middle income households are increasing their spends in each shopping trip at the expense of reducing their number of shopping trips.
• General Trade remains most important touchpoint for shoppers while omni-channel buyers are growing and purchasing more frequently, especially in minimarkets.
• FMCG and fresh food remain as the main spending allocation across consumer cohort. Increased importance of FMCG spending happened among mid to lower SES

In this year’s edition we will see how the number of brands chosen by shoppers more than one billion times has one new addition to this exclusive 17-brand club.

In this webinar, Benjamin Cawthray, Global Thought Leadership Director, will go through the most important findings, including:

• Growth through finding more shoppers as the primary driver
• New success stories from around the globe of both global and local brands
• The ranking of the Top 50 Most Chosen Brands globally
• All-new out-of-home brand ranking

Sign up for the webinar and get a closer view on growth opportunities for your brand in the FMCG market. 

• 10am (UK time)
• 4pm (UK time)

In our latest report, we reveal key factors that can help brands seize their future consumers.

We cover key FMCG trends in a variety of categories across China, Indonesia, Korea, Taiwan, Vietnam, Malaysia, Thailand, Philippines, India and Saudi Arabia.
 
Key highlights for this issue:
 

• FMCG in Asia sees an overall positive growth by 4.3% in Q4 2018, compared to 4.1% in Q4 2017. Of the sub sectors, China leads the growth for Northeast Asia at 5.2% while Philippines leads the growth for Southeast Asia at a stellar 11.3%.
   
• The beverage sector sees a healthy growth spurt this quarter at 2.4% as compared to the 1.5% in Q3 2017. This was driven mainly by countries like India, Korea, Philippines and Taiwan.
   
• Home care posted a robust growth at 5.6% for this quarter versus 3.6% in Q4 2017, said to be largely due to bigger basket purchases.
   
• Food sector sees an appetizing growth of 3.9% as compared to 3.6% in Q4 2017, attributed to the convenience food demand in countries like Korea, Philippines and Indonesia. 

If buying a product is the ‘moment of truth’, consumption is the moment of validation—and it is vital to drive satisfaction and repeat purchasing. Health and wellbeing are at the centre of global eating and drinking habits but, while breakfast remains the most important at-home moment with routine and health leading the way, consumers are more indulgent at night. This health-consciousness has created a cross-countries wider fragmentation of the beverages market where we see how plant-based and fermented drinks, along with homemade smoothies and juices are winning share over branded goods.

Winning share of stomach

Eat, Drink & Be Healthy report explores how much consumption trends and habits have changed across the globe to provide brands and retailers wanting to win share of stomach throughout the different occasions with a series of important points to have in mind:

• The global picture. Overall stable economy is transferring at-home consumption to out-of-home, especially in Spain, France and the UK.
• The healthy snacking boom. Intake throughout the day has increased and shifted to being healthier.
• Breakfast routines remain. Habits differ cross-countries but routines for breakfast are set: cereals in the UK, soft drinks in Mexico, meals with oil, eggs and spices in China Mainland and coffee in Spain.
• The simplification of menus. Less room for dessert occasions and vast potential for ready-to-eat solutions globally.
• Rapidly changing drinks choices. With health-consciousness in mind, hydration, homemade, plant-based and probiotics are fragmenting the beverages category.

Clink on the links at the right-hand side of this page to download the complete report, to watch the webinar or to contact our expert and learn more about the implications and opportunities for food and drink brands and retailers.

Some highlights in this issue :

• Consumers are rationalizing their FMCG consumption. As the frequency decline is recovering, shoppers limit their basket size expansion.
• Expanding basket size is seen across categories. Heavy promotions in Home and Personal care categories attraccted more shoppers in buying more unit per their shopping trip.
• Opportunity arise in modern trade as FMCG frequency recovery commenced in this channel. This behavior is led by Upper class while Mid to Low classe remain to show tendency for traditional channels.
• More than half of the FMCG categories are still growing positively and 22% of them are still able to attract more buyers. Eye cosmetics and yoghurt drink categories attracts all economic classes.

Indonesians love to go out for a good eat and on many different occasions. With its ever growing popularity, there are opportunities abound. In order to capture them, we must better understand the spending habits of each consumer, and their demographics. Curious to know more?

Find out more with Kantar Worldpanel.

This and other relevant topics drive our latest thought leadership release Generating incremental growth through promotions.

Across the markets analysed for this study we found that more than one dollar in every five spent on FMCG was through promotions. However, while promotions may help brands grow to attract new shoppers – as well as encourage their return – there is no long-term impact on penetration.

Through our panels, we can see the level of promotions in each of our studied markets, as well as the uplift these promotions have provided. Success, whether for brands or retailers, can only come when promotions manage to encourage additional purchasing at a category level that would not otherwise have happened. We call this “incremental growth”—it’s the most effective measure by which to analyse promotion performance.

In this new report we pinpoint the five principles to consider as retailers and manufacturers look to use promotions to achieve incremental growth. 

Discover all about promotions in this webinar or downloading the report by clicking in the link in the right of this page. 

Also, please, do not hesitate to get in touch with our expert Stéphane Roger if you would like to find out more. 

Find out more with Kantar Wordpanel!

Male Grooming products have always been a promising segment however with unique challenges, as the benefits of a male centric personal care product isn’t as well amplified in today’s market. However as shopping behaviors continues to shift, new opportunities are on the horizon.  

Discover more with Kantar Worldpanel.

Therefore, how drastic were the changes in purchase behavior during this year’s festive period?

• FMCG in Asia sees an overall positive growth by 4.2% in Q2 2018, compared to 3.2% in Q3 2017. Some households in markets like Saudi Arabia however are focusing on value for money options to maximize spending.
   
• The beverage sector sees a boom in growth this quarter at 3% as compared to the -0.4% in Q3 2017. This significant growth was driven mainly by soft drinks and coffee consumption in South Korea.
   
• Home care and personal care remains fairly consistent at 4.3% and 7.5% respectively, with skincare and cosmetics products leading the growth as per the previous quarter.
   
• Personal care remains the fastest growing sector in FMCG at 7.4% and largely driven by skincare and cosmetics.
• Food sector sees a healthy growth of 3.7% as compared to 2.8% in Q3 2017 and it is interesting to note that in markets like South Korea and the Philippines, this is seen mainly in the frozen food category.

Click the link on the right to download the full report, with plenty of visual insights into FMCG in the Asiatic regions. 

Find out more with Kantar Worldpanel.

To further amplify our infographic on the 5 Strategic Levers for Growth, we proudly present the new [Kantar Worldpanel Video Series]

 Click the link on the top right to watch the full video.

 #KantarWorldpanel #VideoSeries #LeversForGrowth

Kantar Worldpanel is continuously in contact with your consumers on a weekly basis and across the country. Through our FMCG Monitor we provide an integrated overview of the Indonesian FMCG market and its evolution across sectors and highlights of the latest trends.

Some highlights in this issue :

• FMCG is currently in the post festive period and recovery is shown in the amount of shopping trips. Trends are also showing how consumers are seeking better value for money offerings in their FMCG shopping
• Increased spending is seen across FMCG categories excluding Dairy, however Beverages continue to grow. Consumers are choosing larger beverage pack sizes especially in mineral water and RTD Coffee
• General trade remains as the prominent touchpoint, while hyper/supermarkets have been generating more traffic. Largely due to significant growth in the Sumatra area with the support of promotions
• Positive traction towards online channel as more people are shopping FMCG online, though the penetration is still small. Almost half of shoppers are making a second purchase indicating satisfaction of this growing touchpoint

Explore more with the full version of our report!

Media is playing a significant role in today’s landscape.

Reaching your buyers using the right media channel is becoming very important, both in urban and rural.

Not only understanding the media behaviour of your consumer but also your competitor.

Curious to know more?

Explore more about Indonesian consumers and their media behavior with Kantar Worlpanel’s first Video Series!

Click here to watch the full video.

Brands today are facing an ever competitive market with an increasing number of new players, and all are working hard to stay relevant and achieve growth. For any brand, the best way to find new shoppers and increase penetration is to pull on as many of our strategic levers for growth as possible. Have you considered any of these levers for your brand?

Find out more with Kantar Worldpanel.

For more on the latest Brand Footprint click the following link; https://www.kantarworldpanel.com/brand-footprint-ranking/#/ 

Discover more with Kantar Worldpanel’s latest Thought Leadership Series!

Some highlights in this issue :

• Indonesia’s economy growth is on a healthy trajectory.
• FMCG continues to show positive growth despite the decline in shopping trips, resulting in key pricing and promotion strategies becoming essential to secure the ever discerning consumer’s purchase decision.
• Buyers are becoming more discerning as specialty stores become more important.
• Out of Home consmption continues to be on the rise among the Indonesian consumers, as their lifestyle has shifted to a more time limited yet experience seeking motif.

Explore more with the full version of our report!

*Please note that the data published in this report does not include the Household Universe Update, which has been done post this publication. The impact is very minimal and the update will be reflected in the Q3 publication.

Download the infographic and explore more with Kantar Worldpanel!

There are a number of paths a brand can take as well as major forces a brand needs to drive in order to gain new category buyers. While there is an opportunity to capitalize on the optimism amongst the consumers and their spending, FMCG players must push harder to stand out and win in order to grow their business.

Discover more with Kantar Worldpanel’s latest issue of Spotlight of Indonesia!

Summary key takeaways:

• FMCG in Asia grew by 3.8% in Q1 2018, compared to 3.5% in Q1 2017.

• Food sector enjoyed a stronger growth of 3.6%, compared to 2.1% in 2017. Cooking categories for example noodles, sauce, frozen food are growing fast.

• Personal care is the fastest growing sector in FMCG, with 7.0% year-on-year growth in Q1. Self-appearance is still important to consumers.

• Improved living standard emphasizes home hygiene and cleanliness awareness; home care sector posted a stronger growth of 3.9%

• Growth in Dairy sector has slowed down to 2.0% in Q1 from 3.5% in 2017. More marketing initiatives and excitement needed to drive the growth in this sector.

• Beverage sector posted a higher year-on-year growth in Q1, 1.7% as compared to -0.1%% in 2017. NPD is required to continually drive growth.

Discover other brands that makes it to the top 20 of Indonesia's Most Chosen Brands ranking in our Indonesia-specific Brand Footprint 2018 report!

Kantar Worldpanel is in weekly contact with your consumers across the country. Through FMCG Monitor, we provide you an integrated overview of Indonesian FMCG market and its evolution across sectors and highlights of the latest FMCG trend.

Some highlights in this issue :

• Strategically managing price is definitely essential. And as buyers shop less often, it becomes more important to secure every shopping occasions
• The increase of trip size happens across social groups. Indicating a healthy consumer purchase power. Hence, appealing to a wider range of consumers is key to continuous growth.
• Along with F&B, consumers increase their trip size across segments, especially for personal care sectors. Indicating the growing conscious and exposure in self grooming products.

Beauty segment enjoys strong growth in Indonesia as Indonesians become increasingly aware of their appearance. This provides ample growth opportunity.

Explore more on our report!

Our latest retail report “Winning Omnichannel: Finding growth in reinvented retail” is already out. This publication reveals that in 2017, 76% of fast-moving consumer goods (FMCG) value growth came from channels outside supermarkets and hypermarkets. The three fastest growing channels globally are e-commerce (+15%), discounters (+5.2%) and cash-and-carry (+4.4%). These channels outperform hypermarkets and supermarkets, which continue being by far the bigger channels, but growing globally at slower pace (+0.8%).

We forecast that by 2020, 15.3% of FMCG products will be sold by the three fastest growing channels – e-commerce, discounters and cash and carry. E-commerce will be the fastest raising channel in 2020 representing 7.2% of the global market share boosted by increased internet penetration from markets such as Africa and Asia.

Table 1: Global FMCG value share by channel

Source: Kantar Worldpanel

Stéphane Roger, Kantar Worldpanel Global Shopper and Retail Director, said: “The global FMCG market is harder than ever growing only a +1.9% in value last year while gross domestic product (GDP) experienced an almost +4% growth. Beyond the average, growth is fragmented because of booming e-commerce and discounters, and struggling hypermarkets and supermarkets. Shoppers are giving a clear message: they want convenience and value for money. At Kantar Worldpanel we predict that spending in supermarkets and hypermarkets will decline to 48.4% in 2020. Successful strategies need better understanding of the new channel dynamics at play and the differences between countries.”Source: Kantar Worldpanel

The FMCG global market evolution

The FMCG market globally grew 1.9% in 2017. Less mature markets such as Africa, Latin America and Asia are the ones growing at the fastest rate (+8.8%, 7.3% and 4.3% respectively). In contrast, the market grew at 2.2% in Western Europe (influenced by inflation in the UK in the Brexit context) and US, the biggest contributor to FMCG spend in the world, saw almost flat growth (+0.5%). Demand is declining for three key reasons: population growth is slowing, people are generally trading down on their FMCG spend either by buying less or choosing private label, and they are also shopping less frequently.

Table 2: FMCG annual value growth in 2017

Source: Kantar Worldpanel, Europanel

Adapting the retail strategy to shoppers

Brands that adapt their retail strategy to the expected evolution of channels in each region will have more possibilities to succeed. E-commerce continues to grow fast in Asia, which already has a 7.3% market share. The discounters are strongest in Europe, particularly Eastern Europe, where they hold 27.4% of FMCG sales, and in parts of Latin America such as Colombia (21%) and Mexico (18.8%). In contrast, in markets like Brazil modern trade remains relatively underdeveloped and cash-and-carry is growing fast, now representing 10.6% of sales.

Table 3: FMCG value share by channel (2017)

Source: Kantar Worldpanel, Europanel

Key facts

• Coca-Cola remains the world’s most chosen brand—for the sixth year running
• Colgate is the second most chosen brand in the ranking and is the only brand chosen by more than half of the global population—with 62% penetration globally
• Maggi is the fastest-growing Top 50 brand with a global presence—with 14% growth in Consumer Reach Points (CRPs)
• Local brands continued to steal share in 2017, taking 64.6% of all brand spend, versus global brands’ 35.4% share with every 0.1% gained now worth $500 million

According to the 2018 edition of Kantar Worldpanel’s Brand Footprint report, there are 17 FMCG brands that are chosen by consumers more than one billion times a year globally. The Brand Footprint rankings measure which brands are being bought by the most consumers the most often. Coca-Cola is the world’s most chosen brand, picked from the shelves 5.8 bn times in a year. Colgate and Maggi both achieve podium positions, being also the world’s most chosen personal care and food brands. Colgate is the only brand chosen by more than half of the global population—with 62% penetration globally1. Maggi is the fastest-growing Top 50 brand with a global presence—with 14% growth in Consumer Reach Points (CRPs)2, which has helped the brand to rise one position to become third in the ranking this year.

Six out of the 17 brands chosen more than one billion times in a year are owned by Unilever, which leads the manufacturers ranking with 36 bn CRPs per year. Unilever’s portfolio includes Lifebuoy in 4th position and Sunsilk and Knorr among the Top 10. Dove, Lux and Sunlight are also Unilever’s brands in the billionaire club. Two Pepsico brands, Lay’s and Pepsi, jointly with Nescafé and Indomie – Indofood’s very successful brand in Asia and Africa – made the remaining positions in the Top 10. Nestlé, P&G’s Downy, Palmolive and Sprite are the other brands that join this year the exclusive club of global brands chosen by consumers more than one billion times annually.

Table 1. The 17 billionaire brands in the global FMCG brands ranking revealed by the Brand Footprint report. 

Source: Kantar Worldpanel’s Brand Footprint Report

Josep Montserrat, CEO Kantar Worldpanel, explained:

“A lot has been said about the FMCG market being more challenging in recent times, and despite all this, 22 among the Top 50 global brands managed to be chosen by consumers more times in the last 12 months. Growth opportunities are there to be taken, and brands will need to dive deeper to find them because they may not be in the old well-known spots. Our data shows that out-of-home and growing channels such as e-commerce, discounters, cash and carrie outlets and convenience stores are growing faster than the overall FMCG market and it is time to invest more decisively in what consumers are asking for.”

Local brands and global brands

The study also shows that local brands grew in 2017, taking 64.6% of all brand spend, versus global brands’ 35.4% share, with every 0.1% gained now worth $500 million. This highlights the continued march of local brands winning share from the global players.

Global brands are stronger but still losing share in the homecare, and beauty and personal care categories, taking 47% and 58.4% of global spend per sector respectively. It was only within the beverages sector that global brands are winning, having gained share from local brands three years in a row (38.3% global versus 61.7% local in 2018, compared to 38.1% global vs. 61.9% local in 2015).

Table 2. Global and local brands market share 

Source: Kantar Worldpanel’s Brand Footprint Report

NOTES TO EDITORS

Brand Footprint: the study

Kantar Worldpanel’s annual Brand Footprint study is based on research from 73% of the global population; a total of one billion households in 43 countries across five continents—covering 75% of the global GDP. As part of the study, Kantar Worldpanel tracks more than 18,000 brands across beverages, food, dairy, health and beauty and homecare.

Brand Footprint: the Top 50 ranking

This experience-based spending ia also resulting in consumer lifestyle changes. Continuous exposure on social media in promoting better quality of life has influenced consumer behavior, including their purchase behavior. As a direct impact of seeking the experiences outside FMCG, one sees that FMCG is getting penalized by lower allocation of spends. What are the components which shape the new behaviour of Indonesian consumer? What should FMCG players do in order to achieve the absolute relevancy to Indonesian consumer?

Discover more in Kantar Worldpanel Indonesia Thought Leadership Series!

Some highlights in this issue :

• Price increase remain to drive FMCG growth and lower shopping trip become a new normal thus winning every shopping occasion become the key to lever growth.

• Lower class consumers continue to drive FMCG growth with higher trip size referring that winning shopping occasion among lower class consumers become instrumental

• Across segments, dairy products sustain the shopping trip, while home care and F&B post improved trip size with less shopping trip implying that consumers might adjust their focus towards basic needs among FMCG categories.

• Following the rise of out-of-home (OOH) consumption, to build a link to core target and meet their spending becomes an essential pathway to lever growth.

Can’t wait to know it all about how to drive brand growth next year? Take a look at the key trends for…

UK

Spain

France

Asia

Latin America

Join the conversation through our social media platforms using the hashtag #FindingNewShoppers and do not hesitate in getting in touch with us if you would like to discover more.

We wish you lots of new shoppers for a happy and successful 2018!

This evolving lifestyle has made a significant change on the way people spend their money, especially on Ready to Eat (RTE) and Ready to Drink (RTD) products. Over the years out-of-home market has became much bigger compared to in-home market. This year out-of-home consumption contributes to 61% of RTE and RTD market value and is expected to keep increasing. To leverage this trend, manufacturers need to expand and tap into more occasions. The question is, which moment can we own?

Discover more in Kantar Worldpanel Indonesia Thought Leadership Series!

*South region in Saudi Arabia is still excluded from this Q3 report as efforts are ongoing to resume data collection.

Summary key takeaways:

• There has been an uptick in FMCG market value growth to 3.4% year-on-year in Q3, compared to 3.3% on the same period last year.
• Personal care is still the fastest growing sector amongst all, with 7.5% year-on-year growth in Q3, revealing consumer focus on better quality life and self-image/ cleanliness.
• Food sector registered stronger growth at 3.2% in Q3, led by increased shopper spend as is basic and essential need.
• Growth in Home Care sector is driven by increased awareness of hygiene. Premiumization in home care products, for example imported detergent in Taiwan, is also one of the trend in this sector.
• Consumers nowadays are seeking for health and active living. Nutritional benefit could be one of the key elements to promote and grow in Dairy sector.
• Beverage sector continued to slow down to -0.4% in this quarter. More innovation required to spur future growth of the sector.

In this edition, we have paid significant attention to what accelerates e-commerce and how to jump to the next stage:

• Hotspots of growth: the countries, megacities, categories and shoppers where e-commerce is expanding quickly.
• A deep dive into Alibaba and Amazon.
• How technology disrupts the market with the emergence of virtual reality.

Besides, continuous polarization in consumer behavior is seen through wider spending gap on higher and lower economic class, with lower SES driving total FMCG growth through personal care sector. At the same time, out-of-home consumption is climbing up within beverages sector.

Discover in-depth update of Indonesian market in Q2 2017 on Kantar Worldpanel Indonesia's FMCG Monitor!

Through Kantar Worldpanel's Spotlight of Indonesia 2017: Discovering the Hidden Gems report, we will take you through the 6 essential trends to channel in order to win the Indonesian market in the final months of 2017.

Rapid economic and social changes push Indonesian consumers to become more discerning, driving FMCG to compete for share of wallet against other expenditures, e.g. investment, savings and entertainment. Million of shopping basket vanishes year-on-year as an impact of this phenomenon and innovation surely serves the most powerful way to keep brands ahead of the competition yet very few truly deliver incremental growth to the brand.

Discover the five golden rules to maximize the opportunity of getting your brands into Indonesians’ shopping basket through Kantar Worldpanel Indonesia Thought Leadership Series.

Some highlights in this issue :

• National FMCG spending managed to grow in faster rate in July 2017, compared to the same period in previous year.
• Share of traditional trade continues to fall down along with increased spending in Modern Trade
• Personal care and dairy sectors steal consumer’s share of wallet from other primary sectors e.g. food, driven by growing consumption of premium categories
• 2017's festive season displays significant growth of purchase power within households of lower SES, with traditional festive categories continue to grow stronger

Some highlights in this issue :

• Ever increasing unit price has impacted to the declining number of shopping trips while driving shoppers to buy more on each purchase
• Middle and Lower Class consumers continued to increase their FMCG spending as they induce trial to products at higher price tier and exposures to new categories
• Minimarket continued to rise its value share, attributed by the intense consumer promotions that drives shoppers to increase their trip size.
• Immense growth is shown within dairy sector and personal care. Increasing consumption and price increase attributed to the compelling rise which indicates increasing demand and premiumization.
• Find out the key drivers of Indonesia’s top 5 most chosen FMCG categories

This FMCG Monitor will take you through market updates on:

• Quarterly market update
• FMCG growth movements (total and by sectors)
• Retailer snapshot
• FMCG segments performance

In summary:

• Overall, economy in Asia is showing signs of recovery in the first quarter of 2017, with FMCG growth ticked up to 3.4% from 3.3% last year. The trend of Health & Wellness as well as Convenience continues to drive the markets in Asia.
• Indonesia, Taiwan, India and Vietnam Urban outperformed and posted stronger growth in total FMCG sector – FMCG growth rate at more than 5% in these regions.
• There is a slight increase in value growth in the food category (+0.8%) compared to the same period last year. Convenience food and snack category are growing in Q1.
• Beverage category experienced the lowest growth in Q1, indicating that consumers are rationalizing their spends on this category. More excitement needed on beverages.
• Indonesia registered a strong growth in dairy category and grew at 11.3% from last year. Health and wellness is the key element to drive growth in this category.
• Market in home care sector is stable, with some countries performed flatly in Q1. Consumers are looking for more premium and eco-friendly products.
• Personal care still posted the strongest growth in Q1 – self-pampering and indulgence remained important to consumers.

Brand Footprint is an annual study released by Kantar Worldpanel that measures consumer's choice through a metric called CRP (Consumer Reach Point), observing amount of households purchase of a brand (market penetration) and coincidence of the brands being purchased (frequency). The study represents the power of brands, encompassing 15,300 brands in 200 categories and 1 billion households from 43 countries globally. Brand Footprint covers FMCG sectors, e.g. food, beverages, home care, health and beauty products.

Exclusive Indonesia Urban ranking has also been released by Brand Footprint, which covers 5700 household samples and representing 28 million, or 85% of total households within Indonesia Urban area. Several highlights of Brand Footprint 2017 result of Indonesia Urban as follow:

• Indomie places at the number 1 position of Brand Footprint 2017, making Indomie the most chosen brand by Indonesian consumer. Almost all nation’s society purchased the brand, 3 to 4 times in a month on average within 2016. Indomie remains at the top position in the Brand Footprint survei since last year. Moreover, Indomie also makes it to the top 10 global rank of Brand Footprint, placing at number 8. The brand also leads the Brand Footprint ranking in Nigeria, reaching number 1, the position which has been maintained since the previous year. Extensive international distribution serves as one of the biggest factors which supports Indomie’s performance. In addition to Indonesia and Nigeria, Indomie has managed to succesfully recruiting buyers from Ghana, Malaysia, Timur Tengah, Turkey and USA as well.
• Beside of Indomie, Mie Sedaap is another instant noodle brand which reaches the Top 3 in Brand Footprint ranking, securing the third position. Instant noodle has become a significant part of the daily life of Indonesian community. Aside from the familiar taste, affordable price and vast nationwide distribution also contribute in driving instant noodle an all-Indonesian favorite.
• Royco manages to shift one position to the second spot of Brand Footprint 2017. The ever rising mobility of Indonesian urban community has forced them to pick products which support practicality, especially in household activities as in cooking. One of the key factors of Royco’s compelling achievement lies on the brand’s hearty innitiatives of product innovation, in order to assist people in this condition. Alongside Royco, Masako is another food additive brand reaching the Top 10 of Brand Footprint 2017 on number 8.
• Frisian Flag secures the 4th position in Brand Footprint 2017. The brand’s portfolio covers variants targetting diverse age groups and is offered in various formats, making Frisian Flag the most chosen dairy brand in Indonesia.
• • Number of household’s purchase or penetration rate plays a pivotal role in driving brand’s competencies. The 5 highest ranking brands on Brand Footprint; Indomie, Royco, Mie Sedaap, Frisian Flag and So Klin, respectively, are the proof to justify the theory, for all of the brands have reached 90% penetration in Indonesia. Product innovation and extensive brand activities successfully drive the brands to retain buyers base, amidst increasing average price of FMCG products and declining purchase frequency in Indonesia throughout 2016.
• Coffee consumption among Indonesian Urban community continues to rise. The pheonomenon is captured on the Brand Footprint 2017 based on the achievement of Kapal Api which showcases the highest CRP growth among Top 10 brands. Kapal Api reaches the 6th position of Brand Footprint 2017 with CRP increment of 16,6%.

Among the Top 10 brands of Brand Footprint 2017, 5 of which are local Indonesian brands while the other half are brands of multi-national manufaturers. Food category dominates the top 10 ranking, whilst personal care and household products manage to secure several positions as well. Local brands, most notably within the food sector, succeed to become the top choice of Indonesian urban society, which not only proves local brands’ ability to compete amidst global brands’ expansion to the Indonesian market, it also shows how Indonesian’s society are embracing the local brands.

Venu Madhav, General Manager Kantar Worldpanel Indonesia, acclaimed that High Consumer Reach Points brands are a reflection of the popularity of the brand and how close it is to the heart of the Indonesian shopper. Venu also adds that it is important to get more and more people to buy it, for any brand to improve its ranking since penetration is the ultimate key to drive growth.

Fanny Murhayati, New Business Development Director of Kantar Worldpanel Indonesia, stated that Brand Footprint will benefit players of the FMCG industry to analyze strength and weakness of the brands, as well as to study performance of the brands compared to competitors. The study will support FMCG players in determining the right marketing strategy to uplift their brand’s performance. Fanny also asserted that beside to increase the number of brand’s consumers, driving consumer to purchase more frequently is another important factor to boost sales performance

Brand Footprint 2017’s Top 10 list, as follow:

1. Indomie 
2. Royco 
3. Mie Sedaap 
4. Frisian Flag 
5. So Klin 
6. Kapal Api 
7. Indofood 
8. Masako 
9. Lifebuoy 
10. Rinso 

With a population of over 250 million and more than half of population being below 30 years old, who are heavily engaged online, Indonesia offers a lucrative market for e-commerce. Following smartphone penetration increase, urbanization and growing disposable income; e-commerce is expected to show even sturdier performance. While penetration of e-commerce for FMCG in Indonesia is still small, the growth is tremendous and it is expected to continue the strong growth within upcoming years.

Discover more in Kantar Worldpanel Indonesia Thoughtleadership Series!

This FMCG Monitor will take you through market updates on:

• Quarterly market update
• FMCG growth movements (total and by sectors)
• Retailer snapshot
• FMCG segments performance

Some highlights in this issue :

• Shoppers are continue holding their shopping trips frequency, although they spend more during their shopping trip.
• Across social classes, buyers are decreasing the amount of items they bought in a year as price increase continues, yet they bought  a little more categories compared to last year.
• Traditional Trade still comes up as the biggest trade channel in Indonesia. However this year, Modern Trade increased its importance in Indonesia, driven mainly by Minimarket growth.
• Almost all segments are slowing down this year, though dairy and personal care are still growing, driven by necessity categories like Growing Up Milk and Baby Diapers.
• 2016 is still challenging for FMCG players. Yet, there are some categories that are still successfully recruit many new buyers.

Please follow link on the right side of this page to download full reports.

In summary:

• FMCG growth slower than previous year, 3.1% v 3.9%, due economic slowdown experienced across Asia, with most South East Asian countries going through a difficult time.
• Despite that, Philippines continued on their positive outlook with a 6.6% GDP growth in Q4 2016 and closes the year at 6.8% for FY 2016.
• As essential goods experienced either flat or moderate growth (0-4%), personal care products over performs growing at 8.6% vs YA, highlighting the importance of appearances and also means of self-pamper during difficult times.
• Beverages experiencing slowest growth across Asia, category needs to be revitalized in most markets, consumer engagement would be key
• Health seems to be one of the driving trend across Asia, with Dairy category seeing strong growth in China, Taiwan, Indonesia, Philippines and Vietnam.
• Digital continues to make pace across Asia, with Southeast Asia following suit on North Asia adoption towards buying goods online.
• Certain parts of Asia continues its progress towards modernization and urbanization, with consumers in Kingdom of Saudi Arabia continues to migrate to Modern Trade shopping, whilst Urban Vietnam consumers are driving the growth of the economy.

Have an insightful reading!

This FMCG Monitor will take you through market updates on:

• Quarterly market update
• FMCG growth movements (total and by sectors)
• Retailer snapshot
• FMCG segments performance

Some highlights in this issue :

• Total National Indonesia FMCG value managed to grow 5.2% in December vs last year. The growth has increased from 4.5% last month.
• Shoppers are still holding their shopping trips frequency, but they spend more during their shopping trip.
• In December 2016, Modern Trade continues to increase its importance in Indonesia, driven mainly by Minimarket growth
• Personal Care segment has maintained its high growth, followed by the Dairy segment as the relevance continue to increase.
• Buyers prefers to buy more than 100 ML of Fabric Conditioner in sachet formats even though there are bigger pack size in pouch/bottle.

Please follow link on the right side of this page to download full reports.

Shoppers are still holding their shopping trips frequency, but they spend more during their shopping trip.

This FMCG Monitor will take you through market updates on:

• Quarterly market update
• FMCG growth movements (total and by sectors)
• Retailer snapshot
• FMCG segments performance

Some highlights in this issue :

• Total National Indonesia FMCG value managed to grow 4.5% in November 2016 vs last year. The growth increased by 0.1% compared to last month.
• Although price continues to increase and consumers have to spend more to get the same basket of goods, consumers  are increasing the size of their basket per trip.
• In November 2016, the importance of Modern Trade is felt strongly as compared to last year it has grown more in total value share.
• In this period, every segment – with the exception of beverages segment - experienced a value growth, although compared to last year the growth has mostly slowed down.
• Penetration growth for male targeted personal care products are growing, even higher than products targeted for woman. 

Please follow link on the right side of this page to download full reports.

The four new panels take Kantar Worldpanel’s total read of the global out-of-home markets to ten countries including the UK, Spain, China, Indonesia, Portugal and the United States (beverages consumption only).

Across the ten countries measured by Kantar Worldpanel out of home sales reached $70 billion in the first nine months of 2016. British shoppers purchase out of home food and beverages most often, followed by consumers in Thailand, Spain, Mexico and China.

Worldwide, over 70,000 individuals record every snack, beverage and meal bought to consume out of home, whether that’s on the go, at the place of purchase, in the workplace or elsewhere. Data gathered includes demographic information on the final consumer, where the purchase is made and the price paid, building into the existing Kantar Worldpanel offer to create an integrated view of the in-home and out-of-home food and drink markets.

Maria Josep Martínez-Abarca, global director of out of home and usage food panels at Kantar Worldpanel, comments: “Our smartphone collection technology lets us track the exact moment of consumption and, as a result, develop a detailed picture of consumers’ behaviours and attitudes. The out-of-home market is a complex and dynamic one: in some countries, for example, over a quarter of the total spend on drinks and snacks in supermarkets is on out-of-home consumption. These new panels will help our clients understand the complex and sometimes hidden consumer behaviours at play, help brands and retailers to quantify their performance and, more importantly, spot opportunities to grow”.

Josep Montserrat, chief executive of Kantar Worldpanel, said: “Our aim is to provide our clients with a complete understanding of consumers’ interaction with their brands, wherever they’re buying. This means expanding our panel expertise to new countries and covering new types of consumption such as out-of-home. With this in-depth understanding of consumer behaviour we are perfectly positioned to support our clients’ decision-making and help drive their growth.”

Kantar Worldpanel is planning further expansions of its out-of-home service in the future to offer brands and retailers an enhanced global view of the out-of-home market.

This FMCG Monitor will take you through market updates on:

• Quarterly market update
• FMCG growth movements (total, by SES, & by sectors)
• Retailer snapshot
• FMCG Segment performance

Some highlights in this issue :

• In Q3 2016, Indonesia is still enjoying positive economic growth.
• The growth for consumer spending is still positive, though it is driven by an increase in price.
• Consumption across social classes shown a little decline, the increase in spending is also caused by price increase.
• In October 2016, traditional trade is still the most important channel  in Indonesia, but modern trade is also getting more important as can be seen that minimarket share is increasing.
• Value growth has mostly slowed down compared to last year, with Food and Beverages shrinking, Home care growing slower, but Dairy and Personal Care growing faster .

We are also proud to share you our Consumer Connection 2016 presentation materials:

1. “Ready, Set, Grow!” (Presented by Venu Madhav, General Manager of Kantar Worldpanel Indonesia)

• Indonesia Economy is showing a higher and stable growth after the slowdown that one saw in 2014. We are now seeing a number of positive factors like low inflation rate, declining unemployment rate, rising commodity prices, stable Rupiah and a continued emphasis on government spending on infrastructure. All these factors should lead to a higher economic growth going forward, especially in Outer Java areas due to infrastructure development and commodity price increases. On the FMCG front, growth was mostly driven by price increases, and by personal care and home care categories.
• In order to succeed in Indonesia, companies should keep in mind that 'One Size Fits All' strategy will not work. On one end of the spectrum we have the Upper class in large cities who are looking for Product Quality combined with ease of shopping; which can manifest itself into shopping in modern trade or even online. On the other hand, we have the lower class in Rural Indonesia who is looking for affordable products which is available to her in the nearby traditional trade

2. “Penetration Is King! Six Pathways to Penetration Growth” (Presented by Nadya Ardianti, Senior Insight Director of Kantar Worldpanel Indonesia)
Recruiting new buyers can mean only one thing for brand: the only way to grow since brands grow fastest by attracting more buyers, not by getting buyers to buy more often. There are at least six pathways to drive penetration growth which we can leverage to drive brand penetration: availability, assortment, price, promotion, innovation and brand equity.

3. “Smart Trend Settings” (Presented By Marie-Anne Lezoraine, International Insight Director of Kantar Worldpanel)
Three trends have been shaping consumers behavior globally: health, happiness and convenience.

• Health. This translates into different types of health offering, ranging from products that are as unprocessed as possible, to products which ride on the need to protect ourselves or products that are fortified.
• Meaningful Life. This trend is about products that fulfil individual needs, products that offer fun and indulgence to consumers, as much as it’s about giving back to the community.
• Convenience. Convenience trend is particularly relevant in Indonesia but it can translate very differently considering the vast geographical contrasts across the country, for consumers who live in rural areas, and also in urban areas.

4. “Smart Growth Through Smart Communication” (By Andrew-Ridsdale Smith (Presented By Andrew Ridsdale-Smith, Expert Solutions Director of Kantar Worldpanel)
We all know that the media and marketing landscape has got increasingly complex and digital has been the fastest growing media channel in Indonesia. The more we can understand how our marketing spends directly influence how people behave, the better our decisions will be. In Kantar we are working towards a vision where the purchase panel data is connected to different data sets across media habits, brand equity and clients instore spending information. This presentation will share with you how an integrated data set such as this will allow better decisions across the full communication process: brand engagement, media planning and channel ROI.

Please follow link on the right side of this page to download the full presentation deck.

Case above shows a condition where we buy a food or beverage FMCG product and consume it outside of our homes. That condition is called out of home consumption.

As minimarket and mom & pops are everywhere in Urban Indonesia area, out of home consumption are happening all the time. Thirsty? Grab a bottle of mineral water from a mom & pops stall across the street. Hungry? Get a bag of potato chips from a minimarket beside your office.

Kantar Worldpanel Indonesia data show that for certain food and beverage categories, out of home consumption accounts for quite big chunk of volume (unit) sales, making out of home consumption as a consumption form that can’t be ignored.

The Other Part of the Puzzle Is Outside the House

From isotonic drink to ice cream, out of home consumption plays an important role to a category or a brand. In home consumption only is not enough. With looking through out of home consumption, along with in home consumption, the whole category sales performance can be seen..

For some categories, out of home consumption even accounts until half (or at least nearly half) of the whole volume (unit) sales. Based on Kantar Worldpanel Q2 2016 out of home annual data, in isotonic drink category, out of home consumption accounts until 53% of isotonic volume sales. Out of Home consumption also accounts big portion in categories like RTD coffee (50%), chewing gum (49%), potato snacks (49%), soft drink (45%), chocolate (42%), and several others.

Everybody Loves Chocolate, But Who Loves Chocolate more?

Out of Home consumption enables us to reveal one important thing: the end user profile. Some interesting things can be found by looking at the end user profile. The fact is different consumers groups love to consume different categories.
An interesting example can be found in chocolate category. So maybe it’s true that everybody loves chocolate, but who loves chocolate more?

Based on our annual Q2 2016 data, kids and teens are the bigger consumer of chocolate. Kids contribute 48.6% of all chocolate volume (unit) share, followed by teens that contribute 29.8%, with countline pack still becomes the favorite pack size for out of home consumption. How about gender? As predicted, 55.4% of chocolate volume sales come from female buyers.

Different Strategy

Having a differentiated strategy for the product portfolio management for any manufacturer is a must, as brands need to capture different moment of truth whether they are targeting in home usage or out of home usage. Consumers are not linear in the way they buy and consume products, and very often we see that not only the pack size or pack type they buy is different between in home and out of home, but also the brand they pick. Need of convenience, showing status and pleasure (impulsive choice) are the three drivers we mainly see for out of home purchase, while in-home purchase will be more rational and price sensitive: the purchase will often be based on deeper need fulfillment (product need vs price positioning), consumer education (I know what is good for me and my family). As such it is clear that the brand formulation (brand positioning, product feature and price) as well as the activation mechanisms (promotions types and communication messages) should be totally different between in home and out of home while keeping a level of consistency if manufacturer as using the same brand to address these two sides of the consumer life.

Contact us for further information on our out of home panel data.

This FMCG Monitor will take you through market updates on:

• Monthly market update
• FMCG growth movements (total and by sectors)
• Retailer snapshot
• FMCG Segment performance

Some highlights in this issue:

• FMCG sector shows more sign of recovery in August 2016.
• While the spending increase are still driven by the price increase, there is a sign of recovery as the volume (Unit) bought per household is registering a positive trend.
• Positive growth is seen across retailers, for both modern and traditional trade.
• Value growth happened across segments this quarter, led by Personal Care, Home Care and Beverages. However, Food still hasn’t recovered yet in terms of volume (units) growth.
• What interesting thing can we know from Out of Home panel data? Many things, of course. To answer this question, we dig up our Out of Home panel data and found some.

Please follow link on the right side of this page to download full reports.

The new identity, developed in close collaboration with WPP branding specialists The Partners, will be rolled out across all external and internal communications channels in the coming months.

Operating brands not previously Kantar-branded will now take a Kantar prefix and a new, common typeface. For example: TNS and Millward Brown now become Kantar TNS and Kantar Millward Brown. The only exception is Lightspeed GMI, which now rebrands as Lightspeed.

Along with the rebranding, Kantar is introducing a new tagline, “Inspiration for an extraordinary world”, drawn from its new corporate purpose statement, “To inspire our clients, our people and society to create and flourish in an extraordinary world.”

Kantar’s new identity reflects and externalises an on-going change programme that started in January. The programme includes the fostering and rewarding of much greater collaboration between operating brands and the creation of a new insights group through much closer alignment of the company’s custom brands. In addition, global operations capabilities have been brought together into a single entity and the company is moving towards more aligned shared services in HR, finance and IT. We will shortly be adding to our portfolio of expert brands with the launch of Kantar Public, uniting our global expertise in governmental and public policy work; and Kantar Consulting, which will draw expertise from several of our brands to provide a full and broader range of marketing and sales consulting solutions and capabilities to our clients.

Kantar CEO Eric Salama commented: “The rebranding is a tangible, visible expression of our desire to present clients with more easily-navigable and connected solutions that bring together the best of Kantar’s expertise.

“We believe our clients and partners have started to experience the benefit of this approach – in more rounded, detailed and holistic research and recommendations. And it is helpful that for the first time we really look like a single family of brands serving a common purpose.”

For further information, please contact Lindsay McMurdo, Lindsay.mcmurdo@kantar.com.

This FMCG Monitor will take you through market updates on:

• Quarterly market update
• FMCG growth movements (total, by SES, & by sectors)
• Retailer snapshot
• FMCG Segment performance

Some highlights in this issue :

• In Q2 2016, Indonesia is enjoying positive economic growth.
• Consumers slowly started to spend more FMCG products as value and volume sales increased in July 2016. Although most of value growth also driven by price increase.
• Positive growth started to shown in most of buyers group both in volume and value
• Traditional trade remains the most relevant channel in Indonesia. Looking at the growth, both traditional and modern trade are enjoying positive growth. Even modern trade is showing double digit growth.
• Festive period brings a good impact for some segments: value wise, beverages perform best in July.

Please follow link on the right side of this page to download full reports.

This FMCG Monitor will take you through market updates on:

• Monthly market update
• FMCG growth movements (total and by sectors)
• Retailer snapshot
• FMCG Segment performance

Some highlights in this issue:

• Total National Indonesia FMCG June 2016 value growth is still mostly driven by price increase.
• Households are still limiting their FMCG consumption, as frequency, spending per trip, and unit bought per trip are still decreasing
• Value growth happened across segments this quarter, led by Personal Care, Home Care and Beverages. However, Food still hasn’t recovered yet in terms of volume (units) growth.
• Modern Trade is growing driven by both Minimarket and Supermarket. They become more and more important in Indonesia. Why is it? Find out more here!

This FMCG Monitor will take you through market updates on:

• Monthly market update
• FMCG growth movements (total and by sectors)
• Retailer snapshot
• FMCG Segment performance

Some highlights in this issue :

• Total National Indonesia FMCG value managed to grow higher in May 2016
• There’s no organic growth in this period since FMCG source of growth is coming from price increase, and buyers still limit their shopping trip
• Minimarket able to enjoy positive value growth during this period compare to a year ago. Furthermore, traditional trade  also shows positive growth
• Dairy and Beverages are experiencing slight positive growth, while Personal Care and Home Care are facing slower growth compared to last year. In the other hand, Food is facing negative growth
• Buyers still cautious on spending allocations, they tend to juggle their budget. Not just for foods, but also personal care like deodorant. How does it affect the category? Find out more here.

Dear Valued Partners and Clients,

In order to reflect the rapid changes of the Consumerism in Indonesia, one of the most promising economies in South East Asia, we are glad to announce that we will bring to you some major improvements in our panel as of January 2017.

With the consumer getting more sophisticated every day, and with the amount of growing opportunities in this country, it is important for you to get a better and extended coverage of the country, and more granularity, for a better read of the consumer behaviors.

In order to achieve this, we will be expanding our sample from 7,000 Households to 11,000 Households.

This expansion will takes us from 79% to 98% of the total country household population coverage, and from 51 million to 63 million Indonesia households. With this expansion, we will now represent 100% households in Java, Sumatera, Kalimantan, Sulawesi, Bali & Nusa Tenggara.

What benefits will you get?

1. We are covering more regions and more cities, so you will enjoy more market breakdown, enabling you to focus on specific regions which were not covered before and uncovering new opportunities.
2. We are adding more households in our sample, so you will have more granularity in your data, enabling you to be more specific in the analysis of your target consumers, and reading more brands and variants performance.
3. We are adding more purchase records to our database and changing our current methodology to a new digital collection, enabling you to get faster insights and having the capacity to analyse new launches much quicker than before.

When will it be fully implemented?

The new dataset with new coverage will start in January 2017 and will be reported with 1^st Quarter 2017 data 

With this new development we are sure that Kantar Worldpanel Indonesia will bring more insights to your business and help you to unlock new opportunities and inspire you to create successful decisions.

Your regular contact will get in touch with you very soon to discuss this in more details.

Best Regards,
Fabrice Carrasco

Managing Director
Kantar Worldpanel Vietnam, Indonesia, Phillipines

This FMCG Monitor will take you through market updates on:

• Quarterly market update
• FMCG growth movements (total, by SES, & by sectors)
• Retailer snapshot
• FMCG Segment performance

Some highlights in this issue :

• FMCG Growth continues to slowdown in P4 2016 – even though Indonesia’s economic condition is getting healthier. Showing that consumers still cautiously spending their money
• All consumer groups are impacted by the economic slowdown, they reduce their frequency of shopping trips.
• Modern trade channel shows negative growth this period compared to year ago, driven by negative minimarket growth. Fortunately, traditional trade shows positive growth.
• Food and dairy accounts for more than half of the market value. While dairy is enjoying slight positive growth this period, food is facing negative growth, driven mostly by secondary food categories decline like snacks, as consumers still spending their money cautiously.
• Consumers are still cautious on spending their wallet: they tend to focus their spending on daily primary categories.

Please follow link on the right side of this page to download full reports.

Brand growth depends on the ability to win at the moment of truth. All of the effort that a brand has invested culminates in that moment; the moment that consumers decide which brand to choose.
Brand Footprint is all about that moment. Kantar Worldpanel’s global ranking of the most chosen consumer brands has become a reference for C-suite executives and marketers to gain an in-depth view as to how brands grow. The report identifies growth brands using our bespoke metric Consumer Reach Points (CRPs), which has penetration - the number of buyers of your brand - at its heart.

Analyzing one billion households across 44 countries in five continents and 300 billion shopper decisions, the study used its proprietary metric – Consumer Reach Points (CRPs) – to discover how many times a brand was chosen by consumers over the course of one year.

In Indonesia, more than 400 brands analyzed in Urban area for Brand Footprint 2016, 55% of growing brands gained penetration, 91% of declining brands lost penetration. Yet every brand has the potential to attract new shoppers.

Please visit the microsite to find comprehensive information on the most chosen brands at global and local level, and download the report to discover the strategies some brands developed to grow faster. They demonstrate to other global and local brands how to accelerate growth in this extremely competitive environment.

We proudly present Spotlight of Indonesia 2016. Find out articles about Indonesia in Numbers, where numbers tell interesting facts about Indonesia. Also find out the article of Key Trends to The Future, the "keys" to unlock the right box to tackle Indonesia's FMCG market future:

1. Knowing Trade Channels Characteristics
2. Health Is The Real Wealth
3. The Rise of Local Brands
4. The Digital Era

To download the full report, please click on the download link on the bottom-right side of this page.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to January 2016, ID inflation in February 2016  increased from 4.14 to 4.42%. The average rate for USD 1 is Rp 13,583- in February 2016
• FMCG still shows no sign of recovery in February. Consumers still hold their consumption.
• Consumers started to realize that healthy body is everything, and as a result, healthy categories like yoghurt drink is currently enjoying the ride.
• Both modern and traditional trade channel showed negative growth this period compared to year ago. This is surely not a good sign for a beginning of a new year..
• Some baby products are performing well this February, compared to same period a year ago. Value increase happens in most baby products. Find out more in this section

Please follow link on the right side of this page to download full reports.

Compared to January 2016, ID inflation in February 2016  increased from 4.14 to 4.42%.

The average rate for USD 1 is Rp 13,583- in February 2016

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to December 2015, ID inflation in January 2016  increased from 3.35% to 4.14%. The average rate for USD 1 is Rp 13,958- in January 2016
• FMCG still shows no sign of recovery in the beginning of 2016. Consumers still hold their consumption,
• Coconut Milk is still enjoying growth in early year 2016 with 4% volume growth (in unit) and 3% value increase
• Modern trade is still enjoying positive value growth with Minimarket as the biggest modern trade channel.
• Early 2016 is not a good time for beverages, especially carbonated soft drink that lose its volume the most. Find out more here to know where CSD volume goes.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to November 2015, ID inflation in December 2015 decreased from 4.89% to 3.35%. The average rate for USD 1 is Rp 13,960- in December 2015
• Compared to previous years’ growth, FMCG growth in 2015 is dropping quite steep. Economic slowdown impacting consumers behavior, causing FMCG categories to also feel the effect.
• Throughout the year, most segments growth are slower, some even showed negative growth both in value and volume. Foods and Dairy are the segments that were impacted the most by the economic slowdown.
• With 15% value growth, 10% volume (L) and 1.4 penetration points growth, dish wash comes up as the hottest category of 2015.
• Throughout 2015, all trade channels are impacted by the economic slow down since people also less frequent to shop
• During difficult economy time in 2015, consumers tend to behave differently compared to previous years. Find out more in this section.

Compared to November 2015, ID inflation in December 2015 decreased from 4.89% to 3.35%.

The average rate for USD 1 is Rp 13,926- in December 2015

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to November 2015, ID inflation in December 2015 decreased from 4.89% to 3.35%. The average rate for USD 1 is Rp 13,926- in December 2015
• FMCG still shows negative trend in December 2015. As the price per unit is getting higher, consumers tend to decrease their consumption.
• With 12.5% volume growth (in unit) and 4% value increase Family Milk Powder (FMP) shows up as the hottest category in early December.
• Modern trade is  stillenjoying positive value growth. On the other hand, traditional trades are undergoing slightly negative growth compared to same quarter a year ago.
• Some big FMCG categories still successfully recruit new buyers, even in difficult economy time. Find out more in this segment.

Please follow link on the right side of this page to download full reports.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to October 2015, ID inflation in  November 2015 decreased from 6.25% to 4.89%. The average rate for USD 1 is Rp 13,741,- in November 2015.

• FMCG trend continues showing negative trend in November 2015.  Although FMCG’s value gaining positive growth, it is driven by increasing price per unit which is quite higher compared to last period (Q3 2015).

• MSG is still showing positive growth in value, volume, penetration and even in frequency – quite surprising as consumers are decreasing buying frequency for most other FMCG categories.

• Modern trade is enjoying positive value growth. On the other hand, traditional trades are undergoing slightly negative growth compared to same quarter a year ago.

• Different beverage categories, different top consumers age. Find out more about beverages top consumers’ age at 'Do You Know?' segment.

Please follow link on the right side of this page to download full reports.

Other Asia highlights of Kantar Worldpanel’s analysis include:
• The pace of FMCG consumption growth has halved from 10% in 2012/13 to 4.6% in 2014/15. The slowdown also happened in Indonesia as FMCG growth has fallen from 14.4% to 7.4% in 2015, though Indonesia is still came up as the driver of SEA FMCG growth.
• Local brands attract 74% of Asian shoppers’ total FMCG spend, and are growing at twice the rate of global brands (8% compared with 4%).

In Indonesia:
• Local brands account for around 63% of total FMCG market value.
• Local brands biggest power are in food and beverage, as these sectors accounts for more than 70% in Indonesia.

Asian Brands Power report includes several hot Indonesia FMCG local brands:
1. Teh Pucuk Harum (PT. MAYORA INDAH Tbk.)
2.  Kopi Luwak (PT. JAVA PRIMA ABADI)
3.  Indomie (PT. INDOFOOD SUKSES MAKMUR Tbk.)
4.  Wardah (PT. PARAGON TECHNOLOGY AND INNOVATION)
5.  So Klin (PT. SAYAP MAS UTAMA (WINGS CORPORATION)
6.  Mie Sedaap (PT. SAYAP MAS UTAMA (WINGS CORPORATION)
7.  Teh Gelas (PT. ORANG TUA GROUP)

The five ‘power levers’ of growth that all the dominant Asian players featured in the report – including local Indonesia brands - were found to have in common are:

1. They are masters of metamorphosis: Shifting from manufacturing-led to brand-led, evolving along with consumers and expanding beyond their country of origin. The transformation can also be seen in Indonesia. Teh Gelas successfully follows consumers need for cheaper and easy to bring tea by releasing cup pack size.

2. They have a purpose, and play an active role in society: Respecting and caring for consumers, helping to improve lives and democratizing categories. Sun Kara and Indofood seasonings are the brands that could see the need of housewives for convenient and practical seasonings -successfully improve housewives life by cutting the time needed to cook.

3. World-class innovation with a local twist: Recognizing that consumers want to move with the times, but without sacrificing traditions. In Indonesia, Wardah successfully blend modern cosmetics with Muslims’ need, creating unique Halal cosmetics suitable for Muslim women.

4. They digitise and humanise: Applying digital technologies both to create and sell products and to connect with consumers on an emotional level. E-commerce are now booming in Indonesia as many innovative online stores and online services emerge, such as Go-Jek and Traveloka.

5. Data-led intuition: An instinctive understanding of what will work combined with ongoing market research that provides unbiased, actionable consumer insights. Mayora products, for example, are crafted by half research and half “intuition” – intuition build by years of experience producing FMCG brands.

The Asian Brand Power report is a joint initiative between Kantar Worldpanel and Kantar Group in Asia. It combines insight from a number of sources – including purchase behaviour data from Kantar Worldpanel’s permanent panel, data on 5,200 Asian brands from Brand Footprint 2015, interviews with the CEOs of 10 leading Asian brands and white papers from Kantar companies in Asia.

Please follow the link on the right side of this page to donwload the full report.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to September 2015, ID inflation in October 2015 decreased from 6.83% to 6.25%.The average rate for USD 1 is Rp 13,865,- in October 2015
• FMCG industry is still unable to bounce back to its healthy shape which is shown by a slight decrease in term of volume and value.  A reduction on shopping trips does also contribute to the sluggish development of the overall FMCG industry.
• RTD Tea has been gaining more attention from Indonesians. Indonesians’ culture for loving tea accompanied with a “mobile version” of tea has granted RTD Tea with both value and volume boost.
• Supermarket and Hypermarket appear to be the only channel which have shown an improvement comparing to other trade channels.
• Baby products take a quite high portion of Indonesians spending on FMCG products. 22.5% of total spending goes to baby products for Households with 0-2 years old baby whereas the number declines into 14.7% for Households with 2-4 years old baby.

Please follow link on the right side of this page to download full reports.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to August 2015, ID inflation in September 2015 decreased from 7.18% to 6.83%. The average rate for USD 1 is Rp 14,396,- in September 2015
• FMCG sector continues to decline, though FMCG value and volume were slightly increased, most likely driven by festive and Eid. Moreover, after a little recovery in Q2, the number of shopping trips continue to slow down.
• Seasoning and stock as one of convenience product is showing positive growth in terms of number of shopping trip. Even when consumers started to put some categories out of their shopping repertoire, seasoning & stocks remain.
• Modern trade still shows negative growth, though supermarket shows positive sign. Traditional trade, also only shows slightly positive growth.
• Consumers reduced consumption on more categories this year and they put greater focus on necessities categories. This caused consumption of less necessities categories are reduced since household’s cash flow is tightening.

Please follow link on the right side of this page to download full reports.

Consumer Connection 2015 was held at Le Meridein Hotel Jakarta, October 20, 2015. As a result, Kantar Worlpanel Indonesia is proud to share our Consumer Connection 2015 materials:

1. The spotlight of Consumer Connection 2015:Macro Asia Trend “ How to make out the trends into growth?” (Presented by Fabrice Carrasco, General Manager of Kantar Worldpanel Vietnam, Indonesia, and Philippines)

The new real environment impact the way how ASIA consumers shop, communicate and make a choice of their product purchased. Manufacturer need to understand the old recipe to work in the future, and to reinvent the way they work, to understand better the consumers. The needs of the changing need to be adapted to the strategy, regarding to media, strong link to consumer, put the premiumization strategy in place. It is not any easy games, because all players have to do marketing strategies to answer the long term changes, and at the same time, having short term solution. Both need to be taken care to be successful.

2. Asia Brands Power “5 Rules to get the GROWTH You need” (Presented by Lim Soon Lee, General Manager of Kantar Worldpanel Indonesia) 

Asia is a unique market, with a strong local players (FMCG manufacturers). To understand common themes on what drives Asian Brand’s growth, Kantar Worldpanel interviewed 11 CEOs in Asia. There are 5 “power levers” that are changing the ASIA games, which are

• Masters of metamorphosis
• Build the nation build the brand
• World class innovation with a local twist
• Digitise and humanize and
• Data-led intuition

3. Winning in Changing Environment (Presented by Nadya Ardianti, Insight Director of Kantar Worldpanel Indonesia)

As the economy slowing down, contrary to popular belief, consumers do not come to a standstill during tough times. They just make purchasing decisions differently to react with the changing environment. Nevertheless, Kantar Worldpanel have been seen some categories and brands that still be able to enjoy growth despite the difficult times and help us to draw inspirations and sum up some strategies to continue winning in the changing environment.

4. Sustainable Growth: How Strong Brands Stay Strong (Presented by Andrew-Ridsdale Smith, Head of Regional Centre of Excellence of Kantar Worldpanel)

In this changing environment, brands in sustainable growth are able to win both trial and convert this to repeat by being retained in the consideration set. When talking about touchpoints, it is not all about building reach, but different touchpoints play different roles, and can influence behavior in different ways. Clarity of message is important to ensure that people buy and repeat for the same reason.

5. The How of Why Mobile (Presented by Avinash Pareek, Strategy & Communications Planning Director of Maxus Indonesia)
The growth of mobile as an advertising medium is largely dependent on the content that marketers will create. Audiences are looking for exclusive, convenient and original content. The need is to understand human truth and innovate content accordingly. This is a continuous journey of content creation as the threat of audience boredom is always around. Hence marketers will have to work on a new currency of 'share of attention'. Together with content, technological innovations will play a major role. We need to build more 'creative engineers' to keep audiences interested and hooked on to the medium. If we will be able to bring these opportunities in action, then the big numbers of mobile will become relevant.

Please follow the download link on the ride side of this page to download full materials.

Happy reading!

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to July 2015, ID inflation in August 2015 decreased from 7.26% to 7.18%. The average rate for USD 1 is IDR 13,712  for August 2015.
• FMCG trend is still below last year trend, though it showed an early sign of recovery in August 2015. The negative volume trend is mainly driven by the number of shopping trip (frequency) plunge.
• Drinking tea has became a daily habit for most people in Indonesia, so its not surprising that tea still came up as a strong category even at difficult economy time. Also, Eid and festive also help tea a lot to survive the wave.
• Modern trade shows declining growth compared to last year while traditional trade shows positive growth this year.
• Out of Home consumption is as much important as in home consumption for some categories – especially for Ready to drink and Ready to eat categories. 

Please follow link on the right side of this page to download full reports.

FMCG trend is still below last year trend, though it showed an early sign of recovery in August 2015. The negative volume trend is mainly driven by the number of shopping trip (frequency) plunge.

Some key findings in this report are:

• FMCG grows at 4,6%, slower than last year, even half the growth than two years ago (10% in 2013). The slowing down mostly driven by the slowdown of food and beverages that account for 60% Asian household’s baskets.
• Deceleration happens in all sub-regions, North Asia, South East Asia, and India
• Dairy and personal care continue with healthy grow, driven by China (hair care and personal wash among top recruiters)
• Compared to a year ago, Indonesia, Thailand, and Vietnam FMCG value are sharply slowing down.
• In volume, FMCG is growing only 0,4% in Asia. Non-food growing the fastest at 3,8%. 
• Sectors Summary:

• Beverages: Indonesia and China’s beverages value is slowing down, while Malaysia is suffering negative growth.
• Food: Most of Asian countries are slowing down, except for Vietnam that having a contraction.
• Personal Care: Personal care category in China shows positive growth
• Home Care: Double digit growth in Indonesia (softeners, dishwash, insecticides among top recruiters).
• Dairy: Double digit growth in China (functional drinks) and Philippines, while contraction happened to India and Malaysia’s dairy category.
• Most of Asian countries’ FMCG value are still growing - though relatively slower than last year’s growth – except for Malaysia that showing negative growth.

Have an insightful reading!

Given these recent development, it seems logical to assume that offering premium products is like daydreaming. However, before we write of the potential of premium products, take into consideration this: our demographics profile is still on the high side: young working-age and growing, populations coupled with huge scope for wage growth and consumption. Also as a country, our GDP growth although slowing down is outpacing growth of developed countries and leads the growth of developing countries. Based on World Bank, Indonesia is expected to grow at 5.2% this year while developed and developing countries are expected to grow respectively at 2.2% and 4.8% in 2015. The upshot is positive outlook for future is expected as such we should see a continuous growing demand for luxury and premium products in Indonesia.

In Indonesia, on the top of quality, prestige is the key motivation driver for purchase of premium brand of jewelry, clothing, handbag and other accessories as these high end products has become popular economic class symbol among Indonesia wealthiest including the rising middle class. For consumers’ goods, however, growing demand for FMCG premium products driven by different motivations as follow:

Health Awareness
Higher health awareness is expected to create a group of consumers who willing to pay a premium for product who help to maintain health and or improve health. To capture the opportunity from the growing awareness, more and more manufacturer for example promote less sugar products; Teh Pucuk Harum less sugar shows a healthy trial rate at 7% with repeat rate at 33% showing that the product has favorably position in its consumer shopping basket. Companies that can adapt their portfolio/brand architecture to these growing concerns are likely able to drive premiumisation

Functionality/Benefit
Consumers are becoming more informed nowadays as such they are raising expectation regarding consumers’ good products. They are ready to pay more likely when the provided product offer specific benefits or function and visible result. Classic example is from toothpaste category whereby special benefit toothpaste i.e. sensitive teeth toothpaste enjoy higher price index at 348 with sizeable penetration at 15%

Convenience
Urbanization, higher working female rate and longer time at work; they are all leads to more demand for convenience product. Kantar Worldpanel data reveals top buyers recruiters categories in 2014 such as instant coconut milk, frozen food, canned food and RTD tea all have common factor: convenience. It suggests that convenience products are on demand and as purchasing power is stronger, consumers are more willing to spend more for these convenience products.

Indulgence
Permissible indulgence trend is rising and has been driving demand for categories such as ice cream and chocolate. Driving premiumisation in products consumed as indulgent treat is mandatory since less likely that consumer may want to trade off taste or quality with cheaper price. From KWP data, ice cream and chocolate has enjoyed a significant upsurge in consumer spending per trip by 7% and 11% respectively.

The trend of premiumisation is spot on in Indonesia yet considers the market structure at the moment, premiumisation for a developing country like Indonesia where middle to low SEC accountable for 65% of household population not necessary only from cheap to expensive. There are several premiumization approaches. The first approach obviously when consumers willing to pay extra for a brand which require marketer to build a strong quality image. The second approach is when consumers trade up to more advance format or function like the case of upgrading from bar soap to liquid soap; in this case marketer need to address which concern or problem can be solved by trading up to more advanced format. The third one is adding steps to regime which is more unique to personal care categories. The last approach is in the area of white space where consumers try more categories – this is very true for Indonesia market since 2/5 of Indonesia FMCG categories only purchase by less than half of national households.

The trend of premiumisation is spot on in Indonesia as seen from strong growth of premium products. The growth can come both from buyer base expansion and spending increase, however, in Indonesia; the growth is mostly through value as it’s difficult to recruit vastly with a premium positioning. Exception is for premium offering that provide affordable luxury option such as sensorial fabric softener packed in small pack size, single pack baby diapers and facial moisturizer sachet, etc.

What unique is when we look premiumization trend, the growth mostly through adding to repertoire and not yet replace the conventional product. Example is when we look at category that have both basic and advance format like detergent, cleanser and personal care; the majority of buyers are the one who buy both format indicates that likely these different format serve for different usage occasion. The same case at variant level, based on our advance analysis*, only around 5% value growth of premium variant coming from conventional variant replacement, 92% are more likely from added to repertoire.

The bottom line is when we are talking about driving sustainable premiumization trend, it is not only about targeting specific consumer group but it’s also about win more purchase occasion. As such, some practical advices for manufacturer to remember are:

˃ Be accessible yet aspirational to reach all social classes
˃ Do not expect to reach a large target however aiming lower medium SEC is not impossible
˃ Market smaller pack sizes in an aspirational way  affordable luxury
˃ Communication remains a priority to boost premium offering by focusing on benefit and quality
˃ Provide more control over consumer experience.
˃ Go beyond product itself and giving consumer inspiration on lifestyle
˃ Go beyond basic and build brand image on different aspect i.e. health and safety

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to June 2015, ID inflation in July 2015 remains stable in 7.26%. The average rate for USD 1 is 13,442 Rupiahs for July 2015.
• Due to festive month and Eid, FMCG trend shows slightly positive growth in July 2015. Though Indonesia’s economic slowdown still brings some impacts.
• Hot Categories: Condensed milk. Condensed milk is showing positive growth in Urban Indonesia, both in volume bought, penetration, and value growth.
• Modern trade shows declining growth compared to last year while traditional trade shows positive growth this year.
• Some festive categories still manage to grow even in Indonesia economy’s difficult time, though not all festive categories successful this year.

Please follow link on the right side of this page to download full reports.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to May 2015, ID inflation in June 2015 raised 0.11% from 7.15%. Current yearly inflation in June 2015 is 7.26%.
• As the Indonesia’s economy slowing down, the FMCG trend also decreased in June 2015,. The decreasing trend happened both in urban and rural area.
• In decreasing FMCG trends, insecticide still manages to show positive movement in Urban Indonesia, both in volume (in units) bought, penetration, and value growth.
• Modern trade shows declining growth but mini market comes up as the only channel in modern trade that shows positive growth.
• Some big FMCG categories experiencing big decreased due to economic slowdown: Growing Up Milk Powder (GUMP), Biscuits, and more.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to April 2015, ID inflation in May 2015 raised 0.36%. Current yearly inflation in May 2015 is 7.15%.
• In FMCG Market, the decelerating trend in last month still continue in May. The decelerating happened in both areas, urban and rural.
• Even though the trend is decelerating, some categories are still manage to show positive movement. In Urban Indonesia, detergent is one of those categories. With not surprisingly high penetration, detergent still could gained more consumption from the buyers.
• The most contributor among trade channel still goes to Traditional Market both in urban and rural area (with single digit growth)
• Based on the Consumer Reach Point (CRP) index, Instant noodles is the most chosen category by Indonesia Urban Consumers.

Please follow link on the right side of this page to download full reports.

Now in its third year, the report reveals that growing FMCG brands follow one simple rule, growth is about penetration: retaining and increasing the number of shoppers choosing your brand.

Of the 11,000 brands analysed in Brand Footprint 2015, we saw 50% grow with the majority of these (75%) expanding their penetration and thus their CRPs. Of the 50% that declined, most (80%) lost buyers. In Indonesia, more than 400 brands analysed in Brand Footprint 2015, 53% of the brands are growing, with 82% of them, enhancing their penetration. Yet every brand has the potential to attract new shoppers. 

Though brands face ever-more complex challenges, they can only succeed by doing something better than last year. We explore these winning strategies, so you can adapt them to your own brands, whatever their size and context.
To enable better understanding of brand growth, this year’s report also includes more expert commentary than ever on current and future trends, coming from experts and thought leaders from inside and beyond the Kantar Worldpanel network.

Explore the data further at the report’s enhanced microsite www.brandfootprint-ranking.com, where you can also read 20 winning brand case studies. www.brandfootprint-ranking.com 

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Compared to March 2015, ID inflation continue to increase in April 2015 from 0.17% to 0.36% compared to March 2015. The inflation in April 2015 happened because price increased for some categories such as RTE food, beverages.

• In FMCG Market, the decelerating trend in last month still continue in April.  The decelerating happened in both area, urban and rural. Price growth remains the same as in first quarter of 2015.

• Shampoo still show positive movement in Urban Indonesia. The double sachet enjoy significant growth in this category. Lately consumers purchased double sachet more frequent if we compare to single or multipack sachet.

• The most contributor among trade channel is still goes to Traditional Market both in urban and rural area. Traditional trade still dominates rural area with single digit growth.

• 58% of the FMCG categories have less than 50% penetration. This shows that FMCG market still don’t penetrate the majority of national households. Brands need to recruit new users to grow. New shoppers grow your brands.

Please follow link on the right side of this page to download full reports.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• After deflation until February 2015, the inflation finally arrived in March 2015 with 0.17% vs February. The inflation in March 2015 happened because price increase for some categories such as RTE Food, Beverages, and Cigarettes. 
• The decelerating trend in last month still continue in March. FMCG deceleration happened in both urban and rural area. The slowed-down price growth that happened on more than a half of top categories effecting on total slower price growth.
• Dish Wash show well performance in Urban Indonesia. Based on volume growth, this category increased a lot which happened due to increasing penetration and growing consumption. People nowadays tend to spend to smaller size for dish wash in form of sachet and refill. 
• The most contributor for retailer is still obviously dominated by Traditional Trade both in Urban and Rural. While Minimarket is still being the biggest contributor in Modern Trade. 
• In order to gain more penetration, continuous recruitment is the activity that must be done to become a big brand. Some countries data compilation said, the difference between Big and Small brands are number of the buyers, not how loyal the buyers are. 

Please follow link on the right side of this page to download full reports.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• February 2015 opens with a deflation of 0.36% vs January 2015. The deflation in February 2015 was mainly caused by price paid decreased for some categories such as food, transportation, and communication cost. The decreased price paid of some categories are also the effect of decreased fuel price in January 2015.
• The decelerating trend in last month still continue in February.  FMCG in urban area decelerated as well as  in rural area. Even  though some basic needs  -  such as chili and  transportation cost – were decreasing the price, due to fuel price drop, Price of FMCG products are generally still  increasing, affected consumers to decrease their buying products. 
• Shower gel experienced excellent growth in Urban Indonesia, This category enjoyed big growth contribution from Standing Pouch packaging. This justified that Indonesian Household prefer a value for money product due to its lower price.
• The share for retailer performance are still similar In Urban,  with Mini market still being the biggest contributor in Modern trade, while traditional trade is still the main  contributor for amongst trade channels., it’s even getting bigger. Traditional trade also grows by two digits in rural area, We still can see the positive movement for Minimarket in Rural.
• During the past year there are several FMCG categories, that are able to attract more buyers. Among those categories there are top 3 categories that grow the most. These categories are coconut milk, facial tissue, and frozen food.

Please follow link on the right side of this page to download full reports.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Indonesia's started the new year 2015 with a deflation of 0.24% vs December 2014. The deflation on January was mainly caused by extreme fuel price decrease. The government cut off the subsidized economy fuel for vehicle while the global oil price is getting down.
• Total value FMCG urban in Indonesia decelerated due to the negative volume growth which last happened in Q4 2013. Home Care is still the most promising segments, however the growth slowed down happened across segments compare to Q4 2014. Just like Urban, Rural area also experienced slower growth. Although dairy is still experiencing highest growth among all.
• One Step or Instant Seasoning experienced excellent growth in Urban Indonesia, contributed mostly by positive volume growth. This justified the growth of convenient goods in Indonesia. 
• In Urban, amongst modern trade channel, minimarket has the biggest contribution. At the same time, Traditional Trade performed better compare to last year. Traditional Trade as the most promising channel in Rural, grows by two digits this quarter vs year ago.
• One of the impact of Indonesia economic condition is budget cutting. Some key categories also take a strong price growth in FY 2014 compare to last year's gives even higher pressure to consumers.

Please follow link on the right side of this page to download full reports.

We present articles about Successful Indonesian Brands' stories, plus our report on the full year 2014 for Indonesian FMCG interesting facts in numbers, complete with our relevant talks in consumer connection event last October.

To download the full report, please click on the download link on the bottom-right side of this page.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Indonesia's annual inflation rate (Year 2014) is 8.36%. Consumer Price Index (CPI) in December 2014 rose 2.46% from November 2014. The inflation in December 2014 was mainly caused by price increases of several comodities, such as gasoline, food stuff, urban transportation fare, and electricity.
• Total value FMCG urban in Indonesia accelerated due to the price increase. The volume growth is maintained compare to last year. While in Rural area, the growth are captured in value and volume. HHs slightly increased their (volume) consumption by 4%.
• Floor Cleaner shows an excellent growth in Urban Indonesia, both in volume and value wise. This category is able to recruit more consumers in yearly comparison, and the spending per consumer is also increasing. One of the growth driver is the enhancement by some brands in Traditional Trade.
• Among modern trade in Urban, minimarket still contribute the most, yet Supermarket  has the role as the rising star in Urban. 
• FMCG growth are slowing down this year due to smaller volume purchased that indicated by less frequent shopping trip and higher trip size that is caused by the economic condition.

Please follow link on the right side of this page to download full reports.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Consumer Price Index (CPI) in December 2014 inflated 2.46% from November 2014. Current YTD inflation (January – December 2014) is 8.36%. 
• Instead of Consumption, Price per Unit is the one who contribute more towards the growth of FMCG both in Urban and Rural. Across FMCG Segments, the one who enjoy highest growth is Home Care in Urban, and Dairy in Rural. 
• Fabric Softener, experienced a double digit value growth, 22%. The increasing number of volume is also following the value trends by 14%.
• In Urban, Supermarket is still the Super Star, even with the most growing trade which is Traditional Trade, while in Rural, the growth leader is Minimarket. 
• Detergent, Growing-Up Milk Powder, Shampoo, Biscuits, and Condensed Milk are big value categories that still able to grow their value double digit. 

Please follow link on the right side of this page to download full reports.

Join the conversation
#Consumers2015

Some quotes of the day:

• The category preferences in different age group could be different. For kids, more than half of their consumption are for liquid milk, biscuit and ice cream. Is it different with teens and adults?

• FMCG players could see how different their consumer behave for in home and out of home, even in different age groups. They can apply some strategies that need to be routed for different age groups. To kids categories, could be by educating parents (moms) of the nutrition offered. What other strategies can be applied?

• By having additional “out of home panel”, manufactures can do complete and thorough analysis on the consumer purchase, since there are so many purchases made out of home.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Consumer Price Index (CPI) in October 2014 inflated 0.47% from September 2014. Current YTD inflation (January – October 2014) is 4.19%. In year on year basis, the CPI rose 4.83%.

• The growth of both in Urban and Rural area are mainly driven by price increase instead of unit growth. Buyers still tend to retain themselves to purchase more units. All segments capture positive movement. The most growing segment in Urban is Home Care, and at the same time, Dairy is growing significantly in Rural.

• Canned Food, experienced a double digit value growth, 28%. The increasing number of buyers (penetration) that purchase Canned Food and higher level of consumption boost the category performance.

• In Urban, Supermarket keeps increasing the contribution to Modern Trade Channel. The euphoria of minimarket in rural, boost Rural FMCG movement. The minimarket growth in rural is 27% compare to YA.

• The less affluent consumer still continues to struggle. This will caused consumption declining on main categories for lower class consumers i.e instant noodle and sweet condensed milk.

Please follow link on the right side of this page to download full reports.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Consumer Price Index (CPI) in October 2014 inflated 0.47% from September 2014. Current YTD inflation (January – October 2014) is 4.19%. In year on year basis, the CPI rose 4.83%.

• The growth of Urban area shows double digit in value wise. This is mostly driven by the price increase, no organic growth captured. The same as urban areas, while rural captures double digit growth. Volume and price increased are the drivers of this rural movement

• Coconut milk,  experienced a quite big value growth, 42%. The increasing number of households (penetration) that purchase coconut milk and higher level of consumption boost the category performance. 

• In Urban, Supermarket showed positive trend versus last year quarter. The euphoria of minimarket in rural, boost Rural FMCG movement. The minimarket growth in rural is 25% compare to YA

Please follow link on the right side of this page to download full reports.

Some key findings in this reports are:

• Despite the World will grow less than expected in 2014, Emerging Markets remain the main contributors to global growth.
• Kantar Worldpanel forecasts that FMCG will grow 7.2% in emerging markets in 2014 -1.5 point slower than the previous year.
• FMCG slows down in Asia, half the growth than 2 years ago. Latam takes the lead in terms of growth.
• Packaged food is the sector hit the most.
• Healthy beverages growing strong, Ready-to-Drink tea top riser.

• ASIA

  • Kantar Worldpanel forecasts 4.1% growth in Asia in 2014
  • Domestic demand has slowdown in Asia, households are still spending more than previous years, but the pace of growth has gone down:
  • FMCG spend has decelerated in all Asian markets -except for India - driven by low income households.
  • Consumers in many countries reduce discretionary category buying and buy less often. Food sector the sector hit the most.
  • Countries decelerating the fastest are Taiwan, Thailand, Vietnam and Malaysia.
  • The Philippines already contracting spend (-1.8%), the only emerging market decreasing.
  • Indonesia´s growth remains healthy at 15%, although slower than in 2013 (18.6%).
  • E-commerce keeps growing fast especially in Korea and China.
  • International retailers experiencing fierce competition from local players.
  • BeautyFirst: Personal care basket continues growing strong in Taiwan, Indonesia, India, Philippines, Thailand and Vietnam. Make-up, skincare, facial tissues and liquid soaps keep recruiting shoppers
  • Household cleaning categories with specific usage on the rise in several countries: toilet cleaners, insecticides, air fresheners, floor cleaners, wet tissue, fabric enhancers.

  LATAM

  • Latam takes the lead in terms of Growth, households expand spending on FMCG goods by 13%. Kantar Worldpanel forecasts 14% growth by the end of the year 2014.
  • This is mainly driven by a higher Food Inflation that have lately accelerated in Brazil and Mexico; besides the high levels of Argentina and Venezuela.
  • All countries purchasing more volume than in 2013, except for Chile and Venezuela.
  • 48% of categories in Latam show a volume growth in the second quarter of the year
  • Personal Care doubles the speed of growth, with highlight for hair conditioners, hair treatments, make up and mouthwash
  • Dairy products gain importance in households budget, mainly powdered milk, condensed milk & yogurt
  • The trend is to shop less often and spend more per trip in most markets.
  • The level of economic activity in Latin America continues to grow at a slow pace in 2014, a regional growth of 2.0% is projected for 2014 according to IMF

Have an insightful reading!

We proudly shared some hot topics presented in our Consumer Connection Events:

• The Field is Ripe for Harvest: “Amazing Indonesia”, despite all the price increase and economic situation, the consumer demand in Indonesia is still growing and consumer confidence index is still high. Increasing Urbanization, growing population and doubling of middle class consumer make Indonesia as an attractive market not only for potential manufacturers but also the existing ones. Though it is a crowded competition, the star is in our side, “Live it out loud, be more than a name or a face in the crowd”. Find out more on some FMCG players success stories here.

• See, Think, Shop: 3 Brands Stories: “How purchasing behavior can be influenced by changes in “branding, communication” and price/promotions. Does TV Sponsorship drive the sales? Tap the right entertainment show that has the same profile with your brands profile to get a great impact on your sales. Attributes that drive sales can be different from those that drive overall brand perception.  Winning trial purchase, since trial is the driver of growth in FMCG categories. Find out more “what are the most effective activities for driving trial” here.

• Digital World: “Be everywhere to reach your consumer”, tap the opportunity in maximizing the digital world. . Find out more on the 5 key trends on digital.

Happy reading!

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Consumer Price Index  in September 2014 is 0.27% . Current YTD inflation (January – September  2014) is 3.71%. In year on year basis, the CPI rose 4.53%.In year on year basis, the GDP in second quarter is 5.12%. Rupiah exchange rate to USD  weakened to 2% in September 2014 vs. August 2014. 

• FMCG growth is a bit softening both in urban and rural. Reviewing the growth vs. YA, price seems to be the main factor on the value growth. In rural, the value growth pushed by both price increase and organic growth. Positive movement is captured in all FMCG segments, both in Urban and Rural. Dairy and Home Care are the most growing segment in Rural

• Facial Tissue captured a quite big value growth, 44%. The increasing number of households that purchase facial tissue (penetration) boost the category performance. Household consumption increased also drives the category growth.

• In Urban, Supermarket showed positive trend versus last year quarter. Different with Urban, the most growing channel in Rural is Minimarket which grow 34% in terms of value

Please follow link on the right side of this page to download full reports.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

• Inflation has increased 2.94% from January to July 2014. The Consumer Price Index (CPI) in July 2014 inflated 0.93% from June 2014, and rose around 4.53%, in year on year basis.

• In urban, FMCG growth is slowing down, and it is driven by the volume. However, the trends show differently in rural 

• Demands from consumers on fasting month pushed syrup growth higher than regular period. There are more people purchased syrup compare to last year (indicated by the penetration increased)

• Supermarket showed a very positive trend in Urban this quarter versus same quarter last year. 

Please follow link on the right side of this page to download full reports.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

1. Inflation had increased 1.56 percent between January to May 2014 and 7.32 percent on a year-on-year basis. Processed food, beverages, cigarettes and tobacco contribute a lot to the inflation rate in May 2014. 

2. Price stays relatively stable in May 2014, even though there is a small climb of price in Rural. The decrease in Urban mostly driven by decrease in volume (unit). A strong likelihood that they bought the products in bigger pack size.

3. Cultured Milk shows excellent growth in Urban. The incremental in number of buyer and volume per household could lift the value sales significantly. This increase in buyer and consumption successfully lifted the total sales of Cultured Milk by 43%.

4. Supermarket showed a very positive trend in Urban this quarter versus same quarter last year. This channel successfully grew its market share by 2 percent, whilst in Rural Minimarket is showing a positive trend.

Please follow link on the right side of this page to download full reports.

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

1. Indonesia’s economy grew at a much slower than expected pace in the first quarter as investments and exports weakened. Gross domestic product in the Q1 2014 rose 5.21 percent from a year earlier.
2. After recovered, Indonesia’s FMCG growth remains stable in April 2014 in both Urban and Rural Indonesia.
3. Body Cologne shows excellent growth in Urban. This increase in buyer and consumption successfully lifted the total sales of Body Cologne by 30%.
4. Supermarket showed a very positive trend in Urban this quarter versus same quarter last year. This channel successfully grew its market share by 2 percent versus the same quarter last year

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Colgate is also the world’s most chosen health and beauty brand and the only FMCG brand to reach more than half of the world’s households (with 63% penetration). The world’s favourite toothpaste grew its reach in Asia by 5% and is the most chosen global brand of its category in 18 countries including India, Thailand and Malaysia.

Colgate does need to pay attention to its closest competitor, Pepsodent, which moved from No.17 to No.11 in the Asian ranking and is growing nearly twice as fast as Colgate. This Unilever owned brand enjoyed overall growth in its global reach (Kantar Worldpanel’s Consumer Reach Points measure) by 8%, gaining 3.7 million households. It has been particularly successful in Indonesia and India where it gained 2.9 million new households.

For global food and drink brands however, achieving the same level of local domination in Asia is difficult. Local Asian brands in the Brand Footprint ranking grew at 3.1%, faster than the growth for global brands in the region (2.6%) and ahead of Latin America (1.2%). Globally, the world’s most chosen FMCG brands grew their footprint by 1.7%.

The 10 Most Chosen Brands in Asia revealed by Kantar Worldpanel’s Brand Footprint study are:

1. Colgate
2. Mi Sedaap
3. Indomie
4. Lifebuoy
5. Nescafé
6. Pantene
7. Kapal Api
8. Maggi
9. Surf
10. Lux

Local brands capture 69% of all brand choices in Asia and are growing faster than global brands in China, Philippines, Taiwan and Thailand. Such is the strength of local brands in Asia that six have achieved “billionaire” status: Master Kong, Yili and Mengniu in China, and Indonesia’s Mi Seddap, Indomie and Masako.

In China, foreign brands lost share in 15 out of 26 categories, notably in oral care, cosmetics and juice. As Chinese businesses become more market-oriented they are leveraging their extensive knowledge of consumers’ lives and acting boldly in response to local trends to establish a strong brand affinity. In India and Indonesia, the investment global brands are making is paying off and they are growing faster than their local competitors.

The Brand Footprint ranking reveals the brands that are being bought by more people, the most often in 35 countries around the world, across the food, beverage, health and beauty and homecare sectors. The report outlines the winning strategies that most successful global FMCG brands are employing as well as key global industry trends.

Other brand and category highlights for Asia in the Brand Footprint ranking include:

• A Thirst for Premium – while shoppers in Europe and the USA remain cautious after a long period of economic gloom, Asian shoppers are spending more on premium products because they can and love to. FMCG brands have responded to the desire for premium and luxury products. Some brands are introducing more sophisticated formats such as Pepsodent Expert in India. Others are using gold packaging to give a product a premium and gift quality such as Lifebuoy’s Gold variant. Superior quality ingredients are also being used by brands such as Oishi, the authentic Japanese-style RTD green tea brand, while others such as Dove Elixir Hair Oil are adding steps to existing regimes. Premium variants in Asia can command double or triple the average price.

• Desire for a healthier lifestyle – as global and Asian middle classes expand, consumers are more aware and have more money to spend on their health and wellbeing. Many food and drink brands in Asia are leveraging the consumer desire for a healthier lifestyle introducing products with added health benefits and functions. Priobiotic drinks brand Yakult for example (No 35 in Asian regional ranking) is now purchased by 59 million households in Asia. It offers products that contribute to good health at a price everyone can afford. In China where trust in the safety of products such as milk has been shaken, consumers are prepared to pay more for quality. Across Asia, with more than half of all men concerned about a lack of energy, brands like Milo (No.15), Energen (No.12) are growing their reach by offering an energy boost.

• Cash-rich, time-poor consumers will pay for convenience – as more women join the global workforce and populations become urbanised, daily life is busier. With less time to shop and prepare and cook meals, food brands such as Maggi (No 8 in the Asian regional ranking and the most chosen food brand globally) and Mi Sedaap (No 2 in the Asian ranking) provide fast meal solutions with their instant noodles range.

• Indonesia is a rising star - Indonesia is stepping out as a must-win market for the next wave of international growth. Indonesia’s economy will surpass Germany by 2030 and during the same period of time the country will bring 80 million new consumers.

Marcy Kou, Managing Director, Asia, Kantar Worldpanel says, “The brands in the Brand Footprint ranking are masters at making their brands matter to consumers. Their understanding of local traditions and culture across Asia – such as their attention to inner balance and outer beauty and love of good food - is critical to their success. They continue to grow by solving functional needs and making life easier while bringing significance, and a little luxury, to people’s lives beyond mere consumption.”

Each FMCG Monitor will take you through market updates on:

• Key economic indicators
• FMCG growth movements (total & by sectors)
• Retailer snapshot
• Hot categories

Some highlights in this issue :

1. The consumer price index rose 7.32 percent in March from a year earlier. The index fell to its lowest level in nine months in March, but Bank Indonesia (BI) has warned that there is a need to remain vigilant over the recent surge in core inflation.

2. Indonesia’s FMCG growth recovered after the slow down in the last two quarters in 2013. Price is the main driver of this strong incremental. It successfully pushed all FMCG segments to grow by two digits this quarter against the same quarter last year.

3. Adult Milk Powder shows excellent growth in Urban. The incremental in number of buyer and volume per household could lift the value sales significantly. This increase in buyer and consumption successfully lifted the total sales of Adult Milk Powder by 76%.

4. Supermarket showed a very positive trend in Urban this quarter versus same quarter last year. This channel successfully grew its market share by 2 percent, whilst the Minimarket and Traditional Trade share faced a decrease.

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