Why is segmentation important?  

Segmentation helps you focus on the shopper groups that matter most, driving smarter decisions and more targeted actions. For example, in the skincare market, people at different life stages and with different skin types follow different regimens. In the same way, segmentation can help brands streamline their approach and create more relevant, targeted strategies. The same holds for your brand — how well do you really know your consumers? 

How can Worldpanel help you? 

At Worldpanel, segmentation isn’t one-size-fits-all. We offer different approaches to help brands understand shoppers beyond simple demographics:

1. Demographics Segmentation 

Break down shoppers by region, ethnicity, income, family size, or life stage. This helps identify which groups are driving category growth or responding to promotions.

2. Behavioural Segmentation 

Focus on actual purchase patterns—frequency, basket size, brand switching, promo reliance, and channel preference, 

3. Attitudinal Segmentation

Combine purchase data with attitudes and lifestyle indicators. This goes deeper than claimed preferences, showing how values like health, sustainability, or convenience influence real buying decisions. 

4. Occasion-Based Segmentation 

Understand when and why shoppers buy—whether it’s for everyday use, special occasions, or impulse purchases. This helps tailor messaging and product positioning.

Case Study: A premium brand in the market 

Let’s take the personal care sector as an example. 

Brand X, a niche premium brand, has been struggling to maintain recruitment over the past year. 

Unlike essential products, Brand X occupies a secondary position in shoppers’ repertoires—it is considered an “added benefit” rather than a necessity. This means that if shoppers feel their basic needs are met, they are less likely to seek out Brand X. 

The recent price increase has contributed to the decline in recruitment by making the brand less affordable for the broader audience. However, affordability is only part of the story—the bigger challenge lies in perceived value. Many shoppers do not see the need for our specialized premium benefit, and as a result, they are shifting toward other premium options, such as whitening products, which they view as offering more tangible benefits.

This is where Worldpanel can help. Instead of targeting the entire market, Worldpanel enables you to segmentize effectively - focusing on the Malay shopper group, which is the largest in Malaysia, and then narrowing down to those who value added benefits and have the potential to buy your brand. By filtering out shoppers who are unlikely to convert, you can concentrate resources on the most relevant audience and unlock real growth opportunities.

Recruitment decline doesn’t always mean the category is shrinking—it often signals a mismatch between your targeting strategy and the shoppers most likely to buy your brand. For Brand X, the opportunity lies in precision targeting: identifying Malay shoppers who value premium benefits and are willing to pay for them. Mass-market campaigns waste resources because most shoppers either don’t need the product or won’t justify the price. The power of segmentation lies in focus: reaching the shoppers who truly drive growth.

Source:  P5 2025, Malaysia Peninsular Household Panel, Worldpanel by Numerator

North Asia registered a 1.6% increase in value sales, sustaining its pattern of subdued growth. Southeast Asia expanded by 2.3%, reflecting a slight slowdown compared to the previous quarter. South and West Asia remained the strongest performer with 6.6% growth, largely attributable to India’s significant contribution.

This report examines consumer trends across 11 Asian markets, highlighting shifts in spending, evolving category preferences, and emerging opportunities.

Market highlights:

• Mainland China

In the first three quarters of 2025, China‘s FMCG market maintained a stable upward trend. Across the five major categories, beverages continued to lead sales growth, while dairy still faced significant challenges due to declines in both purchase frequency and spend per trip. 

• South Korea

South Korea’s FMCG market recorded 3.3% value growth in Q3, but momentum is slowing due to a decline in volume of 1.7%, indicating reduced consumption. With prices rising 5.1%, it’s clear that recent growth is driven by inflation rather than real demand, as households purchase less and adjust their spending under continued cost pressure. 

• Taiwan

Following its robust rebound in 2024, growth momentum is gradually easing. FMCG value in each of the first three quarters of 2025 reached no higher than 5%, resulting in growth of only 6.2% between Q3 2024 and Q3 2025, down from 9.1% year-on-year. Both food and non-food sectors show similar trends. As a consequence, the full year growth rate for 2025 is expected to land at lower than 5%. 

• Indonesia

Consumer confidence remains challenging and has been declining recently, indicating that spending may slow under current conditions. FMCG volume continues to contract, with no signs of improvement in shopping frequency. This trend suggests that brands may need to explore strategies to optimise limited consumer spending to sustain growth. 

• Malaysia

Malaysia’s inflation rate held steady at 1.5% in September 2025, driven by modest price increases in food and beverages along with restaurants and accommodation. Shopping trips continue to decline, with consumers prioritising value over frequency. This behaviour signals ongoing caution among shoppers amid a resurgence of economic pressures.

• Philippines

Following a strong second quarter of 2025, spend on packaged goods continued to increase in Q3. Despite this, a downtrading trend remains apparent as FMCG inflation is not decelerating as fast as overall inflation within the Philippines. 

• Thailand

Shoppers bought a greater number of categories and spent more on in-home FMCG in the second half of 2024, and during the government’s Digital Wallet scheme. However, they have reduced spending in 2025. The government subsidised co-payment campaign running between October and December may boost the market in Q4.

• Vietnam

Vietnam's economy demonstrated sustained momentum in Q3, positioning the country favourably to meet its annual GDP growth target, despite prevailing economic and tariff pressures. The robust growth was led by the services and entertainment sectors, thanks to a series of national celebrations and events.

On the other hand, total FMCG value growth in rural areas is flat, which is a recovery from the contraction observed during Q2. Slight decreases in value in the foods, beverages, and personal care categories were counterbalanced by modest value growth in dairy and home care. 

• India

Urban FMCG recorded volume growth of 4.7% in Q3, slightly above the previous year’s 4.5% rise. While growth persists, rising inflation appears to be driving more cautious spending, influencing overall consumption. This shift is most visible in categories such as snacking and personal care, where shopping occasions are slightly declining. 

• Saudi Arabia

FMCG volumes grew 3.6% in Q3, driven mainly by population growth (+5.2%), while volume per buyer remains flat, signalling that consumer engagement is stagnant. Brands can stimulate consumption by innovating around evolving needs, and leveraging behavioural insights to reignite relevance. 

• United Arab Emirates

Overall FMCG volumes are rising in the UAE, but growth is primarily coming from a rise in the number of households, while basket sizes outside seasonal peaks remain tight. Increased consumption can be stimulated through new occasions and propositions that go beyond staples. 

Stay informed on the latest trends and insights in the Asia FMCG landscape by accessing the Q3 2025 edition of Asia Pulse. Explore key developments across 11 markets and uncover growth opportunities tailored to the diverse dynamics of the region.

Penetration, shopping frequency, and basket size. All three play a pivotal role in FMCG brand growth. But which is most important?

Analysing almost 1,600 brands in Malaysia across all three measures, over three years, has enabled us to uncover the answers.

In this new report from Worldpanel by Numerator – Malaysia Frequency vs Basket Size – we identify the strongest levers of growth and shopper loyalty. Within its pages, we explore:

• The relationship between buyer recruitment and market share
• The impact of frequency and basket size on loyalty
• What drives key shopper behaviours in Malaysia 
• Trends at a category and brand level
• Strategies for ensuring your brand is chosen on more trips

Access the report here – and develop a deeper understanding of Malaysian FMCG shoppers, and the actions to take to drive growth.

So, what is Retailer Loyalty and why does it matter?

Think about a product that you frequently buy – do you normally buy it from the same one or two stores? Or do you visit a lot more stores for that particular product?

If your answer is the former, congratulations! You are a quintessential Malaysian shopper. Across most FMCG categories, Malaysian shoppers typically purchase the same category from fewer than two retailers per year, except for some food categories with higher purchase frequencies.

This is where the concept of retailer loyalty comes in handy, as individual shoppers tend to stick to just a small selection of retailers for their FMCG purchases within a particular category.

Retailer loyalty measures the percentage of a shopper’s total category or brand spend that occurs in a specific retailer. For example, if a Retailer A shopper spends RM100 on a category (across different retailers) within a year and RM45 of that is in Retailer A, then Retailer A has a 45% spend loyalty share for that shopper.

This metric reveals how “sticky” a retailer is for a brand’s buyers — and that stickiness matters. Retailers with higher loyalty are more likely to convert and retain category or brand spend. In short, it tells us which retailers are truly capturing the hearts (and wallets) of our category or brand buyers.

An Example from a Non-Food Category

While investigating the performance of the above Category, we observed that Retailer XYZ stands out with above-average loyalty among Category shoppers. This retailer retained 45% of their shoppers’ category spend, compared to an average of 40% across the top 10 retailers.

For Brand A, Retailer XYZ again leads, with loyalty rising to 72% among its brand shoppers — well above the 59% average across the brand’s top 10 retailers. This suggests that shoppers who buy Brand A in Retailer XYZ tend to keep most of their Brand A purchases within that retailer.

While Brand A consistently ranks either 1st or 2nd among top category retailers in terms of penetration, it ranks 3rd in Retailer XYZ, despite strong loyalty. This shows a clear opportunity for Brand A to activate more effectively in Retailer XYZ, not only to leverage its existing loyalty base in this retailer, but also to capture more new shoppers in this retailer, where shoppers tend to be more loyal.

Leveraging Retailer Loyalty in Joint Business Planning (JBP)

Based on the example above, it is not only an important strategic input for Brand A’s future growth, but it also provides a strong case for the brands to carve out a win-win JBP with its loyal retailers. Here’s how it helps:

• Prioritisation: High-loyalty retailers are the ideal partner for deeper engagement — think exclusive promotions, shopper programs, or visibility investments. For retailers, it’s a signal to retain and recruit shoppers by working with brands their loyal customers already love, rather than risk losing them to competing retailers.
• Gap Identification: Retailers with high loyalty but low penetration or share indicate untapped potential. These are areas where both the brand and retailer can collaborate to convert loyalty into incremental growth.

As brands prepare for their next JBP cycle, integrating retailer loyalty into the conversation can lead to more targeted retailer strategies, stronger partnerships, and ultimately, better business outcomes.

At Worldpanel, we specialize in tracking and understanding real-world shopper decisions over time. Retailer loyalty is just one of the many shopper insights we can help you uncover. Whether you are preparing for your next JBP or looking to sharpen your in-store strategy, our team can support you with tailored analyses that highlight where your brand is winning and where there’s room to grow.

Source:  P6 2025, Malaysia Peninsular Household Panel, Worldpanel by Numerator

Adding to this complexity, not all products in this space are created equal. Some are closer to their natural form, while others are more processed. This raises an important question: which type of snack are shoppers gravitating toward today, and why?

Our shopper panel insights reveal a fascinating shift in behavior:

• Segment A (historically dominant) is slowing down in terms of spending, basket size, and shopping trips. However, it continues to attract new shoppers, which means interest in the category hasn’t disappeared and potentially this is the point where shoppers enter the category. The real change lies in how people buy / consume - less frequent purchase, smaller quantities every time they buy the segment, and more selective choices.
• Segment B, in contrast, is showing stronger resilience. While it also faced some decline in trips and basket size, recent signs of recovery paired with value growth suggest it’s becoming the preferred choice for many shoppers. This segment appears to offer greater potential for future growth.
• Switching patterns confirm this trend: shoppers are moving from Segment A to Segment B. What’s interesting is that this isn’t limited to big players—smaller brands are experiencing the same too. This indicates a broad-based appeal rather than a niche shift.

In summary, the snacking landscape is evolving. The key question now is how brands can continue to meet this demand. Could the opportunity lie within innovation, positioning, or with a better promotional strategies and offerings?

First, let’s find out where your growth (or decline) is coming from—whether through new shoppers, increased frequency, or switching—is critical for making the right moves.

Contact us to explore how shopper panel data can help you identify growth opportunities and stay ahead of the changing consumer behaviours.

In Worldpanel, we conduct Source of Value/Volume Change to understand movements of a brand. This is often used to understand the growth or decline, whether it’s being driven by being added to baskets, being bought more or being switched towards other players in the market. Through this, we are able to support in developing strategic recommendations on how we can further grow.

Source:  P4 2025, Malaysia Peninsular Household Panel, Worldpanel by Numerator

In this new report from Worldpanel by Numerator – Malaysia's Baby Boom or Bust – we explain how to maximise opportunities among the ‘Dragon Babies’, looking at shoppers’ purchase behaviours across 14 categories. 

In its pages, we reveal the drivers behind key trends within the baby FMCG landscape, including:

• Lower spend per trip and and smaller baskets for baby products
• An increase in purchase frequency 
• New category demands – and the expanding role of personal care segments
• Evolving channel priorities – including the meteoric rise in online spend. 

We also share strategies that will help you to win more buyers, occasions, and basket space among the new generation of shoppers for baby products. 

Malaysia’s baby care market will continue to shrink. However, the brands that understand how to cater to the latest shopping trends will still be able to find white spaces in which to grow. 

Access the report – and uncover the avenues of growth that will help you to take advantage of the limited window of opportunity. 

For FMCG brands, these stories are often hidden beneath layers of transactional data. Yet within these combinations lie powerful clues: which brands are bought together, who is loyal, and who is quietly exploring alternatives.

So, how does understanding shopper brand mixes help you target shoppers better? Let’s look at a case study.

Case Study: Understanding Shopper Brand Mixes in a Personal Care Category

Brand A is a market leader in Malaysia’s personal care category. The marketing team faced a dilemma: two of its premium offerings, Uno and Duo, catered to distinct functional segments but were performing very differently. Uno had been gaining traction with each innovation launch while Duo, despite being in the market for years, lagged. As the team prepared to launch a pricier, reformulated Duo, they debated their strategy: Should they bundle Duo with a basic range to encourage up-trading, or position it directly against competitors' premium offerings?

To answer this, they consulted Worldpanel by Numerator to analyse the brand mix within the category. Their hypothesis was that premium products are bought by shoppers who already have premium items in their repertoire; most households have one basic and one premium product, and typically two different brands.

They segmented key brands into basic and premium ranges and ran a repertoire analysis. This analysis examines the spectrum of brand combinations shoppers buy.

Key takeaways from the analysis:

• Most shoppers of Brand A’s premium range also use its basic range, rather than competitor brands. This suggests that up-trading from basic users was the most effective strategy.
• Shoppers in this category typically use only one brand, and those who use two brands tend to have two basic-range products. This indicates the need to first attract competitors' shoppers to Brand A’s basic range before targeting them with premium products.

This insight gave the marketing team the confidence to continue bundling Duo with the basic range and focus their communications on encouraging basic-range shoppers to up-trade.

Why does understanding brand mixes change the game?

1. It reveals true shopper behaviour and potential journeys: Repertoire analysis uncovers how shoppers buy across brands and tracks shifts in brand mix over time, revealing changes in preference and loyalty.
2. It sharpens portfolio decisions: This helps manufacturers identify which SKUs to grow, rationalise, or innovate based on how brands interact in the basket.
3. It strengthens in-store campaigns: It enables manufacturers to co-create data-driven solutions with retailers, including targeted promotions, cross-brand bundles, and shelf layouts, that better serve shoppers and drive mutual value.

At Worldpanel by Numerator, we consistently track shopper baskets on a four-weekly basis to understand their choice of category, variants, channel, retailer, pack size, etc. This helps you to build a lens to view the household’s repertoire.

Source:  P6 2025, Malaysia Peninsular Household Panel, Worldpanel by Numerator

First we saw shoppers switching their loyalty – and their spend – from one channel to another. Now they are visiting fewer channels and retailers, dropping those they least prefer as they streamline their choices. 

FMCG brands that can help retailers to maintain shopper loyalty will stand out, and make themselves indispensable. This demands a comprehensive understanding of the latest purchasing trends, and a well-crafted trade strategy.

Read our new report – Malaysia Retailer landscape 2025 – to learn about:

• Where Malaysians are deciding to shop – and how often
• The channels winning buyers from their rivals, and why
• The drivers of market expansion
• The role of brands in building channel loyalty.

But that pattern is shifting. Economic pressures, evolving lifestyles, and alternative category options are reshaping what shoppers value, not just during everyday shopping, but during festive occasions too. The habits formed in non-Raya periods often carry over into the festive season, sometimes permanently.

In 2025, despite Raya’s reputation as a peak sales period, total FMCG value growth was flat. Some categories proved resilient, while others declined. A beverage category, once a festive staple, is now being de-prioritised by shoppers. The category is losing its place in the festive basket, even among shopper groups who used to buy it more than others. This shift is not just about price sensitivity; it reflects a deeper change in how shoppers define “essentials” during festive periods.

Within this beverage category, Brand A has experienced a significant decline, with total volume sales falling by 30% during Raya 2025. This downturn is not merely a reflection of seasonal shifts or pricing dynamics, but it signals a behavioural change among shoppers.
 

The decline is rooted in two critical dimensions: fewer households are choosing Brand A, and those who are buying are also less frequent. Penetration has dropped by 1.8 percentage points, indicating that the brand is losing relevance in the shopping repertoire of many consumers. Buy rate is also softening, with volume per buyer falling by double digits, driven by a reduction in purchase frequency. The top of mind by looking at these numbers: (1) not only are shoppers walking away from the brand, (2) even loyalist shoppers are scaling back their purchases.

But is that always the case? What if we look at it on a deeper level? By using our New, Lapsed and Repeat (NLR) analysis, we are able to dive deeper into each type of shopper, giving us a better understanding of your position in their baskets.

Clearly Brand A is not recruiting new shoppers as fast as they are losing their lapsed shoppers. Looking at the basket size of each shopper, Brand A’s lapsers, unsurprisingly, allocated more volume into their baskets than the new buyers. However, among their repeat shoppers, they are adding more volume to their baskets. This behaviour suggests that while the brand is losing casual or seasonal buyers, its core base is still engaged and possibly even more invested.

This insight opens up a strategic opportunity. On top of recruiting new buyers, brands can leverage the strength of their repeat base. These shoppers are already engaged—they know the brand, trust it, and are willing to invest more during key occasions like Raya. The challenge is to keep them feeling prioritised. That means designing festive campaigns that reward loyalty, offering pack sizes and flavours that reflect their preferences, and ensuring visibility in the right channels. Ultimately, being a “Raya priority” isn’t just about being present in the basket, it’s about being chosen with intention.

At Worldpanel by Numerator, we help brands uncover the hidden value in their shopper base. Our tools track repeat purchase behaviour, basket size evolution, and shopper segmentation, helping you identify where loyalty lives—and how to grow it.

Source:  P4 2025, Malaysia Peninsular Household Panel, Worldpanel by Numerator

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.

This first entry can have a profound impact on retention, as consumers who begin their journey with a brand and have a satisfying experience are more likely to continue purchasing it over time. In essence, the first purchase is a moment that lays the foundation of a potentially long-term relationship.

Our Analytics’ Consumer Journey is designed to help brands uncover the critical moments when shoppers first engage with your brand. The example later is from one of the FMCG categories within our baby panel, where we track the purchases from the baby’s first month up to 36 months of age, or over a period of 3 years. Therefore, it follows the purchases of shoppers across their purchase journey to pinpoint the moments of entry, retention and dropouts. 

The Moments of Entry: When are Shoppers Entering the Brand?  

By analysing shoppers’ entry points, we help brands to identify the optimal moments of when to target consumers in their journey. Take the infant milk category as an example; babies transition through various nutritional stages, such as Step 1, Step 2, and Step 3 milk. However, do most parents enter the category at Step 1? More often than not, mothers vary in when they choose to wean off breastfeeding and begin their journey into infant milk powder, where some may start earlier at Step 1 while others, may start later at Step 3. 

As an example, if your brand was underperforming relative to the total category in attracting entrants during the earlier stage, it could highlight an urgent need to strengthen recruitment activation efforts at Stage 1. By understanding which point of the consumer journey a brand is struggling with, brands can tailor focused efforts such as improving the brand’s value proposition in the earlier stages, enhancing in-store visibility or expanding channel distribution that resonate with caregivers at the beginning of their journey.

Not All Entrants are the Same: A Look at Ethnicity Differences

Not all shoppers enter the brand journey the same way. Our solution can also reveal demographic differences where they may vary between their moments of entry. For example, Malay shoppers may be entering your brand at an earlier stage while Chinese shoppers may be entering at a later stage. 

Depending on the strategy, brands may look to target recruitment efforts for Malays at the earlier stages and Chinese shoppers at the later stages. Therefore, brands are able to adopt a targeted approach, tailoring activation efforts not only by stage but also by demographic segmentto maximize relevance and impact.
 

Recruitment of Brand Entrants is about Timing, Targeting, and Tailoring

To sustain long-term retention and brand loyalty, not limited to only baby categories - brands can benefit from a consumer journey study by:

• Identifying the moments of entrants into the brand journey
• Recognizing demographic differences in entry behaviour 

By identifying these, brands can craft precise and impactful recruitment strategies at the right moments. While this article focused on entry moments within stages across ethnicities, there is an even greater depth available. At Worldpanel, our Advanced Analytics’ Consumer Journey offers the ability to track which channels shoppers are entering through and what pack sizes they choose first when entering the brand. As shopper behaviours continue to evolve, so must our recruitment strategies. As such, understanding the "who," "when," and "how" of these entry moments is one of the key building blocks for building a stronger and long-lasting consumer relationship.

In Malaysia, festive seasons are more than traditions, they shape shopper behaviour in profound ways. With Chinese New Year and Hari Raya drawing closer together each year, the future of FMCG will soon be influenced by the phenomenon of Gong Xi Raya.

Our latest report, Festive Malaysia 2025, unpacks how shoppers responded to a shorter festive window this year, and what this means for brands preparing for 2026 and beyond.

Inside the report, you’ll discover:

• A shorter season, lower spend: Festive FMCG sales dropped 15%, with shoppers prioritising value for money and bigger packs.
• The power of promotions: Price-offs and bundle packs proved most effective in driving festive purchases.
• Changing shopper profiles: Malay and high-income consumers are becoming the new growth drivers across both CNY and Raya.
• Fewer trips, fewer channels: Shoppers are consolidating purchases, creating opportunities for targeted retailer strategies.

Whether you’re planning for 2026’s late CNY and early Raya overlap, or seeking to future-proof your brand strategies, this report offers the consumer insights you need to win in Malaysia’s festive seasons.

In the fast-moving world of FMCG, shoppers today are not just browsing. They are making deliberate, informed choices. Our panel does not only track what people buy, it also helps identify why they buy, how they decide, and what influences their journey.

Imagine this: a shopper logs on with a clear idea of what they want. They know the brand, the benefits, and the product. But as they scroll, something happens. They pause. They explore. They discover. That moment of consideration is your brand’s golden opportunity.

To better understand this behaviour, we conducted a study on the online shopping journey in a Toiletries category. The results highlighted that most online purchases in this category are intentional and planned. Yet even when shoppers have made up their minds, they do not always check out straight away. They may be waiting, comparing, and anticipating the next big sale. This suggests that even at the consideration stage there is a strong chance of brand switching, making top-of-mind awareness and clear value propositions more crucial than ever.

Touchpoints and brand engagement must therefore extend all the way to checkout, and even after. So, what is your brand doing to capture that attention?

The key takeaway: Brands that truly understand the shopper journey win. Engaging shoppers throughout the entire journey, from discovery to decision and beyond, unlocks greater value and loyalty.

Curious about your category’s journey both online and offline? Reach out to your client service team to explore how you can leverage key touchpoints along your shopper journey.

By studying our panel data, we can uncover much about the category, from overall dynamics to brand interactions and purchasing behaviours. With such knowledge, more targeted strategies can be built to expand the shopper base or even upweight existing shoppers.

Source: P8 2024 database, Worldpanel Malaysia

2024 was a year where Malaysian shoppers became more mindful than ever of what they put in their baskets. With cost-of-living pressures still top of mind, value went beyond price, it was about brands worth choosing. Shoppers gravitated toward those that stayed relevant, delivered on their promises, and made everyday life easier.

Our Brand Footprint Malaysia 2025 report reveals the most chosen and the top rising FMCG brands in Malaysia, and the strategies behind their success, from expanding presence across more channels and categories, to innovating for new needs and occasions.

What you’ll discover inside

• Top 20 Most Chosen, Top Rising FMCG brands in Malaysia
• Sector rankings for Food, Beverages, Dairy, Personal Care, and Home Care
• Winning brand stories, Safi, Spritzer and Top 
• Key takeaways on how to increase Consumer Reach Points (CRPs) and win more shoppers in 2025

In Malaysia’s fast-changing FMCG landscape, growth isn’t by chance, it’s a strategic discipline. The brands that win are those that expand their reach, adapt quickly, and connect meaningfully with households across Malaysia.

Thanks to our consistent tracking of purchasing behaviour – Penetration, Frequency, and Basket Size – we are able to break down these questions and generate meaningful insights. Often, however, these insights lead to a second layer of questioning: Why? Why are they buying more or less? Why is one brand performing better than another? While we can form hypotheses based on the trends in our data, sometimes it is best to obtain more concrete answers to these questions.

Behavioural Trend

The category under discussion today is a Food category. We often begin with a contextual understanding of behavioural trends, asking foundational questions that led us to discover that the shopper base for the category remained stable. However, shoppers were purchasing significantly less year on year — not just with smaller baskets, but also less frequent purchases.

With the support of our special analyses, we found that the primary driver of the decline came from existing shoppers who reduced their purchases over the year. This was evident across most major brands within the category. Simultaneously, shoppers were adding more brands to their repertoire, driven by a specific segment in the category.

At first glance, these two findings appear contradictory. If shoppers are choosing a wider range of brands, shouldn’t total category spend increase? This naturally led to the next layer of questions: Why is this happening? And what can we do about it?

To address these questions, a PanelVoice survey was launched – one of Worldpanel’s cornerstone Advanced Analytics solutions. Now that we had clarity on the challenges facing both the category and the client’s brand, a detailed and targeted survey was sent to our panellists.

Survey criteria were defined based on past purchasing behaviour – in this case, panellists who had purchased the category within a specific channel. The goal was to optimise the client’s brand strategy in that channel and to explore how to grow within a declining category.

Attitudinal Understanding

Through the PanelVoice study, we were able to enrich the behavioural findings with attitudinal insights. For example, we learned why shoppers were switching from our client’s brand to smaller, lower-priced competitors. We also helped identify which attributes the client’s brand was strongly associated with, and where competitors were outperforming. These findings allowed the client to sharpen its strategy and determine which strengths to emphasise in future brand communications.

Furthermore, the attributes were ranked by derived importance. Unlike claimed importance – which simply reflects frequency of selection in the survey – our method links survey responses with actual purchase data. This adds more weight to the views of heavier shoppers, allowing us to determine which attributes matter most for driving real value and volume growth.

The first step to understanding category and brand performance is to start with our core KPIs: Penetration, Frequency, and Basket Size. We then dig deeper using our Special Analyses, such as Source of Volume Change (SOVC) and New, Lapsed & Repeat (NLR) frameworks. To further explain emerging trends, we can hypothesise – or we can go directly to the shoppers exhibiting the observed behaviours and ask them: Why? Why are they buying less? Why are they switching to other brands?

With our Analytics PanelVoice surveys, we can do exactly that – helping refine and sharpen brand strategies.

By studying our panel data, we can learn a great deal about category dynamics. Digging one level deeper with Special Analyses helps explain these trends. And going straight to the shoppers helps us understand the why behind their behaviours. This is where our Advanced Analytics solutions truly shine. PanelVoice surveys – among our most widely used tools – allow for highly targeted questioning of specific shopper groups, with responses weighted against actual purchasing patterns for greater accuracy and actionable insight.

Source: P2 2025 database, Worldpanel Malaysia

As a brand expands and builds a broader buyer base, it naturally enjoys a stronger level of loyalty. This pattern held true in 2024 and is expected to continue. Growing your buyer base remains one of the most effective ways to increase brand sales and, in turn, grow market share.

The Question Is: How?

Often, conversations focus on winning shoppers from direct competitors within the category. But what if that is no longer the only challenge?

What if brand competition becomes relevant only when shoppers actually choose to buy the category?

Let’s take the Condiments sector as an example.

This sector, comprising several cooking categories, is seeing increased household penetration – shoppers are exploring more cooking aids. Yet, one of the major players, Brand A, is struggling to keep pace.

Our data reveals that while the Total Condiments sector is recruiting new buyers, Brand A’s growth is being hindered—especially due to underperformance in one of its three key categories.

What we know is this: two of Brand A’s core categories are stable, both in attracting new buyers and retaining repeat purchasers. The issue lies with the third category, where the brand is losing shoppers more quickly than it can replace them. Even among remaining customers, purchase frequency is dropping significantly. This imbalance is a red flag for any brand targeting sustainable growth.

As the saying goes: “Penetration is king.” Growth stems from acquiring new buyers—not just selling more to existing ones.

The good news? Category A is gaining importance and traction, particularly among multi-category shoppers. This presents a timely opportunity to drive cross-category purchasing.

Our recommendations:

• Short-term: Leverage cross-category traffic to trigger purchases and attract new category buyers to the brand (e.g. via cross-category bundles or increased shelf visibility). This will drive penetration growth.
• Long-term: Identify the reasons behind shopper drop-off and reduced purchase frequency, in order to address and reverse the decline more effectively.

Since implementing a bundle pack strategy, Brand A has seen recovery – especially in the previously declining category – with a noticeable lift in overall penetration.

Shopper panel methodology goes beyond showing what’s happening—it helps uncover the why behind growth. These deeper insights allow brands to craft strategies that align with real shopper behaviour.

When combined with our Brand Growth Framework, we’re well-equipped to deliver meaningful, measurable impact.

Penetration refers to the percentage of the population purchasing a specific brand over a defined period. It is a critical metric used by industry players to understand the size of their customer base relative to competitors—and to assess potential for expansion.

At Worldpanel, we support our clients in driving brand growth by pinpointing opportunities to win more buyers.

Source: P7 2024 database, Worldpanel Malaysia

The event brought together over 100 professionals across brand, trade marketing, and sales teams. From thought-provoking talks to practical case studies, each session focused on decoding shopper behaviour and provided attendees with real, actionable insights, including:

• Emerging FMCG trends shaping today’s market
• The hidden formula behind brand growth
• Successful brand comeback stories from Malaysia and Southeast Asia
• Strategies to increase mental and physical availability to boost shopper recruitment

Echoing our growth philosophy, “Penetration is King”, we spotlighted Analytics solutions related to shopper recruitment including Growth Mapper, Brand Lever, Media Impact, and Role of SKU. These tools helped showcase and build awareness of our capabilities.

The engaging sessions sparked meaningful discussions and equipped participants with the tools to enhance their shopper strategies. The event was not only about sharing insights; it also served as a platform for networking and industry dialogue. Most importantly, it aimed to trigger commercial conversations and follow up on potential leads.

As the market continues to evolve, we remain committed to helping brands stay ahead of the curve through thought leadership, strategic tools, and a deep understanding of what truly drives shopper behaviour.

A common but crucial question remains: is there a single dominant factor that influences shoppers’ decisions when purchasing from a category?

Let’s explore an example from the Beverage category. Using our current panel tracking data, we are able to monitor brand performance over time—offering deeper insights into the behavioural drivers behind brand growth or decline, and how different demographic groups approach their purchases.

Additionally, we engage further with our panellists to uncover the motivations behind their choices—what prompts them to buy a category or brand, and what causes them to stop purchasing certain brands. To uncover this, a targeted questionnaire is shared with a selected sample. The survey is designed to identify the most significant factors influencing purchasing behaviour.

Unlike traditional surveys relying solely on claimed responses, our shopper panel methodology uses Derived Importance—linking panellists’ stated opinions with their actual purchase behaviour from our tracking data. By combining both sources, we are able to identify the attributes that genuinely drive purchasing decisions—giving brands clearer direction on where to focus their communication.

And the findings might surprise you. Based on Figure 1, the chart on the left shows that most shoppers claimed Statement A was the most important aspect when buying from the category. However, after cross-referencing their actual behaviour—giving more weight to frequent purchasers—Statement B emerged as the real driver of purchase decisions. This is the message brands should prioritise in their marketing.

As part of our Analytics PanelVoice solution, we distribute questionnaires to panellists to understand the “why” behind their behaviour. When linked with demographic and behavioural data, this allows for even more targeted strategies—especially as different shopper groups often hold different brand perceptions. This is key not only to enhancing insights but also to refining promotional and marketing strategies with greater precision.

To grow a brand, gaining penetration should be the top priority. Our foundational data answers the direct “W and H” questions—Who, What, When, Where, and How—related to your brand’s growth or underperformance. Supplementing this with insights from our Analytics PanelVoice solution offers a more detailed understanding of why your brand is succeeding or falling behind.

Our data provides insights into brand performance across a wide range of FMCG categories and consumer segments. By segmenting this data demographically and exploring behavioural differences, we help brands build more precise and effective strategies. Worldpanel tracks such measures on a consistent four-weekly basis to support clients in their business decisions. With further engagement through our Analytics PanelVoice, we can tailor insights to specific shopper groups and uncover the root causes behind brand momentum.

Source: P10 2024 database, Worldpanel Malaysia

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.

Shopper behaviour is evolving. Consumers today are more open to exploring a wider range of product categories compared to the past.

In April 2025, Malaysian shoppers bought an average of 53 categories—up from 49 in 2023. This expansion is especially evident in the food segment. The shift reflects changing needs: for example, liquid milk may be preferred over powdered milk for convenience, while rising purchases of chicken essence and cheese suggest increasing health awareness. Consumers are showing a willingness to spend when products meet their specific needs.

So, how can companies capitalise on this behaviour? How can brands encourage new shoppers to discover their products?

To harness this trend, companies must first identify the key triggers behind product purchases. Understanding what truly drives consumers’ decisions—and which needs matter most—is essential. By addressing these needs, brands can differentiate themselves and reduce reliance on price-based competition.

Traditional promotional tools like influencer campaigns and media advertising remain effective but are often costly. A more cost-efficient strategy may lie in leveraging adjacent categories to attract new shoppers. For instance, placing oral care displays near confectionery aisles can subtly suggest a connection between sweet consumption and dental hygiene—benefiting both categories. Some brands have already embraced this approach through “gift with purchase” offers, using related products to capture shopper attention.

But critical questions remain: Do we really understand the most influential needs of our shoppers? Which adjacent categories offer the greatest opportunity for growth?

At Worldpanel Division, we track shopper behaviour every four weeks, delivering key metrics—including penetration, frequency, basket size, and volume/value sales—so you can monitor performance trends at both category and brand level.

Source: P4 2025 database, Worldpanel Malaysia

As a result, communication needs to be carefully crafted around each unique occasion to inspire consumption and reinforce category relevance.

To illustrate this, we will take an impulse category as a case study.

Festivities Are Still Crucial for Gathering Occasions

Although limited in number throughout the year, festive periods represent key gathering occasions. Winning shopper attention during these rare trips is essential to success.

Part of what makes these moments so valuable is that shoppers are typically more willing to spend—likely due to social gatherings driving greater purchase volume. As such, festive periods can deliver comparable total spend to non-festive periods, despite their shorter duration.

The Growing Importance of Winning Outside Festivities

Most of the year comprises non-festive periods, which offer untapped opportunities for category growth. These non-festive moments are now driving faster value growth, suggesting that shoppers are increasingly engaging with the category beyond traditional festive triggers.

While spend per trip may be lower than during festive times, the increased trip frequency signals more potential touchpoints. This opens the door for brands to build consumption occasions throughout the year.

Understanding the different dynamics between festive and non-festive periods is vital when navigating today’s economic landscape. It enables businesses to better prioritise marketing investments and strategically target the right shopper groups.

Despite the stabilisation of core inflation, essential item prices remain elevated. Categories deemed non-essential are still at risk of being deprioritised. It is therefore crucial to create varied consumption occasions to maintain relevance within shoppers’ baskets.

During festive periods, themes such as gathering and celebration drive success—categories that align with these moments are more likely to thrive. Given their rarity, shoppers are naturally more open to spending.

However, brands can adopt the spirit of festivities and replicate it in non-festive periods. Creating unique occasions—such as celebrating personal achievements, spending quality time with loved ones, or rewarding oneself—can significantly reinforce category relevance throughout the year.

At Worldpanel, we track shopper metrics—such as penetration, shopping frequency, basket sizes, volume and value sales—on a consistent 4-weekly basis. This allows you to understand category and brand performance trends over time.

Source: P13 2024 database, Worldpanel Malaysia

Explore how Malaysian shoppers are evolving – and what it means for your promotional strategy.

Promotions have become an even more powerful driver of FMCG growth in Malaysia – but they’re also becoming more complex. With 28.6% of FMCG value sales now driven by promotions, manufacturers and retailers alike are under increasing pressure to activate smarter, not just more.

The Malaysian FMCG landscape is shifting. Shoppers are increasingly attuned to promotions, and the types of offers they respond to are changing. Price-Offs remain dominant, but Multi-Buy promotions and Free Gifts are gaining traction. At the same time, competition is intensifying across channels, with some retailers showing greater success in converting promotions into incremental gains.

Beneath the surface, a deeper strategic challenge emerges: are promotions truly delivering growth, or are they simply shifting full-price sales into discounted formats?

In this report, we uncover:

• How Malaysian shoppers’ promo reliance has changed – and why it matters
• Which mechanics are most effective at driving trips, spend, and penetration
• How to measure true incrementality vs subsidisation in your promotional plans
• What role retailers play in amplifying or diluting promotional success
• Why promo share hasn’t returned to pre-COVID levels – and what’s holding it back
• How to balance promotion-led and everyday value strategies

This report is your essential guide to navigating a promo-saturated environment with insight, clarity, and commercial impact. Whether you’re planning brand activations, price promotions, or portfolio shifts, the Promo Study 2025 offers the data and direction to help you make better choices.

We hear this all the time:

• "Should we focus on stealing share from competitors?"
• "Are we losing to the brands we think we are?"
• "How do we keep our loyal buyers while attracting new ones?" 

The Trap of Playing It Safe

Being the leading brand for example comes with clear advantages-scale, visibility, and consumer trust. But it also brings a unique set of challenges, especially when it comes to sustaining growth.

So, while challengers are busy finding ways to expand, leaders can fall into the trap of playing it safe: focusing on retention or narrow competition, instead of continuing to win new shoppers and grow the category.

Case Study: A Leading Brand in an Impulse Category

In this category, we are seeing a rapid influx of new players, alongside the growth of unconventional channels — both of which are prompting brands to rethink their strategies and plans.

As a market leader, Brand A began questioning whether these emerging threats were eroding its dominance:

1. Are these new players a genuine threat?
2. Are we missing out on emerging opportunities?
    

Drawing on insights from our panel of 4,000 households — where we continuously track purchasing behaviour — we found that Brand A’s growth was not solely driven by switching from competitors.

In fact, the key driver was category recruitment and repertoire expansion. In other words, rather than simply stealing share from rival brands, Brand A was attracting new shoppers who had previously not engaged with the category or the brand at all.

This is a significant achievement for a leading brand — demonstrating that Brand A is helping to expand the category, not just compete over the same pie.

The Real Threat Isn’t Always the Usual Suspects

Contrary to popular belief, Brand A’s performance was not primarily impacted by direct competition — either from established players or new entrants. Instead, the main issue was a decline in purchasing among its existing shopper base.

It’s not always just about defending market share or battling familiar rivals — it’s about keeping your brand relevant and engaging, both to loyal buyers and to new shoppers entering the category.

Understanding which penetration band your brand currently sits in enables you to choose a more targeted and effective strategy for growth within the category.

Two Principles to Consider:

1. Growth Isn’t Just About Stealing Share
   Many brands believe the only path to growth is by outpacing their closest competitor. However, Brand A illustrates that real growth can come from outside the category or brand — by bringing in new shoppers or by becoming a new addition to a consumer’s existing repertoire.
    
2. Your Competitor Might Not Be Who You Think​​​​​​
   It’s tempting to focus solely on brands that look similar or share the same shelf space. But in Brand A’s case, the most common switch-out brand was a product not typically seen as a direct competitor. This highlights the importance of looking beyond obvious rivals and understanding shifts in shopper behaviour.

Whether you’re a market leader — or aspiring to become one — don’t just concentrate on defending your territory. Think bigger. Grow the category. Recruit new users. Stay relevant to your existing base. And always keep an eye on unexpected dynamics.

This is a timely reminder that true growth comes from seeing the whole picture, not just the competitive set.

Penetration refers to the percentage of the population purchasing a specific brand over a defined period. It is a crucial metric used by leading industry players to assess the size of their existing customer base (versus competitors) and to identify opportunities for expansion.

At Worldpanel, we track penetration on a consistent 4-weekly basis, enabling you to monitor trended performance at both the category and brand levels.​​​​​​

Source: P13 2024 database, Worldpanel Malaysia

With Supermarkets being the largest channel in the FMCG market, the key question is: Are all Supermarkets the same?

The Short Answer? Not Even Close.

Even within Peninsular Malaysia, “Supermarkets” span a diverse spectrum — from large retail chains to independent grocers and premium outlets. Each of these formats attracts a different shopper profile, and understanding these nuances is key to unlocking smarter, more effective strategies for product listings and BTL execution.

That’s where our shopper panel data comes in.

We track actual shopper purchases down to the individual retailer — across every touchpoint where consumers buy FMCG products: supermarkets, e-commerce platforms, flat-price stores, pharmacies, and even hardware shops. This level of granularity allows brands to go far beyond merely ranking the top 10 retailers by category — and start making truly data-driven decisions.

Case Study: When Shopper Behaviour Shifts, Retailer Choice Matters

2024 was a challenging year for many FMCG brands, especially multinational manufacturers impacted by both consumer boycotts and growing affordability pressures. As shoppers traded down or opted for smaller pack sizes to manage costs, categories like personal care felt the squeeze.

Consider Brand A, the market leader in personal care, traditionally strong among Chinese consumers. Their strategy had focused on encouraging loyal repeat shoppers to purchase more — primarily through larger packs and bundle deals distributed via Hypermarkets and Supermarkets.

Recently, however, a shift has emerged: smaller packs are gaining traction, particularly among Malay shoppers. This presents a valuable opportunity — and they must act quickly. But where should these cost-conscious, smaller-sized SKUs be placed?
 

By mapping personal care retailers against volume share by ethnic group and household income, Brand A identified which retailers skew towards Malay and lower-income shoppers — in this case, those in the lower-right quadrant of the chart. This insight enabled them to strategically place smaller packs where they are most likely to resonate.

Meanwhile, they discovered something unexpected: Pharmacies M and N — previously assumed to be premium-focused — actually attract a more mass-market shopper base than anticipated. This insight prompted a reassessment of their product listings and opened the door to introducing more affordable SKUs in those outlets.

Why Retailer-Level Shopper Data Changes the Game

1. Precision Targeting at the Retailer Level

Understanding each retailer’s unique demographic profile empowers brands to tailor messaging, assortments, and promotions.

2. Smarter Retailer Collaboration & Distribution Strategy

When brands can identify which retailers over-index among certain income or ethnic groups, they can forge more strategic partnerships, refine pricing, and optimise trade marketing to reflect real shopper behaviour.

3. Inclusive, Culturally Relevant Brand Building

Retailer-level insights reveal hidden shopper behaviour patterns that traditional data may overlook — helping brands craft more inclusive campaigns and products that truly resonate with diverse communities.

At the Worldpanel Division, we consistently track shopper baskets on a 4-weekly basis to understand their choice of category, variant, channel, retailer, pack size, and more. This allows you to monitor category and brand trends over time — helping you shape a more effective retail strategy.

Source: P6 2024 database, Worldpanel Malaysia

1. Behavioural Insights: Examine how shopper behaviour changes during and after the campaign. Are shoppers buying more frequently, increasing their basket size, or are more shoppers being drawn to the brand? These insights are crucial to sustaining engagement post-campaign.
2. Know Your Audience: Identify which shopper groups respond best to the campaign. Understanding who is buying can help tailor future campaigns to target high-potential segments. This is essential for optimising resource allocation and focusing efforts where engagement is highest.

We begin by reviewing our rolling source of volume change analysis to observe the shifts in shopper behaviour and determine which types of shoppers are active during these campaign periods. By looking at the data in a trending format, we can compare performance with previous campaigns to assess whether current efforts are more or less effective.

In this example, Brand X wanted to understand the performance of their recent campaign. We observed that while the brand successfully gained volume during the November–December campaign—thanks to new shoppers entering the category and brand switchers during the second month—these gains were offset by a drop-off in existing shoppers. As a result, overall penetration remained flat. Compared to the May–June campaign, the brand had better success in recruiting new shoppers and increasing penetration, suggesting the earlier campaign was more effective for shopper recruitment.
 

Upon further analysis, we discovered that the campaign resonated most with Malays, mid- to high-income shoppers, and younger nesting families—a segment showing an upward trend. From a volume perspective, we noted that volume loading occurred in the North and Central regions during the first month, while the East Coast contributed higher volumes in the second month.

​​​​​​From this analysis, we can inform the brand that their campaign performed well with Malays and younger families in the low to mid-income segments. We can also highlight which regions and campaign months drove stronger engagement and volume uplift. Should the brand wish to target other consumer segments or shift their regional focus, we are well positioned to support these strategic decisions.

At Worldpanel, we provide insights into shopper movements and behaviours to help brands identify growth opportunities. We track brands’ sources of growth by monitoring volume and value movements, with a particular focus on our key metric: penetration.

Source: P13 2024 database, Worldpanel Malaysia

While most strategies remain focused on Peninsular Malaysia, East Malaysia quietly continues its trajectory of long-term, consistent growth. Contributing 14% of Malaysia’s total FMCG value, the region presents both challenges and untapped opportunities for brands willing to take a more localised, data-led approach.

In our report, 2025 East Malaysia FMCG Outlook, we explore how a 5% value growth—matching that of Peninsular Malaysia—is unfolding through a very different set of shopper behaviours. With more frequent trips, broader category engagement, and state-level variations between Sabah and Sarawak, the East Malaysia market is ripe for more targeted expansion.

Key Highlights:

• Why East Malaysia Matters More Than Ever
• Inside the East Malaysian Shopping Basket
• Strategic Considerations for Brands

Consumer habits in East Malaysia are not simply a reflection of what works in the west. With different demographics, retail structures, and channel dynamics, brands that assume a one-size-fits-all approach risk missing out on this region’s true potential.

Whether you’re already operating in East Malaysia or just starting to consider expansion, this report offers a clear lens into what’s working, where growth is happening, and how your brand can position itself for long-term success.

Read the report to access category-level insights, state-level breakdowns, and actionable recommendations to navigate this high-potential market.

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.

Peninsular Malaysia’s in-home FMCG market has recorded a 5% growth in the latest year, largely driven by a 4% increase in purchasing volume. This marks a shift from the previous year, where value growth was primarily inflation-driven, while volume remained stagnant. Now, with prices stabilising at a higher level, shoppers have adjusted their behaviour—buying more per trip while making fewer grocery runs.

This change presents both challenges and opportunities. As shoppers reduce their average annual trips, brands and retailers face fewer touchpoints to engage consumers. However, with higher spending per trip and more items purchased per visit, it becomes essential to secure a place in every shopping basket.

For brands, this means innovation is key. The fastest-growing brands are those that have successfully increased SKU per buyer rates, ensuring that consumers continue to explore more of their portfolio rather than switching away.

What You’ll Discover in This Report

• How shoppers are adapting to price stabilisation
• Why baskets are getting bigger and SKUs are expanding
• The impact of fewer but heavier shopping trips
• What’s driving market leaders forward

This 2025 Malaysia FMCG Outlook (Peninsular Edition) report provides a comprehensive analysis of the latest consumer and market trends, helping brands, retailers, and industry players identify strategic actions to stay ahead in the evolving FMCG landscape. Don’t miss out on the insights that will help you refine your product strategy, SKU portfolio, pricing approach, and shopper engagement tactics in 2025.

Lower average prices do not automatically generate growth, as observed in Category O. Despite an increase in penetration, Category O has experienced volume decline. The drop in prices did not drive an increase in basket size, resulting in a decline in both volume and overall spend for the category.

Did Brand A experience a similar performance trend? This case study highlights opportunities for Brand A to reverse its decline by targeting the right demographics for recruitment and strengthening loyalty among its shoppers.

Brand A is the market leader in Category O. However, its spend has declined at a faster rate than the total category, leading to share loss for two consecutive years. This decline has been further compounded by Brand A’s inability to expand its shopper base—while its competitors have successfully grown their penetration, Brand A has only managed to maintain its existing level. Consequently, Brand A sought to understand the profile of its new users, lapsers, and loyal shoppers to develop the right strategy for reversing its performance decline.
 

The next step was to conduct a New-Lapsed-Repeat (NLR) Buyer Analysis for Brand A. First, we analysed shoppers who purchased the brand in the previous year, then compared them to those who bought Brand A in the latest year. Next, we identified shoppers who only purchased Brand A this year, categorising them as New Shoppers. Those who only bought the brand last year were classified as Lapsed Shoppers, while shoppers who purchased in both years were labelled as Repeat Shoppers.

Through this NLR analysis, we discovered that Brand A’s recruitment rate was equal to its lapsed shopper rate. This explains why Brand A failed to expand its shopper base, unlike its competitors. Moreover, both new and loyal shoppers have reduced their purchase volume, contributing to an overall decline in Brand A’s total spend.

The analysis did not stop there. We further refined the NLR analysis by incorporating a demographic layer to enhance Brand A’s shopper profiling. This revealed that Brand A’s newly recruited shoppers are over-indexed among Malays, households in the North and Central regions, families with teenagers, and both low- and high-income households. Meanwhile, Brand A’s loyal users are over-indexed among Chinese shoppers, households in the South and East Coast regions, young professionals (Yankys) & mature families, and high-income households.

Through these two analyses, Brand A was able to be more efficient in its tactical approach when it comes to its recruitment and loyalty building activities. Brand A is now more equipped to utilise the right SKUs, the effective promotion mechanics, the right pack size and the proper channels to reverse its decline in Category O. 

In Worldpanel, we analyse shopper behaviour to understand the role of your brand in driving category growth. With consistent tracking, we can measure the quality of your new, lapsed and repeat shoppers. You can then identify the best practices to drive growth via optimising your marketing budget.

Source: P10 2024 database, Worldpanel Malaysia

Brand A ended the year with stronger volume growth than Category C. This positive momentum bodes well for Brand A, as it has successfully increased its penetration in line with the category’s overall growth. However, while Brand A expanded its shopper base by almost 2 percentage points, it faces a challenge—Brand B has grown even faster, doubling its penetration growth rate compared to Brand A. As a result, Brand A sought to identify growth opportunities to counter this competitive threat from Brand B.

The next step was to conduct a deep dive into demographics to uncover potential growth opportunities for Brand A. We analysed and compared both brands’ performances across key demographics, including region, ethnicity, life stage, and household income. The findings reveal that Brand A is performing well and, in fact, is outpacing Brand B across most demographics. This analysis highlights that Brand A’s key growth opportunities lie in the North and Central regions, Chinese households, nesting families, and low to mid-income groups.

We are well aware that we cannot adopt a one size fits all approach when it comes to shopper marketing. We have helped Brand A to identify its pockets of opportunities so Brand A can execute a more targeted approach in order to recruit more shoppers from Brand B. Through other special analyses, Brand A has discovered the specific retailers, the right pack size, the effective promotion mechanics and the right flavours in their recruitment drive.

Penetration refers to the percentage of the population purchasing a brand over a specific period. It is a crucial metric that key players use to benchmark against competitors and assess opportunities for expansion.

At Worldpanel, we help our clients grow their brands by identifying opportunities to attract more buyers through targeted shopper demographics within their categories. This approach enables brands to implement best practices and optimise their marketing budgets to drive sustainable growth.

Source: P13 2024 database, Worldpanel Malaysia

Brands that effectively address consumer pain points and offer additional benefits are more likely to stay top-of-mind. A brand’s purpose should not simply be to sell products because competitors are doing so or to enter a market for the sake of competition. Instead, a strong brand should stand out by meeting consumer needs—both practical and psychological—while fostering long-term connections.

Our Analytics' PanelVoice study not only identifies key category drivers but also uncovers specific challenges facing brands—such as why buyers are switching to competitors or choosing more premium brands. These insights allow us to pinpoint the issues that need to be addressed in order to gradually win back lost buyers.  

By combining qualitative insights with purchase data from our panellists, we provide a more comprehensive understanding of the market landscape.  

Source: P9 2024 database, Worldpanel Malaysia

Take the example of Brands A, B, C, and E, which follow the typical pattern of growing penetration but declining spending loyalty. Brand D, however, stands out by increasing both penetration and loyalty. This raises critical questions for brands: should they focus on niche markets with fewer but highly loyal shoppers, or target a broader audience of heavy shoppers who buy more but are less loyal?


Heavy shoppers are crucial, as they use the category more frequently, driving volume growth. However, niche markets, while offering exclusivity and stronger consumer connections, come with a smaller shopper base.

Brand D has performed well by striking a balance and leveraging attractive promotions to grow both penetration and loyalty simultaneously. Over 70% of its volume now comes from promotions—a significant increase from 50% just two years ago. While this strategy has been successful for Brand D, it is not a one-size-fits-all solution. Promotions alone may not be the key to building loyalty for every brand. Instead, mass-market brands must find their own balance between investing in promotions and using media to deliver strong, clear messaging. Loyalty in the mass market is challenging to achieve, so the focus should shift to what truly matters.

Source: P6 2024 database, Worldpanel Malaysia

The resurgence of the BDS movement in Malaysia has brought notable shifts to the FMCG sector. With changing consumer behaviour and evolving market dynamics, multinational corporations (MNCs) are facing both challenges and opportunities.

What’s happening?

• Shopper behaviour is shifting—who is affected the most?
• Market disruptions—are they temporary or long-term?
• The role of loyalty—how are consumers adjusting their brand choices?

Understanding these trends is crucial for brands looking to navigate this evolving landscape.

The FMCG sector in Malaysia is undergoing a transformation, and businesses must be proactive in responding to these changes. Whether you are a market leader or an emerging player, staying ahead of the curve is essential.

Our latest report provides in-depth analysis of these market shifts, helping you make informed decisions backed by data. Discover how brands are adapting successfully, the key trends shaping consumer behaviour, and the strategies that will define the future of FMCG in Malaysia.

Read the report now to uncover the latest trends and insights that will help your brand stay resilient and thrive.

Combined entity creates powerful new view of global consumer trends.

Numerator, a data and tech company serving the North American market research space, is combining with Kantar’s Worldpanel division to form a new global consumer data company. Numerator provides proprietary first-party consumer data and advanced technology in the US and Canada. Worldpanel is the gold standard of consumer data in 49 countries outside North America. The majority of the top 100 global FMCG manufacturers and retailers already utilize Numerator and/or Worldpanel for consumer behavior data. 

The new company will provide verified first-party consumer data representing almost five billion consumers globally. As companies prioritize first-party data to meet privacy and data sovereignty requirements, Numerator remains committed to delivering industry-leading privacy standards to uphold consumer trust. 

Eric Belcher, currently CEO of Numerator, will lead the new combined organization which will operate globally under the name Numerator.

“Brands, retailers, economists, and Wall Street analysts rely on permissioned, differentiated data to stay ahead of consumer trends. Numerator and Worldpanel capture over one million global shopping trips daily, and we use patented methodology to process them,” said Eric Belcher, CEO, Numerator. “Our ownership of this data ensures that it is complete and unrestricted, meeting the growing demand for domain-specific data to fuel AI models.” 

Numerator and Worldpanel data are widely used in consumer and shopper insights, while marketers leverage the data for audience creation and ad measurement. With its increasing use in predictive analytics, the new company’s data can inform AI models that forecast trends, identify opportunities, and power personalized experiences at scale.

The new company will be headquartered in Chicago, Illinois, with 5,800 employees worldwide. Its organization will be set up in compliance with local regulations. Guillaume Bacuvier, current CEO of Worldpanel, will continue his successful leadership of the business outside of North America, reporting to Eric Belcher. 

Case Study: A Toiletries Category

The Category that we are exploring today is a well-established market with over 90% household penetration. Brand X, which has a strong presence among Ethnic A consumers capturing almost 50% of them, noticed a worrying trend: Ethnic A shoppers were buying smaller baskets, relying more on promotions, and taking longer to return after stockpiling. This suggested that depending solely on Ethnic A shoppers for growth was no longer viable.

By analyzing shopper behavior in Category A, three potential growth opportunities emerged:

1. Recruit Low-Income Households in Ethnic B: affordable pack sizes of Brand X have become popular with low-income consumers in Ethnic B.
2. Upsize Mid-High-Income Households in Ethnic B: These consumers are increasingly purchasing larger pack sizes of Brand X during promotions.
3. Recruit Non-Buyers in Ethnic A: There's potential to convert non-buying households in Ethnic A through stealing from competitors. 

The question is which direction should be their focus? Do all these directions yield the same value of sales? 

Sizing the Prize!

This is where the beauty of Shopper Panel lies, in that, we can calculate the Size of Prize of each strategy - by using the numbers of buyer / non-buyer households against the population against the spending per buyer and other shopper behaviour data from our Shopper Panel.

To understand the real growth potential of each opportunity for Brand X, we estimated the sales impact:

• Opportunity 1: Recruit 5% of low-income households in Ethnic B could add RM 2 million in sales.
• Opportunity 2: Upsizing 50% of current buyers among mid-high-income households in Ethnic B could bring RM 5 million in sales.
• Opportunity 3: Recruiting 5% of non-buyers in Ethnic A could generate RM 3 million.

At first glance, Opportunity 3 might seem like the low-hanging fruit option for Brand X, but we know Ethnic A shoppers are increasingly reactive, meaning growth here would take longer. In contrast, upsizing mid-high-income households in Ethnic B represents a more immediate opportunity, even though it's more complex.

Strategic Implications

Understanding the Size of Prize helps brands:

• Set Realistic Expectations: By estimating sales potential, brands can set achievable growth targets.
• Make Smarter Decisions: Focusing resources on the highest-value opportunities ensures better budget allocation.
• Manage Risk: Knowing the realistic outcomes helps anticipate challenges and adjust strategies accordingly.
• Appeal for Investment: Quantifying the potential sales impact makes it easier to secure funding and support from stakeholders.

In summary, while there are multiple ways to grow, brands must use data to differentiate between opportunities that appear promising and those that will realistically drive the most growth. Understanding the Size of Prize allows for more strategic, data-driven decisions.

Size of Prize is referring to the expected gain calculated based on the no. of household/penetration and spending per buyer which can be customised base on different demographics, product variants, pack size, channel etc to be targeted. In Worldpanel division, we track consistently shopper baskets on 4-weekly basis to understand their choice of category, variants, channel, pack size etc. so you can see a trended performance at category and brand level to help with calculating your size of prize.

Source: P6 2024 database, Worldpanel Malaysia, Kantar

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.

Penetration of date-flavoured liquid milk tends to spike during the fasting month of Ramadan and the festive celebration of Hari Raya Aidilfitri, as shoppers gravitate towards this flavour and add it to their baskets. Over the last three festive periods, the penetration spike pre- and post-Ramadan has ranged between 40% and 60%, highlighting the relevance of this flavour to consumers.

Interestingly, both UHT and pasteurised date-flavoured liquid milk experience a surge in penetration during the festive period, suggesting that both variants play an important role in the repertoire of consumers. While the UHT variant typically attracts more shoppers and achieves higher penetration during the festive period, pasteurised milk has been rapidly gaining relevance, as evidenced by trends in 2023 and 2024, where the penetration gap between the two formats has continued to narrow.

To further illustrate the growing importance of the pasteurised milk variant, Brand A initially showed a significant gap between the penetration of its UHT and pasteurised date-flavoured milk in 202. By 2023, this gap had narrowed substantially, with pasteurised milk achieving penetration levels comparable to the UHT format. While the gap widened slightly in 2024 compared to the previous year, it remains smaller than in 2022, suggesting an opportunity to drive growth in both formats during the festive season.

From the trends observed, date-flavoured liquid milk, whether UHT or pasteurised, holds a significant place in the hearts and minds of consumers during the Ramadan and Hari Raya festive seasons. This modern twist not only provides a convenient and delicious way to honour age-old traditions but also establishes itself as a festive-driven flavour with the potential to drive further penetration among shoppers.

Penetration refers to the percentage of the population purchasing a specific brand over a defined period. It is a key metric used by industry leaders to evaluate the size of their customer base relative to competitors and to identify potential growth opportunities.

In the Worldpanel division, we track penetration on a consistent 4-weekly basis, providing trended data at both the category and brand levels to help you monitor performance over time. Our platform also enables you to analyse shopper trends, not only for your own brand but also for your competitors. You can segment data by factors such as ethnicity, income, region, and more, allowing you to target the right consumers with precision and maximise your brand’s potential.

Source: P6 2024 database, Worldpanel Malaysia, Kantar

Economic Incentives

According to the Consumer Price Index released by the Department of Statistics Malaysia (DOSM), the inflation rate for food consumed at home is 0.5%, which is six times lower than that for dining out at 3.4%. This substantial cost advantage is encouraging more Malaysians to prepare meals at home as a way to manage expenses. 

Rising Interest in Cooking-Related Categories

Interest in cooking-related categories has risen. Quick-preparation items such as recipe mixes, non-seasoning noodles, frozen food, canned products, spaghetti, and pasta sauce are seeing significant growth in both penetration and basket size, catering to the demand for convenience and home-cooked meals.

Decline in Rice Consumption

While rice remains a staple, its consumption is declining as it typically requires additional dishes to complete a meal. Shoppers appear to be gravitating towards simpler, faster meal options that can stand alone.

Demographic-Driven Convenience

Growth in culinary products is being driven by shoppers from the Central region, urban areas, less affluent households, and families with children. These consumers, balancing tight budgets with the demands of a fast-paced lifestyle, prioritise affordable and quick meal solutions.

Understanding and acting upon these emerging trends in Malaysian shopper behaviour can offer brands a significant competitive edge. There is an opportunity for brands to innovate with new product lines and packaging tailored to the fast-paced, convenience-driven needs of Malaysian shoppers. Launching convenient packs, or even entirely new categories that simplify meal preparation, could help brands tap into the growing demand for quick, affordable, and in-home cooking solutions.

In the Worldpanel division, we consistently track shopper metrics on a 4-weekly basis, including penetration, shopping frequency, basket sizes, and volume and value sales. This enables you to see trended performance insights on how shoppers buy across category and brand levels. Penetration, in particular, is a crucial metric that key industry players use to evaluate the size of their existing customer base (compared to competitors) and to assess expansion opportunities.

Sources: P7 2024 database, Worldpanel Malaysia, Kantar
Department of Statistic Malaysia (DOSM), May ’24 vs April ’24

For those of us working on brands that are being boycotted, we know it has led to a large number of Malays reducing their purchases of these brands, followed by a frantic effort by brand owners to regain these lost sales. This sudden exodus of Malays is significant, showcasing the power of collective consumer action (-28% value sales decline).

However, if we look at one such beverage category in Malaysia, although there has been an increase in sales of non-boycotted and local brands, it does not fully compensate for the losses of the boycotted brands. This suggests that Malay boycotters can be categorised into a few groups, although it is difficult to segment and size these groups: 

• Those who have fully stopped purchasing a brand on principle (lapsers; penetration drop)
• Those who remain loyal to a brand (maintained penetration but have significantly reduced volume by shopping less frequently) 

Considering that Malays make up approximately 70% of the Malaysian population, does the boycott signal the end of the road for the boycotted brands? Fortunately, we are beginning to see some glimmers of hope – in the form of convenience. Let’s take a closer look at the aforementioned beverage category.

In the latest periods (up to August 2024), we are already seeing some recovery for Brand X within this beverage category among Malays, but only in two out of the three formats in which they operate – namely, ready-to-drink (RTD) and mixes (all-in-one sachets). However, we do not see a corresponding recovery in the powdered format, despite recent promotional efforts to drive down prices for consumers. With other factors remaining constant, we hypothesise that convenience may be aiding the recovery of Malay sales for Brand X. Supporting this hypothesis is the fact that similar recoveries are being observed among Malay shoppers in other convenience-related categories and formats, such as:

• Portable (cups and bowls) instant noodles vs. regular instant noodle bags
• Frozen foods
• Cooking aids – all-in-one seasoning, MSG, recipe mixes, etc.

In an increasingly modern world, it stands to reason that brands able to leverage consumers’ and shoppers’ time constraints will remain relevant, especially as we move towards a future where human equity sentiments and value continue to play a major role in consumer decisions.

Penetration refers to the percentage of the population purchasing a specific brand over a given period. It is a crucial measure used by key industry players to evaluate the size of their existing customer base (in comparison to competitors) and to assess the potential for expansion. At Worldpanel, we track penetration consistently on a 4-weekly basis, providing a clear trend of performance at both category and brand levels.

Source: P6&8’24 database, Worldpanel Division, Kantar Malaysia

Today's consumers are increasingly aware of the importance of health, yet the journey from intent to action remains full of obstacles. By linking actual FMCG purchasing behaviour with attitudes toward mental and physical health, we can uncover how they strive to lead healthier lives, how this influences their purchases, and what role they expect brands to play.

Our latest Who Cares? Who Does? Health report is the first-ever global report on Health and well-being that will connect what shoppers say with what they really do. 

This report provides globally consistent and robust data for 35 countries* and over 103,000 respondents across four continents. The key insights are how brands can play a pivotal role in shaping consumer health behaviours and helping to close the 'say-do' gap. Ready to discover how your brand can contribute to a healthier lifestyle for shoppers—and why it matters?

Inside, you’ll discover:

• The wellness paradox: Understand why cost, stress, and conflicting priorities prevent people from leading healthier lives — and how brands can help turn aspirations into achievable habits.
• Three new consumer segments: Gain insight into Health Actives, Moderates, and Passives, and identify how your brand can support each group differently.
• Global health dynamics: Explore how consumer health priorities vary across 35 markets and what that means for your brand.

Who should read this report?

• Brand directors seeking to lead in the wellness space.
• Marketing managers eager to engage more deeply with health-focused consumers.
• Brand strategists aiming to align products with evolving health expectations.

Learn how your brand can help consumers make wellness a reality.

When evaluating the success of a limited-edition campaign, it's essential to look beyond mere sales figures and assess whether buyers remain engaged with the brand afterwards. Relying solely on sales data can overlook deeper insights into long-term loyalty. For example, a Kantar Worldpanel study highlights this by examining buyer behaviour from various perspectives, revealing how such campaigns impact sustained brand engagement. 

Consider a brand that launched a limited-edition product and initially celebrated high sales. However, concerns about long-term success arose, particularly around whether these buyers would continue their relationship with the brand. The study found that while the campaign drove significant sales, those who bought both limited edition (LTE) and dual (LTE and Core) products demonstrated greater loyalty compared to buyers of only core products. This suggests that the true measure of success lies in ongoing customer engagement and loyalty, which was notably stronger among those who experienced the brand’s exclusive offerings.

The success of a limited-edition campaign should be measured by long-term customer loyalty, not just immediate sales figures. Exclusive products often foster greater brand loyalty compared to core offerings. Comprehensive studies provide deeper insights into how campaigns influence ongoing engagement, emphasising that true success comes from sustaining customer interest beyond short-term sales spikes.

Kantar Worldpanel Peninsular Malaysia has recently expanded its coverage to 4,000 panellists, offering a level of accuracy higher than ever before. Our tool enables you to analyse shopper behaviour not only for your brand but also for your competitors. You can break down data by ethnic groups, income levels, regions, and other dimensions to ensure you're effectively targeting the right consumers as intended.  

Furthermore, our Analytics solution offers a variety of studies to gain a deeper understanding of shopper behaviour by analysing their thoughts, feelings, and experiences. This provides rich, nuanced data that uncovers the underlying reasons and motivations behind their behaviours and attitudes.

Source: P6’24 database, Worldpanel Division, Kantar Malaysia

Inflation has a significant impact on consumer behaviour, influencing how people allocate their budgets and make purchasing decisions. In response, shoppers are either increasingly opting for bulk purchases or downsizing as strategies to manage their spending. This article explores how inflation reshapes consumer preferences regarding pack sizes and examines the strategic responses of different brands. 

The perception of getting more for less drives the preference for larger pack sizes. Bulk packs enable shoppers to stock up on essential items at a more economical rate, reducing shopping frequency and potentially mitigating price increases over time. However, the immediate lower price of smaller pack sizes can also be appealing. While larger packs offer better value per unit, smaller packs often appear more budget-friendly upfront, leading to more frequent shopping trips. Manufacturers must adapt their product offerings to align with these changing preferences.

Brand C provides a compelling case study of how an emerging brand can thrive in a mature category. By leveraging its two distinctive selling points—competitive pricing and a diverse range of pack sizes, such as bulk sizes like the 10kg bottle—Brand C has disrupted the market. This strategic combination enables Brand C not only to attract price-sensitive shoppers but also to incentivise them to make larger purchases in a single transaction. This demonstrates a smart approach to succeeding in a competitive landscape while understanding the evolving preferences and needs of shoppers.

In contrast to Brand C’s bulk pack strategy, market leaders such as Brand A and Brand B have focused on refill packs to align with consumer preferences and maintain their competitive edge. By prioritising refill packs, these brands address the growing demand for both value and sustainability. Refill packs provide a practical alternative to bulk sizes, reducing waste while offering an economical option for frequent purchases. This approach also fosters brand loyalty by combining cost-effectiveness with environmental responsibility. 

As shopping habits and preferences evolve, manufacturers must remain agile in adjusting their product offerings. Providing a range of pack sizes—from refills to bulk quantities—allows manufacturers to cater to diverse consumer needs, whether for convenience, value, or sustainability. Kantar Worldpanel can assist manufacturers in staying attuned to these behaviours by analysing the role of pack sizes for brands, segments, or the overall category. This insight helps brands remain relevant and drive growth.

Source: P6’24 database, Worldpanel Division, Kantar Malaysia

Local Brand B is a prime example of this shift, emerging as a standout player in the category by doubling its penetration over the last two years, while the market leader has remained stagnant. 

At Kantar, we identify four ways for a brand to grow:  

1. Attracting new shoppers to the category  
2. Converting existing category shoppers to buy or to try 
3. Encouraging existing shoppers to buy more volume  
4. Winning shoppers from competitors  

Ideally, brands should focus on bringing new shoppers to the category to grow overall penetration or increase the volume purchased, both of which contribute to the category’s overall growth. Local Brand B has done just that by attracting new shoppers rather than cannibalising competitors, showcasing its strength in offering fresh and distinctive choices in a fragmented market.  

Even though Local Brand B is priced higher than mass Brand A, it is perceived as delivering excellent value. This is due to its focus on high-quality ingredients, innovative products, and a compelling brand story that connects with consumers seeking something special. Local Brand B’s success demonstrates how a premium pricing strategy can succeed, even in a competitive market. By positioning itself as a higher-quality option, the brand taps into the growing trend of consumers who prioritise quality over quantity.  

For other local brands looking to follow suit, the key is to have a clear value proposition and effectively communicate the benefits of being a premium brand. Emphasising unique products, sustainable practices, and excellent customer service will enhance how customers perceive your brand. In a fragmented market, these strategies can help smaller brands stand out and succeed against more established competitors.

So, what should small local brands do? Focus on delivering quality products and telling a compelling brand story. These elements can help win over customers, even if your prices are higher than larger competitors. Local Brand B’s success proves that premiumisation isn’t just for big players—small brands can use this strategy to grow, too.  

For your business, it’s crucial to understand your target audience, identify what resonates with them, and clearly communicate your brand’s unique value. Through Worldpanel’s tracking data, you’ll gain valuable insights into consumer trends and uncover growth opportunities. This data allows you to make smarter decisions about your products, customer experience, and competitive positioning. With the right insights, your brand can gain the edge it needs to thrive.

At Kantar Worldpanel, we measure penetration—the percentage of a population purchasing a specific brand over a given period. This is a crucial metric for understanding your customer base and identifying opportunities for growth. By tracking penetration on a four-weekly basis, we provide trended performance insights at both category and brand levels. Our Source of Volume/Value Change (SOVC) analysis goes deeper, helping you understand how your brand is growing—whether by attracting new buyers, increasing purchases from existing shoppers, gaining a place in their baskets, or winning shoppers from competitors. With these insights, we can help you develop effective strategies based on shopper behaviour, ensuring efficient and targeted brand planning.

Source: P5 2024 database, Worldpanel Division of Kantar, Malaysia

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.

Consider the case study for Category X, which includes two major brands and several smaller ones. Brand A consistently dominates the category with an impressive volume share of over 70%. Brand A maintains its dominance by consistently staying top of mind for shoppers. Simply put, when shoppers enter this category, Brand A is their first choice.

Evidence from an NLR analysis reveals that over 50% of new shoppers select Brand A whenever they enter the category, allowing Brand A to maintain its leading position.

So, how can a brand achieve and maintain a TOM position with consumers? Success depends on several factors:

1. Clear and effective communication from the brand to shoppers.
2. Championing the right SKUs.
3. Implementing the right promotions and marketing activities.
4. Having a strong presence in the appropriate channels.

While these recommendations are easier said than done, Kantar Worldpanel offers valuable insights. We can identify shopping behaviours across various demographics, such as Ethnicity, Family Life Stages, Household Income, and more.

By understanding (1) the right shopper profiles for the category, brands can develop effective business plans, ensuring every investment is strategically allocated. 

And (2) the right message and positioning, where we can identify what the shoppers’ needs are and what triggers them to buy the category (as well as your brand) – helping you to stay connected and sustain a top-of-mind position with shoppers, growing and dominating the market.

With shopper data, we can track a brand’s performance over time, using metrics such as its penetration within the household population, or even the total monetary value spent by households in Malaysia on a particular category or brand. For those familiar with our services, we can further break down the data by demographics (e.g., ethnicities, regions, household income) as well as performance across channels and key retailers. To delve deeper into the factors driving a brand’s growth or decline, one crucial perspective would be to examine the promotions that attract shoppers.

We can analyse the promotional mechanics employed by the market and observe how they evolve over time. Examples of promotional mechanics include price promotions, primarily through price-offs and discounts. Additionally, product promotions such as "Buy 1 Get 1 Free" offers and extra volume/bundle packs are quite prevalent in certain categories. Furthermore, there are promotions aimed at increasing shopper engagement, such as contests, redemptions, and free gifts.

We examine the promotions executed for Category A and the value contribution of each type of promotion. As is typical in many categories, price promotions account for the majority of promotional sales and have increased compared to last year, driven by the market leader, Brand A. However, this has not translated into overall category growth, as shoppers are purchasing significantly less outside of promotions. This raises the question for Brand A: Are we truly employing the best strategy here? This could also present an opportunity for the brand to reassess its strategies, especially as the next largest competitor, Brand B, is gaining overall value, bolstered by an increase in price promotions, with Brand B’s shoppers maintaining purchases outside of promotions.  

Another example explores the impact of the boycott period in late 2023 among Malay households and how competitors responded. Brand A, as the market leader, faced losses during the BDS movement due to its recognition as an MNC. Meanwhile, Brand B, the closest competitor, slightly increased its promotions, recognising that shoppers in the category would likely seek alternatives. By ramping up price-related promotions, Brand B managed to attract even more shoppers. This provides Brand A with insights into category movements and competitor actions, allowing them to capitalise on current market dynamics.  

Considering these factors, understanding the optimal promotional mechanics and tracking their progress over time can help in developing strategies to either grow or combat a decline in the shopper base. However, the answer to "why?" often remains elusive with basic data alone. To gain deeper insights into shopper purchase decisions and the impact of promotions, Kantar Worldpanel offers Analytics solutions. These allow us to delve into shopper behaviour, helping to optimise strategies and resolve previously unanswered questions.

To progress as a brand, gaining penetration, that is, growing your shopper base, should be one of your top priorities. To achieve this goal, optimal strategies must be implemented, including promotional mechanics that capture the attention of new shoppers or even spark renewed interest among existing ones. Identifying which promotions are effective and which are not will undoubtedly sharpen these strategies and maximise returns. Supported by the deeper understanding offered by our Analytics solutions, the development of promotional action plans will become more targeted and efficient.

By examining different metrics, whether by penetration or value/volume share, we can determine how promotions are performing for a category or brand. Additionally, by filtering through channels/retailers or demographic profiles, we can identify which promotions are effective for specific groups of shoppers. Armed with this knowledge, more effective promotional strategies can be devised to increase your shopper base or further engage loyal customers. Worldpanel provides ongoing tracking of such measures and many more on a consistent four-weekly basis to assist clients in meeting their business needs.

During the most recent festive period, Brand A secured its position as the largest brand, ahead of Brands B and C. Brand A achieved this by having the fastest growth rate from the previous year's festive period, significantly outperforming its competitors. This impressive growth was mainly driven by penetration, where Brand A managed to almost double its buyers from 4.8% to 8.3% within just one year.

All seems well and good, right? Surely the mission has been accomplished, and the team can simply repeat what they did this year for next year’s festive period. After all, as the saying goes, “If it ain’t broke, don’t fix it.”

Whilst credit is due and the achievement calls for celebration, it would be foolish to think that all is well and done. During the presentation with the client, our team pointed out that the gain in penetration that Brand A enjoyed was mainly driven by new buyers coming into the brand.

Using the Source of Volume/Value Change (SOVC) analysis to ascertain the movement of shoppers, it was evident that Brand A was extremely effective in gaining new buyers into the market. These new buyers, who did not purchase the category during last year’s festive period, chose to enter the market via Brand A. While it is clear that Brand A was very successful at gaining new buyers, it failed to retain its past shoppers, with a churn rate as high as 85% from last year’s festive period.

Moreover, when examining the right chart that looks at the movement of shoppers among brands, it becomes apparent that Brand A is leaking the most within the market, with large numbers of shoppers switching to Brands B and D. With the help of even deeper analysis, our team was able to understand which pack sizes and retailers drove these shopper movements. These insights are crucial to understanding the behaviour of their lost shoppers who are now buying other brands.

With the help of the New, Lapsed and Repeat analysis as well as the Source of Volume/Value Change (SOVC), Brand A was able to dive deeper into the root causes of their shopper movements. Despite successfully positioning itself as the market leader for the latest festive period, driven by large penetration gains, we have unravelled the hidden problem of retention as they are losing the most shoppers internally within the existing market. Equipped with this knowledge, paired with deeper analysis by our team, they can form strategies to not only win back their lost shoppers but also defend their existing shoppers in the next festive period.

At Worldpanel, we conduct Source of Volume/Value Change (SOVC) analysis to ascertain the forces driving your brand’s volume movements. Whether it be stealing shoppers from your competitors, your brand being dropped from shoppers’ baskets, or shoppers increasing their purchases for your brand, we can help you develop specific strategies based on shoppers’ behavioural relationships with your brand. This ensures effective optimisation of your budget.

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

Category X is dominated by both boycotted and non-boycotted brands. In the latest Raya 2024, the category grew by having a larger buyer base, mainly driven by Malay shoppers.

The main driver of this growth comes from the top two non-boycotted brands. Among the boycotted brands, Brands C, D, and H show a decline, while Brands E, F, I, and L do not seem to be impacted and have managed to grow. Thus, the hypothesis that all the brands on the boycott list will be significantly impacted is false.

When we look into the declining boycotted brands, specifically Brands C and D, they decline in different ways. Brand C declined mainly because shoppers dropped the brand, which affirms the hypothesis above. However, Brand D declined because shoppers reduced their purchases. For example, if shoppers previously purchased four units of the brand, post-boycott, they now purchase fewer, indicating that shoppers are still purchasing but buying less.

The impact of the boycott is unclear, and the hypothesis that all the brands would be heavily impacted is false, as some brands still managed to grow. Moreover, the way these brands decline also differs. Brand D’s buyer base remains intact, unlike Brand C. The next step for Brand D is to encourage their shoppers to increase their purchases again, while Brand C needs to focus on recovering their lapsed shoppers.

The boycott movement might differ among various groups of shoppers. Hence, it is important for us to identify whether these shoppers are within our consumer group and how they will impact us.

In Worldpanel, we track and provide demographic information that can help brands target consumers better based on their purchasing behaviours. With the boycott ongoing, it is critical for us to identify these shoppers and understand their purchase behaviours to diminish the impact and ensure brand growth.

Kantar Worldpanel can also help in understanding the drivers behind brand growth or decline through Source of Volume/Change (SOVC) analysis. The analysis helps in understanding the reasons behind the growth or decline of a brand and the dynamic interaction across brands, for example, shoppers switching from Brand D to Brand A. This knowledge might help in deterring brand decline, promoting growth, and developing tactical plans to steal from competitors.

Today, we are going to share with you a case study about the Hot Beverage category, which is considered essential to a household, where we noticed a clear difference in how different family types manage their spending.

Coming to our topic for the day, we have noticed the overall category growth is quite flat and is mainly cushioned by higher pricing, while seeing a drop in market volume. The questions are often: Is this temporary? Or is this something category players should be worried about? Everyone knows about the growth, but not everyone knows what is driving it. That is the beauty of shopper insights, where we can dive into understanding what drives the growth (or the decline). This provides another point of view in helping brands identify the direction and plan their strategies to win the market.

Shopper measures can highlight the opportunities (and also threats) ahead, and we often suggest first identifying WHO is causing the decline of the category. In this instance, we are seeing the decline is mainly driven by Teen Aches and Full Adult Families – and the most worrying group is the Teen Aches families, who are the core shoppers of the category.

Why not the Full Adult Families, where they are showing a steeper decline? It’s likely because lighter shoppers are leaving the category based on the trajectory of both Penetration and Frequency, which is temporary (short-term hopefully!) and typically an easier win back to the category. The Teen Aches issue seems to be more long-term, where both Penetration and Frequency have consistently been on a decline over the last 2 years. We flagged that as a huge threat to the category, which is slowly losing relevance within the household (plus they are the core group of the category).

While the category is competing for a higher share of throat, we recommend that it is crucial to understand (1) where the LEAKY BUCKET is – is it more towards the adjacent hot beverage categories (which is a preference change) or more towards the F&B beverage offerings (which is a change of lifestyle experiences). 

And (2) what ROLE does the category play – do the shoppers view this category as a commodity (which is undifferentiated) or more of an experiential and convenience factor (which means product offerings will be a good leverage) and at what occasion should the category target to grow. 

Each gives a very different action plan for the category players, and understanding how the behaviours of critical shopper groups were affected and their product choices enables brands to size and minimise threats while amplifying opportunities. The rule of thumb is you always want your brand to attract as many buyers as possible. Start understanding where and how your core target audience shops to save unnecessary marketing costs.

Penetration refers to the percentage of the population buying a specific brand over a period. It is a crucial measure that key industry players use to evaluate the size of their existing customer base (vs competitors) and gauge the opportunity for expansion. In the Worldpanel division, we consistently track this on a 4-weekly basis to produce penetration numbers so you can see a trended performance at both category and brand levels.

Understanding which platforms can convert communications into sales is critical, beyond the ability to deliver the highest return on ad spend (ROAS)

Choosing the right media solutions is critical, and this is also true in CPG, especially when the industry is facing challenges with increasing costs and higher margin demand, which forces businesses to make more cautious marketing spending. Each investment in paid media is, naturally, carefully assessed for its ability to maximise ROAS and ensure the campaign achieves its objectives. Understanding which platforms effectively convert communications into sales is essential in the dynamic markets of Southeast Asia.

Maximising ad effectiveness in Southeast Asia: A case study with Meta, comparing across media platforms, a study commissioned by Meta, highlights the role of various media channels in delivering ROAS, reach, frequency, and synergy for CPG brands across four Southeast Asian markets: Thailand, the Philippines, Indonesia, and Vietnam.  

The study utilised Kantar's Consumer Media Measure (CMM) solution to uncover the relationships between advertising, sales and penetration through our actual purchase tracking and unique data on media consumption. This one-of-a-kind tool analyses when each shopper is exposed to the media campaign across different touchpoints – TV, press, online and outdoor – and how that exposure impacts their purchases by comparing post- and pre-exposure purchase behaviours.

"At Meta, we strive towards gold standard in measurement based on data & science. We look at our advertiser's total marketing plan to ensure we deliver actionable insights across the marketing funnel. Kantar’s CMM solution has enabled us to measure holistically, providing robust ROI, Reach, and Shopper Behaviour to inform our clients and partners planning and creative strategies." said Kishore Parthasarathy, Meta’s Director of Marketing Science for Southeast Asia.

For more information, please read the full report at: 

Click to read Meta Sea CMM Study 2024

Malaysia Brand Footprint 2024, an annual study conducted by Worldpanel by Kantar to measure the brands most chosen by consumers. This comprehensive report covers over 540 brands in Malaysia across five key FMCG sectors: Food, Beverages, Dairy Products, Home Care, and Personal Care.

The Malaysian FMCG market faced significant challenges in 2023. Persistent inflation has increased the cost of living, impacting consumer prices and leading to a noticeable drop in the frequency of purchases and trip volume across sectors. Households are prioritising essential items, reducing spending on non-essential FMCG products.

The Brand Footprint ranking measures how extensively a brand is purchased across households, reflecting both penetration and frequency of purchase. In 2023, despite economic challenges, around 50% of the tracked brands managed to maintain or expand their footprint. This varies by sector, with Personal Care seeing 54% of brands growing their footprints, while Home Care sees the least at 40%. By focusing on product innovation, effective marketing, efficient distribution, and consumer engagement, these brands have maintained strong market positions despite economic challenges. Emerging brands also present exciting prospects for market evolution.

In the Malaysia Brand Footprint 2024 report, discover:

• The most chosen brand ranking.
• Success stories from leading brands like Colgate, Hup Seng, and F&N.
• Insights to inspire and drive sustainable growth in the market.

Stay attuned to consumer preferences and adapt strategies accordingly to sustain and grow your brand footprints. Explore the full report to uncover valuable insights and strategies for navigating the current market landscape.

READ THE REPORT

Many FMCG categories are under pressure to increase prices due to inflation. Kantar demonstrated several Analytics shopper solution case studies in the region, showing how manufacturers leverage shopper data to identify white space, mitigate revenue risk post-price increase, and optimise promo incrementality.

Shopper recruitment is the key growth driver for marketers; hence managing the entire portfolio to reach the greatest number of shoppers is essential. Furthermore, Malaysia, being a very promotion-driven country compared to other ASEAN markets, makes it inevitable for manufacturers to engage in promotions. However, the focus is on how to do it effectively. Insights were shared via panel discussions, presentations, and an interactive booth session towards the end of the seminar. These sessions showcased our solutions of Pack Price Architecture (PPA), Price Elasticity, and Promo Effectiveness, encouraging more discussion, brainstorming, and interaction with the simulator. The event was well received by the participating clients.

While some categories are viewed to be more important, others are seen to no longer be essential to shoppers’ livelihood. Today we are going to investigate one category that is declining in relevance as shoppers now perceive these products as non-essential.

Over the last two years, Category X has been declining in both volume and penetration as shoppers tighten household budgets. To attract sales, key category players have been driving steeper and steeper promotions. These led to category shoppers becoming increasingly promo-reliant to sustain purchases. Eventually, as the inflationary pressures continued to mount, however, such promotional schemes were no longer able to stem overall category decline from shopper reprioritization. Core shoppers (the Low and Middle-Income Group) are starting to reduce purchase frequency, shifting to smaller volumes per trip, with some even dropping out of the category completely.

We noticed that certain demographics viewed different functional values of the product as important, with different functional benefits appealing to Chinese households and Malay households respectively. 

This insight provided the Brand an opportunity to optimally plan the way to divide and conquer different shopper segments more strategically to mitigate the decline. We have found out that while promotions can temporarily win sales among shoppers who still have spare budgets, for a more long-term and sustainable growth, key players need to drive relevance back into the category and strengthen brand equity. To do this, players need to dial up their key benefits and amplify the needs and reasons for shoppers to buy the category beyond promotions.

We helped to identify the potential benefits and shoppers’ needs that can drive purchases among Malay and Chinese shoppers respectively. With this, the Brand was able to tailor their brand communications and messaging towards the respective targeted shoppers. By leveraging the right products across their portfolio, they can target and attract different shoppers, and additionally are able to strategize their actions in different retailers where different shopper groups are shopping. 

Penetration is our key measure referring to the % of population buying a category or brand over a length of time. With this, key industry players can evaluate the size of their existing shopper base and gauge for opportunities of expansion. In Worldpanel division, we track consistently on 4-weekly basis to produce penetration number so you can see a trended performance at category and brand level.

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.

The significance of consumer sentiment in the current market landscape is unquestionable — with enough momentum, it has the power to either drive a brand to success or plunge it into crisis. The ever-changing nature of public opinion can create a ripple effect that brands must navigate carefully.

During a recent widespread boycott, Brand X lost a significant number of shoppers, curtailing their pre-boycott penetration growth trend. With shopper panel data, Brand X was able to compare shopper behaviours with historical data to establish the impact of the boycott with certainty and identify the most critical shopper segments and where the sales losses were coming from.

Shoppers not returning for category purchases after a peak sales period for Brand X sent a clear message by dropping Brand X purchases and switching spends to competitor brands at an unprecedented level during the boycott period, leading to a historical 5-year low in brand penetration.

By understanding how the behaviours of critical shopper groups were affected and their product choices when dropping out of Brand X, the company was able to discern some of the underlying motivations of shoppers. This enabled them to size and minimise threats while amplifying opportunities.

We also helped identify the key and unique products within their portfolio that could retain loyal shoppers and attract new shoppers. Collectively, this enabled Brand X to deploy a multi-pronged strategy that effectively connected to different underlying consumer needs across shopper segments beyond the boycott and reached them through the right channels and retailers.

Through targeted ATL (communications) and BTL (trade strategies), Brand X achieved a monthly sales recovery of 43% in March 2024 compared to December 2023 amongst key affected shoppers.

To conclude, there are unprecedented situations where brands may face challenges in retaining loyal shoppers and recruiting new ones. Therefore, brands should leverage other potential opportunities through effective strategies to regain their shoppers.

In Worldpanel, we can evaluate the differences in purchase behaviour between new category shoppers and existing shopper groups. Based on this understanding, you can craft a more effective marketing campaign tailored to your specific target audience.

THE GROWTH OF FAMILIES WITH YOUNG CHILDREN (NESTING FAMILIES)

Selective categories within the impulse sector have experienced strong growth from nesting families, contributing to double-digit growth in value year-on-year, even by maintaining the shopper base (penetration%). As a result, they are one of the key contributing groups to the growth of the impulse sector, which was able to maintain its sector value growth at 3%.

NESTING FAMILIES BUYING MORE DESPITE NEEDING TO PAY AT A HIGH PRICE POINT

The impulse sector as a whole has seen an increase in prices, requiring shoppers to pay more than they did last year. Many shoppers have chosen to buy less in volume, causing an overall decline in volume per buyer of -4%. However, nesting families have still managed to maintain their overall household volume purchased, indicating the relevance of these categories to their households. This has caused them to spend more on the impulse sector, while the rest of the market either maintained or declined.

Identifying categories that appeal to certain target audiences is very important. It helps businesses to better capitalise on opportunities, from (1) planning and strategising to (2) execution and implementation. 

Despite inflationary woes, categories that appeal more to younger audiences could benefit by being ever-present physically and mentally for them. By empowering them to have a say in what they want to buy and consume, young ones can influence the final purchase made by the decision-maker.

Placing products at the appropriate eye level for their height or having campaigns and activities that generally appeal to these age groups can help ensure the brand consistently engages both parents and younger audiences, striving to become the brand of choice for the category.

In the Worldpanel division, we consistently track shopper metrics (penetration, shopping frequency, basket sizes, volume & value sales, etc.) on a 4-weekly basis. This allows you to see trended performance at both category and brand levels.

A notable phenomenon in the FMCG landscape of recent years is the burgeoning growth of Private Labels. Traditionally more prevalent in regions like Central and South, Private Labels have seen a remarkable surge in penetration and buyers across the other regions, with Malay and Low-Income demographics being the primary drivers of this trend.

However, the growth of Private Labels hasn't been uniform across all segments in the FMCG market. While categories like Beverages and Non-Food segments (both the Household and Toiletries sector) witness a substantial increase in Private Label adoption, other segments within the Food category experience more moderate growth.

Several factors contribute to the ascent of Private Labels. In addition to the increased focus and expansion to more categories, and strategic placement within stores (often in proximity to category leaders), which can be observed during store visits — promotion also plays a pivotal role in enhancing the perceived value proposition of Private Label products. 

But what implications does this trend hold for manufacturers?

Firstly, for mass brands targeting Malay and Low-Income consumers or operating within the Beverages or Non-Food categories, it becomes imperative to assess the threat posed by Private Labels. Understanding the dynamics of brand switching and identifying the proportion of shared buyers between your brand and Private Labels within respective categories is even more crucial for devising effective strategies to safeguard market position.

Secondly, the current trajectory suggests a continued momentum for Private Labels, especially considering potential cost pressures stemming from the upcoming subsidy rationalisation. To continue justifying a price premium over more affordable alternatives, brands must understand the top priorities of shoppers when they shop within the category. This understanding will guide brands in developing the most impactful brand marketing and sales strategies.

By gaining insights into how consumers interact with the brand throughout their purchasing journey, top brands can adapt their strategies to meet evolving consumer needs and expectations. This understanding enables them to stay ahead of competitors by optimizing their marketing efforts and enhancing product offerings. By consistently delivering value at every touchpoint, top brands can solidify their position, foster customer loyalty, and maintain their lead in the marketplace.

Our data from Kantar Worldpanel offers a compelling counterpoint to this assumption. While the No.1 Brand may initially command a sizable market share, our findings reveal a noteworthy challenge in maintaining consumer loyalty as babies progress in age. Surprisingly, its market share experiences a significant decline as infants reach 7-12 months old, with no apparent recovery as they continue to grow. In contrast, smaller brands such as the No.2 and No.6 Brand demonstrate more adaptability to retain their share in the older baby market.

This observed divergence prompts an exploration into the underlying factors driving these disparate behaviours within the same brand ecosystem. Could it be attributed to variations in product perceptions, nuanced marketing strategies, or perhaps distinct consumer demographics and preferences? Understanding these intricacies is paramount for strategic decision-making within the brand, enabling tailored approaches to address consumer needs and optimize brand experiences across the different baby ages and activation touchpoints. This, in turn, aims to foster greater consumer loyalty and brand affinity.

Brand loyalty is a crucial factor that determines the longevity of your growth performance. Loyal customers don't just buy a product – they become advocates for the brand, spreading positive word-of-mouth and strengthening its market presence. In this way, consumer loyalty not only drives sales but also serves as a catalyst for expanding the brand's reach and forging deeper emotional connections between consumers and the brand.

As shoppers seek more value from every penny they spend, it is crucial to inform them that they could either buy the same quality at a lesser price or have a higher value perception of what they are getting for the same price they pay. The key is to optimize your investment across different activation touchpoints and also to emphasize your unique selling points that attract shoppers to continue buying and staying with your brand.

Being the key market player is even more important to find the right strategy by engaging the right audience with the right message to drive brand relevancy and ultimately loyalty. A brand must grow with the consumers' evolving needs.

At Kantar Worldpanel, we provide baby panel data covering 1200 panellists across Peninsular Malaysia. Our approach allows you to compare your brand's performance to competitors at different stages of a baby's growth, highlighting areas of strength and gaps to close.

As part of our advanced Analytics solution, our flagship Consumer Journey specializes in uncovering growth opportunities by answering crucial questions like:

• Which product is the key entry point for my shoppers?
• At which stage do my shoppers stay longer?
• At which stage am I losing shoppers to my competition?
• How can I foster stronger brand loyalty?

Festive shoppers in Malaysia exhibit a dynamic purchasing pattern within the non-traditional Western-style food categories. While they may buy these products throughout the year for everyday consumption, their behaviour shifts during Ramadan and Raya times, leading to slightly increased demand with larger baskets. This could be driven for both their own family consumption at home and for open houses for guests. 

Festive Convenience: Adapting to Lifestyle Shifts and Category Dynamics

Lifestyle Changes: Recognising that shoppers alter their lifestyles during Ramadan and Raya, there is an opportunity to align convenience food offerings with these changes. This could involve promoting products suitable for Sahur (pre-dawn meal) and Iftar (breaking fast), as well as those conducive to hosting open houses and gatherings.

Category-specific Strategies: While there is potential for larger baskets during festive seasons, the impact varies across different product categories within convenience foods. For instance, ready-to-eat meals and snacks may experience a surge in demand for quick and convenient options, whereas premium ingredients for home-cooked dishes might appeal to those preparing traditional festive recipes.

Strategic Recommendations for Festive Convenience Food Marketing

Segmented Marketing: Tailor marketing efforts to different consumer segments based on their preferences and behaviours during Ramadan and Hari Raya. Highlight the convenience and versatility of convenience foods for various occasions, from intimate family meals to grand open houses.

Product Assortment: Offer a diverse range of convenience food products that cater to the specific needs and preferences of festive shoppers. This could include ready-to-cook meal kits, festive-themed snacks, and premium ingredients suitable for traditional dishes prepared during Ramadan and Raya.

Collaborative Partnerships: Collaborate with influencers, chefs, and cultural experts to create authentic and appealing content that resonates with consumers during festive seasons. Engage in partnerships with retailers to ensure prominent placement and visibility of convenience food products in-store and online.

Seizing Festive Opportunities: Navigating Consumer Trends

Festive seasons like Ramadan and Hari Raya present an opportunity for brands in the convenience food category to capitalise on shifting consumer behaviours and consumption patterns. By understanding the unique demands of festive shoppers and adapting marketing strategies and product offerings accordingly, brands can enhance their relevance and appeal during these celebratory periods.

This article highlights the importance of recognising and leveraging the changes in lifestyle and consumption habits of Malaysian consumers during Ramadan and Hari Raya. By implementing targeted strategies and offering relevant convenience food solutions, brands can position themselves for success and drive growth in this dynamic market segment.

For this category, the share of the market was mainly taken up by Brand A and B (over 60%). Despite having a similar size of shopper base, Brand B’s volume share is 3 times larger compared to brand A. As we drill deeper to understand the phenomenon, we found out that Brand B retains shoppers even after the festive season much better than Brand A which enables Brand B to be the market leader within this category. 

Brand B successfully positions itself as the brand that people consume not only during the festive season but also during normal days. But, what exactly Brand B did to achieve this? The key to its success is that Brand B has a wider range of SKUs (9), and in fact it has 3 times more SKUs compared to Brand A (3). The wider range of selection enables shoppers to have more options to choose from as they use it for different occasions, especially during the non-festive season, sustaining their volume even after the festive season. Furthermore, Brand B offers a bigger pack size to encourage regular consumption where is around 50% larger compared to Brand A, for their large pack. This is vital, especially during the current era with inflation deemed as the major spending inhabitant for consumers, some consumers may opt for a larger pack size as it is more value for money.

Based on the case study given above, perhaps festive-driven category brands need to re-look at the category from a different angle where retaining shoppers during the non-festive period is equally important as recruiting shoppers. On a side note, for market challengers, instead of shadowing the market leader during the festive season, the perhaps non-festive period could hold more potential in gaining market share.

Penetration of a brand is the proportion of the population that picks up a certain brand over a given timeframe. In order to determine whether your brand is going, its key to understand among WHO is your penetration growing or declining, as well as WHERE, and how it changes over time. Equipped with this knowledge, better strategies can be constructed to continuously grow a brand. Worldpanel offers the tracking of this measure among many others on a consistent 4-weekly basis to help clients with their business needs.

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.

Today we’ll be looking at a category, with the aforementioned brand as a recent entrant and has been turning heads with its rapid expansion over the last couple of years. We see its progression over time. Within the span of a year after it hit our shores, Brand X reached a household penetration of 7.2%. At this point, that may not mean too much to you, but we have to see how it stacks up against our standardised new product launch benchmark of 2% penetration within a year, and Brand X hit more than triple that value!

Admittedly, the brand still had some way to go as it only commanded about 2% of the market value share, but they managed to sustain the trajectory over the rest of 2023, now obtaining 5% of the market share, and is reaching 19.5% of the households. Now, how did Brand X manage to gain so many shoppers over a relatively short period? One of the things that worked for them was to cater to their target market. We can clearly see that the main shoppers Brand X managed to recruit were Low to Mid-Income Malays. By choosing the right target audience and customising their communications, Brand X was able to carve their way in and build their reputation in our country.

Adding on to that, Brand X was over-indexed in promotions compared to the category during their first year. With the bulk of their promotions coming from discounts, this lowered their average price to only 90% of the market average. Harking back to their main shoppers, this definitely contributed to their growth as their shopper base grew consistently up to Q3’23, opting for this fresh and new (and more importantly, cheaper) alternative. While other market players also increased promotions compared to the previous year, many shoppers were still picking up the underdog, Brand X. In fact, some brands had increased promotions but did not translate to an overall growth of the said brand.

At the end of the day, Brand X maintained their growth, with shoppers continuing to stay with them, showing that their success was not just a matter of promotions and targeting, but also of the consistency of the products. Now with a steady base, Brand X is growing steadily across channels as it invests more to reach more households.

In order to grow a brand, the first step is to build a steady and loyal base. As our own saying goes, ‘Penetration is King’. The further you can reach out, the more accessible you become, and the more likely your brand is to be picked up. By knowing who is actually picking up a brand, you can work on how to get it to the shoppers and what sort of communications/promotions catch their eyes. Identifying the target market, what worked for you and what’s holding you back could help in determining a brand’s success.

Penetration of a brand is the proportion of the population that picks up a certain brand over a given timeframe. In order to determine whether your brand is going, it's key to understand among WHOM your penetration is growing or declining, as well as WHERE, and how it changes over time. Equipped with this knowledge, better strategies can be constructed to continuously grow a brand. Worldpanel offers the tracking of this measure among many others on a consistent 4-weekly basis to help clients with their business needs.

In the ever-evolving landscape of consumer behaviour and brand engagement, understanding the concept of "shopper currency" has become increasingly vital for marketers seeking to drive sales, profitability and foster brand loyalty. Shopper currency encompasses the valuable resources individuals invest when making purchasing decisions: MONEY, TIME and ENERGY. Each of these resources holds distinct significance in the consumer journey, presenting both challenges and opportunities for marketers. 

MONEY: Affordability. As the most tangible form of shopper currency, often takes centre stage in marketing discussions. Pricing in general oftentimes will be the most important, if not one of the key factors that influence shoppers’ decision-making during the point of purchase.

Every brand hopes to give the deepest discount to be the cheapest in the market. However, our resources, most likely are always limited. One way a brand can explore, is to assess the impact and effectiveness of your past promotions, in order to optimise your investment in: 1. Promotion Mechanics, 2. Depth of Promotions and 3. Length of Promotions – to generate the highest benefit vs. the cost of business, which means the highest incrementality.

While competitive pricing remains crucial, modern consumers also consider value propositions that extend beyond mere cost. Factors such as quality, convenience, and brand relevance play pivotal roles in shaping purchasing decisions. Therefore, introducing TIME and ENERGY. Savvy marketers focus not only on offering competitive prices but also on highlighting the overall value their products or services provide. To leverage money effectively as a shopper currency, marketers can employ strategies such as: Crafting compelling value propositions that justify higher price points marketers can tailor their messaging and offerings to align with consumer preferences and financial goals.

TIME: Accessibility. Consumers seek seamless and efficient shopping experiences that minimise time spent on research, decision-making, and transaction processes. Recognising the value consumers place on their time, marketers must prioritise convenience and simplicity throughout the customer journey. One way a brand can explore to effectively work with time as a shopper currency, is to assess and to optimise your efforts in: 1. Channel Distribution Strategy, and 2. In-Store Visibility – to ensure your brand is always accessible and available in-store, and ready to generate the conversion during the shopping trip.

ENERGY: Applicability. The emotional connection beyond prices and time-saving conveniences, consumers invest significant emotional energy in their shopping experiences. From researching product reviews to engaging with brand content and making purchasing decisions, consumers navigate a complex landscape of emotions and motivations. Brands who understand and leverage this emotional currency can establish deeper connections with their audience, fostering loyalty and advocacy. To tap into the emotional dimension of shopper currency, brands can: Craft authentic brand narratives that resonate with consumers' values, aspirations, and lifestyles. Personalise interactions and communications to demonstrate a genuine understanding of individual preferences and needs. By acknowledging and addressing the emotional aspects of the consumer journey, brands can create memorable experiences that inspire long-term brand loyalty and affinity, and always remain at the Top of Mind within the shoppers’ consideration.

In the dynamic world of marketing, comprehending and optimising the three forms of shopper currency – MONEY,TIME, and ENERGY – is essential for driving sustainable growth and success. By recognising the nuances of the interplay between these resources and consumer behaviour, marketers can tailor their strategies to meet evolving expectations and preferences. Whether through competitive pricing, seamless experiences, or emotionally resonant storytelling, the strategic utilisation of shopper currency enables brands to forge meaningful connections with their audience and thrive in an increasingly competitive marketplace.

Brand A conducted a downsizing exercise for their top-selling SKU, SKU X, reducing its volume by 5% to cope with rising production costs. Consequently, Brand A experienced a slight drop in volume sales on a MAT (Moving Annual Total) basis from the previous year, while the value change remained neutral, hovering slightly above the 1% mark. However, Brand A wanted to understand the success of the downsizing exercise and how shoppers reacted to this change, especially since the prices of the SKUs remained unchanged, making it a classic case of "shrinkflation."

We first examined the trended performance of the overall brand, as well as the performance of three SKUs: the old SKU (X), the new SKU (Y), and SKU V, traditionally Brand A’s second-highest performing SKU after SKU X. From the trended chart, we observed that the volume sales for total Brand A started to decline in July 2022, coinciding with the start of the downsizing exercise. The X pack size experienced a sharp decline in volume, while Y gradually and slowly gained volume sales. However, despite being in the market for a year, Y was still unable to match the performance of its predecessor. Instead, pack size V became the #1 SKU, maintaining the brand’s performance stability throughout the year.

Having established that the new pack size, Y, did not meet the intended performance levels, we then analysed the Source of Volume/Value Change (SOVC) from the perspective of the old pack size, X, to identify shoppers' movements. The chart revealed that about two-thirds of the change was attributed to shoppers switching out, followed by shoppers dropping the SKU from their repertoire, as well as shoppers lapsing out of the market entirely. However, when examining the SKUs to which shoppers switched, only 43% of X shoppers moved to Y, while the remaining shoppers switched to SKUs of other brands. The switching chart also indicated that the largest leakage was towards Brand C’s Y pack size, one of Brand A’s main competitors, raising concerns.

One of the analyses conducted to assist Brand A in recovering the performance of their Y pack size was a price cliff analysis, where we compared the maximum price per pack customers paid for similar SKUs in the market against the absolute value sale of the SKU in the past year.

From the price cliff analysis, we observed that Brand A’s Y pack size was priced the highest compared to its two biggest competitors, Brands B and C. Moreover, its placement on the cliff disadvantaged it, as it exceeded the maximum price many customers were willing to pay for this pack size. Therefore, we recommended that Brand A slightly reduce the prices for the Y pack size by 5%, positioning themselves in the middle, between their two main competitors. Our analysis indicated that this adjustment would result in a 27% increase in value sales, approximately RM 5 million.

Through the help of the Source of Volume/Value Change (SOVC) and the Price Cliff analysis, Brand A identified that their downsizing exercise led to shoppers abandoning their brand in favour of other brands, with only a 43% retention rate of shoppers switching from the old to the new pack size. Additionally, the price cliff analysis revealed that a vast majority of shoppers were not willing to spend beyond a certain amount for the new pack size, and those who did preferred competitor brands. As with most cases, a shopper’s willingness to pay a certain amount depends on various factors such as brand perception and promotions. Therefore, it is imperative for Brand A to justify the high price by offering more benefits through premiumization or conducting a brand refresh of their SKU line-up, with pack size V now leading the brand. Alternatively, Brand A could also consider running promotions like price-offs to regain volume sales.

In Worldpanel, we conduct Source of Volume/Value Change (SOVC) to ascertain the forces driving your brand’s volume movements. Whether it be stealing shoppers from your competitors, your brand being dropped from shoppers’ baskets, or shoppers increasing their purchases for your brand, we can help you develop specific strategies based on shoppers’ behavioural relationship with your brand, ensuring effective optimization of your budget.

Source: P8’2023 Peninsular Malaysia Household Purchase - Kantar Malaysia, Worldpanel Division

Brand A has suffered a double-digit volume decline after a few rounds of price increases. In fact, Brand A's rate of price increase is the fastest among its direct competitors. Due to this pricing factor, Brand A is losing its competitive edge, as its shopper base and basket size are reducing and shrinking, respectively. Therefore, Brand A wanted to learn the potential areas in which they can focus to turn around their business and leverage inflation to drive growth.

Next, we conducted a source of volume loss analysis for Brand A. There were no surprises, as Brand A is declining across all four measures (losing market buyers, being dropped from repertoire, reduced purchasing, and switching to competitors). In addition to switching to its major competitors, Brand A is also losing to smaller brands, which is evident within both low- and mid-income households.

Finally, it is imperative for Brand A to understand the demographic profile that has contributed to these losses. This will enable Brand A to identify and target specific demographics to regain its business. While Brand A has enjoyed some growth in certain demographics, it needs to recover within its main demographics: Malays, Families with Teens, North and Central, and below £5k households. We have also recommended that Brand A focus on its main pack size in Modern Trade retailers like 99 Speedmart, Econsave, and Mydin to win back its main demographics.

While Brand A has identified the demographics for its source of volume loss, it can strengthen its business turnaround plan by driving a bigger basket size through creating new occasions, understanding the impact of price increases on its brand, driving growth by maximizing promotions incrementality, and ensuring category relevance during these inflationary times.

In Worldpanel, we analyse shopper behaviour to understand the role of your brand in driving category growth. Through consistent tracking, we can understand the gaps and opportunities to target specific shopper demographics in the category. You can then identify the best practices to drive growth by optimising your marketing budget.

Source: P11’2023 Peninsular Malaysia Household Purchase - Kantar Malaysia, Worldpanel Division

It will be more difficult to obtain money and secure shoppers' purchases, especially when the demand is shrinking, on top of the more aggressive competition in the market. We have repeatedly shared with our clients that shoppers are spending cautiously, exhibiting less pantry-loading behavior, making more just-in-time purchases, and shifting their focus to buying only what is necessary and meaningful to them.

Principles of Growth

During our Shopper Excellence Summit 2022, we mentioned that Penetration is the core driver to grow market share within the category. As a matter of fact, according to our tracking, 88% of brands that experienced growth achieved it through increasing their Penetration.

When a brand starts to expand and build a larger buyer base, it naturally leads to an increase in loyalty to the brand. This stays true in the year 2023, and we believe it will be the same for 2024. This is one way to effectively grow your brand sales – by growing your buyer base, hence achieving a higher market share. 

The Question is How?

There are many times when we only talk about winning shoppers from the competition (within the category). What if that is no longer the only challenge we must face? What if we tell you that brand competition will be more relevant if shoppers only choose to stay within the category?

In fact, our tracking reveals that shoppers could easily shift their purchasing behaviour (via different options), especially when pressured by inflation. About 60% of the categories had experienced a loss of shoppers (lower penetration) vs. 2 years ago – showcasing the risk of your category to remain relevant within the shoppers’ repertoire or consideration.

Would they continue to cut down even more categories? We may always generalise to say everyone "should" be cutting down, but the fact is we realise shoppers are recording different purchasing patterns – that’s where we need to monitor their buying behaviours depending on their point-of-view of the economy (and income) for the near future.

In short, finding the right strategy by engaging the right audience and leveraging the right message to drive the relevance for your category (and your brand) will be crucial moving forward.

1. If you are within the essential category – most probably you will face stiffer brand and promo competition as shoppers are looking out for more value from every single penny they pay. It is crucial to let your (potential) shoppers know either they could buy the same quality at a lesser price, or have a higher value perception of what they are getting with the same price they pay – the key is to optimise your investment across the different activation touchpoints.
2. If you are in the secondary category (more likely to be cut down from the repertoire) – then you have to quickly identify the unique selling point that keeps shoppers to continue buying and using not just your brand, but the category. The competition is not just within the category itself, but also the pulling factors from the adjacent categories if you do not give shoppers a good reason to stay.
3. If you are a premium/niche brand – a mass brand will always have a better advantage from the price point perspective. It is either you need to consider an extension of the portfolio catering to those who are planning to down-trade, or you have to create a more compelling reason for a very specific market that you are aiming for.

Penetration refers to the percentage of the population buying a specific brand over a period. It is a crucial measure that key industry players use to evaluate the size of their existing customer base (versus competitors) and gauge the opportunity for expansion. In the Worldpanel division, we guide our clients to grow their brands' sales by identifying growth opportunities in winning more buyers.

Source: P11’2023 Peninsular Malaysia Household Purchase - Kantar Malaysia, Worldpanel Division

We have repeatedly shared with our clients that shoppers are spending cautiously, opting for less pantry loading and more just-in-time purchases. The rise of proximity and specialized channels confirms shoppers' shift to focus on buying what is needed and meaningful to them.

We have also emphasized the importance of shopper currency, where shoppers are constantly evaluating three costs - money, time, and energy - when purchasing in-home groceries. While many have opted to hunt for the best deal, there are also purchases that show appreciation for convenience, quality, and experience. We believe the polarity of shoppers' behavior will become more obvious if the market conditions continue. It's becoming even more difficult to generalize shoppers' movements as a whole, even within a specific category, moving forward.

Who tends to have a bigger chance of winning?

We noticed familiarity is a key factor when it comes to shoppers' selection. In order to ensure what they spend is worthwhile, shoppers are taking less risk in buying unfamiliar products. Bigger brands tend to have an advantage in this, as they have a wider reach, meaning more shoppers are familiar with the brands and what they can deliver. This advantage has helped them secure more existing shoppers (from not trying other brands more often) and attract new shoppers (including those buying the category for the first time).

We mentioned in our Shopper Excellence Summit 2022 that penetration is the core driver to grow market share within the category. When brand penetration becomes higher, the loyalty of the brand will increase accordingly. This holds true in 2023, and we believe it will be the same for 2024.

Interestingly, brand penetration doesn't always come together with an increase in trade promotions. In fact, Malaysia is one of the markets in Asia with the highest percentage of promotional buys for in-home grocery purchases. With the over-flooding promotions in trade, it becomes a hygiene factor for shoppers when making their choices and selections.

The brand message, in this case, plays a more important role in capturing shoppers' interest. Shoppers need to know how a brand is relevant to their lifestyle needs. A brand should emphasize how it can clearly address their target audience's specific pain points or resonate with their target audience's values in life.

Is there a "national" brand for Malaysia?

To gauge the opportunity a brand has in terms of penetration, we took a quick look at the latest figures. Maggi, as usual, remains the most penetrated brand in our market, with 90.3% penetration, followed by Milo at 82.2%. The rest of the brands register not more than 70% penetration, including both global and local brands. [Insert Figure 1]

Additionally, only 97% of brands in the market register less than 50% penetration, and more than 80% of the brands have less than 20% of the population buying.

What it means for us is that there is still plenty of room for any brand to recruit more shoppers. We are also seeing local brands becoming more evident in the list, signaling higher acceptance of local products in shoppers' repertoire. On the other hand, we are seeing the recovery of global brands in many instances, as they are always aggressive to grow despite the already large market presence. We believe branding, in this case, plays a big part in winning more shoppers.

In short, identifying who your core target audience is, finding the right message to promote, and focusing on recruitment in trade will be the key to increasing your market share in 2024. 

Source: P10 2023 Peninsular Malaysia In-Home Panel database, Worldpanel Division, Kantar Malaysia

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.

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.

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.

Understand FMCG trends and get success case studies to find opportunities for growth in 2023 and beyond.

Jamal Uddin, Account Director at Kantar Malaysia's Worldpanel Division, was a speaker at the 18th BFM BrandFest 2023 event "Building Future Marketeers" on 25th July 2023.

The presentation covers four main topics: understanding the prioritisation and challenges of B40 and M40 shoppers, and the inflation impact on Malaysian shoppers. The speakers unveiled some successful case studies of brands that managed to grow despite all odds. There are 3 key takeaways for marketers from the presentation session:

1. Play across price segments and ensure a strong portfolio and price architecture
2. Make sure you have the right offer in the right channel to optimise shoppers' baskets, and last but not least
3. Look for promo efficiency and its drivers to maximise "incrementality."

Download the lite version of the presentation or contact us for the full version.

How can manufacturers leverage inflation for growth? 

In Malaysia, there is no ‘one size fits all’ solution to retaining shoppers as FMCG prices soar. 

The impact of inflation varies from one category to the next, for example. Consumers have also reacted to inflation in a number of different ways. Looking at multiple years’ worth of data and more than 20,000 SKUs, we have identified specific behavioural changes that shoppers have adopted to cope with price increases, including:

• Buying more or less volume
• Shifting to a cheaper store
• Buying cheaper alternative products
• Increasing their uptake of offers and savings. 

The big question is what happens next: will shoppers stop reducing the volumes they buy, or continue to ration their spend?

A significant proportion of consumers across all socio-economic levels are currently feeling the financial heat, with low income shoppers leaning heavily on in-home FMCG. This is expected to continue through 2023.

In this environment, building loyalty and finding more shoppers are the keys to growth. Inflationary pressures on consumer expenditure are likely to have a long lasting impact on FMCG dynamics. Understanding the changes in shopper behaviour within your category and brand, and how to navigate them, will secure your success for the future.

In this e-book – The Malaysian Consumer in the Age of Infaltion – we share insights including:

• The implications of Malaysian consumers’ reactions to inflation
• The key questions all brands and manufacturers should be asking themselves
• How to tell whether you’re at a Volume Tipoff Point or a Value/Price Tipoff Point – and the optimal strategy for each
• How successful brands use inflation to their advantage
• What the situation looks like for take home groceries in 2023.

Inflation is not going anywhere; this e-book will help you use it to your advantage.

READ THE REPORT

We are excited to introduce the latest edition of Asia Pulse, our quarterly update on the FMCG industry in the Asia region for Q1 2023. Despite inflationary pressures, the FMCG sector in Asia witnessed a growth rate of 2.8%, displaying a consistent level compared to the corresponding quarter of the previous year. Notably, most sectors experienced positive growth, except for the Dairy and Personal Care sector, which faced some challenges due to slower movement in North Asia.

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.

This year's event was appropriately themed "Paper to Pantry" to help manufacturers visualise the full journey that shoppers go through before picking up a product. The journey starts with a shopping list (paper) and ends with a purchase (pantry). 

The seminar primarily highlighted the key touchpoints within this journey that manufacturers can influence, and drive investment efficiency through an understanding of actual shopper behaviour and how it impacts behaviour within the category.

Additionally, perspectives and insights into shopper behavioural changes and the grocery retail landscape in 2023 and beyond were shared to address market uncertainty. CPG leaders were also advised on finding ways to achieve growth while adapting to these unpredictable times in the grocery space, to optimise trade opportunities along the path to purchase.

Key highlights:

• Shoppers continue to buy in 5 channels post-pandemic.
• The bigger the category, the harder it is to maintain brand loyalty.
• Price off might not be the most relevant promo mechanic for incrementality.
• Within RM100 spent on promotions, RM42 is wasted and detrimental to the brand.
• Relevant case studies
• How to build successful JBP/business reviews with retailers.

It's important to note that the solutions showcased to answer key questions through the Path to Purchase journey are customisable and tailor-made to identify the key business opportunities for your key accounts.

The best way to showcase the monetisation opportunities within the journey was through interactive activities where participants could Connect, Engage, and be Hands-on. This approach was engaging, fun, and informative, as most participants felt from the feedback collected at the end of the seminar.

For more information, please get in touch with the Kantar’s Advanced Analytics team in Malaysia or your regular servicing team.

As consumers continue to face difficult purchasing decisions due to economic uncertainties, the importance of brands cannot be ignored. Brands that connect with us on a human level have the power to influence our decisions and create a sense of loyalty. That's why this year, why we've produced our most comprehensive Brand Footprint report ever, examining over 500 brands in Malaysia to uncover the secrets of brand resilience in this challenging market.

Inside the report, you'll discover the top FMCG brands in Malaysia, including rising stars within each sector of the FMCG market. We've ranked both the most chosen and the top-growing brands in the Malaysian Peninsular, providing you with valuable insight into their growth.

Despite the unpredictable events of 2022, certain brands and manufacturers have continued to thrive by understanding the tactics needed to secure shoppers during these post-pandemic times. This report examines the factors that have generated successful products and provides insights on how to continue securing consumer choices in 2023 and beyond.

Are you ready to gain valuable insights on the top-performing FMCG brands in Malaysia? Read the Brand Footprint Malaysia 2023 report today.

READ THE REPORT

WATCH THE WEBINAR

Note:  All FMCG brands (min 1% penetration) Peninsular Malaysia - Data up to MAT October 2022

In a year where shoppers made the same number of brand choices as they usually do, it turns out there’s an important difference: they’re increasingly opting for smaller and newer brands. And while half the brands globally are winning and half are declining, a staggering 91% of the winners improved their household penetration. So what does all this mean for your brand? 

Here are just some of the pieces Worldpanel’s new report reveals: 

• Sprite’s success story: Adding 33.8 million new shoppers globally
• Disrupting the market: Discounters on the rise
• Underdogs making waves: Small brands challenging the industry giants
• Regional influences: The impact of local nuances and consumer preferences on brand success
• Brand rankings galore

Be among the first to access the 2023 Brand Footprint report.

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.

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

The market is open once again, but FMCG brands in Malaysia are still facing obstacles to growth, with a decline in value for total in-home groceries in 2022. Now it’s time to turn our focus to the year ahead. 

In our new report – 2023 Malaysia FMCG Outlook – we explore the impact post-COVID normalisation of shopping behaviour and rising inflation will have on the market. We can already see evidence that consumers are becoming more cautious and selective in their spending, and a trend for ‘buying less and shopping more’ is emerging. 

You will learn about:

• The key drivers motivating Malaysian shoppers right now
• How to ensure they consider your brand – and then convert them in store
• Understanding how relevant your brand or category is to shoppers
• How different income groups are responding to market dynamics
• The evolving channel landscape
• Three top tips for thriving in 2023

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.

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

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. 

Read the report

With inflation as a Continuous and Rising Pressure for most in Malaysia, shoppers across the income spectrum are facing significant financial pressures. These shoppers are coping dynamically to the changing landscape with implications on; Total expenditure on FMCG Products, Retail Channel Dynamics, Promotional Reactions, Pack Size selection in addition to others.

With inflation levels hitting significant highs in the recent months, those who are under the most financial pressure have cut down their Total FMCG spend by 4.5% in the latest year. This is also true for those who are currently coping, but expect to be under financial pressure in the near future. This group of shoppers have cut down FMCG spend by 4.7% in anticipation for future pressures. 

Due to the complex dynamics of Pressured Shoppers, it’s important to understand where and what they are currently buying and how they have reacted to the inflation from shopper data, to mitigate the threat of category / brand relevancy loss.

Worldpanel Division, Kantar Malaysia hosted the Shopper Excellence Summit 2022, which was held in Pavilion Hotel Kuala Lumpur on 13^th October 2022. A total of 62 attendees from the FMCG industry, had joined us at this event.

The take-home FMCG industry experienced unprecedented growth in the last 2 years due to the pandemic. Being at an all-time high, it’s more important than ever for marketers and brand owners to be more focused on sustaining their business growth for the coming years.

Hence, this year, we showcased the importance of shopper-centric marketing in brand building to the industry players. Where we shared with them the shopper marketing principles and how can a brand owner embed shopper insights into their business planning and decision-making - putting the shoppers first and being a brand that is relevant to them.

The summit featured presentations from Kantar Experts on topics:

1. 3 Shopper Marketing Secrets by Daniel Lee, Business Development Director
2. Where are the Malaysian Shoppers Right Now? by Chin Tsze-Tsze, Account Director
3. What is the Missing Link to Brand Building? by Ang Jia Jian, Business Development Manager
4. What is a Shopper Panel? by Teoh Choon Keat, Account Director  

“Only 1 out of the top 15 brands in Malaysia, has been consistently growing for the past 10 years.” 
-Kantar Brand Footprint Report 2022-

Shopper Excellence Summit 2022 is an excellent opportunity for industry players to learn more about Kantar’s services and capabilities and how Kantar can help identify business opportunities to grow their business.

Contact our expert to learn more.

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. 

The world’s most environmentally conscious households – Eco Actives – have declined in number for the first time, based on the findings from the fourth edition of our global Who Cares? Who Does? report. In this webinar we’ll investigate the factors driving this trend – including inflation – and explore the areas where we still see growth for FMCG brands and manufacturers.

Our host will be Natalie Babbage, LinkQ Solution Director and Sustainability expert at Kantar’s Worldpanel Division. She will present the results of this unique study, which focuses on the FMCG sector and connects claimed product and attitude data to real purchasing trends from our purchase panels to provide an accurate picture of consumer behaviour. Our action-based Eco segmentation, meanwhile, helps us to identify and profile the people who are going to be most receptive to your eco strategy.

You will be inspired by case studies of real brands in the market that are expanding the sustainable product space, and gain clarity on some of the areas which are moving more slowly, and the practical barriers blocking further growth.

By the end of the session you’ll have learned:

• How economic uncertainty is impacting people’s sustainable behaviour
• What has been driving the areas of positive change
• Which sustainable trends and brands are emerging and which are slowing in momentum
• Case studies of how brands are winning with their sustainability strategy

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

The economic turbulence from inflation across Asia is still present, with price increases witnessed in many markets. FMCG value spending in the region can still post healthy growth, with a maintained level of 3%. The growth driver mainly comes from the Southeast Asia region, which is 1.2 points higher than the overall region’s FMCG value.

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.

Most importantly is to quantify the impact of each aspect i.e. how much shoppers cut down volume purchase, how much do shoppers opt for cheaper options and cheaper channel etc, so that brand owners can learn how to prioritize and adjust brand strategy accordingly.

With highest ever inflation by P6’22 at 7.7%, Malaysian shoppers have genuinely cut down purchase volume by 10.8% while moving purchase to cheaper options at 2.8% which are the key reasons to pull down FMCG performance in Q2’22 YoY. Different category would have different behavioral change, how does inflation impact your category shoppers? Talk to your client service team or contact us to find out more.

Cynthia Su, Experts Solution Director and Hoo Teng Huei, Account Director, Kantar Malaysia, Worldpanel Division was the speakers at BFM Brandfest 2022 "Building Future Marketeers" on 19 July 2022.

In this 2-part presentation, the FIRST PART explores how consumers are settling into the endemic phase and how their shopping behaviour will take shape from now into the near future. It offers key advise about making informed decisions in order exploit the pockets of opportunities! The SECOND PART shares data about the challenge of inflationary pressure that is affecting both consumers and brands. Growth is anticipated despite price increases. How will consumers react and what should marketeers do is the focus of this presentation.

Download the presentation (lite version) or contact us for the full version. 

Note:
1. Most Chosen Brands and Top Growing Brands are based on the brand over 6 million CRPs.
2. Top Growing Brand within Dairy based on over 5 million CRPs. 

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. 

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

Discover the latest insights and rankings from this year’s publication:

READ THE REPORT

Find out our interactive data tool for exploring global, regional and sector rankings.

Kantar has announced Global Brands of the Decade at Cannes Lions International Festival of Creativity.
 

2022 is the 10th anniversary of Brand Footprint – Worldpanel’s ranking of the most-chosen FMCG brands in the world. 

To mark this occasion, we are releasing a special publication to showcase the global brands which have demonstrated the most extraordinary performance over the last ten years. 

You will discover that these top performing brands have grown their reach by 31% over the decade, compared to just 16% for the rest of the branded market, and that they accounted for 11% of all FMCG brand growth. 

Brands of the Decade is a celebration of the biggest successes in FMCG, uncovering 11 unique stories to inspire and drive brand growth. 

Read on to find out who the top-performing brands are, and what they have done consistently to achieve growth.

We measure the top 100 brands (by market) for each of following sectors: beverages, food, health and beauty, homecare and dairy. Are you interested in discovering their stories?

Book a free consultation with our experts

For the 10^th consecutive year Coca-Cola remains the most-chosen brand on the planet followed by Colgate and Maggi.

Worldpanel’s annual Brand Footprint study, a detailed analysis of global shopper behaviour in 2021, finds that households consistently focused their brand choice on just 55 brands per year. Becoming one of these ‘Go-to groceries’ brands is key to growth for FMCG brands. For consumer brands, the list of ‘Go-to groceries’ - which is unique to each household means if you’re out of the list, you’re out of consumer’s attention. 

This year’s study, our 10^th edition of the report, provides us with three fundamental truths for how we purchase grocery products. 

1. The number of brands shoppers buy has remained consistent over the decade with the average household choosing just 55. The challenge is how to enter a shopper’s portfolio which changes every year.
2. Increasing your household penetration rate is the best way to grow and the only way to consistently grow year-after-year.
3. Success for small brands means increasing household penetration by 0.5% per year within a market, and for more established brands 1.5%.

However consistent growth is very hard to achieve. From the Top 50 most chosen global brands, only two have seen growth in each of the ten years we have produced this report. A big congratulations to both Dove and Vim, from Unilever, for achieving this remarkable feat.

Top performing brands of 2021            

For the 10^th consecutive year Coca-Cola remains the most-chosen brand on the planet, purchased 6.6 billion times globally during the year, up 3% year-on-year, based on take-home grocery sales. Colgate remains second most chosen brand, and is the brand which is present in most households with 57.3% of the world buying at least once per year. After a one year break, Maggi returns to top 3 most-chosen brands, being purchased 3.4 billion times, up 11% year-on-year and saw the biggest global penetration increase (1%) of any brand. Their penetration gain was thanks to increases in nine of its ten biggest markets, and in its two biggest markets, India and Philippines, the brand gained +3.3% and +3.2% penetration points respectively.

Performance highlights

In 2021, households around the world made 416 billion brand choices, growing 1.4% vs 2020. The global top 10 brands represented 7.4% of all purchases, (growing 3.2% year-on-year), while the global top 50 represented 17.2% (growing 1.8% year-on-year). 

Close-Up and Cheetos are the latest brands to join the ‘one billion’ club, reaching the milestone of being purchased more than one billion times in the year. Twenty-eight brands have now reached this milestone, up from sixteen in 2012. 

In 2021, 27 of the top 50 global brands grew. Brooke Bond was the fastest growing top 50 brand of the year, with 24% growth, being chosen almost 1.5 billion times thanks to continuing strong performance in India, lifting the brand seven places in the Brand Footprint ranking to #14 position. Philadelphia joined the top 50 global brands (#48), being chosen 680 million times, up 5% year-on-year. Gatorade re-entered the top 50 in 2021, with 6% growth lifting it to the #47 position, for the first time since 2013. 

Red Bull saw the biggest CRP gain outside of the top 50 brands, with a +16% increase in CRPs, which equates to being chosen 77M more times, the joint 10th biggest increase seen globally and moved up 13 places in the rankings to 65th. This strong performance is a continuation of growth it has seen for the last four years, increasing CRPs by 170M since 2017.  

India continued its growing importance to the top 50 global brands, representing 23% of purchases in 2021, up from 21% in 2020 (growing 10.8% year-on-year), while the US saw a fall in its significance from 19% of purchases in 2020 to 18% in 2021 (growing 0.8% year-on-year). Despite contrasting performances, these two markets still remain key representing 4 in 10 brand choices made for the Top 50.

The biggest brands continued to show their strength and resilience in 2021 outperforming the rest of the branded FMCG market. This isn’t a one-off either. Over the last decade they have increased their global reach by 11%, compared to 8% for the Top 50 as a whole. To become a global powerhouse, brands need to achieve some increasingly difficult goals. Global penetration rate of at least 30% is required to join the global top 10 brands, alongside a purchase frequency of at least six times per year per household.

To learn more:

Access the ranking of the most chosen global brands

Read all Brand Footprint reports

Watch the webinar

Or contact our experts. 

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

And discover all our findings and how we can help your business:

• Watch the webinar English | Spanish
• How we can help?
• Contact our experts

• A look at the size and growth of the main Beauty categories and how changing usage occasions impacts their performance
• Understanding the factors driving changes in behaviour – such as longer hair among females and an increasing number of people with facial skin conditions
• The trend towards ‘natural looking beauty’ and how this differs across the world.

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. 

Data Source: Kantar Worldpanel

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. 

Data Source: Kantar Worldpanel

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.

FMCG spending for in-home consumption in Asia continues to grow by 3.2% in the second year of the pandemic, higher than the growth of 2.9% in 2020, reported in our latest issue of Asia Pulse.

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.

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

• 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? 
• What are the key drivers of shopping behavior during Festive?  Do we see higher frequency, more transactions, or more spend? 
• In terms of products and categories, has consumer preference changed? Are there new sectors that have risen in importance due to the pandemic?
• 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?
• 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% in the Asia Pacific region in the third quarter, according to our latest Asia Pulse data that looks at the performance of food, drink, and other FMCG categories. 

Beverages shone brightly as the fastest growing sector, recovering rapidly with a 5.3% increase in value. This was 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 during Q3. Meanwhile, Food and Home Care slowed down following their peak in 2020.

Convenience channel formats – especially ecommerce – continue to perform well, leading growth in the APAC region with a significant increase in transactions.

Reviewing the performance of each market in depth, the report reveals the following:

• Chinese Mainland: Instant retail (online to offline or O2O) has maintained a strong growth trend since 2020, with 57% of urban households using O2O home delivery services to purchase FMCG products 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.
• 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.

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.

Beauty is a highly developed category within Asia, but it never stands still. COVID-19 has driven many shoppers to become more digital savvy – and brands must not get left behind. Our webinar – Digital ecosystems for Beauty: How to play to win – will provide the vital knowledge you need to understand how to build your brand’s presence in the e-retail environment, and to grow business.

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

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.

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.

Total FMCG value sales rose by 4.5% year on year, an improvement on last year’s growth of 3.1% over the same period. Beverages was the star performer, with a 6.1% increase in spend; a big turnaround compared with 2020 when value sales dropped by 3.1% due to the first wave of COVID-19 hitting the region.

Food, dairy, home care and personal care also achieved growth of between 3.9 and 4.8 percentage points each. Home care sales climbed by 4.1%, with growth remaining high following 2020’s peak increase of 8%, indicating that hygiene concerns due to the pandemic remain high.

Growth across Asia Pacific was largely driven by shoppers in the Chinese Mainland, where FMCG value sales grew by 4.2% compared with the same period in 2020. Only the UAE and the Philippines reported declines, of 5.1% and 4.8% respectively.

Reviewing the performance of each market within APAC, 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.

• Taiwan: A new wave of COVID-19 helped to drive total FMCG sales upwards, as shoppers stayed at home and stockpiled goods.

• South Korea: The beverages category grew significantly due to restrictions on OOH, with the majority of growth coming from online channels.

• India (Urban): Dairy reported the fastest value growth, followed by personal care.

• 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.

• Thailand: Financial support provided through government subsidy programmes encouraged shoppers to spend more; the take-home FMCG market grew by 2.7%.

• The Philippines: As mobility restrictions eased, shoppers returned to their favoured sari-sari stores (mom and pop stores), but remain open to smaller formats.

• Vietnam: Emerging channels including online and mini-markets have gained share. 

• Brands under Food Sector are enjoying good growth as shoppers are reprioritizing their spend during “Stay at home” economy
• Bigger brands enjoy faster growth. Plan smart: look at your current brand penetration and set an appropriate target
• Penetration remains the key in driving the growth for majority of the brands regardless of brand size

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 the non-food sectors.

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

• 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. 
• 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. 
• 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.

Within the report, we provide a quarterly update of FMCG market across Asia, including a variety of categories across China Mainland, Indonesia, Korea, Taiwan, Vietnam, Malaysia, Thailand, Philippines, India, Saudi Arabia and United Arab Emirates.

In this latest report covering the period Q4, 2020 we capture the highlights as follows:

• 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.

• 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.

• 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.

• 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.