Unlock organic and sustainable FMCG volume growth in Asia Pacific 


Unlock organic and sustainable FMCG volume growth in Asia Pacific 

Recent years in Asia Pacific (APAC) saw fast moving consumer goods (FMCG) sales rise due to price hikes, impacting volume growth. However, with price increases softening, a crucial opportunity emerges for FMCG manufacturers to drive organic and sustainable FMCG volume growth in APAC. 

This article explores key takeaways from the insightful webinar, “Turning Up the Volume in Asia Pacific,” unpacking actionable strategies to achieve this goal in the dynamic APAC region.  

The evolving landscape of APAC FMCG 

The webinar highlighted several crucial trends shaping the APAC FMCG landscape: 

  • The spending-volume gap: Consumer in APAC are spending 13% more in 2023 compared to 2019 but are consuming 2% less. This indicates that consumers are spending more but buying less.  
  • Varied growth patterns There’s significant variation in volume growth across APAC markets. Countries like India, the Philippines, and Thailand are experiencing positive volume growth, while China, South Korea, and Indonesia face challenges. This highlights the need for a regional strategy with localized nuances. 
  • Rise of E-commerce: Across Asia Pacific, online retail is a growing force, accounting for 23% of FMCG sales in 2023 and projected to reach 25% by 2025. Traditional trade remains significant at 31.5%. 
  • Top factors influencing consumers where to shop: Value for money, low prices, fresh products, safe and hygienic, and convenient locations are top priorities for APAC shoppers. Manufacturers need an omnichannel approach to cater to these preferences. 
  • Category performance: Beverages lead the pack as the fastest growing category in terms of volume growth in 2022 and 2023. Laundry care, over-the-counter medications, and supplements are also showing positive volume growth in 2023. 
  • Price sensitivity and tiered growth: Products belonging to mass (price index of 41-80) and luxury price tiers (price index greater than 201) are experiencing volume growth. Mass products saw a 2.9% volume increase in 2023, while luxury products grew by 2.2%. 

The winning formula: Trust, convenience, digital, and sustainable 

The webinar identified four key themes that successful FMCG brands in APAC are leveraging: 

  • Building trust: Consumers prioritize trust, especially for foreign brands. Manufacturers can expand into new categories and markets while maintaining a consistent brand image. In today’s world, trust also means delivering a satisfying “out-of-home experience” through in-home products. 
  • Enhancing convenience: Convenience is a major buying factor for APAC consumers. Manufacturers can win by offering innovative formats, making their products accessible across evolving health needs, and creating a more frictionless experience throughout the consumer journey. 
  • Digital savvy: The APAC FMCG landscape is becoming increasingly digital. Manufacturers need to establish a strong online presence, leverage social commerce opportunities, and utilize online reviews and ratings to build trust and influence purchasing decisions. 
  • Sustainability as a Priority: Consumers in APAC are demanding more plant-based, natural, and ethical products. Manufacturers can cater to this growing demand by innovating with plant-based options and prioritizing sustainable practices throughout their supply chains. 

Turning the tide: A call to action 

The APAC FMCG landscape presents both challenges and opportunities. By understanding these key trends, focusing on the four winning themes – trust, convenience, digital, and sustainable practices – and implementing effective strategies, FMCG manufacturers can achieve organic and sustainable volume growth in the years to come. 

Ready to delve deeper? 

Explore the full webinar to gain a comprehensive understanding of the APAC FMCG landscape and discover additional insights to fuel your brand’s success

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