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ASIA PACIFIC CONSUMER SPENDING ON THE RISE; TOTAL FMCG SALES UP 6.5% IN Q3 2018
Jakarta, 26 December 2018: The latest Asia Pacific FMCG growth figures released recently by Nielsen indicates consumer spending is increasing across the region, with total FMCG value growth up 6.5% year-on-year in the third quarter, compared to 4.9% in the previous quarter. Average FMCG prices increased by 2.1% in the same period, compared to 2% in the previous quarter, and volume growth in the region reached 4.4% compared to 2.9% in the previous quarter.
The Q3 2018 Nielsen Quarter By Numbers Report, which looks at the overall FMCG landscape across 65 markets globally along with changing economic trends and consumer sentiments, reported India, Philippines and China posted the region’s highest year-on-year value growth in the third quarter (16.5%, 8.4% and 7.3% respectively).
Asia Pacific consumer confidence was marginally up in the third quarter (up 2 pts to 114), buoyed by increasing optimism about local job prospects, personal finances and spending intentions. Malaysia posted the region’s strongest uplift in consumer confidence (up 10 pts to 127), followed by Thailand (up 10 pts to 112) and Vietnam (up 9 pts to 129).
“Domestic consumption continues to hold enormous potential in Asia Pacific, along with export opportunities,” observes Laura McCullough, Marketing and Sales Effectiveness, Nielsen. “Overall strong GDP growth, double digit average wage growth and an expanding consumer class that is looking to improve their quality of life will push consumption into new product categories in FMCG, and help to drive growth for the industry overall.”
Indonesia economy shows steady GDP Growth at around 5% and consumer confidence remain stable at an index of 126 in Q3 2018. Post-festive celebration in Q2, FMCG has returned to previous growth levels with volume consumption declining at -1.6% versus same time last year. Top five Super Categories Performance in the quarter included Home Care (+1,9%), Beverage (+1,5%), Foods (+18.2%), Pharmacy (+1.0%) and Personal Care (+1.0%).
Based on the Consumer Channel Performance, minimarket shows growing performance at 7,4%, while General Trade and Hyper/Supermarket are slightly decline, by -0,6% and -5,2 respectively. Indonesian’s consumer channel preference shifts from large to small format, driven by three main considerations - good product assortment, competitive price and easy access from residential area.
In terms of consumer groups, while mature families (≥35 years) are able to maintain spending patterns, younger consumers (< 35 years) are reducing spending and consumption especially for categories such as Instant Food, Ready To Drink Beverages, Basic Personal Care and Pharmaceutical. it is very important that manufacturers start to reach out to younger consumers differently to drive engagement and spend. Ensuring companies innovate with the optimal assortment of products, at the right price and in the right way will be key to winning younger consumers.
A Message for Journalists and Editors:
Nominal growth, volume growth and unit value growth figures in this release are based on offline FMCG sales. FMCG value growth figures for China are calculated based on data collected in offline sales channels.
About Quarter by Numbers
The Nielsen Quarter by Numbers report presents changing economic trends (including key performance indicators such as GDP and inflation), consumer optimism and spending intentions, and a snapshot of the fast-moving consumer goods (FMCG) industry that includes overall FMCG trends, as well as specifics by retail channel, super category and manufacturer tier performances. This report is available across five regions covering 65 markets around the world: Asia Pacific, North America , Latin America, Africa & Middle East and Europe. Insights and data presented in this report helps retailers and manufacturers to uncover areas of potential growth.
Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.
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