FMCG spending up 6.1% YoY in 2023

This is mainly driven by inflation.

Total spending on fast-moving consumer goods (FMCG), excluding fresh, grew by 6.1% year-on-year (YoY) during the period ending in March 2023, reaching $168b on the back of inflationary pressures, according to a Bain & Company report.

Bain noted that five out of eight markets covered posted an inflation average of over 6% in food and non-alcoholic beverages in the 12 months ending in March 2023.

These countries include the Philippines (8%), Thailand (7.5%), India (6.7%), Peninsular Malaysia (6.5%), and South Korea (6.4%).

ALSO READ: Online grocery sales growth slows in Asia

Taiwan China (5.6%), Indonesia (5%), and Vietnam (2.8%) reported slower inflation rates.

“The good news is that, across the region, consumers have largely been resilient and maintained their spending levels on FMCG,” the report read. “Since inflation peaked in most markets in June and July 2023, consumer confidence has started to improve,” it added.