Demand in Asia for local FMCG products is growing at twice the speed of global brands in a market where consumption is slowing, a report from Kantar Worldpanel claimed today (16 October).
Sales of lines made in Asia increased 8%, compared to growth of 4% from global brands, Kantar said. The rise in FMCG consumption across Asian markets is slowing – halving from 10% in 2012/13 to 4.6% in 2014/15.
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Local brands now account for 74% of total FMCG spend in nine of the biggest Asian markets, with food making up nearly a third of the top ten categories that have increased their sales penetration in the last year.
The findings are the result of Kantar Worldpanel’s Asia Brand Power 2015 report, which claims to be the first study of its kind to track the importance of local versus international brands in the Asian market.
Local food and beverage brands have the strongest influence over shoppers accounting for 85% of the Asian market thanks to their ability to cater for local tastes and palate, said Kantar.
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Of the ten Asian FMCG brands that grew their penetration the most within their home market, three of the biggest categories were in food.
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By GlobalDataIn second place were snacks and biscuits from Garuda, the Indonesian brand, that saw 8.9m more people buying its products. This compares to the number one brand, Bluemoon’s fabric detergent from China, that increased its penetration by 10.2m.
The other food brands in the top ten were Chinese group Bright Dairy's dairy products in seventh place, which increased distribution by 5.4m people. In ninth place, were salt and spices from Tata in India, which increased penetration by 4.7m people.
Marcy Kou, the CEO of Kantar Worldpanel's business in Asia, said: "There are 4.4 billion consumers in Asia. The more brands can win as customers, the closer they’ll get to winning the battle for dominance in the FMCG market. Local players are currently winning the game, and we've examined the journeys of those that have achieved the most significant sales growth and household penetration in their respective markets."
