Kantar Worldpanel insights: Asia’s FMCG landscape in Q1 2025

According to Kanatar’s latest report on Asia’s FMCG market, the sector is showing cautious yet resilient growth, with a 2.8% increase in value during Q1. Though this marks a slight dip compared to last year’s performance, it reflects the region’s adaptability amid ongoing macroeconomic pressures and evolving consumer behaviours.
 

As the FMCG landscape becomes more complex and varied across Asia, brands must dig deeper into local contexts to uncover meaningful opportunities. Whether it’s tapping into the beverage boom, understanding online consumer behaviors, or responding to shifting spend patterns, there’s no room for generic strategies. Instead, granular insights and agile tactics will be essential to thrive.

FMCG growth
According to Kantar Worldpanel data, FMCG value grew by 7.1% in Q1, with volume increasing by 4.4% and average prices rising 2.5%. However, both value and volume growth have slowed compared to the same period last year. In India, a notable trend has emerged of consumers, particularly affluent households, shifting their spending away from FMCG products and into non-FMCG categories such as travel, dining out, and lifestyle experiences. Meanwhile, lower-income groups continue to focus their spending on essential goods, highlighting the growing divergence in consumption behavior.

Beverage sector 
Beverages led the FMCG charge in volume growth, driven by strong consumer demand. Squashes and powders saw a remarkable 42% increase in spend and a 40% rise in volume, while glucose powders and bottled soft drinks grew by 16% and 9%, respectively. These numbers reflect both increased health consciousness and seasonal preferences that are influencing shopper decisions.

Online shopping
The retail channel landscape remains largely stable, with traditional Kirana stores maintaining dominance. However, online shopping is steadily gaining traction. Online shopping occasions surged during the quarter, as did visits to chemists, a sign of changing consumer priorities. Despite this growth, the average spend per online shopping trip fell by 7%, suggesting a more cautious, need-based shopping approach rather than bulk buying or discretionary spending.

Overall
Unlike previous quarters dominated by singular regional trends, Q1 2025 tells a more fragmented story. Each country and category paints a distinct picture, underscoring the need for tailored strategies. While some markets witnessed stability in home care and food sectors, others saw a rapid surge in beverage consumption.