The rapid economic growth in Asia has resulted in increased consumer spending. Over the next decade, we can expect continued economic spending in Asia especially as the middle class widens. The economic, industrial, and social reforms have transformed the lifestyle and consumption patterns of consumers in the region. Various changes in the demographic, economic, and technological landscape in the CPG industry in Asia have also given rise to new CPG industry trends. Lured by the growth prospects, several foreign companies have already begun planning their market entry strategies into the Asian CPG industry. For such companies, it is vital to scrutinize and be watchful of the CPG industry trends and formulate strategies accordingly.
To gain a competitive edge and survive in the fiercely competitive Asian market, foreign companies must take a holistic approach inclusive of critical CPG industry trends and opportunities. Learn how our solutions can help!
CPG industry trends in Asia
Rise of ecommerce in the CPG industry
One of the most disruptive changes experienced by companies in Asia is the emergence of eCommerce. Ecommerce, which is well established in the West, is gradually expanding routes to the FMCG sector in Asia’s developing markets. Increased access to the internet and smartphones are fueling are presenting a valuable opportunity for brands to target and deepen their relationships with customers. Over the last year, this industry witnessed a steady growth globally, with China being one of the prime contributors to this growth. This change in consumer shopping preferences will greatly impact revenue.
Growth in premium goods segment
Luxury goods are becoming highly popular among Asian consumers, fueled by urbanization, higher GDP, and changing lifestyles. Although this was relevant earlier in the fashion industry, the premium segment is becoming one of the most attractive CPG industry trends to watch out for. Demand for premium FMCG goods is growing particularly in regions like China, where the demand for luxury purchases is on the rise even in smaller cities and rural areas.
While the opportunities in Asia’s emerging markets are exciting, the market terrain in these countries is complex and dynamic. Get in touch with our experts to learn how we can help you navigate the challenges and capitalize on the opportunities coming your way.
Changing demographics
The aging population is a growing concern in Asian countries. By the year 2050, a good majority of Asia’s population will comprise the elderly, soon making it home to the oldest population in the world. Such shifting demographics will imply a significant change to the CPG industry trends in the region. The demand for certain goods is likely to increase in the long run while the demand for some currently well-performing segments is bound to decrease. Such CPG industry trends must be considered for companies planning their market entry strategies into Asia.
Strong home-grown brands
Home-grown brands in Asia enjoy a strong and loyal customer base and will continue to dominate the CPG industry in the region. Some of these brands have even mastered effective customer targeting, flexible distribution, social media marketing, and customer engagement. Local brands understand regional consumers and mostly follow low-cost strategies while focusing on efficiency.
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