Southeast Asia is important to producers of Consumer-Packaged-Goods (CPG) for several reasons. These include:
- Size of the population
- Relatively young population
- Significant GDP
- Rapid growth rate of their economies
- Large size of general trade
Southeast Asia region: Southeast Asia is the geographical southeastern region of Asia and consists of the following countries: Singapore, Thailand, Indonesia, Malaysia, Vietnam, Laos, Cambodia, Myanmar, Philippines, Brunei and Timor Leste.
Types of economies: Except for Singapore, all other countries in this region are deemed to be developing economies.
Important Statistics:
(Source: World Bank and Worlddata.info)
Retail Landscape: The retail channel landscape in Southeast Asia is shaped by three primary channels: modern trade (minimarkets, supermarkets, and hypermarkets), convenience trade (small convenience stores such as 7-Eleven, Family Mart, KK Super Mart) and general trade (local markets, traditional stores, and sari-sari stores).
Where modern trade is dominant: Singapore, Thailand (urban).
Where general trade is dominant: Thailand (rural), Indonesia, Malaysia, Vietnam, Laos, Cambodia, Myanmar, Philippines.
Convenience Trade: Convenience trade has become a serious channel. What distinguishes them is the range of services offered such as the ability to pay utility bills, renew road tax documents, buy coffee and heated meals, etc. For many people, a visit to their neighbourhood convenience store can be several times a day. They are located right across the landscape, both rural and urban.
Online trade: The e-commerce market in Southeast Asia is projected to reach over $150 billion by 2025, with annual growth rates often exceeding 20%. However, CPG and FMCG trade is a much smaller part of the overall online trade.
Looking for analysis, insights and direction into Southeast Asia or to discuss your needs, and see how we can assist, contact Steve Johnson, Managing Director at Frontline Research Group on Tel: +230 5493 6376 or email: steve@frontlineafrica.com
