Asia Pacific Overview

General Information

1

ECONOMY OVERVIEW

2

Real GDP Growth (%)

Source: IMF

Country 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

China 9.6 9.2 10.4 9.3 7.7 7.7 7.4 6.8 6.5 5.9 5.7 5.2

Japan -1.1 -5.5 4.7 -0.4 1.7 1.6 -0.1 1.0 1.7 1.2 1.7 1.5

India 4.1 8.3 10.3 4.1 5.1 6.9 7.3 7.2 7.1 6.8 7.8 8.5

Indonesia 7.4 4.7 6.4 6.2 6.0 5.6 5.0 4.9 5.1 5.2 5.5 5.2

Philippines 4.2 1.1 7.6 3.7 6.7 7.1 6.1 5.9 5.7 6.0 6.1 6.3

Singapore 1.8 -0.6 15.2 6.2 3.4 4.4 2.9 2.5 2.8 3.5 3.9 4.2

South Korea 2.8 0.7 6.5 3.7 2.3 2.9 3.3 2.8 3.0 3.1 3.2 3.0

Taiwan, China 0.7 -1.6 10.6 3.8 2.1 2.2 3.8 1.3 2.0 2.2 2.3 2.4

Thailand 1.7 -0.7 7.5 0.8 7.3 2.8 0.9 2.6 3.5 3.7 3.5 3.5

Vietnam 5.7 5.4 6.4 6.2 5.2 5.4 6.0 6.4 6.5 6.6 6.5 6.2

Malaysia 4.8 -1.5 7.4 5.3 5.5 4.7 6.0 5.2 6.6 5.8 5.8 5.2

Australia 2.7 1.6 2.3 2.7 3.6 2.1 2.7 2.5 2.9 2.9 2.9 3.0

New Zealand -0.8 0.5 2.0 1.3 2.9 2.5 3.3 2.5 2.4 2.8 2.6 2.7

5.90%

5.66%

5.83%

5.59%

5.42% 5.41%5.36% 5.50%

5.69% 5.71%

5.00%

6.00%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Asia Real GDP Growth (%)

Source: Economist

DEMOGRAPHIC

• With the exception of India and the Philippines, the labour force in Asia will expand at a slower rate in the next decade, as compared to the previous decade. This will act as a constraint on faster economic growth.

3

Annual Labour Force Growth Rate (%)

0.0

50.0

100.0

2014 2019Urban population (% of total)

Country Aged 0-20 Aged 20-60 Aged 60+

China

Japan

Australia

India

Indonesia

New Zealand

Philippines

Singapore

South Korea

Taiwan

Thailand

Vietnam

Pakistan

Sri Lanka

Malaysia

Age Distribution (2019 vs 2014)

-2.9 5.6 6.5 8.7 -0.5 0.8 0 11.5 0.2 17.6 0.7 0 15.9 5.4

Source: Economist

WEALTH INDICATOR < Household >

4

0.0

25,000.0

50,000.0

Australia Indonesia Japan Malaysia New Zealand

Pakistan Philippines Singapore South Korea

Sri Lanka Taiwan Thailand Vietnam

$10,000 >Number of households earning >$3,000 pa ('000) 2014 2019

China India

0.0

150,000.0

300,000.0

0.0

15,000.0

30,000.0

Australia Indonesia Japan Malaysia New Zealand

Pakistan Philippines Singapore South Korea

Sri Lanka Taiwan Thailand Vietnam

$35,000 >Number of households earning >$10,000 pa ('000)2014 2019

China India

0.0

150,000.0

300,000.0

0.0

20,000.0

40,000.0

Australia Indonesia Japan Malaysia New Zealand Pakistan Philippines Singapore South Korea Sri Lanka Taiwan Thailand Vietnam China India

Number of households earning >$35,000 pa ('000)2014 2019

Source: Economist

FOOD & BEVERAGE MAERKET SIZE

• Low PH (Yoghurt & Sour Milk Products) will be fast growing in the next few years

• Neutral Dairy (Flavored Milk, Non-Dairy Milk) was quite popular in Asia and Pacific with an average volume growth of 8.8% in the last five years,however, will slow down its step in the next 5 years.

0

5000

10000

15000

20000

25000

300002014 2019

F&B Total Market Volume (‘000 tonnes)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2010-2014 2015-2019% Change

F&B Total Market Volume Growth (CAGR%)

5Source: Euromonitor

NEUTRAL DAIRY

6

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2010-2014 2015-2019

Neutral Dairy Total Market Volume Growth (CAGR%)

• India, China, Indonesia and Vietnam offer significant growth opportunities in the next five years, with an established volume consumption and strong average value growth.

• South Korea is the only market in the region that is predicted to suffer from a volume decline.

Category Definition: Flavored Milk, Non-Dairy Milk

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

Australia India Indonesia Japan Malaysia New Zealand

Philippines Singapore South Korea

Taiwan Thailand Vietnam

2014 2019

Neutral Dairy Total Market Volume (‘000 tonnes)

China

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

Source: Euromonitor

7

LOW PH

• China is the biggest market in terms of sales volume.

• Strong volume growth is expected to be achieved by a number of Asia-Pacific markets such as China and India.

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%2010-2014 2015-2019

Low PH Total Market Volume Growth (CAGR%)

0.00

400.00

800.00

1,200.00

1,600.00

2,000.00

2014 2019

Low PH Total Market Volume (‘000 tonnes)

China

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

Source: Euromonitor

ICE CREAM

8

• China is the standout market in the region over the next five years, with an established volume consumption.

• India & SEA market will be in the high speed growth in the next five years.

• The mature market of Australia is predicted to maintain a steady growth during the same period.

• South Korea is the only market in Asia that is predicted to record value declines over the next five years.

-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

2010-2014 2015-2019

Ice Cream Total Market Volume Growth (CAGR%)

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

Australia India Indonesia Japan Malaysia New Zealand

Philippines Singapore South Korea

Taiwan Thailand Vietnam

2014 2019

Ice Cream Total Market Volume (‘000 tonnes)

China

2,100.00

2,150.00

2,200.00

2,250.00

2,300.00

2,350.00

2,400.00

2,450.00

2,500.00

2,550.00

Source: Euromonitor

CONFECTIONERY

9

• India is the standout market in the region with a predicted average volume growth of 9.7% over the next five years. However, the Chinese market also offer strong growth potential with an established per capita consumption.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%2010-2014 2015-2019

Confectionery Total Market Volume Growth (CAGR%)

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

Australia India Indonesia Japan Malaysia New Zealand

Philippines Singapore South Korea

Taiwan Thailand Vietnam

2014 2019

Confectionery Total Market Volume (‘000 tonnes)

China

1,150.00

1,200.00

1,250.00

1,300.00

1,350.00

1,400.00

1,450.00

1,500.00

1,550.00

Source: Euromonitor

TOOTHPASTE MAERKET SIZE

0

2000

4000

6000

8000

10000

12000

14000

0

200000

400000

600000

800000

1000000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Volume

Value

10

• The volume & value gains were mainly led by India and Vietnam, where the growth rate is over 50%. The growth rate in China and Malaysia is around 30% which is also fast growing market.

• New products contributing to growth in value, which lead the market to be a high-end direction

Value US$ mnVolume '000 litres

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Volume Growth YoY %

Value Growth YoY %

Source: Euromonitor

11

Source:

The EconomistPWC ReportKantar World Panel ConsultantBain & CompanyNational DataIMF