Navigating Disinflation in Southeast Asia: How Consumer Firms Can Build Adaptive Resilience

Southeast Asia has grappled with rising inflation over recent years. However, this trend appears to be reversing, with recent data revealing declining inflation rates in markets such as the Philippines, Singapore, Vietnam, Indonesia, Malaysia, and Thailand. Against this backdrop of disinflation, the fast-moving consumer goods (FMCG) and retail sectors face a new set of circumstances, one marked by opportunities and challenges.

How can these sectors continue to offer value in an environment where consumer expectations are high, yet purchasing power remains constrained? Our latest report explores this key question by detailing the four significant shifts resulting from disinflation that are expected to influence the dynamics of the FMCG and retail sectors:
1. Reprioritization of volume as key growth driver
2. Realignment in spending priorities
3. Anticipated recovery in corporate actions
4. Heightened competition from emerging local challenger brands

We unpack what these scenarios mean for consumer firms in the region, providing insights on how they can adapt and build strategies that will enable them to capitalize on the current economic landscape and drive sustained growth.