Vietnam FMCG Monitor in May 2021
Vietnam economic growth shows a recovery in Q1, together with an average CPI at 20-year low. Other economic indicators such as FDI also rebound significantly in the first quarter of 2021. However, the number of suspended operations still increases, remaining challenges.
FMCG growth slows down in both Urban 4 key cities and Rural Vietnam, yet still growing at faster pace than pre-COVID-19 time. In short term, FMCG value in quarter 1 seems on par with that of the same period last year which was an all-time high driven by COVID-19 impact
As 2020 was a successful year for FMCG market, almost all key FMCG sectors experience either a decline or a slowdown in the first quarter of 2021 in comparison with the same period last year, except for beverages which show signs of rebound in Urban areas.
(*) The urban key cities: HCM City, Hanoi, Danang and Can Tho
Cooking oil achieves a healthy growth in both value and volume consumption, especially in modern trade.
Despite the slight decline of FMCG market in the first quarter of 2021, emerging channels sustain growth, especially online, outstripping more-established channels in Urban areas.
Spotlight: How did FMCG categories perform in 2020?
In Vietnam, more than one third of FMCG categories achieve a double-digit increase in 2020 under COVID-19, growing faster than pre-COVID time and even faster than average growth of FMCG market, driven mainly by hygiene, cooking and transfer from Out of Home.
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