Vietnam FMCG News
Vietnam reported the second fastest growth in sales of fast-moving consumer goods (FMCG) in Southeast Asia last year, market research firm Nielsen says. At 5.2 percent it was behind only the Philippines (8.7 percent), and the global average was only 3.4 percent. Vietnam is forecast to be the fastest-growing convenience store market in Asia by 2022 with a growth rate of 37.4 percent, followed by the Philippines and Indonesia, according to market research firm IGD.
“Consumers throughout the region of Southeast Asia are living increasingly fast-paced lives, and this lifestyle shift is driving increasing demand for on-the-go offerings,” Vaughan Ryan, Nielsen’s Managing Director in Southeast Asia, said.
The FMCG market will remain strong in the long term in the country’s four major cities of Hanoi, Danang, HCM City, and Can Tho and see an acceleration in rural areas, according to Kantar Worldpanel, a global data, insights and consulting company.
In its latest FMCG monitor report, the company said though oil and electricity prices increased in April the consumer price index remained under control in the first four months, growing at the lowest rate in the last three years. Retail sales of consumer goods maintained their growth momentum driven by strong demand for foods and household appliances. All sectors sustained healthy growth, mostly thanks to an increase in volume of consumption. Personal care was the fastest growing sector in the four cities while dairy led FMCG growth in rural areas.
In the urban market, oyster sauce enjoyed impressive growth in terms of both value and volume at 19 per cent and 13 per cent. Ice cream consumed at home was fast expanding its consumer base in rural areas, partly thanks to the increasing number of households having a fridge with a freezer, with consumption going up by 6 per cent in volume and 12 per cent in value. The majority of the top 10 growing brands in terms of consumer reach points (CRPs) are successfully expanding their reach. These brands have been acquiring an impressive number of additional households by catering to consumers’ evolving needs centred around health, convenience and happiness and bringing them an enhanced shopping experience.
The top 10 fastest growing brands in CRPs in major urban cities are Aquafina, G7, Cholimex, Omachi, Tiger, Choco-Pie (Orion), Chin-su, Omo, Simply, while in rural areas they were One One, Diana, Simply, Chin-su, TH True, Milo, Saigon (Beer), Maggi, Tuong An, and Knorr. — VNS
Vietnam Economy * 2022 Forecast NDO - With trade and domestic production bouncing back despite negative impacts of the health crisis, the government is making its great efforts to continue reviving the economy, which is expected to take the lead in the region in...
Latest ArticlesLatesVietnamese Consumers & TET - Lunar New Year 2022 The outbreak of COVID-19 has brought upon unprecedented challenges and is having a significant impact on Vietnam in many aspects. GDP grew only 1.42% this year through September, with its...
VIETNAM & the PandemicLatest August 2021: Maintaining Operations As the fourth wave of the pandemic takes a toll on Vietnam, the Government has issued directives to ensure isolation and maintain production to ensure dual goals of containing the pandemic...