FMCG Monitor December 2019

Key market highlights in December 2019 issues:

Key Indicators

Vietnam economy shows an optimistic outlook in 11 months of 2019, achieving a well-controlled result of CPI growth together with a robust growth of retail sales of consumer goods. The economic growth is projected to hit a solid growth of 7% and is more likely to surpass 2019’s target.

FMCG Growth

In long term, FMCG market is getting its momentum back, thanks to the increase of volume consumption. Remarkably, Rural market returns to the double digit growth in short term, promising to post a stronger performance in 2019 than forecasted.

In yearly trend, a healthy growth is observed across all key FMCG sectors. Personal Care continues outperforming in Urban market (4 key cities) while Dairy surges impressively in Rural and is leading the market growth.

In short term, Beverage is the second growth driver in Rural market beside Dairy, however, the sector still needs more efforts to uplift volume consumption in Urban market (4 key cities) where there is a fiercer competition. The other sectors sustain positive growth in both areas.

Hot Category

Home Care sector witnesses a continued development in both Urban and Rural market with an outstanding achievement of Bathroom and Toilet Cleaner. The category enjoys a double digit growth in both value and volume consumption by adding new consumers into its consumer base. In spite of its good results, there is still room for further expansion.

Retail Landscape

Online, minimarkets and convenience stores maintain its important role in driving the FMCG growth in Urban 4 key cities. In Rural, wet market continues losing share to more modern channels such as specialty stores and supermarkets.

Spotlight of the month

Different brand choices for out of home consumption reflecting a low brand loyalty!

Looking at Energy drink, for example, which is highly popular for drinking out, there is a lower level of brand loyalty for out of home drinking occasions, compared to in home occasions. It requires more efforts from beverage brands to continually win at point of sale.

Urban 4 cities include Ho Chi Minh, Ha Noi, Da Nang and Can Tho.

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