FMCG Monitor Full Year 2021

03/03/2022

Key market highlights:

Economic indicators

Despite the strong hit of COVID-19’s Delta variant, 2021’s Vietnam economy sustains a positive performance, thanks to the fast economic recovery in Q4 coupled with the low CPI. Yet, 2022 might be still challenging as inflation is more likely to come back due to the rising oil prices and the number of unemployed people and suspended operations remains high.

FMCG overview

FMCG growth slows down compared to last year’s peak as not much change in volume consumption.

In the short term, consumer spend on FMCG continuously posts a high growth in Q4 compared to the same period last year, mainly driven by the increase of average paid price – the highest rate over the past 4 years.

In the second year of the pandemic, Packaged Foods and Dairy continue driving the market growth in both Urban 4 key cities and Rural areas. Meanwhile, Beverages suffer a negative impact in the wave 4 of pandemic, especially in Rural.

Hot categories

The increase of average paid price is witnessed in many FMCG products and Sugar in particular.

In 2021, Sugar achieves a robust growth which is mainly driven by the double-digit increase of average paid price.

Retail landscape

Convenient retail formats such as Online and Minimarket keep winning consumers' choice amid the social distancing periods. Together with an impressive growth, these channels are gaining in importance in today’s retail landscape in Urban areas.

The similar picture is also observed in Rural areas with the expansion of emerging channels like online and minimarkets.