FMCG Monitor Q1 2024: Tet 2024 fails to spark growth
The first quarter of 2024 witnessed a subdued performance in take-home FMCG despite a boost from the Tet 2024 (Lunar New Year) period. However, the underlying economic outlook remains positive, with consumer confidence in economic recovery reaching a five-quarter high.
Here are some key takeaways from Kantar's VIetnam FMCG Monitor report - Q1 2024 edition:
1. Economic indicators
Vietnam's GDP expanded by a healthy 5.66% in Q1 2024, marking the strongest Q1 growth since 2020. While slower than the previous quarter's 6.7% growth, this momentum indicates the country is on track to achieve its 2024 economic targets.
2. Consumer confidence
Fuelled by a positive economic outlook, consumer confidence in Vietnam's economic progress rebounded to its highest level in over a year. While concerns about household income have eased, worries about rising living costs, particularly due to the proposed electricity price increases, have emerged.
3. Take-home FMCG overview
Both Urban 4 and Rural areas experienced a decline in FMCG volume during Q1 2024, leading to an overall value setback in Total FMCG despite slowing grocery inflation. This decline was primarily driven by the food and beverage sectors, with stricter enforcement of Decree 100 on driving under the influence significantly impacting alcoholic purchases.
4. Retail landscape
Online gained significant short term retail value share in Q1 2024 and is steadily growing in the long term, positioning itself to be the future driver of FMCG expansion. In rural areas, large provision stores and specialty stores are growing in prominence over the years.
Want a deeper dive into Vietnam’s complex retail landscape and consumers’ evolving channel preferences? Join our upcoming Shopper Pulse 2024: Maximising opportunities at Point of Purchase webinar (available on-demand).
5. Spotlight on Tet 2024
While FMCG value during the 8-week period around Tet 2024 declined compared to the previous year, it still surpassed the peak of the 2019-2022 period. Notably, a significant portion of this decline can be attributed to reduced beer value in both urban and rural markets during the festive season.
Download the full Vietnam FMCG Monitor Q1 2024 report by clicking on the “Read the report” button on the side bar of this page.
Worldpanel Vietnam’s Household panel
The Vietnam FMCG Monitor series is powered by Worldpanel Vietnam’s household panel. We continuously track all information about household purchases of over 130 FMCG categories for in-home consumption.
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Contact our expert team and start leveraging consumer and market insights to grow your FMCG brand in 2024.
