Brand Footprint 2024: Decoding brand choices in Vietnam

A challenging year for FMCG growth, but resilience emerges

The year 2023 painted a challenging picture for Vietnam's FMCG market. After a strong post-Covid performance in 2022, Vietnam posted lower GDP growth of 5.05% in 2023. A slower than-expected recovery in demand for products from Vietnam’s key trade partners such as the US, EU and China put in a dent in the country’s manufacturing and export sectors. This resulted in waves of job losses, leading to increasing fears among households about their financial situation. With growing concerns over rising costs of living, income and job security, we saw a fundamental change in consumers’ spending priorities.

By Q4 of 2023 a significant portion (30%) of families reported financial struggles – the highest level of the post-pandemic era. While inflation showed signs of easing towards the year's end, its impact has lingered.

Amidst the challenges, some brands thrived

Despite a growth in total FMCG value compared to 2022, volume growth became a fading memory after a Q1 fuelled by the Tet 2023 season. The year concluded with consumers cutting back on FMCG volume, leading to negative Q4 value growth for the entire in-home FMCG sector.

However, while 46% of categories witnessed a decline in volume, a remarkable 44% managed positive volume growth, with half even achieving double-digit gains. The key to success? Adapting to a new consumer reality.

In the Vietnam Brand Footprint 2024 report, you will discover:

• A comprehensive ranking of the most chosen FMCG brands in Vietnam
• The winning formulas of growing brands in the new consumer reality
• Success stories of the most chosen brands and rising brands