FMCG Monitor December 2020

Key market highlights:

1. Economic indicators

Vietnam successfully limits the spread of COVID-19 from recent cases. The economy is in ongoing recovery coupled with well-controlled CPI (under 4%) and healthy growth of retail sales of consumer goods. Yet, there remains uncertainties of the pandemic, it’s crucial to keep an eye on market movements and monitor the impacts.

Export and Import are resilient despite this unstable situation. However, other indicators such as foreign investment and private operational businesses might need a longer time to go back to pre-COVID levels.

2. FMCG overview

FMCG market witnesses a stronger growth in both Urban and Rural compared to last year’s performance however gradually normalizing in short term.

Packaged Foods enjoy an impressive growth especially in Urban areas, continuously driven by cooking aids and convenient foods. Also, Dairy and Personal Care are doing well this year. This could be explained by consumer preference shift to health, hygiene and safety amid the COVID-19.

3. Hot categories

As consumers seek for good-for-health choices, juice milk has been blooming in both Urban and Rural market for in-home consumption over the last eleven months of 2020, thanks in part to nutrients and different flavors the product provides. The category growth is attributable to the expansion of consumer base, especially in rural areas

4. Retail landscape

Emerging channels and big modern retail formats remain an important role in driving FMCG growth in Urban 4 key cities. Modern retail keeps evolving with a significant share increase.

5. Spotlight: Road to rebound for BEER

In the context of COVID-19, BEER has been heavily affected, especially for out of home consumption. However, in-home occasions for Beer have potential to further invest. Tet season and modern trade format could be considered as a significant contribution to total category performance for in-home consumption.

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

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