FMCG Monitor Q2 2022

Key market highlights:  

GDP thrives in Q2 2022; however, given the unforeseen COVID-19 situation, Vietnam’s economy is affected to some degree, resulting in CPI rising above 2% this quarter, potentially posing a new wave of challenges in the upcoming months.

Spending on in-home FMCG rises in Q2 2022 thanks to the increase in average paid price; however, volume consumption remains low.

After benefiting greatly from stockpiling during the COVID scenario, Dairy and Packaged Foods face a fall in volume consumption in Q2 of 2022, when the new normal has become familiar. In line with the total FMCG market, the increase of paid price is the primary driver across all sectors.

Dairy and Home Care shine brightly in Rural, propelling FMCG performance, while others experience stagnation. Similarly, average paid price is the main driver of the Rural market growth. 

Beauty care is recovering from a decline in 2021 particularly thanks to several facial care categories that recorded double-digit growth in two consecutive years.

       4. Retail landscape

Emerging channels, including Online and Ministores, continue to strengthen their position in both Urban and Rural in Q2 2022, thriving with two-digit numbers. Additionally, while large formats experience a decline in urban, H&S in Rural bounces back strongly with phenomenal growth.

       5. Spotlight

Fresh Food’s value triples FMCG market Up to 51% household buy branded rice and 18% buy branded meat showing the opportunity for Fresh food manufacturers to turn to branding to communicate value to their customers.

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

(2) Data is including gift.