FMCG Monitor Q3 2023: Challenging year-end outlook

Vietnam’s economy continues to show encouraging signs of a better performance in the last half of the year, posting a 5.3% GDP growth in the third quarter of 2023. Consumer Price Index (CPI) in this quarter also inched up by 2.9% compared to the same period last year, driven by rises in petrolum and food prices.  

Consumer confidence about the economy has slightly improved, reflecting a brighter outlook. However, consumers are still conscious about their spending habits. As a result, while price increases are stabilizing, there is a decline in volume growth, except in non-food sectors, presenting persisting challenges for the upcoming Quarter 4.

This Q3 2023 edition includes the following key market highlights and more:   

1. Economic indicators: Vietnam's economy showed a brighter outlook, with a GDP growth of 5.3%. CPI increased within the acceptable level. However, retail sales growth of consumer goods and services stagnates. Experts have said it's going to be difficult for the country to reach its 2023 targets and even in the longer term of 2021 - 2025.

2. Consumer confidence: For the first time in 6 quarters, fewer families have reported to be struggling financially. In a more positive economic picture, consumer confidence starts to pick up. 

3. FMCG overview: With both price increases cooling down and volume growth stalling, value growth is taking a hit. Despite the more postive outlook, consumers are still cautious about spending, which may affect the year-end shopping season. 

4. Retail landscape: Modern trade formats maintain steady double-digit growth. The contribution of general trade, while still prominent, is shrinking over time. 

5. Sustainability in financially challenging times: In the beginning of sustainability in Vietnam, communicating the saving benefits of sustainable acts and making eco-friendly choices more available and affordable are key to help Vietnamese shoppers get closer to a sustainable lifestyle.

Download the full FMCG Monitor Q3 2023 report by clicking on the “Download” 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. 

With our single-sourced panel, we can uncover and link consumer attitudes and perspectives to actual shopping behaviour to develop a holistic brand strategy. Through our advanced solutions and analytics, you will understand who your shoppers are as well as how they shop and consume.  

Contact our experts to find out how you can unlock spaces of growth for your brand in a turbulent time for FMCG.