FMCG market to see growth of 4%

                                                                Photo: Duc Anh

Latest report from Kantar Worldpanel Vietnam puts value growth in fast-moving consumer goods at 4% for 2016 as a whole.

Vietnam’s fast-moving consumer goods (FMCG) market is still expected to record 4 per cent value growth in 2016 as a whole, according to the latest report from Kantar Worldpanel Vietnam.

Key indicators

Wholesale and retail sales still grew ahead of GDP growth, which is forecast at 6 per cent for 2016, according to the General Statistics Office (GSO). CPI is expected to be approximately 3.5 per cent.

FMCG growth

The FMCG market (for in-home consumption) in urban four key cities - Hanoi, Ho Chi Minh City, Da Nang and Can Tho - is still growing a touch ahead of rural areas both in the long term and the short term.

In the short term, dairy is the main sector growing ahead of others, especially in rural areas, where dairy consumption habits are still far behind those of the urban four key cities.

                                     Source: Kantar Worldpanel Vietnam, October, 2016

Hot category

Liquid milk is the major category driving growth in the dairy sector. It triggers a bulkier basket among both urban four key cities and rural consumers, probably driven by more marketing promotions.

                                 Source: Kantar Worldpanel Vietnam, October, 2016

Retail landscape

Street shops continue to hold a strong position with steady growth in both urban four key cities and rural areas.

                                   Source: Kantar Worldpanel Vietnam, October, 2016

Spotlight of the month

Internet connection is spreading widely in Vietnam and is more accessible to the masses as smartphone ownership is also climbing very fast.

                                    Source: Kantar Worldpanel Vietnam, October, 2016

“In Vietnam, online FMCG has enjoyed double-digit growth in recent years from a small base and we expect this trend to continue,” Mr. Fabrice Carrasco, Managing Director of Kantar Worldpanel Vietnam, Indonesia and Philippines, said. “In less than three years it has developed to become a reality in the non-FMCG market, while a lot of experts were assuming the country was not ready for such offers to be successful.

Yes, he went on further, e-commerce is tomorrow’s reality of consumer goods products too, and the offers as well as the players are going to structure themselves quickly. "So get ready to make the first move if you are serious about it because it will be a reality quicker than you think," he added.

by Huyen Thanh / VET