FMCG Monitor November 2016
Urban FMCG market shows a recovery while Rural market experiences a slowdown
Key market highlights in November 2016 issues:
CPI in November posts the highest rate at +4.5%, compared to the same period last year, due to the price increase of crude oil. December’s CPI is forecasted to be higher than that of November due to the rising demand in goods serving upcoming festivals in the end of the year.
Urban 4 key cities FMCG market has recovered compared to the same period last year in both long term and short term. Rural FMCG market experiences a slowdown as a result of environmental disaster and water drought which occurred in the first half of 2016.
Key growing sectors are different between Urban 4 cities and Rural market. Packaged Foods and Home Care achieve outstanding performance in Urban while Dairy and Personal Care are growth drivers in Rural.
Liquid Detergent and Hair Conditioner are fast growing categories respectively in Urban 4 cities and Rural. Their growth is mainly driven by shoppers buying more volume than last year. There is still huge potential for both categories to recruit more buyers as currently only 1 in 5 people purchase them.
Ministores (including minimarket and convenience store format) keep their strong growth momentum and continue to gain market share in Urban 4 cities. Hyper & Supermarkets are expected to perform better in the last month with big shopping baskets thanks to the rising demand for Tet/ Holidays in the end of the year.
Spotlight of the Month
Kids take nutrition drinks as their daily basic, especially kids under 7 years old who drink nutrition products even more than twice a day. Adults over 50 years old also consider nutrition drinks as their daily need.
*Follow links on the right side of this page to download full reports and press releases in both English and Vietnamese.