FMCG Monitor October 2019

Key market highlights in October 2019 issues:

Key Indicators

Vietnam’s economy maintains a bright outlook with a low CPI rate under 3%. Domestic demand also shows a continued growth, reflecting a stability of consumer spending in 2019.

FMCG Growth

In long term, FMCG market speeds up in both Urban 4 cities and Rural areas. In short term, the market growth is driven by the increase in both volume consumption and the paid price with a slight slowdown in Urban 4 cities but a good momentum in Rural.

Personal Care keeps riding the growth wave in both Urban 4 cities and Rural. Dairy recovers in Urban market while achieving a strong growth in Rural. Noticeably, Beverages suffer a negative performance in Urban 4 cities.

Hot Category

Instant Coffee remains a healthy growth despite the decline of Beverage sector in Urban 4 key cities. Its growth is driven by the increased volume consumption. Meanwhile, Beer performs well in Rural, enjoying a double digit growth mostly thanks to the up-trading trend.

Retail Landscape

Emerging channels such as mini stores, specialty stores, online continue leading the FMCG growth in Urban 4 cities. In Rural, modernized street shops, specialty stores and hyper & supermarkets have expanded and recruited new shoppers while wet market shrinks.

Spotlight of the month – The important role of emerging channels in the fast-changing retail environment

Despite less than one fifth of FMCG spend allocated in emerging channels: online, mini stores, specialty stores; two third of total incremental spend come from these channels. It is expected to continue evolving fast and driving the future growth with new formats developing, aided by the advancement of new technology.

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

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