FMCG Monitor Q2 2022

Key market highlights:

1. Economic indicators

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.

2. FMCG overview

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.

3. Hot categories

Though having some hard times under the impact of COVID-19, in-home consumption refreshment beverages recover strongly in Q2’22 and especially post a much higher spending level compared to pre-COVID time. 

In which, Juice, RTD Tea and Energy Drink are categories having best performance in last 3 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% households 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.