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FMCG Monitor April 2018

04/06/2018

FMCG market is forecasted to grow at +5% in 2018 

Key market highlights in April 2018 issues:

Key Indicators

CPI increases slightly over last year, with government’s efforts CPI was kept stable during the first 4 months of 2018. Retail sales of Consumer Goods continues to sustain healthy growth. The growth is noticeable in Urban 4 Cities, such as Ho Chi Minh (+12,8%), Da Nang (+12%) and Ha Noi (+10%). This reflects a steady growth of local demand for consumer goods, which helps boost economic growth.

FMCG Growth

The FMCG market decelerates in both Urban (4 cities) and Rural. In short term, Rural market is back to lead the growth while Urban (4 cities) market still grows but at weaker pace, compared to the same period last year (the highest peak since 2015). Overall, total FMCG market is forecasted to grow at ~+5% in 2018.

Personal Care is leading the market growth in both Urban 4 cities and Rural, followed by Beverages. Though all sectors record positive performance in Rural, Dairy and Packaged Foods experience negative growth in Urban 4 cities. However, categories bringing new things and favoring convenience still retain good achievements in Urban market such as Cream Desserts, Ketchup, Cheese and Chili Sauce, …

Hot Category

Cakes stand out with double-digit growth in both Urban (4 cities) and Rural market. The category has reached a wider consumer base as well as uplifted volume consumption. Consumers could treat Cakes as a quick meal or a break-time snack with nutritional ingredients, this promises opportunities for this category to grow further.

Retail Landscape

Modern channels continue to expand rapidly with more local and international players stepping into the race. The rise of Ministores in Urban 4 cities reflects the consumers’ demand of convenience and fast service. Noticeably, online channel also enjoys impressive movement, gaining one share point and adding nearly 98 thousand urban households to its shopper base. This could be a sign of another interesting year for modern trade development.

Spotlight of the Month – More Innovations, more efforts?

The FMCG market is much more innovative over time, especially Personal Care and Packaged Foods sectors. Constant innovation is always essential to respond to the changes of consumers’ needs and expectations. However, not many recent launches can hit the trial base as before and some even struggle to keep buyer repurchasing, indicating less successful innovations. The market is in need of TRUE innovations!

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

*Follow links on the right side of this page to download full reports and press releases in both English and Vietnamese.

FMCG market is forecasted to grow at +5% in 2018

FMCG market is forecasted to grow at +5% in 2018

Author

David Anjoubault

General Manager - Kantar Worldpanel Vietnam

 

+84-8 3930 6631

Contact the author

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