FMCG Monitor December 2016
Positive movement is captured in Urban FMCG market while Rural market faces decelerating growth in December 2016
Key market highlights in December 2016 issues:
2016 GDP reaching 6.21% did not meet the set target of 6.5%. However, 2016 CPI is better controlled at 2.67%, surpassing the CPI target of 3-4%. In addition, retail sales of consumer goods also maintain its double digit growth of 10% on average.
Urban 4 key cities FMCG market rebounds, compared to the same period last year. Meanwhile, Rural FMCG market continues to decelerate, driven by the shrink of purchasing volume.
Beverage sector was the fastest growing sector in 2015 but cannot replicate that performance in 2016 as it suffers a drop of shopping frequency in both Urban and Rural market. Packaged Foods and Home Care continue shining in Urban while Dairy and Personal Care are still leading the growth in Rural.
Ketchup and Facial Wash emerge in Urban and Rural respectively. These categories are attracting more buyers and see much potential to expand further as above 80% people have not purchased them yet.
Street Shops (medium-sized format in Urban 4 cities, small size format in Rural) and Mini-Stores (including minimarket and convenience store format) are still growing well. Hyper & Supermarkets continue rising to 5% in Urban areas and are expected to retain their momentum in Tet period.
Spotlight of the Month
Millennials, Stay focused?!
The group accounts for big portion of Vietnam’s population. Their lifestyle is different to the group >40YO. In FMCG, their value contribution to Vietnam* market is also higher than in other SEA countries, which is expected to increase further in the connected era.
*Follow links on the right side of this page to download full reports and press releases in both English and Vietnamese.