FMCG Monitor December 2018
Plant-based drinks are on the rise
Key market highlights in December 2018 issues:
CPI decreases in December and achieves the target of under 4% for the full year. The domestic demand of consumer goods keeps up its momentum, posting a double-digit growth. Overall, Vietnam retains a macroeconomic stability with a growth of 7.1% in 2018 which is higher than the expected and hits the highest growth rate since 2011.
While Rural market is the growth engine of FMCG, showing positive movements, the picture in Urban 4 cities is opposite with the negative growth in volume consumption (units).
Dairy and Packaged Foods post a healthy growth in Rural, mainly driven by convenient categories which are expanding consumer base and uplifting volume consumption. Meanwhile, in Urban 4 cities, the volume consumption (units) of total food sector are under performing.
Plant-based drinks* is now a new trend. Despite the decline of Dairy sector in Urban 4 key cities, this segment enjoys a fast growth rate. Thanks to new product launches which are performing very well compared to the category average, plant-based drinks are penetrating much further and are promising to accelerate further with more players jump in.
*Including milk and soy milk with rice, nut, grain, seed added.
While the Urban market experiences a flat growth, modern trade achieves a robust growth of 22%. Its growth is continuously driven by the fast development of minimarket & convenience stores and the unstoppable expansion of online channel. In Rural, upgraded street shops with a larger space and a wider range of products continue recruiting more new shoppers.
Spotlight of the Month – Out-of-home channel strategy: Segmentation matters
Different age groups have different channel choices for out-of-home purchases. While convenience stores become an emerging place for GenZ to go out, Millennials favor coffee & tea shops which offer them a greater diversity of drinks. Furthermore, delivery (via phone or online order) is also a new way for working-age group to order drinks to consume away from home.
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.