FMCG Monitor January 2021
Key market highlights:
- Economic indicators
Thanks to well coping with COVID-19 pandemic since the very beginning, Vietnam's economy sustained a positive performance in 2020. GDP growth recorded as the lowest growth rate in the past 10 years, yet is still considered as a success compared to other countries, with a stable CPI and a fast rebound of retail sales of consumer goods.
- FMCG overview
FMCG in 2020 showed a stronger growth in both urban 4 key cities and rural, mainly driven by the impact of COVID-19. However, in short term, the growth trend is getting back to pre COVID-19 level.
In general, almost all sectors grow at a faster pace over the past 12 months compared to last year, with Packaged Food sector being the biggest winner. Beverages were hit hard yet successfully managed to regain momentum in Urban 4 key cities, while still struggling to bounce back in Rural.
- Hot categories
Chili sauce increases significantly for in home consumption thanks to its convenience as a ready-to-consume product. Its growth is driven by the expansion of consumer base and also the increase of in-home volume consumption. How is chili sauce used at home? Is the product being used in more dishes/meals?
- Retail landscape
Online, minimarket, drug stores keep leading the FMCG growth in Urban areas, while other channels start to slow down and even decline in the last quarter of 2020. Hyper & Super slows down as a result of the reduced need of stockpiling.
- Spotlight: Ecommerce enjoyed a dramatic growth across Asia
Online shopping for FMCG products is thriving everywhere. Ecommerce is the fastest growing channel and gaining more ground in total retail landscape across Asia from the largest ecommerce markets to small ones.
Urban 4 cities include Ho Chi Minh, Ha Noi, Da Nang and Can Tho.
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