FMCG Monitor October 2018
Premium segment heats up the fish sauce market
Key market highlights in October 2018 issues:
Generally, Vietnam shows a macroeconomic stability in Quarter 3 of 2018. With its momentum, the economic growth is more likely to exceed the target of 6.7% for the whole year 2018. Besides, the CPI stabilized under +4% and the local demand for consumer goods retains a double-digit growth rate.
The FMCG market has seen positive changes in Q3’2018, especially in Rural areas thanks to the uplift in volume consumption.
There are two different pictures in Urban 4 cities and Rural. Urban market experiences a flat volume growth across almost all sectors, even a continued decline in Dairy. Meanwhile, Rural market sees good performance in overall, except Home Care and is mainly driven by the volume increase in Dairy and Personal Care categories.
Fish sauce is growing ahead of Urban FMCG market and posting a healthy growth in Rural areas thanks to the up-trading trend. With the push of many new launches targeting the premium segment, high-priced fish sauce has developed its consumer base and drives the category growth in both Urban 4 cities and Rural. This implies that there are still growth opportunities for high-penetrated and mature categories by tapping into consumer needs for premium products.
Modern trade continues to speed up and outperform traditional trade in Urban 4 Cities. Both online and offline channels have increased their market share with the rapid recruitment rate of Mini-format (minimarkets & convenience stores) and online shopping. Up to date, over half of urban households shop in mini-stores and ¼ urban households make online purchases for in-home FMCG consumption at least once a year.
Spotlight of the Month – Tea vs Coffee: The battle for the Vietnamese tastebud
In Ho Chi Minh city, surprisingly, the size of tea including RTD (ready-to-drink) and RTS (ready-to-serve) tea is almost double that of coffee, according to our latest out of home study. Although Vietnam is the 2nd coffee producer globally, coffee only attracts a unique consumer base and earns less popularity among Saigonese, while tea-based drinks are more preferable to the mass.
Which are their favorite tea drinks?
Urban 4 cities include Ho Chi Minh, Ha Noi, Da Nang and Can Tho.
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