FMCG Monitor Q1 2022
Key market highlights:
- Economic indicators
Despite the uncertain times of COVID-19 and Ukraine-Russia conflict, GDP in Q1 2022 sustains a stable growth coupled with low CPI. However, Vietnam's economy is likely to face a new wave of challenges in upcoming months.
- FMCG overview
In Q1 2022, consumer demand for in home FMCG remains low due to the cut-down of volume consumption. The market growth is mainly driven by the increase of average paid price. Re-watch our on-demand webinar to know more about how consumers are reacting to these price pressures.
Almost all sectors suffer from a decline in volume consumption due to a weaker performance of Tet shopping season, according to Tet 2022 report. In line with total FMCG market, the increase of paid price is the key driver across major sectors.
The same picture is witnessed in Rural Vietnam when average paid price also drives market growth. Dairy shines bright as the only sector that achieves positive performance driven by volume consumption as well as price growth.
- Hot categories
Modern sauces such as Ketchup, Chili sauce and Mayonnaise still successfully gain more volume consumption in the 1st three months of 2022, despite the increase in average price paid witnessed in most of categories.
- Retail landscape
As of Q1 2022, 22% of FMCG spending has been made in emerging channels including Online, Ministores and Specialty Stores in Urban 4 key cities, which are also expanding fast towards Rural. As such, understanding how shoppers purchase FMCG in these channels is crucial for both brands and retailers to capture more growth.
5.1 Nuclear families is growing importance
Surging prominence of Nuclear Families with fewer members leading to the smaller basket which is 80% of an average trip size, indicating for manufacturers and brands to take action with more multi and small pack options.
5.2 How do Vietnamese consumers react to inflation?
Inflation is being witnessed in almost FMCG categories, reaching around 7% peak on average and becoming a challenge for both consumers and brands. Vietnamese shoppers are changing their behavior to adapt to this pressure in different ways. Re-watch our latest webinar to take out key findings to navigate this challenging wave.
(1) Urban 4 cities include Ho Chi Minh, Ha Noi, Da Nang and Can Tho.
(2) Data is including gift
Follow links on the right side of this page to download full reports and press releases in both English and Vietnamese.
Feel free to get in touch if you have any questions or want to book a discussion to further explore.