FMCG Monitor Q1 2023: Tet shopping boosts FMCG growth
Worldpanel Vietnam_FMCG Monitor Q1 2023
Vietnam’s economy hit a bumpy road in the first quarter of 2023, recording the weakest GDP growth since Q3 2020. However, Vietnam's consumer market has experienced a significant boost in value during Q1 2023, driven by a surge in festive shopping and preparation for Tet 2023, the biggest holiday of the year.
Key market highlights from Kantar FMCG Monitor Q1 2023 include:
FMCG value uplift seen in both Urban and Rural
In Urban 4 cities areas, the average price paid for FMCG products continues to rise, influencing the overall value growth. On the other hand, rural areas saw a 10% growth in volume, presenting a promising land for manufacturers to expand their penetration in rural Vietnam.
Beverages and Personal care drive Tet FMCG growth
The major sector contributions to the growth of FMCG in Q1 of 2023 come from a surge in the purchase of beverages and personal care categories especially during the Tet 2023 period.
In a new year of recovery, this consolidates the importance of these categories in driving FMCG growth and the opportunities for brands to leverage seasonal trends to maximize brand potential.
3. Mini Stores and Online continue to gain popularity
In Q1 of 2023, Ministores and Online channels led retail channel growth, as consumers show a growing preference for these emerging formats due to their convenience and the increasing availability of products. This change in consumer preferences presents an opportunity for FMCG brands to adapt their strategies and invest in these channels to reach a wider audience and drive growth.
4. Spotlight: Resurgence of FMCG gifting
FMCG gifting has bounced back in the first Vietnamese New Year free of restrictions after two years. The recovery has restored the importance of FMCG gifting as a staple Tet tradition, offering brands a chance to capitalize on this gift-giving custom and make their mark in the market during the most important holiday in Vietnam.
5. Understanding shoppers' paths to purchase is crucial to winning more buyers
With evolving consumer behaviours and growing competition from convenience and modern retail formats, one of manufacturers’ main goal is to reach as many consumers as possible by winning together with retailers.
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