Ready-to-drink tea and chili sauce at top categories in Vietnam’s FMCG market

FMCG Growth

In long term, FMCG market sees an upward trend in both Urban 4 key cities and Rural FMCG market. In short term, the market growth in Urban 4 key cities accelerates thanks to the uplift of volume consumption despite the low season after Lunar New Year while slightly slowing down in Rural areas.

In Urban 4 cities, FMCG market looks brighter thanks to the stronger consumption demand seen in Packaged Foods, and Non-Food sectors. Meanwhile, in Rural, Dairy remains the fastest growing sector and continue to lead the market growth.

Hot Category

Ready-to-drink Tea and Chili Sauce are hot categories with double digit growth in Urban 4 cities and Rural respectively. Thanks to lots of innovations pushed by key players, Ready-to-drink Tea is able to recover and attract new shoppers in Urban areas. In Rural, Chili Sauce now reaches more than two third of the population and continues growing strongly.

Retail Landscape

Modern shopping channels and specialty stores speed up with robust growth in Urban 4 cities. E-commerce reflecting value for money models and convenience is growing in presence. In Rural, medium-sized street shops gain more ground and post an impressive growth of 50% as more and more consumers come there for FMCG shopping.

Spotlight of the month – The evolution of E-commerce in FMCG purchases

Online shopping continues to expand across the globe with emerging markets driving growth such as Thailand, Vietnam, and Malaysia.

By 2025, e-commerce will represent 10% of all FMCG spend, twice its current size and will be the leading retail format in Asia.

Urban 4 cities include Ho Chi Minh, Ha Noi, Da Nang and Can Tho

Source: Kantar World Panel