20:18 (GMT +7) - Tuesday 20/08/2019


Beverage and Dairy driving FMCG market

Released at: 17:55, 24/05/2019

Beverage and Dairy driving FMCG market

Photo: Kantar Worldpanel

Latest Kantar Worldpanel report highlights market moves during first quarter.

by Doanh Doanh

Vietnam’s FMCG market is seeing a continual slowdown in the long term in Urban 4 key cities (Ho Chi Minh City, Hanoi, Da Nang, and Can Tho) while performing impressively in Rural areas, according to the latest report from Kantar Worldpanel Division Vietnam. Value growth has hit its highest peak in the last four years in both Urban 4 key cities and Rural.

Healthy growth is observed across all sectors in both, driven by an increase in volume consumption. The Beverage and Dairy sector is driving market growth in both, while Personal Care is also developing quickly.

Ready-to-drink milk was among the top growing categories in the first quarter, especially in Rural areas. Growth is mainly driven by acquiring new buyers and also uplifting volume consumption in Rural. However, the category is still underdeveloped and holds major potential to expand further in terms of both consumer base and consumption.

According to Kantar Worldpanel, modern trade has made a significant movement, gaining three share points in Urban 4 key cities, thanks to both big and small retail formats as well as online channels. In Rural, medium-sized street shops remain the best recruitment channel in terms of winning new shoppers. Positive growth has been seen across modern and traditional channels, emphasizing the more-fragmented retail landscape as well as the growing importance of omni-channel shopping trends in Vietnam.

In Ho Chi Minh City, 60 per cent of Gen Z shopped for food and beverages at convenience stores (CVS) for out-of-home consumption in the first quarter, which is almost double the shopper base among Gen Y and Gen X. While FamilyMart earns the most spending from all age groups, B’smart is the number one chain among Gen Z. The key success factor of B’smart is encouraging much higher spending by students when they are in-store, but it still has a big gap in terms of traffic (both penetration and shopping frequency) compared to other CVS chains.

User comment (0)

Send comment