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Trade - Service
Oct 02, 2019 / 16:25

FMCG keeps growth momentum in Vietnam’s rural areas

Minh An

Emerging channels contribute two thirds of total incremental spending come from these channels.

In the short term, the fast moving consumer goods (FMCG) market growth in Vietnam is driven by the increase in both volume consumption and the paid price with a slight slowdown in Urban 4 cities but a good momentum in Rural.

In the long term, the FMCG market speeds up in both Urban 4 cities and Rural areas, Kantar Worldpanel has said in a monthly note for October. Urban 4 cities include Ho Chi Minh, Hanoi, Da Nang and Can Tho.
 
FMCG growth
FMCG growth

Personal Care keeps riding the growth wave in both Urban 4 cities and Rural. Dairy recovers in Urban market while achieving a strong growth in Rural. Noticeably, Beverages suffers a negative performance in Urban 4 cities.
 
FMCG growth by sector
FMCG growth by sector
Instant Coffee remains healthy growth despite the decline of the Beverage segment in Urban 4 key cities. Its growth is driven by the increased volume consumption. Meanwhile, Beer performs well in Rural, enjoying a double digit growth mostly thanks to the up-trading trend.
 
Hot category
Hot category
The note shows that emerging channels such as mini stores, specialty stores, online continue leading the FMCG growth in Urban 4 cities. In Rural, modernized street shops, specialty stores and hyper & supermarkets have expanded and recruited new shoppers while wet market shrinks.
 
Retail landscape
Retail landscape
Despite less than one fifth of FMCG spending allocated in emerging channels (online, mini stores, specialty stores), two thirds of total incremental spending come from these channels. It is expected to continue evolving fast and driving the future growth with new formats developing, aided by the advancement of new technology.

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