The urban fast-moving consumer goods (FMCG) market is exhibiting signs of recovery while the rural market is experiencing a slowdown, according to the latest report from Kantar Worldpanel Vietnam.

The following are the key market highlights for November.

Key indicators

The CPI in November came in at a high 4.5 per cent year-on-year due to increases in crude oil prices. December’s CPI is forecast to be even higher due to rising demand for goods for upcoming festivals at the end of the year.

FMCG growth

The urban 4 key cities FMCG market, which includes Hanoi, Ho Chi Minh, Da Nang and Can Tho, has recovered compared to the same period last year in both the long term and the short term. The rural FMCG market has experienced a slowdown as a result of environmental disasters and drought in the first half of the year.

Source: Kantar Worldpanel , December 2016

Key growing sectors are different between the urban 4 cities and rural markets. Packaged food and homecare saw outstanding performance in urban areas while dairy and personal care were growth drivers in rural areas.

Hot categories

Liquid detergent and hair conditioner were fast growing categories in the urban 4 cities and rural markets, respectively. Their growth is mainly driven by shoppers buying more volume than last year. There is still huge potential for both categories to recruit more buyers as currently only one in five people purchase them.

Source: Kantar Worldpanel , December 2016
 

Retail landscape

Mini-stores (including minimarkets and convenience stores) maintained their strong growth momentum and continued to gain market share in the urban 4 cities. Hypermarkets and supermarkets are expected to perform better in the last month of the year with big shopping baskets thanks to the rising demand for Tet and other holidays at the end of the year.

Source: Kantar Worldpanel , December 2016

Spotlight of the month

Kids are taking nutrition drinks as a daily need, especially those under seven years old, who drink nutrition products more than twice a day. Adults over 50 years of age also consider nutrition drinks a daily need.

Source: Kantar Worldpanel , December 2016

VN Economic Times