Kantar Worldpanel report notes slightly better performance in most grocery sectors.
The urban four key cities and rural Vietnam have both continuously suffered from a deceleration in grocery growth since early 2014 but positive signs can be observed in the short term.
According to the latest report from Kantar Worldpanel, released on July 21, value growth rose 1.9 per cent in urban areas and 7.2 per cent in rural areas.
In general, almost all sectors have recovered their momentum, except for packaged foods. Beverages continue to perform well within the FMCG market, with value growth up 13 per cent in both urban and rural areas.
“Both local and international players are expanding into new territories,” said Mr. David Anjoubault, General Manager of Kantar Worldpanel Vietnam. “While local brands perform better among lower income groups, high earners are heading more towards international brands. In Vietnam, about 70 per cent of FMCG categories reach less than 50 per cent penetration (on a yearly basis), and this implies every brand still has plenty of headroom for growth.”
In terms of retail landscape, Kantar Worldpanel see street shops in urban areas lag behind the market but modern trade is still struggling to pick up additional share, not helped by the decrease of hyper/supermarkets. However, specialty stores and mini-stores saw the most outstanding performance in urban areas. For rural areas, street shops keep growing their dominance, with a 77 per cent share.
Kantar Worldpanel’s annual Brand Footprint report revealed the Top 10 most-chosen FMCG manufacturers and the most-chosen brands by sector (health & beauty, homecare, food & beverages).
The top three positions are the same as last year in both the urban and rural rankings: Unilever, Vinamilk, and Massan. Top rising brands include Dove, Fami, Diana, Milo, Aba, Coca-Cola and TH True Milk.