Growth in fast-moving consumer goods has lost momentum in recent times, according to a Kantar Worldpanel report.
Vietnam’s fast-moving consumer goods (FMCG) market continues to increase in terms of sales but momentum has slowed versus a year ago, according to a report from Kantar Worldpanel released on April 13.
Consumers seek value for money and are more selective when shopping, and healthy and convenient products have attracted new buyers.
Street shops (including provision stores and Ma & Pa stores) offering proximity still dominate the market. Specialty stores, mini-stores and online channels are continually emerging, recording double digit growth.
“Vietnam is experiencing a strong transformation, both economic and demographic, which is changing the needs and behaviors of consumers,” said Mr. David Anjoubault, General Manager of Kantar Worldpanel Vietnam.
“We see the emergence of the middle class and as a result Vietnamese households are better equipped, more and more connected to the internet, and are investing in the education of their children to offer them a prosperous future. Overall they are rather optimistic about the future.”
However, daily expenses for consumer goods represent and will continue to represent the largest share of their monthly spending. The beverage, dairy, packaged food, personal care, and home care categories have seen an exponential development over recent years.
“Today the consumer has access to a wider choice of products and the competition is increasing as fast as consumer needs, which are becoming more diversified,” Mr. Anjoubault said.