Photo: Duc Anh
Beverages increase 10% in first quarter and contribute 39% to total FMCG sales.
Beverages (including beer) saw 10 per cent growth in the first quarter of this year, the highest increase for two years and mainly led by volume increases (+8.1 per cent), according to Nielsen’s FMCG Market Pulse report for the first quarter released on June 29.
When looking deeper into the seven super FMCG categories - beverages (including beer), food, milk base, household care, personal care, cigarettes and baby care - beverages continued to contribute the most to total FMCG sales, with 39 per cent in the first quarter. For eight quarters in a row beverages have recorded healthy growth.
Super categories growth – Total 6 cities
Source: Nielsen’s FMCG Market Pulse Q1 2016
Other super categories weren’t so dynamic, with most stagnating, the report noted.
According to the Product Innovation Report released by Nielsen in June last year, Vietnam had the highest score for trying new products in Southeast Asia, with 88 per cent of Vietnamese consumers saying they had purchased a new product on their last grocery-shopping trip, 19 percentage points higher than the regional average of 69 per cent. This presents a challenge for manufacturers to provide true innovations for consumers.
Only beverages and beer can currently keep pace with consumers’ “thirst for the new” via impressive product innovation that serves new needs, according to Mr. Nguyen Anh Dung, Director of Retail Measurement Services at Nielsen Vietnam.
“Beverage and beer manufactures run intensive marketing campaigns that create new emotional bonding and exciting emerging premium channels (for e.g. beer gardens) that provide a new consumption environment,” Mr. Dung added. “More importantly, manufacturers also need to gain retailers support when introducing new products or promotions.”
FMCG growth in the six key cities in Vietnam - Hanoi, Ho Chi Minh City, Hai Phong, Can Tho, Nha Trang and Da Nang - dipped in the first quarter, with 3.6 per cent growth compared to 5.7 per cent in the previous quarter, mainly due to an increase of only 3 per cent in volume growth vs. 4.9 per cent in the fourth quarter of 2015, according to FMCG Market Pulse.
The report is based on the results of the Nielsen Retail Measurement study of FMCG. The study provides continuous tracking of product movement through defined retail outlets. The data are used to measure manufacturer and retailer efforts as well as consumer off-take.