Local FMCG market shows positive outlook: Kantar Worldpanel
Market research firm Kantar Worldpanel predicts the Vietnamese fast-moving consumer goods (FMCG) sector will see a positive performance in Hanoi, Danang, HCMC and Can Tho and an acceleration of progress in rural areas over the long term.
The market research firm said in its latest FMCG monitor report that oil and electricity prices rose in April, but the consumer price index of the first four months was kept under control, posting the lowest rate for the same period over the last three years.
Also, the retail sales of consumer goods maintained its growth momentum, driven by the strong consumer demand for food and household appliances.
The firm projected the market will retain its growth momentum in both regions, mostly driven by the volume of consumption for the short term.
During the four-month period, all sectors saw healthy growth, mostly thanks to the increase in the volume of consumption. While personal care was the fastest growing sector in major cities, dairy products led FMCG growth in rural regions.
In major cities, oyster sauce enjoyed impressive growth in terms of both value and volume thanks to an increase in shopper numbers. Meanwhile, ice cream consumed at home is fast expanding its consumer base in rural areas, partly thanks to the increasing number of households with a freezer.
The market firm projected modern shopping channels will continue growing ahead of the total FMCG market at a double-digit pace in urban areas, thanks to gaining more shoppers.
In rural areas, medium-d street shops are continuing to expand their presence, attracting a significant number of new shoppers. With a good start in the first four months, modern retail is expected to see greater achievements this year.
Most of the top 10 growing brands in terms of consumer reach are successfully expanding their reach. These brands have been acquiring an impressive number of additional households by catering to consumers’ evolving needs centered around health, convenience and happiness as well as bringing them an enhanced shopping experience.