Vietnam’s packaged food enjoys double-digit growth in post Covid-19: Kantar
Vietnam’s packaged food enjoys double-digit growth in post Covid-19: Kantar
Vietnam’s fast-moving consumer goods (FCMG) market growth returns to its pre-Covid-19 level in the short term.
Amid the Covid-19 pandemic, the packaged food sector is leading FMCG market growth, expanding 26% in the past three quarters, and is expected to grow 16% in post-Covid-19, promising great opportunities by capturing new in-home occasions, according to the latest report by Kantar Worldpanel Division.
Source: Worldpanel Division, October 2020. Screenshot: NM
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Based on Worldpanel data, within packaged food sector, snacking products still remains double-digital growth in terms of value and volume in the first nine months of 2020 in both Vietnam’s urban and rural areas.
Among hot categories, personal care recorded 13% growth in the period. Beverage market has recovered with 8% growth in post-Covid-19 in four cities (including Hanoi, Danang, Can Tho and Ho Chi Minh City), while still struggled to bounce back in rural areas in post lockdown periods.
Source: Worldpanel Division, October 2020. Screenshot: NM
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In the short term, not much impact has been seen from the second wave of Covid-19 starting in central Vietnam areas at the end of July. The market growth is getting back to its pre-Covid level, the report noted, and there could be a continued slowdown in the last quarter of 2020 as consumers might delay purchases, especially in central rural areas where consumer spending would be further affected by the flood and typhoons.
Source: Worldpanel Division, October 2020. Screenshot: NM
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Notably, Kantar showed retail growth is cooling across all channels. With its value growth of 65%, online channel continues to gain share and is the fastest growing format post the social-distancing period. Following are drug stores (53%), pharmacy (33%), minimarket (22%), hyper & super (15%), cash & carry (14%) and wet market (14%).
Source: Worldpanel Division, October 2020. Screenshot: NM
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The report also highlighted that due to the global pandemic, the desire to live more sustainably might affect Vietnamese purchase behaviors post Covid-19. About 57% Vietnamese surveyed shoppers said that they stopped buying some products/ services because of their impact on the environment or society. Meanwhile, the world figure is 41%.
