Strong momentum! Vietnam's fast-moving consumer goods market will grow by 6.4%

The fast-moving consumer goods (FMCG) industry in Vietnam’s four major cities will grow by 6.4 percent this year , and by 8.7 percent in rural areas, according to Kantar Worldpanel, a leading global market research organization for consumer purchase and usage insights .

In four cities – Hanoi, Ho Chi Minh City , Danang and Can Tho – packaged food growth is expected to slow from last year, though growth will still be around 10%, while personal care products will see double-digit growth.

In rural areas, personal care products are expected to continue to grow, while beverages are expected to recover .

Last year, sales of fast-moving consumer goods in urban and rural areas grew by 10.3% and 10.2% respectively , mainly due to relatively stable prices and increased transaction volumes .

Nelson Woo, regional commercial director of Kantar Worldpanel Asia, said : " With a population of over 90 million , Vietnam remains a key market for both local and other regional FMCG manufacturers . "

He added: “ With a relatively young consumer base, growing per capita income, and increasing sophistication in mobile and technology applications , Vietnam is becoming increasingly attractive to brands and sellers . Bordering many Asian countries, such as China and the emerging markets of Indochina, Vietnam has a huge geographical advantage and is a hub to other markets and countries. ”

He said that currently, the country is the sixth most populous country in Asia, after China, India, Indonesia, Japan and the Philippines, and has huge potential . Coupled with the improvement and development of living standards as well as organized trade and e-commerce, this is a market that no brand or manufacturer would want to miss out on.

Last year, despite the impact of the pandemic , Vietnam's economy still grew by 2.9%, which proves that Vietnam absolutely has the strength to cope with challenges and gives it a great competitive advantage among ASEAN countries.

Quality has become an increasingly important concern for Vietnamese consumers, especially in food , where consumers pay more and more attention to the quality , packaging and origin information of food . Brands should pay attention to this to meet the needs of consumers .

Vietnam

Fast Moving Consumer Goods