OCTOBER

2019
FMCG MONITOR
An integrated update
of Vietnam FMCG market
By Worldpanel Division

12 week period ending 11 August 2019 ( 12 w/e P8’19)

Urban 4 Key Cities & Rural Vietnam
EXECUTIVE SUMMARY

Vietnam’s economy Slight slowdown in Instant Coffee and Emerging channels: The important role of
maintains a bright Urban 4 cities but Beer perform well in Online, mini stores, emerging channels in
outlook. good momentum in Urban 4 cities and specialty stores keep the fast-changing retail
Rural. Rural respectively. riding the growth environment.
wave.

2
01 KEY INDICATORS
Vietnam’s economy maintains a bright outlook with a low CPI rate under 3%. Domestic demand also shows a
continued growth, reflecting a stability of consumer spending in 2019.

Retail Sales
CPI GDP of Consumer Goods

+3.52% +11.2% +11.5%

+2.57%
+6.71%
Q2’19 vs. YA

6.17 6.79 6.71

YTD Aug 18 YTD Aug 19

YTD Aug 18 YTD Aug 19
vs YA vs YA
vs YA vs YA

Source: GSO 3
 02 FMCG GROWTH
In long term, FMCG market speeds up in both Urban 4 cities and Rural areas. In short term, the market growth is
driven by the increase in both volume consumption and the paid price with a slight slowdown in Urban 4 cities but a
good momentum in Rural.

FMCG - 52 weeks ending P8’19 FMCG – 12 weekly year-on-year change (%)

Value Growth % Volume Growth %

5.2
Urban 4 Cities 2.5
2.7
5.0 5.0
3.6
2.1 0.9 2.7

Value Avg. price paid* Volume**

9.0
Rural

8.4 5.1
5.4
4.6 4.9 4.1
1.6 2.5

*: To calculate FMCG price paid change, we calculate how much price contributes to the value change for each category, sum up these contributions and relate to value YA
**: To calculate FMCG volume change, we calculate how much volume contributes to the value change for each category, sum up these contributions and relate to value YA (this results in an average category change in volume)

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 12 weeks period ending 11 August 2019 4
 03 FMCG GROWTH BY SECTOR
Personal Care keeps riding the growth wave in both Urban 4 cities and Rural. Dairy recovers in Urban market
while achieving a strong growth in Rural. Noticeably, Beverages suffer a negative performance in Urban 4 cities.

Urban 4 Cities Value Change Volume* Change 12 w/e P8’19 versus year ago Value Change Volume* Change Rural

16.9%
14.7%
12.7%
11.0%
9.0% 8.7% 8.7%
7.8% 7.6%
6.7%
5.2% 5.6% 5.1% 4.8% 5.1% 4.9%
3.3%
2.5%
1.4% 1.7%
0.7%

-0.8%
-3.1%
-5.7%

FMCG Dairy Baverages Packaged Personal Home FMCG Dairy Baverages Packaged Personal Home
Foods Care Care Foods Care Care

*: To calculate FMCG volume change, we calculate how much volume contributes to the value change for each category, sum up these contributions and relate to value YA (this results in an average category change in volume)

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 12 weeks period ending 11 August 2019 5
04 HOT CATEGORY
Instant Coffee remains a healthy growth despite the decline of Beverage sector in Urban 4 key cities. Its growth is
driven by the increased volume consumption. Meanwhile, Beer performs well in Rural, enjoying a double digit
growth mostly thanks to the up-trading trend.

52 weeks ending P8’19 vs YA

71%
of households
+8%

+10% +8%

+12%
60%
of households

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 52 weeks period ending 11 August 2019 6
 05 RETAIL LANDSCAPE
Emerging channels such as mini stores, specialty stores, online continue leading the FMCG growth in Urban 4 cities.
In Rural, modernized street shops, specialty stores and hyper & supermarkets have expanded and recruited new
shoppers while wet market shrinks.

Urban 4 Cities Value change % Rural Value change %

(12 w/e P8’19 vs year ago) Value share % ( 12 w/e P8’19 vs year ago)
Value share %
Medium-sized
street shops 5%
5 5 Medium-sized
3 3 11
street shops 28%
Small 6% 3
6 Street shops
Small
32 0% Street shops 5%
7 Wet market 2 5 9
2 14
5
14 32 16
Specialty 3%
13 stores 19% Wet market

Hyper/ Specialty
8 supermarket 10% 65%
stores
9 67
10 24 Minimarket/ 13%
CVS Hyper/
supermarket 52%

9 21
Online 38% 64
Other channels
Other channels

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 12 weeks period ending 11 August 2019 7
06 SPOTLIGHT OF THE MONTH
The important role of emerging channels in the fast-changing retail environment
Despite less than one fifth of FMCG spend allocated in emerging channels: online, ministores, specialty stores; two
third of total incremental spend come from these channels. It is expected to continue evolving fast and driving the
future growth with new formats developing, aided by the advancement of new technology.

Channel Contribution
to Value Growth in %

…but making a
contribution of

Emerging channels only

66%
to total incremental
account for spend

16%
of total FMCG spend…

Emerging channels: Online, ministores, specialty stores Other channels

Source: Vietnam Omnichannel report 8

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