Vietnam’s fast-moving consumer goods (FMCG) market, measured in traditional trade channels, in 2017 increased 5.4% year-on-year, compared to 4.9% in 2016, despite a dip in the last quarter of the year, a report has shown.
In the fourth quarter, the growth slowed down significantly to just 0.5% versus 6.4% in the previous three months, according to the Nielsen Quarterly Market Pulse report released by Nielsen Vietnam - a global measurement and data analytics company.
According to the report, the slowdown was seen across all the six super FMCG categories nationwide. Beverage still enjoyed a significantly increase of 3.2%. Cigarette post growth of 1.3% in the quarter. Other four categories namely personal care, homecare, food and milk base all recorded contraction.
The growth rate was expected to experience uplift in the last quarter of the year as Vietnamese people celebrated Lunar New Year in February 2018. However, unexpected devastating natural disasters did take a heavy toll on people and their assets in some regions in Vietnam from September onwards. This impacted FMCG consumption in Q4, especially in rural areas.
The low growth in Q4/2017 was also attributable to the late Tet timing where this year’s Tet happened in mid-February while last year’s Tet was early in January, the report pointed out.
With regards to the FMCG performance in rural and urban areas, the report shows that the growth observed in rural areas was higher than that in urban regions, but it was more volatile. Total rural FMCG growth increased 6.1% year-on-year while total urban FMCG growth rate was flat at 4.0% on-year-year. Both markets witnessed a dip in the last quarter of 2017.
Rural region has been noticed as a new source of growth. However, expanding to Rural in Vietnam brings with it the same challenge we have seen in other large Asian countries - a high cost to serve geographically dispersed districts. As we have seen in India, China and now Vietnam, it is more important for manufacturers to be able to prioritize their rural expansion efforts, Nielsen added.
Tin liên quan
- Vietnam Remains Fifth Most Optimistic Country Globally: Nielsen
- Vietnam’s FMCG Growth Bounces Back to 6.4% in Q3
- Local Brands Gaining Momentum beside Global Companies in Vietnam
- Despite Slight Deterioration, Vietnamese Consumers Rank 2nd Most Optimistic in APAC
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Từ khóa: Nielsen