FMCG

An integrated
update of Vietnam
FMCG market
Q2 2022
(12 weeks ending 19/06/2022)
Monitor
Urban 4 Key Cities & Rural Vietnam
By Worldpanel Division
 Executive summary

In-home
Spending on in- consumption of Emerging channels,
GDP thrives in Q2 home FMCG rises in refreshment including Online and Fresh Food’s
2022 while CPI Q2 2022 thanks to beverages recover Ministores, continue to value triples
rising above 2%. the increase in significantly in the strengthen their FMCG market.
average paid price. 2nd quarter of 2022. position in both Urban
and Rural in Q2 2022.

Macro economy Spotlight

FMCG overview Retail landscape
Hot category

2
 Vietnam’s macro economy
GDP thrives in Q2 2022; however, given the unforeseen COVID-19 situation, Vietnam’s economy is affected to some degree, resulting in CPI
rising above 2% this quarter, potentially posing a new wave of challenges in the upcoming months.

% Change vs the same period last year Consumer Goods – By Sectors

YTD Jun’22 – YoY – GSO Vietnam

YTD Q2'21
YTD Q2'22

Food 7.2
13.7
GDP CPI
Households Appliances -3.5
1.0
7.0 7.7
6.6
5.3 4.5 5.2 5.0
3.2 Garment 3.8
2.9 2.8 4.0
2.6 1.8 2.7 2.5 3.0
1.9
1.9
-6.2 Vehicles & spare parts 7.4
0.3 5.3

Source: GSO | VnExpress 3

 Consumer perspective
With the recent easing of the COVID-19 pandemic, Vietnamese confidence in both the economic outlook and
purchasing power has shifted towards optimism, with positive progress surpassing the pre-pandemic level.

The economic situation will be better or the same as today In the upcoming 12 months, do you think that the financial
in the next 12 months (% households agree in Urban 4 key cities) situation in your house… (% households agree in Urban 4 key cities)
1st COVID Wave 4 of
impact COVID
4 7 3 6 3
84 86 9 8
13
8 Will get much
80 81 82 16
18
76 worse
74
Wave 4 of
43 38
COVID 65 43 42 Will get worse
62 60 45 43 43 46
1st COVID 41 31
44
impact
42 Will remain the
same
49
44 42 45 45
41 40 38 39 39 Will slightly
33 improve

9 7 7 7 7 9 7 9 7 7 10 Will strongly
improve

Source: Worldpanel Division | Consumer Confidence Survey | Urban Vietnam 4 key cities | MAT Q2’22 | Field work from 6th to 19th June 4
 Consumers’ top
concerns
Currently what do you consider to be the biggest concerns you and your
However, in context of household is likely to face? (% households agree in Urban 4 key cities)
the pandemic is going
away, starting in the
beginning of 2022, cost 70
of living, including cost Q2 2021
of oil/gas, leading to cost 60 Q1 2022
of food, has come into
Q2 2022
the picture as significant 50
rising concern of
consumers. 40

30

20

10

Source: Kantar | Worldpanel Division | Expenditure Survey | Urban Vietnam 4 key cities | MAT Q2’22 | Field work from 6th to 19th June 5
 Inflation
We’re approaching some of the highest rates of inflation in recent
years at around 7% peak on average across FMCG take home grocery and shoppers start to trade down their product choice

Rolling Contribution to Total Vietnam FMCG Grocery Spend Change

Population Size
2 8%

1.5 6%
Lunar NY Inflation contribution
to Grocery Spend
1 4% change
Spend Change – Billions VND

Lunar NY Product Mix incl PL /

0.5 2% branded

0 0% Buy less / more

Volume
-0.5 -2%
Store Mix
-1 -4%

-1.5 -6% Promo Mix

-2 -8%
Inflation %

Source: Kantar, Vietnam FMCG Panel, 12 w/e 19 June 2022 vs YA 6

 FMCG
overview % Change vs YA

13.6 COVID-19’s
Spending on in-home 1st wave
COVID-19’s
FMCG rises in Q2 10.2 15
6.6 14 4th wave
4.6 9
2022 thanks to the 10
11 8 8
1.8 3.1 2.3
increase in average Urban 4 5 5
3 2
paid price; however, key cities 0 1
-3
volume consumption Category 1 Category 1 -5
-0.2 -1.5
remains low. Category 1
Q2 2020
Q2 2021 Value Volume* Avg. paid price** Quarterly value trends
Q2 2022

12.4 10.9 15
9.9 8.5 12 11
10
3.8 3.2 9 8
2.8 4 5 7
0.8 2.5 5 8
4
Rural 1
0
Category 1 Category 1 Category 1

*: 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)
**: 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

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG including Gift | 12 weeks ending 19/06/2022 7
 Sector % Value change vs YA in Urban 4 key cities

performance Value Volume* Avg. paid price**

After benefiting greatly

FMCG 2 0 2
from stockpiling during 5 -2 7
the COVID scenario, Q2’21
Dairy and Packaged Q2’22
Foods face a fall in Dairy -2 -5 2
-1 -4 4
volume consumption in
Q2 of 2022, when the
new normal has
Beverages 6 2 3
become familiar. 8 3 5

In line with the total

FMCG market, the Packaged 2 -1 3
Foods 3 -8 13
increase of paid price is
the primary driver
across all sectors. Personal 2 3 0
Care 9 5 4

Home 7 7 0
Care 9 3 6

*: 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)
**: 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

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities Vietnam | Total FMCG including Gift | 12 weeks ending 19/06/2022 8
 Sector % Value change vs YA in Rural

performance Value Volume* Avg. paid price**

Dairy and Home Care

FMCG 3.8 1 3
shine brightly in Rural, 10.9 3 9
propelling FMCG Q2’21
performance, while Q2’22
others experience Dairy 5.9 3 3
13.1 8 5
stagnation.

Similarly, average paid

Beverages 5.3 4 2
price is the main driver 6.3 1 5
of the Rural market
growth.
Packaged -1.2 -6 5
Foods 13.9 0 15

Personal 11.0 6 4
Care 6.7 0 7

Home 1.1 2 0
Care 13.7 5 9

*: 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)
**: 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

Source: Worldpanel Division | Households Panel | Rural Vietnam | Total FMCG including Gift | 12 weeks ending 19/06/2022 9
 Hot
category
Though having some Spending on Refreshment Beverages*
hard times under the – YOY % Change – Rolling Quarterly % Value change
impact of COVID-19, in-
home consumption Urban 4 of Refreshment
refreshment beverages Rural Beverages in
recover strongly in
Q2’22 and especially
13% Q2’22 vs pre-
10%
post a much higher 9% 9%
8%
COVID time
spending level
compared to pre- 4%
2% 2% 3%
COVID time.

+30%
-2% -1%
-3%
In which, Juice, RTD Tea -1% 0%
and Energy Drink are -7% Urban 4
categories having best -10%
performance in last 3
years.
+24% Rural

Refreshment Beverages*: Bottled Water, CSD, Energy Drink, Juices, Instant Tea, RTD Tea

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities Vietnam | Total FMCG including Gift | 12 weeks ending 19/06/2022 10
Retail landscape
Emerging channels, including Online and Ministores, continue to strengthen their position in both Urban and Rural in Q2 2022, thriving
with two-digit numbers. Additionally, while large formats experience a decline in urban, H&S in Rural bounces back strongly with
phenomenal growth.

Channel performance within FMCG for in-home consumption

% Value share in Q2 2022 % Value share in Q2 2022

% Value change in Q2’22 % Value change in Q2’22

5 14
6
7 +4% Street Shops 2 +7% Street Shops
2
2
-3% Hyper & Super 4 -1% Wet market
7
Urban 4 Ministores Rural
+21% +38% Specialty Stores
key cities 53 11
11 -12% Wet market +49% Hyper & Super
75
+24% Online +26% Online
12
-14% Specialty Stores +16% Ministores

Others Others

Increase vs the same period last year

Source: Kantar | Worldpanel Division | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 12 weeks ending 19/06/2022 11
 Spotlight: Fresh Food’s value triples FMCG market
Up to 51% household buy branded rice and 18% buy branded meat showing the opportunity for Fresh food manufacturers to turn to
branding to communicate value to their customers.

% Share of wallet in Q2 2022 – % Buyers bought branded products within

Urban 4 key cities the categories in June 2022

51%
Rice

FMCG &
Fresh Food
More than 3/4 is
contributed by 18%
Fresh Food. Meat

Source: Kantar | Worldpanel Division | Urban Vietnam 4 key cities | MAT Q2’22 Source: Kantar | Worldpanel Division | Vietnam | Fresh food survey | HCMC & Hanoi
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Contact us

Tran Dang Phuong Vy – NBD Manager

Worldpanel Division, Vietnam

E: Vy.Trandangphuong@kantar.com
ơ

M: +84 90 756 3790

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