According to Kantar, the FMCG industry is witnessing high inflation, affecting both consumers and businesses. Consumers are changing their shopping behavior to adapt to inflationary pressures.
According to Kantar, the FMCG industry is witnessing high inflation, affecting both consumers and businesses. Consumers are changing their shopping behavior to adapt to inflationary pressures. The growth of this industry is mainly through increasing the selling price of products.
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.
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. However, in the context of the pandemic going away, starting in the beginning of 2022, cost of living, including cost of oil/gas, leading to cost of food, has come into the picture as a significant rising concern of consumers.
After benefiting greatly from stockpiling during the COVID scenario, Dairy and Packaged Foods face a fall in volume consumption in Q2 of 2022, when the new normal has become familiar. In line with the total FMCG market, the increase of paid price is the primary driver across all sectors.
Dairy and Home Care shine brightly in Rural, propelling FMCG performance, while others experience stagnation. Similarly, average paid price is the main driver of the Rural market growth.
Though having some hard times under the impact of COVID-19, inhome consumption refreshment beverages recovered strongly in Q2’22 and especially post a much higher spending level compared to preCOVID time. In which, Juice, RTD Tea and Energy Drink are categories having best performance in the last 3 years.
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.
Vietnam’s economy looks set for a rapid rebound in 2022. This optimistic prognosis is anticipated to have a good impact on the retail industry, which is undergoing numerous substantial transitions.