Beverage drove FMCG growth in Vietnam in Q2. Photo: Internet
Fast Moving Consumer Goods (FMCG) growth in the six key cities in Vietnam reached 6.3% in the second quarter of the year, the highest growth in the past three years, driven mainly by an increase of 5.2% in volume, Nielsen Vietnam
has said in its latest Market Pulse report.
The recovery is reflected in growth across most categories such as food, milk base, and home care. Furthermore, beverage including beer continues to be the biggest category contributing to total FMCG sales with 41% and has peaked up healthily with 9.2% growth.
The report shows that Rural continues proving as a new source of growth for many manufacturers at 7.6% increase rate in the latest 12 months but slightly slows down in Q2 at 5.6%. A stronger bounce back is seen in Urban in Q2 with 6.3% growth. The good news is both Urban and Rural’s pick-ups are mostly driven by volume increase.
“The rural community in Vietnam accounts for 68% of the country’s 92 million people and half of FMCG sales. Furthermore rural habitants are now investing in their education, and are enjoying income growth of around 44% over last three years.
“Yet these high potential opportunities remain largely unknown to many businesses”, said Nguyen Anh Dung, director of Retail Measurement Services.
“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. Some parts of rural offer better prospects than others; therefore identifying these becomes very important to ensure maximum return on investment,” Dung added.