FMCG

An integrated
update of Vietnam
FMCG market
Q1 2022
(12 weeks ending 28/03/2022)
Monitor
Urban 4 Key Cities & Rural Vietnam
By Worldpanel Division
 Executive summary

Modern sauces such

GDP in Q1 2022 Consumer demand as Ketchup, Chili As of Q1 2022, 22% of
for in home FMCG sauce and FMCG spending has Nuclear families is
sustains a stable growing
growth coupled with remains low due to Mayonnaise still been made in emerging
the cut-down of successfully gain channels including importance!
CPI is under 2%.
volume consumption. more volume Online, Ministores and
consumption. Specialty Stores in
Urban 4 key cities.

Macro economy Spotlight

FMCG overview Retail landscape
Hot category

2
 Vietnam’s macro economy
Despite the uncertain times of COVID-19 and Ukraine-Russia conflict, GDP in Q1 2022 sustains a stable growth coupled with CPI is under 2%.
However, Vietnam's economy is likely to face a new wave of challenges in upcoming months.

% Change vs the same period last year

GDP CPI

7.0
6.6
5.3 4.5 5.2 5.0
3.2
2.9 2.8 2.7 Source: VnExpress
2.5
2.6 1.8 1.9
1.9

-6.2 0.3

Source: Vietnamnews

Source: GSO | VnExpress 3

 Consumer perspective
Vietnamese confidence in both economic outlook and purchasing power is progressively getting back to the pre-
pandemic level thanks to the well-coping with COVID-19 in recent months.

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
84 4 7 8 3 8 6
80 81 82 16
9 13 Will get much
74 76 18 worse
Wave 4 of
COVID 65
62 43 43 42
60 45 43 43 Will get worse
1st COVID
41 46
impact 44 31
42 Will remain the
same
44 42 45 45
41 40 38 39 39 Will slightly
33 improve

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

Source: Worldpanel Division | Consumer Confidence Survey | Urban Vietnam 4 key cities | MAT Q1’22 | Field work from 21st March to 3rd April 4
 Consumers’ top
concerns
Currently what do you consider to be the biggest concerns you and your
Affected by the global household is likely to face? (% households agree in Urban 4 key cities)
political situation,
Vietnamese consumers
worry more about the oil 70
price, which jumps into Q1 2021
the 2nd biggest concern 60
in Urban 4 cities during
Q1 2022
the 1st quarter of 2022. 50
The concern about food
prices also increases 40
compared to the same
period last year. 30

20

10

Source: Kantar | Worldpanel Division | Consumer Confidence Survey | Urban Vietnam 4 key cities | MAT Q1’22 | Field work from 21st March to 3rd April 5
 FMCG
overview % Change vs YA

COVID-19’s
In Q1 2022, consumer 1st wave COVID-19’s
10.8 15
demand for in home 7.0 14 4th wave

4.3 9
FMCG remains low 3.6
10
11 8 8
Urban 4 0.6 1.1
due to the cut-down 5
3
key cities 2 1
of volume 0
-3
consumption. The -2.7
Category 1 -5
-3.4 -3.5
market growth is Category 1 Category 1
mainly driven by the
Q1 2020
increase of average
paid price. Q1 2021 Value Volume* Avg. paid price** Quarterly value trends
Q1 2022
Re-watch our on-
15
demand webinar to
9.5 12
know more about 6.1 10
6.1 8
how consumers are 3.3 2.1 9 5 7
0.8 3.6 5 8 4
reacting to these 4
Rural 1
price pressures. 0
Category 1 Category 1
-1.0 -2.1
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 28/03/2022 6
 Sector % Value change vs YA in Urban 4 key cities

performance Value Volume* Avg. paid price**

In Q1 2022, almost all

FMCG -3 -4 1
sectors suffer from a 0.6 -3 4
decline in volume Q1’21
consumption due to a Q1’22
weaker performance of Dairy -4 -6 3
5 1 4
Tet shopping season,
according to Tet 2022
report. In line with total
Beverages 2 1 1
FMCG market, the -6 -9 3
increase of paid price is
the key driver across
major sectors. Packaged -6 -8 2
Foods 6 -2 8

Personal -4 -2 -1
Care -3 -3 -1

Home 0 3 -1
Care 1 -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 28/03/2022 7
 Sector % Value change vs YA in Rural

performance Value Volume* Avg. paid price**

The same picture is

FMCG 1 -1 2
witnessed in Rural 3.6 -2 6
Vietnam when average Q1’21
paid price also drives Q1’22
market growth. Dairy -1 -3 2
17 11 5

Dairy shines bright as

the only sector that
Beverages -1 -3 2
achieves positive -4 -7 3
performance driven by
volume consumption as
well as price growth. Packaged 2 -2 4
Foods 5 -4 9

Personal 9 10 1
Care 1 -4 8

Home 0 3 -2
Care 5 -2 8

*: 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 28/03/2022 8
 Hot
category Modern sauces performance in Q1 2021 – Urban 4 key cities
% growth vs the same period last year
Modern sauces such as
Ketchup, Chili sauce Value Volume*
and Mayonnaise still
successfully gain more
volume consumption in
the 1st three months of
Ketchup +24% +24%
2022, despite the
increase in average
price paid witnessed in
most of categories.
Chili
sauce
+16% +15%

Mayonnaise
+13% +6%

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities Vietnam | Total FMCG including Gift | 12 weeks ending 28/03/2022 9
Retail landscape
As of Q1 2022, 22% of FMCG spending has been made in emerging channels including Online, Ministores and Specialty Stores in Urban 4
key cities, which are also expanding fast towards Rural. As such, understanding how shoppers purchase FMCG in these channels is crucial
for both brands and retailers to capture more growth.

Channel performance within FMCG for in-home consumption

% Value share in Q1 2022 % Value share in Q1 2022

% Value change in Q1’22 % Value change in Q1’22

6
5 3 3
22
7 +5% Street Shops +10% Street Shops
11
-9% Hyper & Super +3% Hyper & Super
10
Urban 4 Wet market
2
Rural
-17% -3% Wet market
key cities 54
7 +20% Ministores +32% Ministores

+48% Online +39% Online

13 76
-12% Specialty Stores +10% Specialty Stores

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 28/03/2022 10
 Spotlight: Nuclear families is growing importance
Surging prominence of Nuclear Families with fewer members leading to the smaller basket which is 80% of an average trip size,
indicating for manufacturers and brands to take action with more multi and small pack options.

% Households with 1-3 member Volume per trip (L) index Smaller and multi pack sizes are offering
of small households size vs averages within Beverages players

Liquid 75
milk

37% Bottled 75
water

32% 2021
80 Pack 4
Beer

2017 Pack 6

Shampoo
80

Detergent
80
Pack 12

Source: Kantar | Worldpanel Division | Households Panel | Urban 4 Key Cities Vietnam | Total FMCG including Gift | Full year 2021 11
 Spotlight: How do Vietnamese consumers react to inflation?
Inflation is being witnessed in almost FMCG categories, reaching around 7% peak on average and becoming a challenge for both
consumers and brands. Vietnamese shoppers are changing their behavior to adapt to this pressure in different ways. Re-watch our latest
webinar to take out key findings to navigate this challenging wave.

Change in value spend for in-home FMCG consumption – 12 w/e rolling

%
Lunar NY Inflation*
1.5
9%

Population Size
1 7%
Spend Change – Billions VND

Lunar NY 5% Inflation contribution to Grocery Spend change

0.5
3%
Product Mix (Changing Price Tier/ Pack size)

0 1%
Buy less / more Volume
-1%
-0.5
Store Mix (Store Changing)
-3%

-1 -5% % Inflation

*Inflation: Average of SKU price changes versus YA

Source: Kantar | Worldpanel Division | Vietnam FMCG Panel | 12 weeks ending 30 March 2022 vs YA 12
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Contact us

Nguyen Van Vu – Marketing Executive

Worldpanel Division, Vietnam

E: Vu.NguyenVan@kantar.com
ơ

M: +84 928 26 7015

58 Vo Van Tan St., Dist. 3, Ho Chi Minh City, Vietnam
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