FMCG in key cities slows down in first half By Thanh Thom Customers inspect dairy products at a Co.op mart store in HCMC – PHOTO: THANH HOA HCMC – The fast moving consumer goods (FMCG) sector slowed down in four key cities – Hanoi, Danang, HCMC and Can Tho – in the first half of this year, yet there were signs of a recovery in July, according to the latest report from market research firm Kantar Worldpanel. The firm noted in the report that Vietnam’s economy looked bright in the first seven months of this year, posting a gross domestic product growth of 7.08% (as of end-June), with positive economic indicators. Therefore, the country is growing more attractive to foreign investors while the local consumer demand continues to reflect robust growth, especially in fresh foods, home appliances and vehicles. The firm ascribed the slowdown of the FMCG market to the reduced consumption of dairy and packaged foods, driven by the major must-have categories, such as liquid milk and cooking aids, including taste enhancers, fish sauce and soy sauce. Meanwhile, other developing categories such as tonic water, liquid yoghurt, ketchup and chili sauce continue to grow strongly. In rural areas, dairy products, beverages and personal care items enjoy strong growth in terms of both value and volume, while packaged foods and home care items are underperforming, according to the report. While the FMCG sector is growing at 5.2% in rural Vietnam, ice cream achieved double-digit growth and enjoyed the highest reach… [Read full story]
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