Consumption of fast-moving consumer goods - products that are sold quickly at relatively low cost such as soft drinks, toiletries, over-the-counter drugs, toys and processed foods - in Vietnam's urban areas continues to suffer from stagnant growth, according to a market report.
The report, released by market research firm Kantar Worldpanel, said growth of FMCG consumption in urban areas since early this year levelled off at 5 percent in value and 2 percent in volume.
All key channels have seen a smaller growth for the 12 weeks ending July 13th compared with the same period last year, according to the report.
Meanwhile, rural areas saw stable growth of 11 percent in value and 8 percent in volume, according to the report.
While the economy has achieved some improvement recently, weak local demand is still "a major block to a sustainable recovery," said David Anjoubault – General Manager at Kantar Worldpanel Vietnam.
"There is little doubt that consumers, especially lower income groups, will continue to look at ways to manage better their expenditure,” he said.
Kantar Worldpanel’s tracking on drink usage behaviors of individual consumers in 4 key cities reports a growth of 3.9 percent in in-home drinking occasions over the second quarter this year compared with the same period last year while out-of-home occasions remain stagnant.
“Opting for more in-home drinking occasions is just one among those reactions. Being able to understand and capture these shifting needs will create new space for manufacturers to further develop their categories, even under the current downward pressure,” said Anjoubault.