FMCG 2023

1. An integrated
update of Vietnam's
FMCG market
Q1 2023
Urban 4 Key Cities & Rural Vietnam
By Worldpanel Division
FMCG
Monitor
(12 weeks ending 26/3/2023)
1

2. Executive summary
Macro economy
FMCG overview
Hot topic of
the quarter
Retail landscape
GDP was 3.3% in the
first quarter of 2023,
lower than the
predicted 5.6%,
marking Q1 with the
weakest growth rate
in recent years.
The rise in average
price paid is notably
represented in Urban
4 regions, adding
significantly to overall
value growth while
for Rural, the growth
engine comes from
higher volume
purchased.
Tet Gifting tradition
returned with strong
increase this year,
demonstrating the
importance of Gift
Giving activities over
in Festive season.
Shopping online and in
small-modern formats
are popular due to the
ease and diversity of
items, particularly for
Tet - Q1, opening a
new opportunity for
early Tet push on
Online & Minimarket.
Transforming from
offer-centric to more
shopper-centric is the
key objective for both
manufacturers and
retailers on the way to
winning more
shoppers.
Spotlight of
the Quarter

3. Source: GSO
Following the previous quarter's bumpy recovery, Vietnam posted a softer GDP growth of 3.3% in Q1 2023, lower than the
projected target of 5.6% and its weakest growth since Q3 2020. Furthermore, the continuous rise in consumer prices has a
significant impact on the rise in retail sales of products and services.
Vietnam’s macro economy
GDP
1.9
3.0 3.3
4.4 4.2
Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
5.0
7.7
13.7
5.9
3.3
Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
% Change vs the same period last year
4.8
19.5
42.5
17.1
14.0
Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
Retail sales of consumer goods
& services
CPI

4. Source: Worldpanel Division | Consumer Confidence Survey | Urban Vietnam 4 key cities | MAT Q1’23
The economic situation will be better or the same as today
in the next 12 months (% households agree in Urban 4 key cities)
In this economic backdrop, customers' confidence in their financial status has barely improved since the last quarter,
posing challenges for producers in adjusting to match consumer expectations.
Consumers' perspective
4
84
60
65
76
82
86
88
72 73
Q4'19 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23

5. As economic difficulties persist with a lack of production orders, concerns about Job security rise consecutively in the last 4
quarters. Besides, households expressed rising concerns about Increasing utility costs.
Consumers' perspective
Currently what do you consider to be the biggest concerns you and your household is likely to face?
% HH agree
Source: Worldpanel Division | Consumer Confidence Survey | Urban Vietnam 4 key cities | MAT Q1’23
62
36
29
17 18
22
15
51
9
58
40
28
16
23 24
14
57
15
71
45
31
18 18
20
15
29
19
68
53
40
24
16
24
17 18
14
66
51
37
27
23
21 19 19
14
0
10
20
30
40
50
60
70
80
Disease /
Sickness
Food Safety HH Income Job security Increasing costs Cost of Food Environmental
Pollutio
Price of Oil Natural Disaster
%
Key
Decision
Maker
Agree
Q1_2022 Q2_2022 Q3_2022 Q4_2022 Q1_2023

6. In Urban 4 areas, the
rise in average price
paid is noticeable and
has a considerable
impact on the overall
value increase. On the
other hand, Rural
consumers show
higher consumption
levels, suggesting
there is room for
manufacturers to
improve their
penetration in Rural
areas.
FMCG
overview
*: 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
Urban 4
key cities
% Change vs YA
-3 -4
1
1
-4
4
15
8 7
val vol price
Q1 2022
Q1 2023
Q1 2021
1
-1
2
4
-2
6
14
10
4
val vol price
1
5
3
11
15
Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
4
11
15
17
14
Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
Rural
Quarterly value trends
Value Volume* Avg. paid price**
Source: Worldpanel Division | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG including Gift

7. Driving the stronger
growth of FMCG value in
Q1 this year are
Beverages and Personal
Care. The comeback of
celebratory categories
this Tet 2023 period
boosts the performance
of the total Beverages
sector, particularly
thanks to Soft Drinks,
Coffee & Beer.
Sector
performance
% Value change vs YA in Urban 4 key cities
FMCG
Dairy
Beverages
Packaged
Foods
Personal
Care
Home
Care
Source: Worldpanel Division | Households Panel | Urban 4 Key Cities Vietnam | Total FMCG including Gift
1
5
-6
6
-3
1
15
16
20
9
18
12
-4
0
-9
-2
-3
-3
8
6
13
2
13
6
4
5
3
8
-1
5
7
9
6
7
5
6
Q1 2022
Q1 2023
*: 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
Value Volume* Avg. paid price**

8. Sector
performance
% Value change vs YA in Rural
Source: Worldpanel Division | Households Panel | Rural Vietnam | Total FMCG including Gift
4
16
-4
5
1
5
14
15
15
9
19
15
-2
10
-7
-4
-4
-2
10
10
11
4
26
12
6
6
3
9
8
7
4
7
3
6
-2
4
*: 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
FMCG
Dairy
Beverages
Packaged
Foods
Personal
Care
Home
Care
Value Volume* Avg. paid price**
In Rural, all sectors show
solid growth in Q1.
Personal Care is the
highest growth sector,
with a 26% increase in
volume driven by the
Skincare and Makeup
categories.
Q1 2022
Q1 2023

9. Topic of Q1
- Tet 2023
Source: Worldpanel Division | Urban 4 key cities and Rural | Tet 2023
The bounceback of FMCG gifting played a significant role in boosting Tet 2023 FMCG growth after taking a nosedive
last year. Besides key categories for Tet Gifting such as Beer, Biscuits & Cakes; Wine/champagne, and Chocolate are
gaining popularity as premium Tet gifting options, indicating that consumers still view gift-giving as a special
occasion, with both recipients and givers, putting a premium on high-quality and monetary-value gifts.
19% 16%
29%
-40%
-20%
0%
20%
40%
Tet 2023
15% 12%
22%
-40%
-20%
0%
20%
40%
% contribution to the
total value of Tet
% Value change YOY
% contribution to the
total value of Tet
% Value change YOY
100 75 25
100 73 27
Total value in Tet Value spend on demand Value of gift received
Urban 4
cities
Rural
Top growing Gifting categories in Urban & Rural
% occasion change Tet 2023 vs Tet 2022
Urban 4
cities
Rural
Wine/Champagne
+50%
Energy Drink
+49%
Chocolate
+42%
Soft Cakes
+28%
Biscuits
+35%
Granules
+43%
• Tet 2022: 5 weeks ending 6 Feb 2022
• Tet 2023: 5 weeks ending 29 Jan 2023
Discover more how FMCG shopping and
gifting have changed in Tet 2023.

10. % Value contribution of channel
58 48
24 21 16 22
-8 -9 -2
14 7 1
12
5 4
-3
3
12
Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
24 20 21 -20 22 27
-9 -12 -14
30 21 29
-26 -17 -12
97
29 6
% YOY value change by channel
Retail
landscape
The rest is other channels, including hand-carry, direct sales, factory outlet,…)
54 54 53 52 51 53
6 7 7 7 7 6
6 6 6 6 6 6
11 10 11 11 12 11
11 13 12 11 11 11
7 7 7 8 7 7
0
10
20
30
40
50
60
70
80
90
100
Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'22
Online
Hyper + Super
Mini Store
Specialty Stores
Wet Market
Street shops
Source: Worldpanel Division | Households Panel | Urban 4 Key Cities Vietnam | Total FMCG excluding Gift | 12 weeks ending 01/01/2023
The next focus for businesses is to continue to be available on more channels and platforms, taking advantage of the
power offered by online channels and consumers’ demand for omnichannel shopping experiences. Shoppers show a
steadily growing preference for shopping online and in small modern formats thanks to the convenience and
improved variety of products, especially during the Vietnamese new year period in Q1.

11. Spotlight of
the quarter
Source: Worldpanel Division | Households Panel | Expert Solution | Urban 4 cities Vietnam | Total FMCG
Why Shopper-centricity delivers higher business growth?
Considering the evolution of shopping behaviours as well as the growing competition of modern and convenience
formats in key cities, manufacturers’ main goal is to reach as many shoppers as possible by winning together with
retailers. That is why it is vital for both to understand shoppers' drivers and motivations in channel selection.
Understanding shoppers’ paths to purchase enables you
to win at each stage of the shopper journey
• Planned or impulsive
trip?
• How does that impact
overall store choice?
• Which retailers meet
consumers' needs?
• What draws shoppers to
the chosen store?
• What prompts shoppers
buy brand A?
• Identify what other
categories are
purchased on the same
trip?
• What is the conversion
rate of each retailer for
my brand?
• Where are the missing
opportunities and how
to grab them?
Transforming from offer-centric to more
shopper-centric solutions with our experts.

12. Kantar is the world’s leading data, insights and
consulting company. We understand more about how
people think, feel, shop, share, vote and view than
anyone else. Combining our expertise in human
understanding with advanced technologies, Kantar’s
30,000 people help the world’s leading organisations
succeed and grow.
For further information, please visit us at
www.kantarworldpanel.com/vn
Contact us
Jane Ha – Senior Marketing Manager
Worldpanel Division, Vietnam
E: Jane.Ha@kantar.com
58 Vo Van Tan St., Dist. 3, Ho Chi Minh City, Vietnam
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