FMCG consumer spend in rural areas drops on Covid-19
Rural areas witnessed the same picture in Vietnam’s four cities with FMCG slowdown in the first two months against the same period of last year, according to Kantar Worldpanel.
Consumer spend on fast-moving consumer goods (FMCG) products in Vietnam's rural areas slowed down in the first two months of 2020, mostly driven by the period starting from February 1 when Covid-19 broke out in Vietnam.
| Source: Kantar Worldpanel |
The finding was revealed by Kantar Worldpanel in a report titled Covid-19 Initial Impacts on Vietnam FMCG In-home Purchase 2020 (Rural Vietnam) from February 23 to March 22 compared to the period from March 3 to 31, 2019 released on April 1.
| Source: Kantar Worldpanel |
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There is a profound impact across FMCG sectors, resulting in dynamic movements within each of them. Although growth has been posted in almost all sectors, the Covid-19 spread poses challenges for many categories, especially beverages which have been heavily affected.
According to the report, FMCG growth in sectors from February 23 to March 22 against from March 3 to 31, 2019 saw a drop of 0.7%, of which beverages (alcoholic drinks and non-alcoholic categories) dropped by 24.1%. The major contribution to the total growth included personal care with the highest growth of 18.9%, dairy with 16.6%, home care with 15.1% and packaged goods with 4.6%.
| Source: Kantar Worldpanel |
The FMCG sectors witnessed in rural areas the spikes in demand of “pandemic” categories for stock-up purpose, the report wrote. The situation is similar to Vietnamese consumers in the four key cities including Hanoi, Ho Chi Minh City, Danang, Can Tho.
What is changing in consumers’ basket?
| Source: Kantar Worldpanel |
