Fast-moving consumer goods (FMCG) sales are expected to grow by 7-9 percent in Vietnam during the 2023 Lunar New Year from last year, Vietnam News Agency reported on Tuesday.
Following two years of low sales due to COVID-19, things are expected to look up for the FMCG industry this time around since the Vietnamese economy is recovering and consumers have a positive outlook on economic prospects, according to a report by Kantar Worldpanel Vietnam – the market research company.
The occurrence of two major holidays in a single month (New Year and Lunar New Year) is expected to provide a boost to spending.
However, with inflationary pressure continuing, consumers are feeling the squeeze on their wallets and adapting to the situation in various ways, it said in a recent report.
In contrast to last year, when demand for celebratory categories fell because of travel and gathering restrictions, this year’s massive momentum in beverage consumption will continue to benefit celebratory FMCG categories like carbonated soft drinks and beer, it said.
But rising consumer concerns about income and job security in recent months are expected to throw a spanner in the works, according to the report.
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Source: Vietnam Insider