FMCG continues recovery with 5.7 pct growth in Q4 2015 hinh anh 1Illustrative photo (Source: VNA)

Hanoi (VNA) – In the last quarter of 2015, the Fast Moving Consumer Goods (FMCG) growth in the six key cities of Vietnam rallied, with an increase of 5.7 percent, compared to 4.5 percent in the previous quarter.

According to the quarterly Market Pulse report released by Nielsen, the global performance measurement firm, the FMCG growth in Hanoi, Ho Chi Minh City, Hai Phong, Can Tho, Nha Trang and Da Nang was driven by a volume expansion of 4.9 percent, compared to 3.6 percent in the third quarter.

This recovery is reflected across most of the seven key categories of beverages, food, milk base, household care, personal care, cigarettes and baby care, the report said.

Beverages continued to enjoy stable growth with an increase of 7.7 percent in volume, contributing 38 percent to the total FMCG sales.

The fourth quarter also saw a soft recovery of the food and milk-based categories which recorded volume increases of 0.9 percent and 3.7 percent, respectively. The remaining categories also showed signs of rebound, except for personal care which remained stagnant.

“Although FMCG growth in Quarter 4 continues to show recovery, the market is no longer expected to have double digit organic growth,” said Nguyen Huong Quynh, Executive Director of Retail Measurement Services at Nielsen. “The volatility presents a lot of challenges for manufacturers to make sound decisions to fully seize market growth opportunities and drive a profitable business.”

Quynh believes that the rural population has been emerging as a new source of growth for many manufacturers.

Last year, FMCG sales in rural areas experienced a significant growth of 5.5 percent. The rural community in Vietnam accounts for 68 percent of the country’s 90 million population and contributed 54 percent to FMCG sales.

Furthermore, rural residents are now investing more in education and enjoying income growth of around 44 percent over the last three years, Quynh added.-VNA