Vietnam consumers drink more at home than outside: report

In-home consumption of beverages in terms of value grew compared with the same period last year, according to Kantar Worldpanel’s observation over a 12-week period ending July 13.

“Indeed, consumers are opting for more drinking occasions at home rather than outside,” Kantar Worldpanel, formerly known as TNS Worldpanel, said in its latest FMCG Monitor report.

FMCG, or fast-moving consumer goods, are products that are sold quickly and at relatively low cost.

The UK-based market researcher tracked drink usage behaviors of individual consumers in Hanoi, Da Nang, Ho Chi Minh City, and Can Tho and found a year-on-year growth of 3.9 percent in in-home drinking occasions, while out-of-home occasions remain stagnant.

Noticeably, consumers are less likely to buy drinks at more costly places such as coffee shops and restaurants, as drinking occasions at these locations shrunk by 12 percent and 3 percent, respectively, according to Kantar Worldpanel data.

“It is interesting to notice the most declining items consumed out of home, such as instant coffee, tonic drinks and energy drinks, are holding the highest ranks among the top growing items in-home, in terms of drinking occasions,” the report reads.

Kantar Worldpanel said the report findings reflect “a switching trend in which people will take these kinds of drinks at home rather than spending on them elsewhere outside,” in a bid to cope with downward pressure from the current economic situation.

“There is little doubt that consumers, especially lower income groups, will continue to look at ways to better manage their expenditure,” Kantar Worldpanel Vietnam general manager David Anjoubault commented, adding that switching to drinking at home more frequently “ 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,” Anjoubault said.

The latest FMCG Monitor report also shows different pictures across urban and rural areas in Vietnam.

FMCG consumption in urban areas continues to suffer from stagnant growth since early this year, with growth leveling off at 5 percent in value and 2 percent in volume, the report said.

In the meantime, the rural market is stabilizing its growth at 11 percent in value and 8 percent in volume.