The trend of Vietnamese’s FMCG consumption during Tet 2025 is forecast to grow by 1 – 3%, with rural areas having a higher growth rate than urban areas…

Consumption of Vietnamese people in rural areas will grow higher than urban areas during Tet 2025. Illustration image.

According to Kantar’s forecast, FMCG growth during Tet 2025 will reach 1 – 3%, with rural areas having a higher growth rate than urban areas. This is a positive signal from economic recovery, although last year there were special events such as Typhoon Yagi and floods in the North causing serious damage. However, the impact on consumer finances is not too large.

According to the General Statistics Office, the Consumer Confidence Index (CCI) increased from 67% in the fourth quarter of 2023 to 78% in the first quarter of 2024. However, consumers are still cautious in spending decisions due to concerns about inflation and economic instability.

Especially in recent years, the proportion of spending on FMCG during Tet has decreased. Specifically, spending on FMCG during Tet 2019 accounted for 21% of total annual spending in major cities, but by Tet 2024, this rate decreased to about 19%. The total value of FMCG consumption in 2024 reached the highest level in the past 5 years, but the growth rate was only 1 – 2% compared to the previous year.

This shows that people are gradually limiting spending on non-essential items and tending to simplify and prioritize products with long-term value.

Consumption trends of FMCG products for Tet 2024 in 4 major cities and rural areas.

Specifically, the most popular product categories in Tet 2025 are predicted to be as follows:

• Nutrition and functional foods (up 45%): Consumers are increasingly concerned about health, prioritizing natural products and nutritional supplements to prepare for an energetic new year.
• Personal care (43%): Tet is an opportunity to renew themselves. Gen Z and Millennials spend especially on beauty care and personal hygiene products, with the need to improve their appearance immediately.
• Fashion and accessories (45%): Fashion is always the focus of Tet shopping. Buying new clothes is not only a tradition but also a wish for good luck in the new year.
• Food and non-alcoholic beverages (42% and 38%): These products are always an indispensable part of Tet parties, contributing to creating a festive atmosphere during the holiday season.

In addition, there are also differences in the timing and level of shopping between rural and urban areas. In rural areas, when many people return from the city to their hometowns for Tet, spending will increase sharply and extend the shopping time, even extending to a week after Tet when people return to the city. Tet shopping time in rural areas can be 2-3 times higher than normal weekly spending.

On the contrary, in big cities, the shopping pace will be faster and more intense, often ending before Tet. Fierce competition in a short time requires brands to have sharp and timely advertising and promotion strategies to attract consumers.

THREE MAIN CHANGES IN TET 2025 CONSUMPTION TRENDS

Based on Kanter Worldpanel’s consumer survey in 4 major cities and rural areas, there are 3 main changes in Vietnamese people’s Tet 2025 consumption trends.

First, consumers during Tet 2025 will continue to prioritize essential and useful products such as household appliances, cooking utensils, personal care products and non-alcoholic food and beverages. This change reflects the simplification in product selection and the shift from crowded gatherings to family and individual activities.

At the same time, strict regulations on driving while using alcoholic beverages will cause products such as alcohol and confectionery to decrease in the Tet basket, although they still account for a large proportion.

Second, there is a clear change in the trend of choosing Tet gifts in 2025 when consumers prioritize practical and affordable gift sets over traditional FMCG products.

Kantar’s survey shows that the number of households receiving Tet gifts from FMCG products is gradually decreasing. This reflects a change in gift-giving habits, with consumers looking for gifts with high usage value and suitable for the family’s actual needs such as cooking oil, spices, and healthy products such as nuts, yogurt, bird’s nest rather than previously popular consumer products such as beer or candy.

Third, the trend of Tet travel is becoming more popular. After years of facing the pandemic and stress at work, consumers tend to seek relaxation through Tet travel.

Data from the General Statistics Office shows that the number of domestic and international trips during Tet 2024 has increased significantly. This shows that tourism is not only a leisure activity but also an important trend in the way people celebrate Tet in modern times. In addition, Tet gifts have also become more diverse, with options such as cash, household products, and fashion instead of traditional FMCG products.

Despite the change in consumption patterns, Tet 2025 is still a special occasion for Vietnamese people. After the complex impacts of the economy and living environment in recent years, consumers tend to celebrate Tet in a more calm and relaxing way. Vietnamese people also reduce large gatherings, simplify Tet preparation activities, and spend more time with family and themselves.