Hanoi (VNA) – The fast-moving consumer goods (FMCG) market is expected to seegood expansion towards the end of this year thanks to stronger purchasing powerin both urban and rural areas, experts said.

Statistics from the retail sector showed that after reaching a record growthrate (9.6 percent) in the first quarter, the expansion of the FMCG market sloweddown to 5.8 percent during April-June. Notably, six main FMCG categories,including beverages, food, dairy, household care, personal care and cigarettesshowed positive growth in the quarter.

Food and dairy sector grew 8.1 percent, home care 5.7 percent, beverage 5.4percent and personal care 5.4 percent.

Beverage made largest contribution to the total FMCG sales in the period with42 percent, followed by food (16 percent), cigarettes (15 percent) and dairy(14 percent).

Meanwhile, rural areas continue to be a promising land for manufacturers.Whilst urban growth stood at 5.1 percent, urban areas post a more rapid growthat 6.5 percent. Urbanisation, Internet access and the popularisation of smartphones have changed the lifestyle of rural consumers. They are willing to paymore for high-quality products.

In addition, improved consumer confidence and the development of consumerfinance will be key drives to boost FMCG market in the last months of theyear.-VNA