Wipes in Vietnam

2020 IMPACT

Growth spike for wipes in 2020

While wipes were introduced in Vietnam more than a decade ago, the category accounted for the smallest share of value sales in Vietnam’s retail tissue and hygiene market in 2020. Baby wipes and general purpose wipes are the only categories that posted more than negligible sales with baby wipes being the main sales driver.

While Diana maintains a strong lead in wipes, local players and private label gain more traction in 2020

Diana JSC maintained its strong lead in wipes in 2020 due to its local deep understanding and strong distribution networks. While there are many small brands present in the market, consumers still prefer to return to the brand that they trust the most.

Growth spike for baby wipes and general purpose wipes due to heightened consumer sensitivity to cleanliness

Prior to the pandemic, Vietnamese people were increasingly opting to buy baby wipes even for general purpose usage as they believed the “baby” label indicated a higher level of safety. This led retailers to dedicate more and better shelf space to baby wipes, compared with general purpose wipes, across almost all offline channels.

RECOVERY AND OPPORTUNITIES

Strong growth for wipes over the forecast period

Wipes is expected to continue seeing strong growth over the forecast period, with increased hygiene concerns brought about by the pandemic continuing to support greater demand, particularly in the short term. Other factors that are set to have a more significant impact on wipes over the longer term include a widening offer not only of baby and general purpose wipes but also of other wipes categories such as facial cleansing wipes, as local brands and private label players will seek to capitalise on growth opportunities created by rising interest and demand from the Vietnamese population.

Government regulation and more careful inspection aim to reduce consumption of the rampant number of “fake” wipes imports that are considered unsafe

Due to strong regulation instituted by the Vietnamese government affecting both retail tissue and wipes in 2019, the quality of wipes has since been more carefully inspected before being sold. This move is intended to resolve the serious problem of alleged fake wipes imported into the Vietnamese market and which caused considerable safety concerns over the review period.

Strong growth for e-commerce while supermarkets remains the largest channel

With strong promotional activities and the convenience it offers, e-commerce is expected to grow well over the forecast period, as consumers will become more comfortable in using this channel and more manufacturers will adopt e-commerce. However, supermarkets is expected to remain the leading channel for wipes over the forecast period.