More Vietnamese dong in the pocket, improving living standards, greater awareness of product range and outlets expanding into rural areas. Report by Hiromi Yamaguchi, Research Manager, Euromonitor International.
Strong growth seen for retail tissue in Vietnam in 2024
RETAIL TISSUE – KEY DATA FINDINGS
- Retail value sales rise by 7% in current terms in 2024 to VND19.8tn
- Paper tableware is the best performing category in 2024, with retail value sales rising by 8% in current terms to VND588bn
- Retail sales are set to grow at a current value CAGR of 9% (2024 constant value CAGR of 5%) over the 2024-2029 forecast period to VND30.4tn.
Value sales of retail tissue rose strongly in Vietnam in 2024, driven by higher incomes and improved living standards. Consumers are increasingly choosing specialised products for specific purposes, such as facial tissues, napkins, and so on. However, in rural areas many Vietnamese still rely on toilet paper for all uses due to its affordability. This trend is gradually changing as awareness of specialised products grows, supported by improved distribution and marketing efforts.
Toilet paper remained the largest category within retail tissue in 2024, with sales rising robustly. Toilet paper is an essential product for every household for the purposes of maintaining basic hygiene standards, and in some rural areas is often used as a substitute for other tissue and paper types. Many consumers in Vietnam prefer toilet paper over other tissue products thanks to its affordability, widespread availability and versatility for various household uses. Further, toilet paper is commonly sold in bulk, making it a cost-effective option for standard families.
Napkins recorded the fastest growth within overall retail tissue in 2024. Its robust performance was driven by heightened consumer awareness about the importance of using specialised tissues for dining purposes. As consumers increasingly prioritise hygiene and convenience during meals, they are shifting towards napkins designed specifically for use when eating and drinking.
In addition to changing consumer behaviour, brands and retailers played a pivotal role in boosting category sales through strategic marketing efforts throughout the year. Promotional campaigns, such as buy-two-get-one free offers, for example, have helped attract cost-conscious shoppers, while discounts and bulk-purchase deals further encourage repeat purchases. Some brands are also invested in educational campaigns to highlight the benefits of using napkins over general purpose tissues, reinforcing their relevance in everyday dining scenarios.
Facial tissues also recorded strong growth in 2024, resulting from the products’ versatility and soft, skin-safe properties, making them a preferred alternative for various uses. Brands have boosted sales through discounts, bundle offers and promotions, while claims of hypoallergenic and eco-friendly benefits further appeal to increasingly health-conscious and environmentally aware consumers.
With economic activity in Vietnam increasing some consumers have seen an increase in their disposable income with this having an influence on their purchasing decisions. As a result, some consumers are actively seeking premium retail tissue products and are willing and able to pay extra for them. There is a big gap in quality between mid – and high-priced retail tissue products, with higher-priced products typically being stronger and more absorbent. Premium products also often boast other claims, such as being softer on skin or having moisturising properties.
Small local grocers still lead distribution despite declining share
In 2024, small local grocers remained the leading distribution channel for retail tissue, holding a sizeable share of retail value sales thanks to these shops’ wide presence and to well-entrenched consumer habits. However, the channel’s share has been steadily declining over the years as Vietnamese consumers increasingly shift towards modern retail channels that offer better product quality and a wider variety of brands. Further decline was seen in 2024, reflecting this downward trend.
Supermarkets and hypermarkets were among the most dynamic retail channels during the year (after e-commerce) with each gaining share. This success was driven by their diverse product and brand offerings, coupled with extensive promotional programs from both manufacturers and retailers. Supermarkets and hypermarkets also gained greater consumer trust by ensuring product authenticity – especially in the case essential goods. In addition, their recent expansion into rural areas has significantly boosted accessibility and attracted a broader customer base, in a trend likely to continue during the forecast period.
While the e-commerce channel accounts for a comparatively small share of value sales in retail tissue, it is recording double-digit growth, thanks largely to viral TikTok videos promoting imported retail tissue products from Thailand and China. These products are often sold in attractive 10-12 pack combinations at competitive prices. However, the channel still lacks significant participation from local players on e-commerce platforms, presenting untapped potential for domestic brands.
AFH TISSUE AND HYGIENE – KEY DATA FINDINGS
Value sales msp grow by 6% in current terms in 2024 to VND720bn.
Sales msp are set to rise at a current value CAGR of 10% (2024 constant value CAGR of 6%) over the forecast period to VND1.1tn.
AfH tissue records robust rises in 2024
Value sales of AfH rose in 2024, driven by steady economic growth that supports dining out and outdoor activities among both locals and tourists. AfH toilet paper tissues remained the largest category, gaining further ground in 2024. This growth was mainly due to increased government investments in public restrooms and improvements at popular tourist spots. The Vietnam government is prioritising sustainable growth by investing in the construction of new and improved public restrooms in popular areas, enhancing infrastructure, supporting tourism, and promoting better hygiene standards. Meanwhile, toilet-finding mobile applications are more popular, making public facilities more accessible to a broader range of people. These efforts have significantly improved convenience and hygiene in Vietnam, contributing to rising demand for AfH tissue. As more people travel and spend more time in public places, there is a higher demand for quality toilet paper in these areas. The focus on cleanliness and hygiene, especially in busy locations, has also contributed to the growth of this category.
To serve the needs of the growing number of inbound tourists the government and the tourism authorities are determined to increase the standards of hospitality and foodservice. Tourism activities helped fuel demand for AfH tableware and toilet paper in 2024, and also AfH wipers in foodservice outlets, with there being a growing focus on the need to present a clean and hygienic image to attract diners. While traditional foodservice outlets normally offer napkins, upper-mid to high-end restaurants prefer to offer their customers wipes. This reflects a desire to present higher hygiene standards for consumers, while some establishments use branding on the packaging of the wipes to help improve their brand image. AfH boxed facial tissues, meanwhile, also recorded robust growth during the year, leading in terms of volume sales growth in 2024. Growth was largely thanks to its products’ gentle and soft texture and versatile use as napkins in restaurants. AfH napkins, meanwhile, led growth in current value terms.
Expansion into rural areas holds promise for small local players
Local or unbranded category products tend to focus on catering to the AfH market in rural areas, which comprises a highly fragmented array of local restaurants, cafes, and wet markets. These businesses are typically highly price sensitive, providing opportunities for smaller and local brands that can provide competitive pricing for bulk orders. Such local players also have superior knowledge and contacts for achieving successful distribution into rural areas, a task that has been challenging for larger companies – especially those located outside of Vietnam.
Expanding healthcare facilities support sales
Value sales of AfH adult incontinence products in Vietnam increased in 2024. The country has seen a rise in the number of healthcare facilities, such as nursing homes or hospitals that cater to an ageing population and those in need of specialised care. Growing awareness of the importance of hygiene and comfort in public and healthcare settings has also contributed to the increased demand for high-quality incontinence products. Public health concerns and the importance of proper hygiene to prevent the spread of germs has become critical for restaurants, coffee shops and especially hospitals. Consumers have raised their expectations for AfH tissue and hygiene, especially since the pandemic, with people being more discerning regarding the quality of the products on offer.
Some consumers also provide feedback, criticisms and recommendations on social media which is helping to raise awareness while also putting pressure on these locations to improve their offering of AfH tissue and hygiene products. Additionally, brands are strengthening their collaborations with hospitals to boost consumer awareness and promote usage in healthcare facilities, further driving growth.
