With the characteristics of a tropical country, Vietnam faces hot and sweltering weather when summer comes. Catching up with the signals of summer, the Beverage and Bottled Beverages (non-alcoholic) industry has become extremely busy. In April 2023, when summer knocks on the door, the race to conquer consumers of FMCG beverage brands officially begins.
The FMCG Beverage Industry and the “Thirstiest” Season of the Year
The summer market is a playground for major FMCG players in the non-alcoholic beverage sector. The unique climate of the country, characterized by hot and humid summers, along with people’s active outdoor lifestyles, leads to an essential demand for refreshment and “cooling down.” In tune with the diverse needs, FMCG beverage brands have indeed launched a plethora of SKU beverage products with a wide range of functions to serve the refreshing needs of numerous consumers: from “cooling down” and “instant thirst quenching” to more abstract benefits like “detoxification,” “body purification,” and “electrolyte replenishment.”
In 2023, the landscape of non-alcoholic beverages becomes diverse and exciting due to new habits that have led to new behaviors and preferences compared to two years ago. For instance, the trend of environmental protection and reducing plastic usage has prompted consumers to limit their purchases of plastic bottled products and show significant interest in whether products are recyclable, leading to changes in the marketing strategies of many brands.
From a branding perspective, let’s review these fresh consumer trends before shaping the “to-do list” for summer 2023 with Novaon Digital:
New Aspects in the Context
Having experienced two summers intertwined with social distancing and health protection narratives, in 2023, the approach of FMCG beverage brands needs to be novel and distinct if they wish to capture consumer attention.
Through surveys conducted during collaborative campaigns with major FMCG brands, Novaon Digital has identified key challenges that FMCG brands need to address:
- The challenge of product and messaging focusing on consumer health.
- The challenge of green living: How FMCG brands can share their mission with society.
- The challenge of mental health: How to ensure consumers are not only healthy but also happy.
05 opportunity trends for the FMCG Beverage/Non-Alcohol/Milk industry:
Summer Entertainment Trends: Quick, Concise, Explosive
Another approach is to utilize “snackable content” (quick and highly entertaining content).
The summer weather poses a challenge, so the presence of products or brands should make everything easier. Snackable content is a typical way to realize that goal.
“In the same amount of time, users want to see more.”
According to a survey by Meta, fast entertainment is gradually becoming a popular trend among Vietnamese users as they begin to prioritize watching more short entertainment videos. Recent years have officially marked the explosion of short video social media platforms such as TikTok, Facebook Reels, and YouTube Shorts.
For these reasons, short content with explosive touchpoints is the direction that beverage brands should leverage this summer to seize the opportunity to get closer to consumers’ hearts.
Proactive Health Care
Cooling the body is a top health concern for consumers during the summer. Specifically, consumers are interested in methods to mitigate the negative effects of hot weather (nutritional drinks for cooling down and ways to eliminate body odor, etc.).
Having lived with the pandemic for two years, the mindset of “prevention” has deeply ingrained itself in consumers’ subconscious. They have become accustomed to raising their awareness of health issues, shifting from “treating illnesses” to “preventing illnesses.” In the summer of 2023, the narrative goes beyond COVID-19 to encompass all potential illnesses one might encounter during the summer. Consumers are more concerned about health improvement methods, which requires brands to understand and “care for” them.
Suggestion for Brands: Implement a “Delicious Summer Dishes” menu or a guide to keeping a healthy throat during the summer to ensure that consumers can confidently enjoy all beverages in the hot weather.
Mental health is urgently concerned:
In addition to physical problems, mind care is also a new trend that is of interest to a large number of consumers. Phrases like “Burn out”; “Healing”,… appearing more on social media, this is a very good opportunity for brands to build brand love for consumers through “deep care”.
According to the Google Year In Search 2022 report, the number of search results associated with the phrase “stress reduction” increased by 60% over the same period last year.
Mobile Games Take Over and Maintain Appeal After COVID
Tightly connected with consumers as a familiar means of entertainment during the pandemic, the use of mobile devices in general and mobile games in particular has been on the rise. The strong growth of mobile gaming stems from consumers’ demand for entertainment and their desire to connect with communities while working from home.
As of December 2022, there are 28.4 million gamers in Vietnam, with revenue from mobile games produced in Vietnam and released globally reaching $200 million per year.
The mobile gaming market is poised to “capture the airwaves” for FMCG beverage brands this summer, as consumers tend to stay indoors more when the weather becomes harsh.
Suggestion from Novaon Digital for Brands: Design interactive games for consumers as part of summer campaigns.
The game “Which Pair – Which Dish” is inspired by the choice of drinks that Novaon Digital suggests to the brand
Podcasts Intrude into Everyday Life
In an era where creative content formats are gaining popularity, trying to capture consumers’ attention, podcasts stand out as one of the key players.
According to Statista, by the end of 2022, it is estimated that the number of podcast listeners will account for over 20% of the total number of Internet users worldwide (approximately 424 million people).
Listening and viewing trends have diversified during lockdown and continue to infiltrate consumer behavior. Podcasts are often closely associated with commuting for work or study, but they have also become ingrained in daily life. Waiting times, travel times, exercise, and even bedtime have become suitable moments for listening to podcasts.
This is a precious timeframe that brands should not miss to penetrate into the world of consumers.
Virtual Reality Experience Leading the Trend to Upgrade CX (Customer Experience)
VR and AR have traditionally been known through gaming, films, and entertainment. However, today, VR and AR have expanded beyond their origins and are becoming a leading trend in applying technology across various industries. This presents a potential opportunity for the FMCG sector, which requires continuous investment, change, and development to cater to diverse customer groups.
Virtual reality experiences enhance the level of interaction, strengthening the connection between digital experiences and real emotions.
In 2022, the FMCG sector in general witnessed outstanding VR campaigns. A notable example is the Kinh Đô case study, “Keeping Festive Stories Virtually Alive,” which was very successful during the Mid-Autumn Festival 2022.
Or the typical case study “1170 Defense System” of Vinamilk has successfully conveyed the brand’s youthful and healthy personality through the AR game “Healthy belly dance”. The campaign was carried out during the period from Spring to Summer, showing that Vinamilk is a delicate brand when exploiting the story of the immune system and the time of changing seasons.
Summary of Part 1: Opportunities for Beverage FMCG Brands
Consumer Trends
The trends and consumer behaviors, as well as the concerns and worries of consumers in Summer 2023, have not changed significantly from previous years, such as the demand for entertainment, travel needs, and health care—specifically summer cooling.
However, the COVID-19 pandemic and the global economic crisis since late 2022 have impacted Vietnamese consumers: They now demand more comprehensive “care” from brands and expect entertainment to be “quicker” or “more abundant.”
This is forecasted to be the leading content trend in Summer 2023.
Platform Trends
In addition to the entertainment and media platforms that Vietnamese consumers are familiar with, the period from 2022 to 2023 marks the emergence of new platforms that are increasingly attracting and being favored by Vietnamese consumers. This presents an opportunity for brands to integrate into their communication strategies: Gamification, Podcasts, Virtual Reality (VR), and Short Videos.
In Part 2, Novaon Digital will provide four “Summer Concepts” suggestions to elevate this most promising seasonal campaign for beverage FMCG brands. Stay tuned for our article.
As we prepare for the Summer 2023 campaign, if brands are still struggling to shape their implementation strategy, please reach out to Novaon Digital for consultation.
Novaon Digital has been and continues to be a strategic Digital Marketing consultant for many major brands, proudly partnering with businesses during this Summer 2023 consumption season.
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