Tet 2025: Decoding the real purchase shift
After a subdued Tet 2024 marked by economic headwinds and consumer caution, which saw overall FMCG decline, the Tet 2025 season delivered a much-needed recovery. FMCG purchases in Urban 4 cities showed a slight recovery with 4% value growth and rural markets showed a steady growth of 6% in value, in both regions driven equally by slight increases in price and volume.
This performance aligns with the long-term trajectory, where Tet FMCG has posted a 6-year Compound Annual Growth Rate (CAGR) of 5% in Rural areas, outpacing the slower growth observed in Urban 4 key cities.
The different pace in growth is rooted in the diverging cultural and behavioural significance of Tet across regions. Tet initiates the seasonal population shift, with a massive flow of households migrating from major urban centres to their respective hometowns. Furthermore, rural households tend to take a longer Tet holiday and subsequently spend more on the holidays compared to normal months than their urban counterparts.
During the two months of Tet 2025, Rural consumers spent a massive 50% more than their average spend during the two preceding pre-Tet months. In contrast, Urban consumers showed a more contained uplift, spending 30% more than their pre-Tet average. This indicates that the traditional importance of the holiday still holds high weight in rural areas, where families indexed higher in spending and even increased their spending in Tet 2025 compared to the subdued Tet 2024.
At the modernisation rate of Rural areas and growing aspiration of rural consumers, Rural market is the key growth space for Tet FMCG. Brands and manufacturers should seize this opportunity to adapt to the evolving demands in rural Vietnam.
Despite the positive growth rebound in 2025, the overall value contribution of the Tet season to annual FMCG value is showing a declining long-run trend in both regions. with Urban 4 value contribution dipping from 21% in 2020 to 19% in Tet 2025 and Rural dropping from 24% in Tet 2020 to 22% in Tet 2025.
This gradual decline results from fundamental shifts in the modern Vietnamese life and the way Vietnamese people modernise and celebrate the traditional holiday. Urban consumers are increasingly adopting a simpler Tet. They are choosing to simplify traditional rituals and preparations, reducing the traditional massive stock-up. They would rather spend more “me” time to rest or travel, rather than spending the entire holiday cleaning, cooking, and receiving guests.
The decline is more consistently observed in Urban cities, where Tet FMCG spending accounts for less than 20% of the yearly FMCG spend value. Urban families may be taking shorter holidays or are simply no longer stocking up for the extended period, knowing that Modern Trade and online channels are now open earlier during the holiday. This reduces the pre-Tet stocking up behaviour seen in previous decades.
Tet continues to hold robust value in rural areas in terms of value contribution. The traditional significance and longer holiday period in Rural Vietnam translates directly into sustained FMCG volume and value. For Urban markets, the strategy must pivot from solely focusing on the magnitude of the purchase to the quality and premiumisation of the simplified but optimised festive lifestyle. Brands must offer convenient, high-quality, and experience-enhancing products that cater to the consumer's desire for rest and meaningful, yet simpler, celebrations. The focus must be on making consumers’ reduced time spent on preparation more valuable and enjoyable.
Tết is no longer solely about elaborate feasts and mandatory, expansive social gatherings; it is increasingly a time for personal care, relaxation, and having a better-quality holiday with close family. This change in consumer mindset is the primary engine driving growth in categories revolving around health, self-care, and convenience.
With modern life demanding time efficiency, consumers are increasingly focused on making the reduced time spent on Tet preparation more valuable and enjoyable. This means consciously seeking solutions to simplify Tet rituals and reduce time-consuming traditional processes. This desire for speed and simplicity powers the growth of categories cantred on quick, modern cooking and cleaning methods. Products like oyster sauces, and meal maker kits surge in demand. These items allow families to achieve the authentic flavours and appearances of traditional dishes while drastically reducing the hours spent in the kitchen, thus freeing up valuable time for rest, self-care and time with family. Manufacturers and retailers should seize the convenience trend by providing complete, turnkey Tet solutions, such as ready-made ritual trays or curated gift and confectionary sets
Hand-in-hand with convenience is the heightened focus on health and prioritisation of self-care. Prompted by a general rise in health consciousness, and a desire to make the holiday a true period of renewal, consumers are making more discerning choices. This trend is powerfully evident in the growth of crucial health categories such as plant-based beverages and adult milk powder. Furthermore, personal care categories are surging, driven by products that allow consumers to feel their "best-self-but-better" throughout the holiday such as masks and makeup. This demonstrates that Tet is increasingly viewed not just as a time for external celebration, but for internal well-being and personal reset.
This quest for health, self-care, and a better life occurs against a backdrop of continuing concerns about household income and increasing costs, forcing brands to navigate a delicate Price–Quality equation. Consumers are keenly aware of their budget and how fast costs are rising, yet they are also highly prioritising quality, product safety and authenticity. This means consumers aren't willing to sacrifice quality for price; rather, they demand that any price premium be clearly justified by superior quality, demonstrable health benefits, or unparalleled convenience and time-saving features. For FMCG brands to succeed during Tet they must offer products that instantly instil trust, communicate immediate value, and seamlessly integrate into the consumer's vision of a modern, stress-free, and health-conscious holiday.
