- Over the review period, cheese became more popular in the country, mainly thanks to the increasing influence of the Western cuisine, especially amongst the young in big cities. Indeed, towards the end of 2013, the number of Vietnamese people who are aware of cheese’s usage and benefits increased more strongly. However, compared to other categories in dairy, cheese’s sales are still rather low due to the following reasons. Firstly, the average unit price of cheese is perceived as quite high in relation to the average income levels of most Vietnamese households. Furthermore, cheese is not commonly used for most Vietnamese dishes. In general, though cheese remains as a small category within dairy, its potential growth is strong, proved by the current value growth of 15% expected in 2013 despite the economic downturn.
- Bel Vietnam Ltd continued to lead cheese in the Vietnamese market in both 2012 and 2013, standing at 70% value share. Its main brands, La Vache Qui Rit, Party Cube and Babybel, are very popular in the country. In particular, La Vache Qui Rit was one of the very first cheese brands that were available in Vietnam, which gave it its first-mover advantage and very strong brand awareness. Furthermore, compared to other rivals, the company invests more money in promotional activities, including television advertising and discount campaigns. More importantly, the company possesses a very efficient nationwide distribution network. Consumers can easily find these brands in most distribution channels, both traditional and modern ones.
- Cheese is projected to record a CAGR of 8% in constant value terms over the forecast period. This constant forecast CAGR is nearly two percentage points higher than the review period’s constant value CAGR. This high growth is expected due to the fact that cheese has been gaining more acceptance along with the increasing exposure to the Western lifestyle and cuisine. The target consumers of cheese are the young, especially those living in urban areas. This high growth is also supported by the continuous expansion of Western foodservice outlets in the country, both fast food chains and Western cuisine restaurants.
Drinking Milk Products
- Drinking milk products in the country is expected to continue to record an impressive current value growth in 2013 despite the economic downturn. One of the main reasons for this healthy growth is the increasing demand, especially from consumers residing in urban areas. These consumers are perceived as having higher incomes and being well educated about milk’s benefits, which makes them less sensitive to the negative impact of the poor economy. Furthermore, drinking milk products are very diversified in terms of size and price; thus, they meet different consumer needs, which contributes to the rising demand. Furthermore, over the review period, the Vietnamese government constantly launched a number of initiatives in order to raise Vietnamese citizens’ average height. In response to these initiatives, manufacturers working in this category also ran advertising campaigns such as supplying milk to children in rural areas and other promotional programs, not only to strengthen their brand image but also to boost sales.
- Vietnam Dairy Products JSC (Vinamilk) has retained its dominant position in drinking milk products in the country, with 46% and 48% value share respectively in 2012 and 2013. Its leading status is mainly thanks to its long-established history as well as its good reputation for acceptable product quality and reasonable prices. Furthermore, in order to maintain and advance its leading rank, with its strong financial ability, the company is very active in both product developments and marketing activities from public media advertisements to indoors marketing tools. For example, at the beginning of September 2012, in line with the increasing trend of fitness and wellness as well as the increasing demand for fresh/pasteurised milk, Vietnam Dairy Products JSC (Vinamilk) introduced a new product – skimmed fresh milk under its most popular brand Vinamilk. Moreover, its efficient nationwide distribution network is another competitive advantage. Indeed, consumers can easily find their products in prominent locations of most distribution channels including both traditional and modern ones. As a result, the company is expected to continue to maintain its leading rank as well as record a high value growth of 19% in 2013.
- Vietnam is a strong potential market for drinking milk products as milk consumption per capita in the country is still quite low compared to other countries in Asia. Indeed, the young consumers are likely to continue to keep the stable demand for drinking milk products, whereas the increasing consumer awareness of health benefits related to milk in other population generations, especially the older one, is expected to further foster the growth of this category over the forecast period. Furthermore, efforts of both the government and manufacturers in stimulating the demand are another factor fuelling this growth. As a result, drinking milk products is projected to record a high forecast CAGR of 6% in constant value terms over the forecast period. However, because this category has been available in the country for a very long time and it was already growing impressively over the past years, its constant value review period CAGR of 12% is much higher than the constant forecast CAGR of 6%.
Yoghurt and Sour Milk Drinks
- Over the review period, yoghurt and sour milk products became more popular, mainly thanks to the increasing consumer awareness of their related health benefits as well as the efforts of manufacturers, especially leading ones, in stimulating the demand. Furthermore, due to the busier life, especially in big cities, and the increasing concern for hygiene and food safety, packaged yoghurt slowly took over share previously belonging to home-made and unbranded yoghurt products. As a consequence, yoghurt and sour milk is expected to record a high current value growth of 11% in 2013 despite the economic downturn.
- Vietnam Dairy Products JSC (Vinamilk) continued to dominate in yoghurt and sour milk in Vietnam in both 2012 and 2013, expected to account for 71% value share in 2013, mainly thanks to its dominant position in spoonable yoghurt, which accounts for a 91% share of spoonable yoghurt's value. Furthermore, this company is the one that is expected to record a healthy current value growth of 13% in 2013. Long-established history, good reputation, high product quality, reasonable price and the efficient nationwide distribution network are the company's competitive advantages that have helped it strengthen its position in the market. Indeed, with a strong financial ability, the company is also very active in promotional activities.
- Yoghurt and sour milk is expected to continue to enjoy a higher demand over the forecast period, mainly thanks to the increasingly busy lifestyle, the increasing trend towards health, fitness and wellness and increasing disposable income. The category is likely to expand rapidly in both urban and rural areas. As a result, yoghurt and sour milk is projected to record a healthy CAGR of 6% in constant value terms over the forecast period. However, this forecast CAGR is much weaker than the review period one mainly because of the maturity stage of this category as well as the intense competition.
- In 2013, other dairy is expected to record a high current retail value growth of nearly 9%, approximately two percentage points higher compared to 2012. This higher growth is mainly thanks to the higher value growth of condensed/evaporated milk, which accounts for the largest amount of other dairy’s value.
- In 2012 and 2013, Vietnam Dairy Products JSC (Vinamilk) continued to dominate in other dairy in the country, with 88% value share, mainly thanks to its two popular condensed/evaporated milk brands – Ong Tho and Ngoi Sao Phuong Nam. Indeed, Ong Tho is perceived as one of the longest-standing brands of condensed/evaporated milk in Vietnam; thus, it has a large customer base. Due to reasonable prices, long-term establishment and an efficient nationwide distribution network, over the review period, the company continued to strengthen its presence in other dairy in Vietnam.
- Due to the fact that condensed/evaporated milk is already in the mature stage, the demand is projected to slow down further over the forecast period. Moreover, with higher disposable income and higher living standards, consumers are more likely to shift from condensed/evaporated milk to drinking milk products or powder milk for better nutrition. As a result, in constant value terms, this category is expected to record the forecast CAGR of 1%, which is lower than the review period CAGR. As mentioned, because condensed/evaporated milk accounts for the majority of other dairy’s value, its forecast CAGR in constant value terms over the forecast period is also 1%.
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Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Vietnam with research from Euromonitor's team of in-country analysts.
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If you're in the Dairy industry in Vietnam, our research will save you time and money while empowering you to make informed, profitable decisions.
The Dairy in Vietnam market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Dairy in Vietnam?
- What are the major brands in Vietnam?
- How has the economic downturn impacted sales performance given its staple food status?
- Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
- How are volatile farmgate prices for milk impacting retail prices and sales performance?
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Packaged Food market research database.
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