- Towards the end of the review period, cheese became more popular in Vietnam due partly to greater exposure to Western culture. Consumer awareness of unprocessed cheese in particular increased, especially in big cities such as Ho Chi Minh and Hanoi. With Western cuisines gaining influence, more dishes containing cheese became popular among young consumers, such as fried cheese sticks and cakes.
- Bel Vietnam Co Ltd dominated cheese in 2014 and increased its value share to 78%. The company has a diversified product portfolio with many popular brands in cheese such as La Vache Qui Rit, Belcube, Kiri and Babybel. Its distribution network covering both traditional and modern channels was another competitive advantage. In cheese, Bel Vietnam was the most active company in terms of marketing and promotions in 2014.
- Cheese is expected to register a CAGR of 7% in constant value terms over the forecast period fuelled by increasing Westernisation in Vietnamese culture, the expected recovery of the economy, and higher disposable incomes and living standards. Cheese is gaining acceptance among consumers, with more being used in cooking. Furthermore, the efforts of manufacturers to encourage demand through marketing activities and distribution networks as well as the development of fast food chains and Western cuisine restaurants are also fostering growth.
Drinking Milk Products
- Drinking milk products saw tougher competition in 2014 mainly thanks to new product developments, especially in fresh/pasteurised milk. At the end of 2013, FrieslandCampina Vietnam Co Ltd launched new brand Sua Chon (targeting middle-to-higher-income consumers) while Vietnam Dairy Products JSC (Vinamilk) introduced new brand Twin Cows (targeting higher-income consumers) – both in fresh/pasteurised milk. Another new product development was Vinamilk’s Flex in long-life/UHT milk. This was advertised as having no lactose and helping consumers improve their calcium and vitamin D intakes. New products not only intensified the competition in drinking milk products but also offered consumers more choice, which helped stimulate demand.
- In 2014, Vietnam Dairy Products JSC (Vinamilk) continued to lead in drinking milk products in Vietnam and accounted for 44% of retail value sales. The company has a longstanding presence and a good reputation. Regular new product developments not only helped to diversify the company’s product portfolio but also boost its sales. Two new products in 2014 were Twin Cows and Flex. While Twin Cows was a new brand of milk produced in New Zealand, Flex was a product development from the existing brand. This new Flex was advertised as containing no lactose and improving consumers’ calcium and vitamin D intakes. The company’s nationwide distribution network and promotional activities were competitive advantages. As a result, in 2014, the company maintained its leadership in drinking milk products and registered value growth of 18%.
- Over the forecast period, drinking milk products is expected to register a constant value CAGR of 8%. Stable demand from young consumers, increasing awareness of health and wellness, the expected recovery of the economy, and higher incomes and living standards are expected to contribute to growth. Manufacturers’ efforts to stimulate demand through new product developments, expanded distribution networks and promotional activities are also expected to contribute to growth. However, drinking milk products is becoming a mature category and as such is set to register a lower constant value CAGR over the forecast period than over the review period.
Yoghurt and Sour Milk Drinks
- Many new products were launched in yoghurt and sour milk products in 2014, which intensified competition and stimulated consumer demand. For example, FrieslandCampina Vietnam Co Ltd launched Dutch Lady in pro/pre biotic plain spoonable yoghurt in May 2014. This new product claimed that it was made of fresh milk using modern pasteurisation technology, and contained lactic acid, calcium and protein.
- In 2014, Vietnam Dairy Products JSC (Vinamilk) retained its dominance in yoghurt and sour milk in Vietnam with a 69% value share and registered the strongest current value growth of 17%. In spoonable yoghurt, the company accounted for 85% of value sales. Vinamilk benefits from strong brand equity, a longstanding presence and a good reputation. Furthermore, it has a nationwide distribution network covering both traditional and modern channels. At the end of 2013, the company introduced a new product in spoonable yoghurt under the brand Vinamilk. The product claimed that it was made of 100% fresh milk.
- Over the forecast period, yoghurt and sour milk is expected to register a CAGR of 6% in constant value terms thanks mainly to the anticipated recovery of the economy, higher disposable incomes and living standards, and increasing consumer awareness of health and wellness. Furthermore, with busier lifestyles, more consumers are expected to switch from home-made to packaged yoghurt and sour milk products. However, due to the increasing maturity of yoghurt and sour milk, the forecast constant value CAGR of 6% is lower than that registered over the review period.
- Condensed/evaporated milk remained the most common product in other dairy in Vietnam in 2014. It is widely consumed across many consumer segments. Consumers use condensed/evaporated milk for many purposes such as to mix with coffee, to make yoghurt or to replace baby milk formula or drinking milk products by low-income segments. The product has a longstanding presence in the country and demand remained stable in 2014. As a result, condensed/evaporated continued to be the largest category within other dairy.
- Vietnam Dairy Products JSC (Vinamilk) remained the leader in other dairy in and 2014 and accounted for 88% of retail value sales. The company dominated in condensed/evaporated milk with a 90% value share in 2014 thanks mainly to two popular brands – Ong Tho and Ngoi Sao Phuong Nam. A long-established presence, good reputation and quality, reasonable prices and a nationwide distribution network covering both traditional and modern channels were the company’s competitive advantages. As a consequence, the company strengthened its leadership in other dairy over the review period.
- Over the forecast period, other dairy is expected to register a constant value CAGR of 1%, which is lower than that registered over the review period. As condensed/evaporated milk accounts for the majority of other dairy and this product is already mature, demand is expected to slow down over the forecast period.
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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.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
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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