- Cheese remains an unpopular dairy product in Vietnam for both economical and cultural reasons. The average unit price of cheese is considered high in relation to the average income levels of most Vietnamese households. As cheese is not commonly used for Vietnamese dishes, only those consumers, who are strongly familiar with Western culture and cuisine, tend to buy it.
- Unibel SA leads cheese in Vietnam, with a 70% value share. Its main brand, La Vache Qui Rit, was one of the first cheese brands to arrive in Vietnam. As Vietnamese consumers are usually not very adventurous in trying new cheese products, La Vache Qui Rit continues to enjoy its first mover advantage and strong brand awareness.
- Sales of cheese are expected to grow by a CAGR of 11% in total volume terms in 2013-2017 compared to a 15% increase in 2007-2012. The market is expected to become more mature over the forecast period, as cheese gains greater acceptance, alongside the increasing exposure to Western lifestyle and cuisine. The key consumer group of cheese is expected to be the young generation, as they are more familiar with dairy products. Forecast sales growth of cheese is most likely to be driven by the continued increase in Western foodservice outlets in the country, both fast food chains and Western cuisine restaurants.
Drinking Milk Products
- Drinking milk products saw strong development in 2012, despite the gloomy economic situation. The main consumers of drinking milk products remain people living in big cities, with high incomes and being well-educated about the benefits of milk. Drinking milk products are packaged in various pack sizes, to meet consumers’ different needs. Towards the end of the review period, the Vietnamese Government launched a number of initiatives to raise Vietnamese citizens’ average height. In response to these initiatives, drinking milk product manufacturers also ran a number of advertising campaigns such as supplying milk to children in remote provinces and price promotions, to raise consumer awareness of health benefit related to drinking milk products, and at the same time, enhancing the image of their brands.
- Vietnam Dairy Products (Vinamilk) leads drinking milk products in Vietnam, with a 46% value share. Its dominant position is partly thanks to its long established history and reputation of high product quality. Vinamilk has been particularly active in product development as well as marketing campaigns to protect and enhance its leading position. For instance, during the course of 2011, the company introduced a new powder milk, Vinamilk Canxi, which contains calcium and phosphate and vitamin D to help improve consumers’ calcium intake and strengthen bones. Also in 2011, Vinamilk imported cows directly from New Zealand to supply its fresh/pasteurised milk,
- Vietnam is a potentially strong market for drinking milk products. Milk consumption per capita in Vietnam is still low in comparison to the rest of Asia Pacific. The young population should continue to offer stable demand for drinking milk products, while the overall rising consumer awareness of health benefits related to milk, particularly among the older generation, is set to further support sales growth over the forecast period. Sales of drinking milk products are therefore expected to grow by a CAGR of 6% in constant value terms over the forecast period, compared to a 4% increase in 2007-2012.
Yoghurt and Sour Milk Drinks
- Yoghurt and sour milk products are becoming more popular, alongside rising consumer awareness of their related health benefits. Yoghurt is traditionally perceived as a healthy food by Vietnamese consumers. Over the review period, packaged yoghurt saw increasing demand and gradually took over homemade and unbranded yoghurt, mainly thanks to hygiene and food safety issues being increasingly brought to Vietnamese consumers’ attention. As a result, yoghurt and sour milk grew by 23% in current value terms in 2012.
- Vietnam Dairy Products (Vinamilk) leads yoghurt and sour milk in Vietnam, with a 73% value share, mostly through its dominant position in yoghurt, particularly spoonable yoghurt, where it commands a 95% value share. Vietnamese consumers are said to be proud of the national brand Vinamilk given its long-established history and its reputation for good product quality. The company has also been very active in marketing campaigns.
- Yoghurt and sour milk will continue to show rapid development over the forecast period, as disposable incomes continue to rise and consumers become more health-conscious. The products will expand rapidly in both urban and rural areas. Sales of yoghurt and sour milk are expected to grow by a CAGR of 6% in constant value terms during the forecast period – in line with the growth pace of the review period.
- Condensed/evaporated milk is a common product in Vietnam, being widely consumed by people from different age groups, financial backgrounds and social classes. Ever since condensed/evaporated milk was first introduced in Vietnam, it has always been perceived as being economical and used for many purposes, eg to mix with traditional Vietnamese coffee (milk coffee), to make yoghurt or to replace baby milk formula or drinking milk products by low-income families. Indeed, condensed/evaporated milk continued to enjoy stable demand from Vietnamese consumers in 2012.
- Vietnam Dairy Products (Vinamilk) leads other dairy in Vietnam through two condensed/evaporated milk brands – Ong Tho and Ngoi Sao Phuong Nam. During the review period, the company managed to grow its value share by 20 percentage points to 91% as it continued to leverage on its long-established presence and good reputation in the Vietnamese dairy market.
- As condensed/evaporated milk is already mature, demand is expected to slow down further over the forecast period. Additionally, with higher disposable income, consumers are more likely to shift from condensed/evaporated milk to drinking milk products for better nutrition.
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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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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?
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- Gain competitive intelligence about market leaders
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- 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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