Baby Food in Vietnam

PROSPECTS

Changing consumer habits have a dampening effect on all baby food categories

Consumer habits with regards to baby food continue to change in Vietnam. Aside from government regulations that prevent advertising of products targeting babies less than two years old, the years of campaigning by the government and allied groups in favour of breastfeeding has had a profound effect, as nursing mothers increasingly believe that breastmilk is better for their babies than other alternatives.

Advertising restrictions move manufacturers to try new strategies

Since the Vietnamese government requires a clear message to appear on all baby food packaging in television commercials that reads “Breast milk is the best food for babies’ development”, and in view of its other advertising restrictions, manufacturers of milk formula and other baby food have had to develop new growth strategies. As a result of the change in focus, growing-up formula was the only milk formula category that saw positive value growth in 2019.

Packaged fresh porridge gains more traction within prepared baby food every year

Porridge is a very common food in Vietnam. Its presence is ubiquitous in Vietnamese homes, where it appears in many dishes that are considered nutritious and easy to digest, such as oyster porridge (cháo hàu), carp porridge (cháo cá chép) and eel porridge (cháo luon).

COMPETITIVE LANDSCAPE

Saigon Food gains value share on the strength of its pioneer packaged porridge

In prepared baby food, Saigon Food’s SG food brand ranked second on the strength of its packaged porridge products. In 2019 it gained two percentage points in value share and it was the only player in prepared baby food to gain value share within the category over the year.

Given lack of innovation and investment resulting from slower growth and less revenue

The strict governmental control on advertising combined with ongoing efforts to promote breastfeeding over milk formula has limited innovation and new product development in Vietnam. In the under-2-year-old segment, it is difficult to see any outstanding recent innovation.

While organic and free from products are available, mothers prefer FF baby food

Some organic baby food is available on the Vietnamese market, but its presence is still negligible. Amongst the products on offer in this category are organic Hipp Dutch Stage 1 (0-6 months) Combiotic milk formula and organic multigrain cereal with apples and oats, Rafferty's Garden organic banana porridge and baby rice cereal, Bellamy's organic Toddler Milk Drink and Baby's Only organic whey and dairy formula.

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