Rising familiarity with Western culture and cuisine continues to have a positive impact on the development of butter and margarine in Vietnam, especially among younger consumers. These ingredients are increasingly used in home cooking, as consumers become more adventurous with trying new recipes and menus. The expansion of Western-style foodservice outlets, especially in big cities, has also fostered consumers’ acceptance of food that requires the use of butter as an ingredient. Indeed, in 2017, volume sales of butter to foodservice was nearly 10 times higher than retail volume sales. This indicates that retail consumption, despite showing growth, is still small.
In 2016-2017, Tuong An Vegetable Oil JSC continued to lead butter and margarine, with a 52% value share overall. The company’s dominance is mainly stemming from its prominence in margarine and spreads, where it held a 74% value share in 2017. In fact, its success was implied when in November 2016, Kido Group bought 65% of the total number of shares issued for Tuong An Vegetable oil. The company’s brand Tuong an has outperformed other brands such as Meizan (Cai Lan Oils & Fats Industries Co Ltd), which is mainly attributed to consumer loyalty. The company owns a wide distribution network, covering both traditional and modern channels, and Tuong an has a strong brand name along with affordable prices and a taste that is widely accepted by the Vietnamese.
Over the forecast period, butter and margarine is expected to record a value CAGR of 4% at constant 2017 prices. The rising maturity of the category, especially margarine and spreads, is likely to dampen growth, yet the outlook is still optimistic considering rising consumer-awareness and potential new entrants.
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Understand the latest market trends and future growth opportunities for the Butter and Margarine industry in Vietnam with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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