The COVID-19 pandemic has placed some pressure on demand for dairy and alternatives in Laos and in 2022, demand will continue to fall as household incomes decrease. However, the reputation of dairy as a key source of nutrition and the status of baby food as essential for all households with babies and infants will ensure that some demand will remain.
The impact of the COVID-19 pandemic on sales of dairy products in Laos was seen mainly in the demand for fresh milk. In particular, the usage of fresh milk in consumer foodservice outlets such as restaurants, bakeries and cafés dropped dramatically during 2020 and even 2021, due to social distancing regulations.
Most of the dairy products sold in Laos are packaged in folding cartons or plastic bottles. There are many imported brands that are widely available in Laos.
In 2022, there is reduced demand for all dairy products due to the declining disposable income, which is leading many to downgrade to lower-priced brands and products. Likewise, as dairy is not considered an essential product, it is easy for consumers to cut out consumption completely.
Dairy distributors in Laos continue to face a number of logistical issues, with many roads throughout the country being poorly maintained. Poor road infrastructure even impacts major cities such as Vientiane, with the rising ownership of vehicles putting pressure on many roads.
While retail sales of dairy products are expected to continue rising generally over the forecast period, for reasons stated above, it is inevitable that the COVID-19 pandemic has caused setbacks in the development of the distribution of dairy.
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Dairy Products and Alternatives
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