Dietary Supplements in Vietnam

PROSPECTS

Aging, higher awareness of benefits and greater ability to afford products combine to boost demand for dietary supplements

Vietnam’s aging population is helping to drive increased interest in healthy living and contributing to fast value growth of dietary supplements. In 2018, the General Office for Population Family Planning reported that a larger percentage of Vietnam’s population had entered the aging process than ever before, forecasting that it will take less than 20 years for the proportion of people aged 65 and over to increase from 7% to 14% of the total population.

Government takes strong action to reduce supply of counterfeit and substandard dietary supplements in the country

The number of Vietnamese taking dietary supplements rose from 500,000 to 5 million people between 2000 and 2010 and had risen to approximately 15 million consumers by the end of 2018. That is when the Vietnam Association of Functional Food raised a widely publicised alarm about the proliferation in sales and consumption of counterfeit and substandard dietary supplements in the country.

Herbal/traditional dietary supplements continues account for the largest share of value sales, as Vietnamese prefer them to non-herbal alternatives

Herbal/traditional dietary supplements continued to account for the largest share of total dietary supplements sales in 2019, with combination products posting the highest value growth. Consumers consider natural/herbal products to be more effective and safer than non-herbal alternatives, particularly when taken over a long period of time.

COMPETITIVE LANDSCAPE

Increased regulation challenges manufacturers of dietary supplements, causing some to look towards developing products in other categories

As the Ministry of Health has launched stricter regulations to control the quality and safety of dietary supplements sold in Vietnam, it will cost more money and take longer for manufacturers, especially domestic ones, to go through all the paperwork, advertising oversight and inspection processes than it did before. Thus, a number of companies are expected to turn towards developing new portfolios such as meal replacement or pharma skin care products in order to avoid difficulties and waste.

In a leadership landscape characterised by international and domestic players, direct sellers have the most strength

Unlike in other consumer healthcare categories in Vietnam, the leading companies in dietary supplements are a mix of international and domestic players. Direct sellers Herbalife, Amway and Nu Skin, all international companies, are among the top five players, while the major Vietnamese pharmaceutical company Traphaco ranks second.

Dietary supplements attracts great interest and a host of new players, making the competitive landscape more challenging for both new and existing players

As both consumers and manufacturers have become more attracted to dietary supplements, the competitive landscape is becoming tougher for both new and existing players. This is true although the market has very high potential due to the rising aging population.

Files are delivered directly into your account within a few minutes of purchase.