Rice, Pasta and Noodles in Vietnam

2020 IMPACT

Stockpiling of rice and noodles during the pandemic as these products are integral in Vietnamese cuisine

Rice is a must-have staple in Vietnamese cuisine and is consumed by most people on a daily basis. As such, rice-based products remained on trend at the end of the review period with rice-based products being popular local ingredients in dishes such as Ph?, Bún Bò Hu? or H? Ti?u.

Popularity of domestic packaged rice continues to rise as government exercises more control over rice production to ensure food security and improve the quality of packaged rice

In 2019, the majority of the rice consumed domestically was sold unpackaged in stores from rice that was grown and harvested for consumption in rural areas. However, out of concern for food security, and because rice exportation is important to the local economy, the government had taken strict steps to control rice farming, rural development and agricultural management.

Premiumisation is driving category value growth

In 2019, premiumisation was driving growth of rice, pasta and noodles in Vietnam, as improved income buttressed the demand. Indeed, premiumisation helped instant noodles recover after a period of some stagnancy.

RECOVERY AND OPPORTUNITIES

Domestic players set to adapt to greater consumer price sensitivity as the category recovers from the economic fallout from the pandemic

In 2020, local players held leading value shares in all categories: Loc Troi Group and Safoco rank first in rice and pasta, respectively, and Masan Consumer and Uniben held the second and third positions in noodles. These domestic producers not only understand Vietnamese consumers’ tastes and habits but also have strong marketing activities, develop new products and keep building their distribution networks to compete with rivals.

Masan diversifies its instant noodle range and strengthens its share while Acecook loses value share

Masan strengthened its competitive ability in 2020 by diversifying its product range in instant noodles. This included the launch of its rice-based products Ph? Chinsu and pork-ribs porridge Chinsu.

Loc Troi helps rice producers build strong national rice brands domestically and internationally

The rice category is highly fragmented characterised by many brands. The availability of brands also varies across regions.