Sauces, Dressings and Condiments in Vietnam

2020 IMPACT

The outbreak of COVID-19 leads to a strong increase in demand, as sauces, dressings and condiments benefit home cooking

Due to closures of foodservice outlets and lack of travel, consumers are spending more time at home during 2020, and this is positively impacting the landscape for sauces, dressings and condiments. As such, value growth is set to move from 7% in 2019 to 8% in 2020.

Modern grocery retailers adapt to the outbreak of COVID-19, boosting share in 2020

Due to the impact of COVID-19, many consumers in 2020 chose to do their shopping in supermarkets or hypermarkets, above traditional grocery retailers. This will lead to substantial growth in modern grocery retailing for sauces, dressings and condiments in 2020, above that seen for e-commerce.

Masan Consumer Corp retains its lead, seeing an increase of sales in Q1 and Q2 of 2020, due to COVID-19 stockpiling

Masan Consumer Corp is set to maintain its lead in 2020, with top positions in fish sauces, soy sauces and chilli sauces. The player invests heavily in marketing activities to maintain its position, while having solid relationships with retailers and distributors, allowing for dominate store displays, and frequent promotion and in-store activities.

RECOVERY AND OPPORTUNITIES

Volume growth returns to levels recorded pre-COVID-19, and healthy, diverse recipes move the landscape forward

Following the outbreak of COVID-19 in 2020, retail volume growth is set to be slightly lower in 2021, aligning to levels seen pre-COVID-19, as stockpiling ceases and consumers have supplies of non-perishable goods at home. However, both value and volume growth will remain positive across the forecast period, with COVID-19 having increased interest in healthy foods, as well as home cooking, benefiting sales of sauces, dressings and condiments.

The natural, traditional food trend boosts sales of dry sauces across the forecast period

Aligned to the growing interest in health and wellness, boosted by the outbreak of COVID-19, the trend for natural, traditional foods is set to increase across the forecast period. This preference for natural foods is driven by consumers viewing them to be much healthier than processed food options.

Consumers will increasingly demand premium products that align with the health trends, promoting their natural ingredients

Consumers are set to increasingly demand products of higher quality across the forecast period, with sauces, dressing and condiments remaining relatively robust in the face of the economic recession, viewed by consumers as essentials.