Sauces, Dressings and Condiments in Vietnam

PROSPECTS

Latest in a series of food safety crises dampens growth prospects for table sauces

A series of food safety scandals and crises has undermined Vietnamese consumers’ confidence in consuming certain table sauces – namely, soy sauce, fish sauce and – more recently, chili sauce produced in Vietnam. An industry crisis that widely affected consumer behaviour occurred in 2007, when the potentially carcinogenic 3-MCPD in excess of reporting requirements for product recall, disposal and disposal was found in soy sauces.

Back-to-tradition trend impacts consumer behaviour, boosting sales of dry sauces for traditional Vietnamese food

In the food industry in general, back to tradition and back to nature are rising trends among Vietnamese consumers. Those trends originate from pride in traditional values and traditional customs, which means that natural food is increasingly preferred over processed food.

Increased demand for premium products is reflected in new products and higher anticipated value growth

On the consumer side, both the average income and the general education level have improved in Vietnam. Thus, people are increasingly aware of and demanding products of higher quality and are better able to afford to their often higher prices.

COMPETITIVE LANDSCAPE

Domestic players have the greater strength due to their deeper understanding of the local cuisine and consumers’ cooking habits

Three domestic companies are leading players in sauces, dressings and condiments, as they have such advantages as a deep understanding of Vietnamese cuisine and consumers’ cooking habits. Masan Consumer holds the leading value share in the entire category on the strength of its leading positions in the most popular fish sauces, soy sauces and chili sauces.

Makers of traditional fish sauce appear to be fighting a losing battle against industrial fish sauce

Back in 2002, demand for fish sauce globally as well as in Vietnam was so strong that Unilever inaugurated a production/bottling factory in Phu Quoc. It quickly became the biggest fish sauce production and bottling factory in the island.

New products and flavours boost prospects for stock cubes and powders

Stock cubes and powders witnessed more new players joining in, among them Cai Lan Oils & Fats Industries with Meizan and Neptune products. Masan Consumer Corp launched a new Chinsu Sweet Seasoning pack in 2019 and Vissan introduced Vissan Chuan vi thit, a powdered bone extract from pork marrow.

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