Yoghurt and Sour Milk Products in Vietnam

2020 IMPACT

Dynamic yoghurt sees strengthening demand during pandemic supported by perceived immune-boosting qualities of probiotic variants

Prior to the emergence of the pandemic in Vietnam, the popular category of yoghurt was experiencing high growth rates with Vietnamese consumers continuing to believe that the consumption of yoghurt brings about diverse benefits, acting as a source of nutrition, as a food contributing to external beauty and as an aid to digestion. Most yoghurt consumers in Vietnam not only believe that yoghurt is good for enhancing their digestion and the immune system, but that it also is good for keeping fit and that it has a positive external application for beauty care.

Major dairy producer Vinamilk strengthens overall leadership of yoghurt, supported by wide product portfolio and consistent investment in innovation and marketing

Major dairy producer Vietnam Dairy Products JSC (Vinamilk) strengthened its overall leadership of yoghurt in 2020, dominating plain yoghurt and flavoured yoghurt with its brands Vinamilk, in addition to Probi and Susu, which all continued to record strong value sales, supported by the player’s ability to maintain strong production levels during the pandemic. While traditionally, Vinamilk produces the spoonable format of yoghurt, it has continued to expand its line of drinking yoghurt in line with this category’s dynamic growth and now offers Yomilk, Probi with live yeast and Susu, where it offers a range of packaging formats and sizes such as four 110ml boxes of Susu grape apple drinking yoghurt in one pack or six bottles of Susu orange-flavoured drinking yoghurt in one pack for a special discount.

Modern grocery retailers continue to gain value share from traditional format due to greater refrigeration space for fresh products

While independent small grocers continued to dominate distribution of yoghurt in Thailand in 2020 due to the strength that major player Vinamilk holds within this channel as it tends to utilise traditional grocery retailers as part of its wide distribution network, it continued to lose value share to modern grocery retailers in urban areas including supermarkets, hypermarkets and convenience stores. Modern grocery retailers tend to have larger refrigerated areas, which allow them to hold greater quantities of fresh yoghurt, particularly live culture formats which increasingly appealed to consumers during the pandemic due to their perceived immune-boosting qualities.

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