Yoghurt and Sour Milk Products in Vietnam

PROSPECTS

Yoghurt set to see unabated growth as consumers increasingly recognise its benefits

Retail value and volume growth of yoghurt continued to rise by double digits in Vietnam in 2019, as it had throughout the review period. Vietnamese consumers continue to believe that 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.

Vinamilk reinforces perception that yoghurt has many uses for beauty care

As the Vietnamese economy is stably growing, average income has improved, and most essential needs such as for food and accommodation can now be met, many consumers can better afford to act on their interest in beauty and health. In terms of yoghurt, Vietnamese consumers already believe that it can be used for beauty care; moreover, recent efforts by the leading yoghurt player Vinamilk have done much to reinforce this perception.

Yoghurt’s versatility inspires cooks and consumers to invent new serving methods

Yoghurt is so widely available, affordable and enjoyed in Vietnam that consumers as well as foodservice operators have been finding inventive new ways to enjoy and serve yoghurt in – or on top of – food. Amongst the many snacks and dishes utilising yoghurt that have been observed in Vietnam are yoghurt with a topping, such as frozen yoghurt with fruit, chocolate, or crushed nuts; and yoghurt as a topping, such as cupcakes with yoghurt and chocolate or fruit topping and donuts with a yoghurt glaze.

COMPETITIVE LANDSCAPE

Vinamilk garnishes reputation for innovation with sticky rice/yoghurt blend

Vinamilk continued to hold the dominant share within yoghurt and sour milk drinks overall in 2019 on the strength of its product innovation, strong distribution network and strong investment in marketing activities including television commercials and in-store promotion. As its products are widely distributed nationwide, Vinamilk receives positive feedback from consumers and retailers.

FrieslandCampina, TH Food Chain and other players encroach on Vinamilk’s territory

While remaining the dominant player within yoghurt in 2019, Vinamilk faced tougher competition, particularly from FrieslandCampina and TH Food Chain within the drinking yoghurt and plain yoghurt landscape. Nutifood Nutrition Food also gained value share in plain yoghurt at Vinamilk’s expense over the year.

Popularity of drinking yoghurt reflected in a plethora of new product offers

Drinking yoghurt saw the strongest value growth within yoghurt and sour milk products again in 2019, and all the major players saw double-digit value growth in this category over the year. Not only are Vietnamese increasingly demanding drinking yoghurt for its on-the-go convenience but they also are responding to well to the plethora of new product offers that players such as FrieslandCampina Vietnam (with brands Yomost and Fristi), Vinamilk (with brands Susu and Probi) and TH Food Chain (with TH True) put forth.

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