Yoghurt and Sour Milk Products in Vietnam

PROSPECTS

The functional benefits of yoghurt appeal to health-conscious consumers

Vietnamese consumers 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. Over the review period, brands also helped to reinforce these beliefs with their marketing messages; for instance, Probi by Vietnam Dairy Products (Vinamilk) emphasised that its yoghurt helps to “increase body resistance” and TH True Yoghurt by TH Food Chain emphasised that its yoghurt can provide “helpful bacteria for digestion”.

More diverse demand, but a focus by manufacturers on the mass market

Awareness of yoghurt and its functional benefits, as well as its affordable price, is expected to continue to drive the strong growth of yoghurt and sour milk products over the forecast period. Consumer preferences in yoghurt are expected to become more diverse in terms of packaging and country of origin; for instance, yoghurt in larger pack sizes to appeal to value-conscious consumers, or Greek yoghurt.

The threat to drinking yoghurt from juice and milk

Product combinations involving juice and milk became increasingly popular in 2018; such as Vfresh by Vietnam Dairy Products (Vinamilk) and Nutriboost by Coca-Cola Beverages Vietnam. These juices with milk are positioned as fresh and nutritious beverages, which are similar attributes that consumers demand for when they choose drinking yoghurt.

COMPETITIVE LANDSCAPE

Vietnam Dairy Products continues to lead yoghurt and sour milk products

In 2018, a large proportion of value sales of yoghurt and sour milk products in Vietnam continued to come from plain yoghurt. Plain yoghurt has been habitually consumed by Vietnamese consumers over a long period of time, and its application is wide, especially in freshly-made drinks.

Stronger competition

Despite the strong position of Vietnam Dairy Products (Vinamilk) over the review period, it started to suffer strong competition from brands such as TH True Yoghurt and Dutch Lady, as these competitors offer yoghurt with different benefits. Also, Nutifood Nutrition Food is a fast-emerging competitor with its spoonable yoghurt product range, with a wide distribution network in traditional trade channels and intensive price promotions to encourage product adoption by both retailers and consumers, which will inevitably lead to brand awareness and sales.

Vietnam Dairy Products is expected to maintain its lead

Over the forecast period, Vietnam Dairy Products is expected to continue to lead both plain yoghurt and yoghurt and sour milk products, due to habit persistence in terms of yoghurt consumption, as well as strong brand awareness, distribution and marketing. However, the extent of its lead will depend on how successful competitors are in creating demand for flavoured and functional yoghurt.

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