Dairy is an important and essential food but due to the high price compared to Vietnamese average income leading to the limitations in dairy’s expenses. Dairy’s spending accounts for 10% of the total food’s expenditure in Vietnam. Average GDP per capita growing constantly is the important factor boosting the dairy consumption.
The world’s dairy industry is highly concentrated. Total dairy consumption in developing countries is high, but consumption per capita is lower than in developed countries. In the first quarter of 2018, the dairy price fluctuated with two increases and three decreases, equivalent up 10.8% and down 2.3%.
In recent years, dairy sales in cities have not grown or kept negative growth, while dairy consumption in rural has been steadily growing at double digits. However, in the first quarter of 2018, total spending on dairy products in the whole market was lower than 5%. Especially, the negative growth in the quarter in cities was due to the fact that demand for powdered milk has not recovered.
Vietnam’s dairy production was forecast to increase by about 10% in 2017 and 2018. However, production of new raw milk only met 39-40% of domestic dairy demand, the rest depended on the import source. Dairy sales in Vietnam grew strongly from VND 42,000 billion in 2010 to more than xx, xxx billion in 2017, with an annual double growth rate of 11.7% in the period 2010-2017.
Powdered milk sales in 2017 were estimated to reach xx thousand billion dong, up 14.4% over 2016. According to VDA, powdered milk sales have continuously positively grown in the period 2017-2020. The turnover in 2018 is estimated at xx.xtrillion.
Vietnam’s liquid milk market has an annual double growth rate of 22.4% in the period 2010-2017. Up to the first three months of this year, liquid milk sales reached VND xx.xx thousand billion, up 10.8% compared to the same period in 2017. Yogurt consumption in the first 3 months of 2018 reached about x.xbillion, increasing by 10.7% over the same period last year.
Companies Covered In this report:
Vietnam Dairy Products Joint Stock Company (Vinamilk)
Nestle Vietnam Company Limited
3a Nutrition Company Limited
Nutifood Nutrition Food Joint Stock Company In Binh Duong Province
Frieslandcampina Vietnam Company Limited
Th True Milk Joint Stock Company
Moc Chau Dairy Cattle Breeding Joint Stock Company
Mead Johnson Nutrition (Vietnam) Company Limited
International Dairy Products Joint Stock Company (Idp)
Kido Frozen Food Joint Stock Company (Kdf)
For more information on the research report, refer to below link: Vietnam Dairy Comprehensive Market
Related Report: Dairy Food Global Market Report 2019
Ankur Gupta, Head Marketing & Communications
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