Vietnam Dairy Market

Vietnam Dairy Market:

Vietnam dairy market size reached USD 4.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 9.0 Million by 2033, exhibiting a growth rate (CAGR) of 9.5% during 2025-2033. The increasing popularity of gourmet cuisines, along with the rising consumer awareness towards the benefits of consuming fermented dairy products, is propelling the market.

Vietnam Dairy Market Analysis:

• Major Market Drivers: Changing dietary habits, along with the growing retail sector that provides individuals with easy access to a variety of dairy products, are augmenting the market across the country.
• Key Market Trends: The launch of favorable initiatives by government bodies for promoting the consumption of dairy for its nutritional value, coupled with the escalating demand for protein-rich dietary supplements, is catalyzing the market in Vietnam. Apart from this, the increasing number of health consciousness individuals is also acting as another significant growth-inducing factor.
• Challenges and Opportunities: High dependence on imported dairy products is one of the primary challenges hindering the market. However, the inflating focus of key players on strengthening quality control and safety standards to boost consumer confidence in local products is expected to fuel the market in the country over the forecasted period.

Vietnam Dairy Market Trends:

Demand for Dairy-Based Products

The expanding middle-class population, coupled with the rising health consciousness among individuals, is currently driving the market. According to a survey conducted by the Business Association of High-Quality Vietnam Products, consumers pay attention to fundamental factors, such as durability, perceived quality, and cost, the freshness and safety of food items, the knowledge of the nutritional content, the country of origin, etc. Moreover, the inflating levels of urbanization are also bolstering the Vietnam dairy market share. As per the online portal of the Ministry of Construction, Vietnam is one of the fastest-urbanizing countries in Southeast Asia. As of September 2022, there were 888 urban areas across the country, with an urbanization rate of roughly 41.5%. Apart from this, consumers are willing to pay a premium for high-quality and nutritious dairy products. Companies are responding by introducing fortified milk, organic dairy products, and functional dairy products that cater to the specific health needs of individuals. For example, in August 2023, Orion collaborated with Dutch Mill to enter Vietnam's dairy market. Similarly, in November 2023, Morinaga Milk Industry Group (ELOVI Vietnam) partnered with WinCommerce General Trading Services Joint Stock Company to launch two premium products, namely Morinaga Zero-Fat Yogurt and Climeal Nutritional Drink, at the WinMart retail network in Vietnam. These products are popular among younger demographics who are influenced by Western dietary habits, which is propelling the Vietnam dairy market demand.

Consciousness Towards Sustainability

The increasing popularity of ethically produced dairy products, on account of the growing consumer consciousness towards sustainability, is stimulating the market. Additionally, the rising focus on green production models, thereby targeting increased domestic consumption, is acting as another significant growth-inducing factor. This strategic direction was emphasized by Tran Quang Trung, Chairman of the Vietnam Dairy Association, at the launch of the 4th Vietnam International Milk and Dairy Products Exhibition, held in May 2024. Apart from this, consumers are increasingly looking for brands that adhere to environmentally friendly practices and ensure animal welfare, which is elevating the Vietnam dairy market revenue. For example, in December 2023, Vinamilk, a dairy products joint stock company in Vietnam, introduced the Vinamilk Green Farm product line, produced with carbon-neutral green agricultural techniques and enhanced double vacuum technology. In line with this, Vinamilk also achieved substantial recognition in Brand Finance's Food and Drink 2023 rankings, affirming its position as a key industry leader committed to sustainability. Furthermore, the widespread adoption of sustainable practices by companies, as they are engaging in corporate social responsibility (CSR) initiatives, is expected to elevate the Vietnam dairy market's recent price in the coming years. For example, in October 2022, FrieslandCampina Vietnam, one of the dairy cooperatives, unveiled a sustainable development plan that seeks to improve the lives of farmers, reduce environmental impacts, provide consumers with nutritious products, etc.

Strategic Partnerships and Investments

According to the data published by Research and Markets, per capita milk consumption in Vietnam is expected to increase by around 40%, from 28 liters in 2021 to 40 liters per year by 2030. However, domestic milk production falls short of meeting the country's demand. As per the Food and Agriculture Organization (FAO), in 2021, industry players in Vietnam produced approximately 1,097 tons of milk domestically but had to import more than 3,705 tons. This stark contrast between supply and demand highlights the growing importance of dairy imports to meet consumer needs. Moreover, the widespread foreign direct investments (FDI) in dairy processing companies across the country, as they have often been involved in the production and distribution of dairy products for a long time, are among the Vietnam dairy market's recent opportunities. For example, in November 2023, Growtheum Capital Partners invested approximately US$100 Million to acquire a 15% stake in the Vietnam International Dairy Joint Stock Company (IDP). In May 2023, Morinaga Milk Industry Co., Ltd. collaborated with Hoa Sen Group's Le May, a domestic dairy producer, forming the Morinaga Le May Vietnam Joint Stock Company.

Vietnam Dairy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the Vietnam dairy market forecast at the country and regional levels for the period 2025-2033. Our report has categorized the market based on the product, application, and distribution channel.

Breakup by Product:

• Liquid Milk
• Cheese
• Laban
• Yogurt and Curd
• Butter and Clarified Butter
• Others

The report has provided a detailed breakup and analysis of the market based on the product. This includes liquid milk, cheese, Laban, yogurt and curd, butter and clarified butter, and others.

The increasing health consciousness among consumers is augmenting the adoption of liquid milk. Laban, a fermented dairy product like yogurt, is also witnessing a rise in consumption due to its associated health benefits and refreshing taste. Yogurt and curd have become daily dietary items, with a particular emphasis on probiotic and flavored varieties that appeal to health-conscious consumers. This, in turn, is positively influencing the Vietnam dairy market outlook. Butter and clarified butter (ghee) are integral to both traditional Vietnamese and fusion cuisines, with demand rising in line with the expanding bakery and confectionery sectors. The other category, which includes dairy-based beverages and innovative dairy products like fortified milk and plant-based alternatives, is experiencing significant growth as consumers diversify their dairy intake. For example, in May 2024, one of the dairy manufacturers in Vietnam, International Dairy Products JSC (IDP), launched a dairy product with jelly pieces in SIG XSlimBloc carton packs under its popular KUN brand, providing nutritious ready-to-drink milk for kids.

Breakup by Application:

• Bakery and Confectionary
• Clinical Nutrition
• Frozen Food
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes bakery and confectionary, clinical nutrition, frozen food, and others.

Dairy items, including butter, milk, cream, etc., are essential ingredients, contributing to the rich flavor and texture of cakes, pastries, and desserts. Additionally, in clinical nutrition, dairy products are increasingly utilized for their nutritional benefits, with products like fortified milk and specialized infant formula gaining traction. Brands like Vinamilk and TH True Milk offer enriched milk products catering to both pediatric and adult nutritional needs. The frozen food segment sees significant use of dairy in ice cream and frozen yogurt, with companies like Kido Foods expanding their product lines to include innovative flavors and healthier options. Other applications include ready-to-drink beverages, where dairy-based drinks and smoothies are becoming popular. This, in turn, is propelling the Vietnam dairy market growth.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialist Retailers
• Online Stores
• Others

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes supermarkets and hypermarkets, convenience stores, specialist retailers, online stores, and others. 

Supermarkets and hypermarkets offer a wide range of dairy products, from basic milk and cheese to premium yogurt and butter. Major chains like Co.opmart and Big C have extensive dairy sections that attract a large customer base. As per the Vietnam dairy market statistics, convenience stores, such as VinMart+ and Circle K, are proliferating, particularly in urban areas, providing quick and easy access to dairy products for busy consumers seeking convenience. Specialist retailers, including dedicated dairy and organic food stores, cater to niche markets, emphasizing quality and specialty products like organic milk and artisanal cheese. The rise of online stores is a significant trend, with e-commerce platforms like Lazada, Tiki, and Shopee expanding their grocery offerings to include a comprehensive range of dairy products, meeting the increasing demand for home delivery and online shopping convenience. Other channels, such as direct sales and local markets, also play a significant role, particularly in rural areas where traditional shopping habits persist. This multifaceted distribution network ensures that dairy products are accessible to a broad spectrum of consumers across Vietnam.

Breakup by Region:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern Vietnam, Central Vietnam, and Southern Vietnam.

In Northern Vietnam, the dairy market is characterized by a strong presence of traditional dairy farms and a growing urban population that drives demand for both basic and premium dairy products. Cities like Hanoi have seen a surge in modern retail formats, boosting accessibility to a variety of dairy offerings. Central Vietnam, with its mix of rural and urban areas, presents a diverse market where imports supplement local dairy production to meet the needs of its population. The region's focus on tourism also propels the demand for high-quality dairy products in hospitality and food services. Southern Vietnam, particularly Ho Chi Minh City, is the most dynamic dairy market, driven by a large, affluent consumer base and a high concentration of supermarkets, hypermarkets, and convenience stores. According to the Vietnam dairy market overview, the growing inclination towards innovative and health-focused dairy products will continue to stimulate the market in the coming years. 

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major Vietnam dairy market companies have been provided.

Vietnam Dairy Market Recent Developments:

• May 2024: Morinaga Nutritional Foods Vietnam (MNFV), a subsidiary of the Morinaga Milk Industry Group (Japan), formerly known as Elovi, unveiled its plan to implement new strategies for sustainable development and responsible business practices in Vietnam.
• May 2024: One of the dairy manufacturers in Vietnam, International Dairy Products JSC (IDP), introduced a dairy product with jelly pieces in SIG XSlimBloc carton packs under its popular KUN brand, thereby offering nutritious ready-to-drink milk for kids.
• May 2024: The fourth edition of the Vietnam International Milk and Dairy Products Exhibition was organized jointly by the Vietnam Advertisement and Fair Exhibition JSC (VIETFAIR) and Vietnam Dairy Association (VDA), to serve as a platform for both domestic and international firms to exhibit their latest offerings in the dairy sector.

Vietnam Dairy Market Report:

Key Questions Answered in This Report:

• How has the Vietnam dairy market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Vietnam dairy market?
• What is the breakup of the Vietnam dairy market on the basis of product?
• What is the breakup of the Vietnam dairy market on the basis of application?
• What is the breakup of the Vietnam dairy market on the basis of distribution channel?
• What are the various stages in the value chain of the Vietnam dairy market? 
• What are the key driving factors and challenges in the Vietnam dairy?
• What is the structure of the Vietnam dairy market and who are the key players?
• What is the degree of competition in the Vietnam dairy market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam dairy market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Vietnam dairy market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam dairy industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.