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By: B&Company Vietnam
Reports & Publications
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“Constantly grow at a CAGR of 6.2%”
The growing habit of using chocolate as a type of snack among the youth especially reinforced the high growth rate of this sector. In 2012, total retail value sale was $51.1 million which equated 3400 tones, nearly doubled that of year 2007. Sales of chocolate confectionery are expected to grow at a CAGR of 6.2% in constant volume terms over the forecast period from 2013 to 2017.
“Foreign manufacturers have higher share in the market”
The main reason for the domination of imported chocolate is that domestic chocolate has less attractive and premium-looking packages. In addition, investment costs of production, preservation of fresh chocolate are too high resulting to the tendency of importing rather than producing locally among foreign chocolate companies.
In 10 brands of most consumed chocolate, most of which are foreign enterprises (like Belcholat, Guylian – acquired by Lotte in 2008, Maestrani Schweizer Schokoladen, Stoke MG, Mars, etc.) meanwhile chocolate made by local players have representatives from Bibica and Kinh Do only. Belcholat is the leading player occupying 12.3% of retail market, while Kinh Do represented 4.3% of retail value sales, stood at the eighth place; other foreign companies all got high rankings.
“7.5 Million US dollar, 55% of total domestic production”
Three large firms with factories producing domestically are Belgium Grand Place Purato (production capacity of 2,000 tons / year), Belcholat (500 tons / year) and Kinh Do. In 2012, Puratos Grand Place’s sales value is USD 7.5 million; accounting for 55% of total domestic production.
“Rapid growth in the market?!”
Furthermore, chocolate is popular among the urban middle and upper class; but when compared to the average income level, it is still considered a luxury item. Therefore, when the consumption level of cheap products is increasing, in the future, this market is likely to have even more rapid growth than what is projected.