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The market for functional food is one of the fastest growing markets. According to a report published in 2019 by Grand View Research, the global scale was worth USD 161.49 billion in 2018. The global market size is projected to reach USD 275.77 billion by 2025 and is anticipated to expand at a CAGR of 7.9% during the forecast period. In South East Asia, since 2011, functional food markets have experienced rapid growth, worth USD 17.4 billion in 2016 and 9% CAGR is forecast between 2015 and 2020 (L.E.K. Research & Analysis, 2018). The market size for functional food in Vietnam was worth USD 1,792 million in 2015, ranked 3rd among ASEAN countries. However, its’ growth rate from 2015-2020 was highest among all countries in the region.Read More “The rapid development of Vietnam’s functional food market”
“3800 tons of dairy products in 2050”
With higher income and better nutritional awareness, Vietnamese people have sustainably increased their purchase of dairy products. It is estimated that in 2050, each Vietnamese will consume 34 kilograms of milk and related variants per year, that multiplied by the total population of 112 million people then will result in a market size of 3,800 tons of dairy products.
“30% increase annually”
In 2016, Vietnam recorded 129 cases of food poisoning and 57,000 units found violations. Todays each time going to market, consumers keep worrying whether the food is safe or not because lack of its origin information.
As a result, growing numbers of people are turning to “clean” food, buying foods certificated by officials. This trends also opens up a new business opportunity in “organic food”.
Organic Trade Association estimates total organic consumer market of Vietnam at about 2 million USD per year.
Health & wellness products have highest consumption, reached 3,955.8 million USD in 2015, with compound annual growth rate of 17.9% from 2012 to 2015.
According to Organik Da Lat, consumption of organic products has increased by 30% annually. Statistics from “Hợp tác xã Thỏ Việt” show that consumer demand in the first eight months of 2014 increased by 50% compared to 2013.
Many big brands in Vietnam have invested and developed its organic products, such as Vinamilk, Co.opmart, Vinamit,…
Vinamit, a well-known dried fruit manufacturer and exporter, also included organic into their core business.
For the past 4 years from 2013, Vinamit has invested in a 171 hectare organic fruit farm in Binh Duong. Up to now, Vinamit has 80 organic products certificated under the USDA (US) and EU (Control Union) standards.
“200 high-tech agriculture enterprises by 2020”
Vietnam is strongly promoting hi-tech agriculture, as a mean to increase productivity and reduce negative impact on the environment.
The country has set a target that in 2020, hi-tech agriculture product would account for 35% of total value of national agriculture product (approximately 11.6 billion USD on 33.2 billion USD).
To achieve that ambitious target, enthusiastic participation of private sector is required. According to the Government’s outlook, there would be 200 hi-tech agriculture enterprises operating nationwide by 2020. However, until 2015, the number was reported to stand at just 22.
Whether this void of hi-tech agriculture enterprises would be filled up in time or not depends a lot on foreign investment, because the most plausible business model would be a cross-country partnership, in which the Vietnamese side provides land and understanding of local conditions, while a foreign side contributes technology and know-how.
According to Vietnam Association of Functional Food (VAFF), Vietnam functional food market reached 650 million USD, ranked 3rd in the ASEAN market. The y-o-y average growth rate of the market is expected to be 20% in the next 10 years. Due to the easy procedures for registration and import, in 2013, the market has nearly 7,000 types of products doubling from 2011, the number of players in the industry also doubled from 2012 to 3,500 companies.
It is more and more popular to have canned food on the dining table. Though the market size of canned food in 2014 remained small with only 670 billion VND (equivalent to 32 million USD), but the growth rate increased by 12.2% compared to the previous year and even higher than the 7.3% growth rate of the entire food industry. Read More “Number of canned food factories with foreign investment on the rise (March 2015)”
In 2013, the total sales volumes from distilled and fermented liquors reached 500 million USD, increased up to 1.8 times in comparison to that of 2005. More specifically, more than half of the distilled beverages consumed are vodka, meanwhile for wine, over 60% are red wine.
“Constantly grow at a CAGR of 6.2%”