Vietnam’s functional food market is expanding rapidly, driven by a growing middle class, growing health consciousness, and a shift toward preventative medicine. While this growth offers new business opportunities for foreign brands, it also presents challenges such as counterfeiting and quality control.

The market continues to expand, but saturation is still a long way off

According to the Vietnam Functional Food Association (VAFF), the market is growing at an annual rate of around 15%, with over 60% of consumers having used the products[1]. Euromonitor forecasts an average annual growth rate of 7% between 2023 and 2028[2]. As the population ages, with over 9 million of the country’s 101 million people aged 65 or older, demand for health supplements that improve brain function, immunity, joint function, and more is expanding[3].

In addition, the expansion of consumption among the middle and wealthy classes is boosting health-related spending. The market covers a wide range of categories, but there is no dominant player yet. Consumers tend to place more importance on ingredients and functions than on brands, leaving ample room for new entrants.

Trust in foreign brands

Consumers generally rate foreign brands highly, outperforming domestic products in terms of reliability and satisfaction. According to a survey by B&Company (2023), Australian supplements have the highest recognition, followed by Japan and the United States. Japanese products are particularly well-known for products aimed at children and adults. While domestic products have certain advantages, such as affordable prices and local compatibility, foreign brands have the advantage in overall evaluation.

Awareness of supplement country of origin in 2023 (%)

来源：B&Company

Self-medication and preventative medicine orientation

The habit of self-medication is also driving market expansion. In rural areas, 40-60 % of people practice self-medication, while in urban areas, more than 70% practice self-medication[4]. This is due to the high out-of-pocket medical expenses rate of approximately 43% and the inadequate insurance system[5]. Consumers are turning to functional foods to both reduce costs and maintain their health.

Regulation and trust are key to market entry

The challenges facing foreign brands are complying with regulations and establishing distribution networks. The Vietnam Functional Food Association (VAFF) works with the Food Safety Authority and other organizations to provide support to companies entering the market. It is also linked to health supplement standards in the ASEAN region, and international brands can utilize the VAFF network to ease the hurdles of local regulations.

Conditions for success

While the market remains plagued by issues of counterfeiting and quality control, there is ample room for growth for companies with honest business practices and strong management systems. International brands are well-positioned, fueled by rapid growth, health-conscious consumers, and a high level of trust in foreign products.

The key to true success lies in accurately understanding the diverse needs of Vietnamese consumers and building a reliable sales system. Companies that can enter this complex yet promising market with high quality will be the next winners.

[1] Source: Nhan Dan Online, ” 58.5% of Population Over 18 Use Health Supplements ” (December 2022)

[2] Source: Ibid.

[3] Source: Government of Vietnam, ” Results of the 2024 Intercensal Population and Housing Census ”（2025年1月）

[4] Source: Journal of Multidisciplinary Healthcare, ” Self-Medication Practices Among Vietnamese Residents in Highland Provinces ” (July 2019)

[5] Source: Ibid.

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