Vietnam: Yogurt and Curdled Milk Market and the Impact of COVID-19 on It in the Medium Term

The yogurt and curdled milk market in Vietnam was equal to 894.00 million USD (calculated in retail prices) in 2015. Until 2025, the yogurt and curdled milk market in Vietnam is forecast to reach 2.21 billion USD (in retail prices), thus increasing at a CAGR of 6.58% per annum for the period 2020-2024. This is a decrease, compared to the growth of about 12.81% per year, registered in 2015-2019.
The average consumption per capita in value terms reached 9.66 USD per capita (in retail prices) in 2015. In the next five years, it grew at a CAGR of 11.65% per annum. In the medium term (by 2025), the indicator is forecast to slow down its growth and increase at a CAGR of 5.61% per annum.
One of the most important trends on the dairy industry is linked with the surging demand for healthy and sustainable products. Consumers’ preferences have shifted to more natural products with “clean label”, including fermented food and drinks with health benefit claims. As a result, the major players have been significantly challenged. In order to remain competitive, they try to reduce their use of sugar and to offer premium indulgence and products with more sophisticated flavors. In addition, the number of people, who are paying attention to labelling is increasing. Thus, companies also need to focus on transparency and simplicity regarding information, in order to gain customers’ trust.
When it comes to yogurt, it has been a volatile market over the last few years. In Western Europe, it has not performed well, since in countries such as Spain and France the market is saturated and major players have been struggling with sales declines over the last few years. Meanwhile, in some countries consumers have been switching from plain and flavored yoghurt to drinking yoghurt. In order to keep consumers interest, companies have been focused on excluding artificial additives and preservatives from their products. Following the government’s efforts to cut population sugar intake, yogurt brands have been also trying to reduce the sugar content of their formulations. Furthermore, yogurt has been also perceived as an indulgence and widely positioned as a healthier alternative to traditional desserts. Brands are tapping into this trend by creating a diversity of tastes, flavors and textures. In particular, the use of flowers, spices and herbs has rapidly increased in recent years.