The Baby Food Sector in Vietnam, 2018
Summary
It is estimated that 1.5 million babies were born in Vietnam in 2017, resulting in a baby population of 4.4 million (aged 0-3 years). In general, there has been a downward trend in the birth rate, as the government has sought to discourage large families. The bulk of the population continues to live in rural areas - 64.9% in 2017. Urban incomes are almost double the average for rural areas. Incomes for most groups are, however, rising, and the last decade has seen the emergence of an increasingly affluent middle class.
Although the baby food sector has grown by 59% in value since 2011, 2016 and the start of 2017 saw a downturn in sales, in particular of baby milks. The situation improved in 2017 as a whole, however, and retail sales grew by 3% at current prices. Sales are increasingly spreading from the two largest cities, Hanoi and Ho Chi Minh City, although consumption in rural areas remains low. Overall consumption levels remain low by Asian standards, at 8.3kg per baby aged 0-3 years in 2017.
Milks constitute the bulk of sales, although high volume growth has also been registered in cereals/dried meals as well as in the meals and others category, although this is still small. In 2017, retail sales of milks were estimated at VND13,000 billion (US$572 million), equivalent to 83% of the total. Cereals and dried meals account for a further 13.7%, with wet meals, drinks, and snacks making up the remaining 3%.
The largest domestic supplier of baby food by far is Vinamilk, which produces infant formula and baby cereals; although a growing number of other local manufacturers are active as well. Vietnam is a major importer of baby milks. In 2016, the last year for which figures are available, milks with a value of US$259 million were imported, originating mainly from Singapore, Thailand, and Ireland. Foreign-owned products account for the majority of the sector, amounting to 75% of value sales.
The report "The Baby Food Sector in Vietnam, 2018", is an analytical report which provides extensive and highly detailed current and future market trends in the Vietnamese market.
The report offers -
Companies mentioned: Vietnam Dairy Products Joint Stock Company - Vinamilk, Abbott Nutrition Vietnam, FrieslandCampina Dutch Lady Vietnam, Mead Johnson Vietnam Company Ltd, Nestlé Vietnam Ltd., Hipp, Danone Vietnam Company Ltd, Bibica, DFB Hanco Nutrition, Heinz, Lactalis International, Nutifood, Saigon Food and TUV Corp.
Scope
Reasons to buy
Summary
It is estimated that 1.5 million babies were born in Vietnam in 2017, resulting in a baby population of 4.4 million (aged 0-3 years). In general, there has been a downward trend in the birth rate, as the government has sought to discourage large families. The bulk of the population continues to live in rural areas - 64.9% in 2017. Urban incomes are almost double the average for rural areas. Incomes for most groups are, however, rising, and the last decade has seen the emergence of an increasingly affluent middle class.
Although the baby food sector has grown by 59% in value since 2011, 2016 and the start of 2017 saw a downturn in sales, in particular of baby milks. The situation improved in 2017 as a whole, however, and retail sales grew by 3% at current prices. Sales are increasingly spreading from the two largest cities, Hanoi and Ho Chi Minh City, although consumption in rural areas remains low. Overall consumption levels remain low by Asian standards, at 8.3kg per baby aged 0-3 years in 2017.
Milks constitute the bulk of sales, although high volume growth has also been registered in cereals/dried meals as well as in the meals and others category, although this is still small. In 2017, retail sales of milks were estimated at VND13,000 billion (US$572 million), equivalent to 83% of the total. Cereals and dried meals account for a further 13.7%, with wet meals, drinks, and snacks making up the remaining 3%.
The largest domestic supplier of baby food by far is Vinamilk, which produces infant formula and baby cereals; although a growing number of other local manufacturers are active as well. Vietnam is a major importer of baby milks. In 2016, the last year for which figures are available, milks with a value of US$259 million were imported, originating mainly from Singapore, Thailand, and Ireland. Foreign-owned products account for the majority of the sector, amounting to 75% of value sales.
The report "The Baby Food Sector in Vietnam, 2018", is an analytical report which provides extensive and highly detailed current and future market trends in the Vietnamese market.
The report offers -
- Consumption data based upon a unique combination of industry research, fieldwork, market sizing work and our in-house expertise to offer extensive data about the trends and dynamics affecting the industry
- Detailed profile of the companies operating and new companies considering entry in the industry along with their key focus product sectors
- Market profile of the various product sectors with the key features & developments, segmentation, per capita trends and the various manufacturers & brands
- Overview of baby food retailing with a mention of the major retailers in the country along with the distribution channel
- Future projections considering various trends which are likely to affect the industry
Companies mentioned: Vietnam Dairy Products Joint Stock Company - Vinamilk, Abbott Nutrition Vietnam, FrieslandCampina Dutch Lady Vietnam, Mead Johnson Vietnam Company Ltd, Nestlé Vietnam Ltd., Hipp, Danone Vietnam Company Ltd, Bibica, DFB Hanco Nutrition, Heinz, Lactalis International, Nutifood, Saigon Food and TUV Corp.
Scope
- Vietnam has no unified food law, but it does have a large number of food quality laws, labeling laws, and safety and hygiene laws, as well as additional quality standards which apply to infant formula.
- The baby food market includes plain cereals (wheat, oat‑based, and rice, including red rice), cereals with fruit, and dried savory dishes, which consist mainly of cereals with added pork, chicken, or fish plus vegetables. Baby cereals were packed in boxes, and in cans.
- The price of baby drinks makes them a luxury most mothers cannot afford. Both juices and teas are available, but only in a limited number of urban outlets.
- The majority of baby meals continue to be sold in jars, although a few pouches were found for the first time in 2018.
- Finger foods are mainly presented in boxes, although a few products are available in bags, tubs, and, most recently, in stand-up pouches.
Reasons to buy
- Evaluate important changes in consumer behavior and identify profitable markets and areas for product innovation.
- Analyse current and forecast behavior trends in each category to identify the best opportunities to exploit.
- Detailed understanding of consumption by individual product categories in order to align your sales and marketing efforts with the latest trends in the market.
- Investigates which categories are performing the best and how this is changing market dynamics.
Table of Contents
- Introduction
- Executive Summary
- Definitions
- Background
- Birth
- The Consumer
- Socio-Demographic Trends
- Working Women
- Breastfeeding Trends
- Regulations
- Overview
- Overview
- Manufacturers Shares
- Category Analysis
- Baby Milks
- Baby Cereals & Dry Meals
- Baby Wet Meals & Others
- Production and trade
- Production
- Imports
- Exports
- Company profiles
- Vietnam Dairy Products Joint Stock Company - Vinamilk
- Abbott Nutrition Vietnam
- FrieslandCampina Dutch Lady Vietnam
- Mead Johnson Vietnam Company Ltd
- Nestlé Vietnam Ltd
- Hipp
- Danone Vietnam Company Ltd
- Other Manufactures
- Distribution
- Baby Food Retailing
- Economic background
- Economic Background
- Key Macroeconomic Forecasts
- Prospects and forecasts
- Birth & Population Projections
- Forecast Overview
- Consumer Attitude
- Appendix
- Additional Data Tables
- Summary Methodology
- About
List of Tables
Table 1: Birth & Population Trends, 2007-2017
Table 2: Urban & Rural Population, 2007-2017
Table 3: Urban & Rural Population, 2014 & 2016
Table 4: Trends in Annual Per Capita Income, 2010-2016
Table 5: Poverty Rates by Region, 2012-2016
Table 6: Women of Childbearing Age, by Age Group, 2016
Table 7: Trends in Women's Employment, 2011-2017
Table 8: Breastfeeding Rates in Urban and Rural Hanoi, 2008-2010
Table 9: Breastfeeding Rates by Socio-Economic Criteria, 2014
Table 10: Median Duration of Breastfeeding by Socio-Economic Criteria, 2014
Table 11: Baby Food Manufacturers’ Compliance Ratings, 2016
Table 12: Sector Size, 2017, & Growth Rates, 2011-2017
Table 13: Baby Food: Manufacturer Shares, Value & Volume, %, 2014-2017
Table 14: Baby Food: Manufacturer Shares by Category, %, 2017
Table 15: Baby Milks: Category Size, 2017
Table 16: Baby Milks: Category Growth, % 2011-2017
Table 17: Baby Milks: Brand Price Positioning Analysis, 2018
Table 18: Baby Milks: Facings by Pack Type, 2018
Table 19: Baby Milks: Facings by Pack Size, 2018
Table 20: Baby Milks: Manufacturer Shares, % Value & Volume, 2012-2017
Table 21: Baby Milks: Manufacturer Shares by Segment (Value), %, 2017
Table 22: First-Stage Baby Milks: Manufacturer Shares by Value, 2011-2017
Table 23: Second-Stage Baby Milks: Manufacturer Shares by Value, 2011-2017
Table 24: Third-Stage Baby Milks: Manufacturer Shares by Value, 2010-2017
Table 25: Special Dietary Baby Milks: Manufacturer Shares by Value, 2011-2017
Table 26: Baby Cereals & Dry Meals: Category Size, 2017
Table 27: Baby Cereals & Dry Meals: Category Growth, % 2011-2017
Table 28: Baby Cereals: Facings by Pack Type, 2018
Table 29: Baby Cereals: Facings by Pack Type, 2018
Table 30: Baby Cereals & Dry Meals, Brand Price Positioning Analysis, 2018
Table 31: Baby Cereals & Dry Meals: Manufacturer Shares, 2012-2017
Table 32: Baby Wet Meals & Others: Category Size, 2017
Table 33: Baby Wet Meals & Others: Category Growth, % 2011-2017
Table 34: Breakdown of Sales by Product Type, 2017
Table 35: Baby Meals: Facings by Pack Type, 2018
Table 36: Baby Meals: Facings by Pack Size, 2018
Table 37: Finger Foods: Facings by Pack Type, 2018
Table 38: Finger Foods: Facings by Pack Size, 2018
Table 39: Wet Meals, Brand Price Positioning Analysis, 2018
Table 40: Finger Foods, Brand Price Positioning Analysis, 2018
Table 41: Baby Drinks, Brand Price Positioning Analysis, 2018
Table 42: Baby Wet Meals: Manufacturer Shares, Value & Volume, %, 2012-2017
Table 43: Vinamilk: Financial Performance, 2011-2017
Table 44: Baby Food Retail Distribution by Channel, 2011-2017
Table 45: Key Macro-Economic Indicators, 2011-2018
Table 46: Key Macroeconomic Forecasts, 2017-2023
Table 47: Birth & Population Projections, 2011-2023
Table 48: Women of Childbearing Age, by Age Groups, 2016 and 2020
Table 49: Baby Population, Number of Babies ‘000, 2007-2023
Table 50: Baby Food: Market Value, Current Prices, 2011-2017
Table 51: Baby Food: Market Value, Constant Prices, 2011-2017
Table 52: Baby Food: Market Value, US$ Million, 2011-2017
Table 53: Baby Food: Market Volume, Tons, 2011-2017
Table 54: Baby Food: Per Capita Expenditure, Current Prices, 2011-2017
Table 55: Baby Food: Per Capita Expenditure, Constant Prices, 2011-2017
Table 56: Baby Food: Per Capita Expenditure, US Dollars, 2011-2017
Table 57: Baby Food: Per Capita Consumption, Grams, 2011-2017
Table 58: Baby Milks: Category Trends, 2011-2017
Table 59: Baby Milks: Category Segmentation, Value & Volume, 2011-2017
Table 60: Baby Milks - Powder: Brand Price Analysis, 2018
Table 61: Baby Cereals & Dry Meals: Category Trends, 2011-2017
Table 62: Baby Meals: Category Trends, 2011-2017
Table 63: Imports of Baby Food by Category, Tons, 2011-2016
Table 64: Imports of Baby Food by Category, US$ ‘000, 2011-2016
Table 65: Baby Milks & Cereals: Trends in Imports, 2011-2016
Table 66: Baby Milks & Cereals: Imports by Country of Origin, 2014-2016
Table 67: Other Baby Food: Trends in Imports, 2011-2016
Table 68: Other Baby Food: Imports by Type, Volume & Value, 2011-2016
Table 69: Other Baby Food: Imports by Country of Origin, 2014-2016
Table 70: Baby Food: Market Value Forecasts, Current Prices, 2017-2023
Table 71: Baby Food: Market Value Forecasts, Constant Prices, 2017-2023
Table 72: Baby Food: Market Value Forecasts, US$ Million, 2017-2023
Table 73: Baby Food: Market Volume Forecasts, Tons, 2017-2023
Table 74: Baby Food: Per Capita Expenditure, Current Prices, 2017-2023
Table 75: Baby Food: Per Capita Expenditure, Constant Prices, 2017-2023
Table 76: Baby Food: Per Capita Expenditure, US$, 2017-2023
Table 77: Baby Food: Per Capita Consumption, Grams, 2017-2023
Table 78: Baby Food: Facings Allocation by Product Type and by City
List of Figures
Figure 1: Baby Food: Sector Size, 2011-2017
Figure 2: Baby Food: Per Capita, 2011-2017
Figure 3: Baby Food: Sector Segmentation, 2017
Figure 4: Baby Food: Manufacturer Shares, Value, 2017
Figure 5: Food: Manufacturer Shares, Volume %, 2017
Figure 6: Baby Food: Manufacturer Shares by Category, % Value, 2017
Figure 7: Baby Milks: Category Trends, 2011-2017
Figure 8: Baby Milks: Per Capita Expenditure & Consumption, 2011-2017
Figure 9: Baby Milks: Per Capita Expenditure & Consumption by Age Group, 2011-2017
Figure 10: Baby Milks: Segmentation, Value and Volume, 2011-2017
Figure 11: Baby Cereals & Dry Meals: Category Trends, 2011-2017
Figure 12: Baby Cereals & Dry Meals: Per Capita Expenditure & Consumption, 2011-2017
Figure 13: Baby Wet Meals & Others: Category Trends, 2011-2017
Figure 14: Baby Wet Meals & Others: Per Capita Expenditure & Consumption, 2011-2017
Figure 15: Baby Food: Sector Size, 2017-2023
Figure 16: Baby Food: Per Capita, 2017-2023
Figure 17: Baby Food: Sector Segmentation, 2023
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Vietnam Dairy Products Joint Stock Company - Vinamilk
- Abbott Nutrition Vietnam
- FrieslandCampina Dutch Lady Vietnam
- Mead Johnson Vietnam Company Ltd
- Nestlé Vietnam Ltd.
- Hipp
- Danone Vietnam Company Ltd
- Bibica
- DFB Hanco Nutrition
- Heinz
- Lactalis International
- Nutifood
- Saigon Food and TUV Corp
