Vietnam Edible Oil Market Outlook to 2027

The Vietnam edible oil market has witnessed significant growth in recent years, driven by factors such as rising consumer awareness of health benefits

The Vietnam edible oil market has witnessed significant growth in recent years, driven by factors such as rising consumer awareness of health benefits associated with edible oils and an expanding population. Palm oil, soybean oil, and sunflower oil are among the most consumed edible oils in Vietnam, catering to various culinary preferences and cooking styles.

Vietnam has a mix of domestic production and imports to meet the growing demand for edible oils. The country imports a significant volume of edible oils, including palm oil and soybean oil, to supplement domestic production.

The Vietnam Edible Oil market ecosystem is comprised of key players contributing to the production, distribution, and consumption of edible oils. Major producers and refineries, such as C.P. Vietnam Corporation, Golden Hope Nha Be Edible Oils Sdn Bhd, and Tuong An Vegetable Oil Joint Stock Company, lead in manufacturing diverse edible oils using both domestic and imported raw materials. Distribution is facilitated by prominent companies like Saigon Trading Group (SATRA) and Tan Nhat Huong Co., Ltd., while retail giants VinMart, Co.opmart, and Big C serve as essential outlets for consumers. Local farmers, supported by suppliers like Hoang Dang Co., Ltd., contribute to the raw material base.

Vietnam Edible Oil Market Analysis

In 2022, cooking oils and fats market was at USD 1.6 billion and were expected to reach USD 1.9 billion by 2027.

Growing busy lifestyle driving demand for processed food and Rising use of high-quality oils and fats are the growth factors pf the market.

Advance technology in Vietnam, high capita income, Asia Pacific region has largest share in the market. There are Rapid developments in Asia Pacific which have boosted the market.

Major of the edible oils like Palm Oil are imported in Vietnam. In April 2022, Indonesia banned export of edible oils which led to overall shortage & hence the prices rose, which further led consumption to lower down

Key Trends by Market Segment

By Type: In 2022, Vietnam edible oil market is been dominated bypalm oil. Vietnam is the second-largest importer of Malaysian palm oil in the ASEAN region. The consumption of oils and fats is driven by growth in the food and beverage sector. According to Vietnam Customs, Vietnam’s soybean imports in MY2020/21, reached 2 million tons, an increase of 7.0% compared to the previous year. Vietnam grew 8.4% of Domestic Consumption of Coconut Oil in 2021, from a year earlier. Since 2015 Vietnam Domestic Consumption of Coconut Oil was up 4.5% year on year reaching 193 Thousand Metric Tons.

By Mode of sales channel: Physical trips to the grocery store are still the preferred mode of buying supplies for a chunk of urban population even with the convenience of delivery apps. Non-buyers prefer to see grocery in person before buying it, there is a distrust in e-tailers to choose the best and freshest grocery, non-buyers prefer personal contact with the seller and behave habitually.Buying Online can be more expensive. Depending on the store, there can be additional costs for usage and delivery fees. You may still need to go the grocery store. If you only use the online services for your weekly or bi-weekly trip, you may still need to go to the store for perishable items in between.

By Type of sales channel: In 2022, the market is dominated by Small local Grocers with contributing the market share of 87.4%. Purchasing locally also means that you know a bit more about quality control; you know that certain goods have been produced in a way that meets stringent regional and national standards. Often touted as the best way to be environmentally friendly and support your community

Competitive Landscape

Major Players in Vietnam Edible Oil Market

There are currently about 40 cooking oil companies in Vietnam, however, most of the market share is held by 3 major companies.

Calofic, which accounts for nearly 40% of the market share; Tuong An with 13% of market share Kido - Nha Be with 3.2%, Tan Binh with 2.4% and other companies constituting 39% of the market share.

Simply, Meizan, Kiddy, Cai Lan, are the brands of Calofic Company having a Brands market share of 40% collectively, while remaining constitutes other brands, having a volume consumption of around 415 thousand Metric Tonnes in 2022

Future Outlook

Palm products import by Vietnam are mainly for the bakery and confectionary sectors. It shows that palm oil gives a significant role in this industry in Vietnam. The government of Vietnam has recognized the bakery sector as one of the important GDP contributors to the country.

Vietnam has two industrial soybean crushing facilities Post forecasts the MY2021/22 and MY2022/23 soybean crush at 1.4 million tons reflecting the highest crush capacity of both facilities due to higher demand
While online and offline touchpoints are equally faring out well, there is a high conversion rate of 70.0-80.0% when it comes to offline purchase on a regular basis

 

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