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An Overview of the Food Market in Vietnam

The food market in Vietnam involves the production, processing, distribution, and sale of food products within the country. Besides, it also encompasses a wide range of products, including agricultural commodities, packaged foods, beverages, fresh produce, meat, dairy, and seafood. In this article, we present to companies who are seeking to operate in the country an entire overview of the food market and analyze key contributors to this sector’s growth.

1. Market Size and Growth of the Food Market in Vietnam

The food market in Vietnam has experienced significant growth in recent years and is expected to continue growing at a strong pace. According to Euromonitor, the market size of packaged food in Vietnam was worth $19.8 billion in 2020, with a compound annual growth rate (CAGR) of 6.7% from 2015 to 2020. Euromonitor projects that the market size of packaged food in Vietnam will grow at a CAGR of 6.4% from 2020 to 2025, reaching $27.1 billion in 2025. The food service industry is also expected to continue growing, with a projected CAGR of 6.2% from 2019 to 2024, according to ResearchAndMarkets.

There are numerous factors that contributed to this growth. Firstly, as Vietnam’s economy has grown, so too have the incomes of its people. This has led to increased demand for higher-quality and more diverse food products. The second factor is the country’s large and growing population, which is expected to reach 105 million by 2025, presents a significant consumer base for the food industry. Besides, urbanization in Vietnam is leading to changes in consumer lifestyles and eating habits, with more people eating out and seeking convenient and healthy food options. Last but not least, the government’s efforts to promote foreign investment and improve infrastructure are creating a favorable business environment for food companies.

2. Competitive Landscape of the Food Market in Vietnam

The food market in Vietnam is highly competitive, with both domestic and international players vying for market share. Major domestic players in the packaged food market include Masan Group, Vissan, CJ Vietnam, and Vinamilk. Meanwhile, international players such as Nestle, PepsiCo, Coca-Cola, and Unilever have also established a strong presence in Vietnam’s food market. 

When it comes to domestic brands, Masan Group is a leading player in the packaged food market, with a 35.3% share of the market in 2019, according to Euromonitor.  In the dairy industry, Vinamilk is the dominant player, with a 58.6% share of the market during 2019. However, the major players in the non-alcoholic beverage market are two global corporates: Coca-Cola and Pepsi, with PepsiCo holding a 33.6% share and Coca-Cola holding a 26.5% share in the same year. Nestle is a major player in the confectionery market, with a 9.4% share of the market.

Many companies in the food market in Vietnam are focusing on expanding their product offerings and improving their distribution networks. Masan Group, for example, has been acquiring other food and beverage companies in order to expand its product portfolio. Nestle has introduced new products tailored to Vietnamese tastes, such as its Maggi noodles with pho flavor. In the meantime, Vinamilk has been investing in research and development in order to develop new products and improve its production processes.

It is undeniable that the food market in Vietnam is expected to remain highly competitive in the coming years when international players are likely to continue investing in Vietnam, attracted by the country’s large and growing consumer base while domestic players are expected to continue expanding their product offerings and improving their production processes in order to remain competitive.

3. Key Trends and Drivers of the Food Market in Vietnam

Health and wellness

There is a growing trend towards healthier eating in Vietnam, driven in part by concerns about rising obesity rates and other health issues. Consumers are increasingly seeking out products that are lower in sugar, salt, and fat, and that contain more natural and organic ingredients. This trend has led to the growth of health and wellness products, such as fortified foods and beverages, and functional foods.

Convenience and on-the-go consumption

As Vietnam’s urban population has grown, so too has the demand for convenient, on-the-go food options. This trend has led to the growth of packaged and ready-to-eat foods, as well as foodservice outlets such as convenience stores and street food vendors.


With relevance to growth in Vietnam GDP, Rising incomes and a growing middle class have led to increased demand for higher-quality and more premium food products. This trend has led to the growth of premium and imported food products, as well as the development of higher-quality domestic products.

Digitalization and e-commerce

Vietnam’s e-commerce market has been growing rapidly in recent years, and this trend has extended to the food market. Online grocery sales are expected to grow at a CAGR of 22.4% from 2019 to 2024, according to ResearchAndMarkets. Thus, many food companies are investing in digital platforms and e-commerce strategies in order to capture a share of this growing market.

Sustainability and ethical sourcing

There is a growing awareness of environmental and ethical issues in Vietnam, and this is driving demand for sustainable and ethically-sourced food products. Consumers are increasingly interested in the environmental and social impact of the food products they consume, and are seeking out products that align with their values.

Wrap Up

In conclusion, the food market in Vietnam is considered to be a dynamic and rapidly evolving market with both opportunities and challenges. With a large and growing consumer base, both domestic and international companies have significant opportunities to succeed in this market, but also face intense competition and a complex regulatory environment. As such, companies looking to enter or expand their presence in Vietnam’s food market must be attuned to the trends and drivers, and adopt effective strategies to differentiate themselves and capture market share. Learn more about distribution channels in Vietnam with us!

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