The health supplements market in Vietnam is the industry that produces and sells products that are consumed to supplement a person’s diet and improve their health and well-being. In this article, we will help you analyze the market as well as trends, opportunities and challenges when growing business in this field.
1. Overall Growth and Market Share
In recent years, the health supplements market in Vietnam has experienced significant growth. According to a report by Euromonitor International, the market size of dietary supplements in Vietnam reached USD 335 million in 2020, up from USD 305 million in 2019, which represents a growth rate of 10%. One of the main factors that led to this trend is the rise in health awareness among consumers. Vietnam’s consumers nowadays are becoming more conscious about their health and are willing to spend more on products that help improve their well-being. Besides, as an impact of the COVID-19 pandemic, consumers in Vietnam are increasingly seeking products that can boost their immune systems and protect them against the virus or prevent any diseases in the future.
The health supplements market in Vietnam is dominated by local brands, with only a few international players holding significant market share. Some of the most popular local brands include TH True Herbal, New Life, and Traphaco. Over 70% of all health supplements on the market are made in the country. The remaining 20% are imported from countries such as Canada, the USA, South Korea, Japan and Canada.
In Vietnam, health supplements is primarily distributed through pharmacies and drugstores, with supermarkets and hypermarkets also playing an important role. Online sales of health supplements are also growing in popularity in Vietnam, with many consumers opting for the convenience of shopping from home. Regulated by the Ministry of Health, which has established a set of guidelines for the manufacture, importation, and distribution of supplements, all health supplements must be registered before they can be sold in the market. To learn more about the registration procedures for health supplements in Vietnam, click on this Link.
2. Latest trends in the health supplement market
Consumers prefer natural and organic supplements
As consumers become more health-conscious, there is a growing demand for natural and organic supplements. Vietnamese shoppers are increasingly seeking out supplements that are made with natural and organic ingredients and are free from artificial additives. They hold a strong belief that natural and traditional supplements are safer and have fewer side effects than products made from artificial additives.
Consumers are interested in sports and fitness supplements
As more consumers are embracing an active lifestyle, there is a growing interest in sports and fitness supplements in Vietnam. Fitness enthusiasts are generally more inclined towards supplements such as protein powders, creatine, and pre-workout supplements.
Consumers are inclined towards a personalized approach
Consumers are increasingly looking for personalized health solutions that address their specific needs and goals. This has led to the growth of customized supplement products and services, such as DNA testing and personalized supplement plans.
3. Opportunities & Challenges
The health supplements market in Vietnam offers several opportunities for businesses and investors. Here are some of the key opportunities:
Unprecedentedly Growing market
The health supplements market in Vietnam is growing rapidly, driven by rising health awareness, an aging population, and a growing middle class with increasing disposable incomes. This presents an undeniably huge opportunity for companies to proliferate in the long run.
Diverse Product range
The health supplements market in Vietnam is diverse, with a wide range of products available, including vitamins, minerals, herbal and traditional medicines, and other dietary supplements. Some of the most popular supplements in Vietnam include multivitamins, calcium, Omega-3, and probiotics. This presents an opportunity for businesses to offer a wide range of products to meet the diverse needs of consumers.
Collaboration with Local Manufacturers
Since domestic brands dominate the market, there are plenty of local manufacturers who take part in the health supplements market in Vietnam. Therefore, businesses can grasp this opportunity to collaborate with these manufacturers to tap into their expertise and expand their product offerings.
However, there are some notable barriers that business owners should be aware of when it comes to Vietnam’s market of health supplements. In this article, we help you find out some challenges:
Counterfeit products
The health supplements market in Vietnam can be plagued by counterfeit products, which can be dangerous for consumers and can damage the reputation of legitimate businesses, which can eventually lead to a lack of consumer trust. Besides, consumers in Vietnam are generally wary of health supplements. Therefore, counterfeit products can make it difficult for businesses to build trust with consumers and promote their products.
Price Sensitivity
Despite an increase in disposable incomes, it is true that Vietnamese consumers are generally price-sensitive, which means that businesses may need to offer products at a lower price point to remain competitive. This challenge can pose a threat to businesses whose product price is higher than average. Furthermore, they will also have to invest in research and development and maintain quality standards.
4. Effective Strategies to enter Vietnam’s Health Supplements Market
Entering the health supplements market in Vietnam can be challenging, but there are several strategies that businesses can use to establish a strong presence in the market. Here we offer some key strategies that may come in handy to your businesses:
Research the Market:
Before entering the market, it’s important to research the local market and understand consumer preferences, local regulations, and the competitive landscape. This can help businesses develop a strategy that is tailored to the local market.
Partner with Local Manufacturers:
Partnering with local manufacturers can help businesses tap into local expertise and establish a strong supply chain. Local manufacturers also have a better understanding of local regulations, which can help businesses navigate the complex regulatory landscape.
Build Trust with Consumers:
Building trust with consumers is critical for success in the health supplements market. Businesses can build trust by offering high-quality products, providing transparent information about ingredients and manufacturing processes, and partnering with trusted retailers.
Develop a Strong Online Presence:
Online sales are growing in popularity in Vietnam, and businesses that are able to establish a strong online presence can reach a wider audience and offer greater convenience to consumers.
Offer Competitive Pricing: Vietnamese consumers are generally price-sensitive, and businesses that are able to offer competitive pricing may have an advantage in the market. However, it’s important to balance pricing with quality to ensure that products are perceived as high-quality and effective.
Final thoughts
Overall, entering the health supplements market in Vietnam requires a tailored approach that takes into account local regulations, consumer preferences, and the competitive landscape. Considering all the current trends, opportunities and threats, businesses will need to prepare a lot in order to tap into a growing market with strong potential for future growth.
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