Yoghurt and Sour Milk Products in Vietnam

Yoghurt and Sour Milk Products
in Vietnam
Euromonitor International
September 2022
YOGHURT AND SOUR MILK PRODUCTS IN VIETNAM Passport i
LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2022 DEVELOPMENTS ............................................................................................................... 1
Drinking yoghurt with live probiotics continues to draw attention thanks to immunity boosting
claims........................................................................................................................................ 1
Vinamilk maintains to dominate the category ........................................................................... 1
Reduced sugar yoghurt proving popular ................................................................................... 2
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Yoghurt still full of potential as A healthy and indulgent food .................................................... 2
More players likely to enter the market but Vinamilk likely to retain its dominance thanks to
ongoing investments ................................................................................................................. 3
Innovation will remain A key sales driver .................................................................................. 3
CATEGORY DATA ....................................................................................................................... 3
Table 1 Sales of Yoghurt and Sour Milk Products by Category: Volume 2017-
2022 ............................................................................................................. 3
Table 2 Sales of Yoghurt and Sour Milk Products by Category: Value 2017-
2022 ............................................................................................................. 3
Table 3 Sales of Yoghurt and Sour Milk Products by Category: % Volume
Growth 2017-2022 ....................................................................................... 4
Table 4 Sales of Yoghurt and Sour Milk Products by Category: % Value
Growth 2017-2022 ....................................................................................... 4
Table 5 NBO Company Shares of Yoghurt and Sour Milk Products: % Value
2018-2022 .................................................................................................... 4
Table 6 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2019-
2022 ............................................................................................................. 5
Table 7 Distribution of Yoghurt and Sour Milk Products by Format: % Value
2017-2022 .................................................................................................... 5
Table 8 Forecast Sales of Yoghurt and Sour Milk Products by Category:
Volume 2022-2027 ....................................................................................... 6
Table 9 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value
2022-2027 .................................................................................................... 6
Table 10 Forecast Sales of Yoghurt and Sour Milk Products by Category: %
Volume Growth 2022-2027 .......................................................................... 7
Table 11 Forecast Sales of Yoghurt and Sour Milk Products by Category: %
Value Growth 2022-2027 ............................................................................. 7
© Euromonitor International
YOGHURT AND SOUR MILK PRODUCTS IN VIETNAM Passport 1
YOGHURT AND SOUR MILK

PRODUCTS IN VIETNAM
KEY DATA FINDINGS
▪ Retail value sales rise by 11% in current terms in 2022 to VND22.8 trillion
▪ Vietnam Dairy Products JSC (Vinamilk) is the leading player in 2022, with a retail value share
of 65%
▪ Retail sales are set to increase at a current value CAGR of 12% (2022 constant value CAGR
of 7%) over the forecast period to VND39.3 trillion
2022 DEVELOPMENTS
Drinking yoghurt with live probiotics continues to draw attention thanks

to immunity boosting claims
Yoghurt is seeing further strong and stable growth in retail volume terms in 2022. Sales of
yoghurt continue to benefit not only from the versatility of these products in terms of cooking and
snacking, but also their positive perception amongst local consumers in terms of protein content
and functionality in terms of aiding digestion and boosting the immune system. The COVID-19
pandemic has only served to heighten awareness of, and demand for, products that offer this
functionality.
Drinking yoghurt is predicted to remain the most dynamic category in 2022 in a continuation of
a trend emerging over the second half of the review period. Not only does drinking yoghurt offer
a convenient format in terms of consumption but growing awareness around the benefits of
probiotics – as offered and promoted in products like Yakult or Vinamilk’s Probi – is also helping
to drive demand. Players have invested in marketing campaigns which highlight that these
products can support gut health and therefore may enhance the body’s immune system, a factor
which has been heightened during the pandemic.
Leading category players are therefore continuing to strengthen marketing along these lines,
promoting the benefits of drinking yoghurt, especially in boosting the immune system. These
claims have been supported by various media articles encouraging parents to purchase drinking
yoghurt such as Probi to help strengthen their children’s resistance to COVID-19. Probi Gold’s
yeast strain using L.Casei 431 was developed in collaboration with The European Modern Living
Yeast Group – CHR Hansen (Denmark), while also including honey and curcumin. The product
highlights the fact that it has received recommendations from the General Medical Association
of Vietnam, further instilling a sense of trust amongst parents.
Nevertheless, despite the dynamic growth being seen in drinking yoghurt, plain yoghurt
remains the most popular format. This is largely due to its versatility in terms of being
incorporated into a variety of dishes and desserts including topped with fruit or crushed nuts, as
a topping for cupcakes or donuts, as well as more complex dishes such as yoghurt tarts,
yoghurt pumpkin cheesecake or yoghurt cookies with chocolate chips.
Vinamilk maintains to dominate the category

Vietnam Dairy Products JSC (Vinamilk) is set to retain its overall leadership of yoghurt in
2022, where it dominates plain yoghurt and flavoured yoghurt with its brands Vinamilk, Probi
and Susu, which have all continued to record strong sales growth. This growth is being
supported by the player’s ability to maintain strong production levels despite recent challenges
related to the COVID-19 pandemic, as well its wide distribution reach. While traditionally
Vinamilk has produced spoonable yoghurt, it has continued to expand its line of drinking yoghurt
in line with this category’s dynamic growth. As such it now offers Yomilk, Probi with live yeast,
and Susu. Under its Susu brand it offers a range of packaging formats and sizes such as 4 x
110ml boxes of Susu grape apple drinking yoghurt, or six bottles of Susu orange-flavoured
drinking yoghurt in one pack for a special discount. Innovation also continues to drive category
growth, with Vinamilk launching its new Probi Gold range of drinking yoghurt towards the end of
the review period.
Reduced sugar yoghurt proving popular

As consumers start to focus more on their health and the ingredients of the products they
consume, they are starting to look for options which have a lower sugar and fat content. For
example, reduced sugar products first appeared in drinking milk products, with these responding
to growing demand from parents for products that were better for their children’s teeth. Having
found some success in drinking milk products the market is now starting to see the entry of
more reduced sugar yoghurt products to meet this demand.
More players are thus starting to offer reduced sugar variants in Vietnam, including from
leading brands such as Vinamilk and TH True Yoghurt, but also new brands such as VPmilk, for
which the sugar content is reported to be up to 30% lower than its regular counterpart. Nutifood
Nutrition Food also launched a Black Sugar Pearls line of yoghurt under its NutiMilk brand in
May 2021 which contains just 100 calories, while category leader Vinamilk introduced a product
with a similar flavour profile at the same time, using naturally fermented yoghurt with Bulgaricus
yeast. Reduced sugar variants are preferred by some consumers because it allows consumers
to balance their need for healthier food while still indulging themselves with a delicious taste
similar to that offered by regular variants. As such, this remains a key focus of new product
development.
PROSPECTS AND OPPORTUNITIES
Yoghurt still full of potential as A healthy and indulgent food

Yoghurt looks set for a bright future with the category projected to continue recording strong
and stable growth in retail volume terms over the forecast period. These products are likely to
continue benefiting from their healthy image and the fact they are seen as a healthier guilt-free
treat for many consumers. Boosted by education campaigns during the pandemic, consumers
are now more aware of the health benefits of yoghurt, including the ability of some products to
help support a healthy immune system. As more homes obtain refrigeration appliances in
Vietnam this should also drive demand for yoghurt, as it will allow consumers to buy yoghurt in
larger quantities for consumption at a later date, rather than needing to consume it on the day of
purchase. Likewise the expansion of modern grocery retailers should also support growth, with
supermarkets and hypermarkets typically having more refrigeration units and are thus able to
stock a wider variety of yoghurt brands and products.
As demand for yoghurt grows so too will the interest of investors. New and existing players
are likely to look for new opportunities, potentially introducing ideas from other markets, such as
innovative flavours and packaging. Health and wellness will likely also remain a key influence
which could help drive demand for products such as those which have a high protein content,
such as Greek yoghurt, as well as the expanding range of probiotic yoghurt products.
More players likely to enter the market but Vinamilk likely to retain its
dominance thanks to ongoing investments
With yoghurt continuing to grow it is becoming a big enough category to attract more
investors, with yoghurt still seen to have further room for growth. Domestic players across the
country have an advantage in that they understand the local market and often already have a
strong and established presence in their own regions of Vietnam, especially in categories with a
short shelf life where cross-country distribution is more problematic due to the need for cold
chain storage. Domestic players are now seriously investing in the local dairy industry with a
focus on the long term. This includes the development of cow farms, funding for product
research and development, and applying modern production technology. These investments are
likely to make these local dairy producers more competitive, including within yoghurt, while
consumers will benefit from more choice. Nonetheless, it is likely that Vinamilk will retain a
strong lead with it continuing to invest in its future. This includes its investment in its Vinamilk
Green Farm model as part of its efforts to become more sustainable. This investment received a
lot of media attention at the end of the review period and this should help to further improve the
company’s image with locals.
Innovation will remain A key sales driver

Consumers are generally willing to try new flavours and/or new variants and as such players
are likely to look to engage with them by regularly launching new products that match with the
latest consumer trends. For their part, consumers in Vietnam are expected to become more
knowledgeable and will look for purpose-specific products such as yoghurt designed to aid
weight management and gut health. Products with new and interesting flavours or added
ingredients, such as collagen, could also add novelty which could help to stimulate demand. As
such, while drinking yoghurt and plain yoghurt will remain the main sales drivers, flavoured
yoghurt is also projected to see strong growth in retail volume terms over the forecast period.
CATEGORY DATA
Table 1 Sales of Yoghurt and Sour Milk Products by Category: Volume 2017-2022
2017 2018 2019 2020 2021 2022
-- Plain Yoghurt ('000 146.6 160.8 175.9 188.2 197.7 208.5

tonnes)
-- Flavoured Yoghurt 15.8 17.3 19.1 20.8 22.1 23.4
('000 tonnes)
-- Drinking Yoghurt 96.6 108.2 124.4 139.3 154.6 168.5
(million litres)
- Yoghurt (Not - - - - - -
calculable)
- Sour Milk Products - - - - - -
(million litres)
Yoghurt and Sour Milk - - - - - -
Products (Not calculable)
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Sales of Yoghurt and Sour Milk Products by Category: Value 2017-2022
VND billion
2017 2018 2019 2020 2021 2022
-- Plain Yoghurt 7,369.4 8,253.7 9,211.2 10,132.3 10,790.8 11,761.1

-- Flavoured Yoghurt 1,086.2 1,238.5 1,418.1 1,574.1 1,684.2 1,847.5
-- Drinking Yoghurt 4,554.2 5,329.0 6,394.9 7,290.2 8,165.0 9,225.7
- Yoghurt 13,009.8 14,821.2 17,024.2 18,996.6 20,640.0 22,834.3
Yoghurt and Sour Milk 13,009.8 14,821.2 17,024.2 18,996.6 20,640.0 22,834.3
Products
Table 3 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2017-
2022
% volume growth
2021/22 2017-22 CAGR 2017/22 Total
-- Plain Yoghurt 5.5 7.3 42.2

-- Flavoured Yoghurt 6.2 8.3 48.8
-- Drinking Yoghurt 9.0 11.8 74.6
- Yoghurt - - -
- Sour Milk Products - - -
Yoghurt and Sour Milk Products - - -
Table 4 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2017-
2022
% current value growth

2021/22 2017-22 CAGR 2017/22 Total

- Yoghurt 10.6 11.9 75.5
Yoghurt and Sour Milk Products 10.6 11.9 75.5
Table 5 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2018-2022
% retail value rsp

Company 2018 2019 2020 2021 2022
Vietnam Dairy Products 66.8 66.0 65.8 65.5 65.0

JSC (Vinamilk)
FrieslandCampina 14.5 13.8 12.8 12.2 11.8
Vietnam Co Ltd
TH Food Chain JSC 5.0 5.3 5.6 5.8 6.0
Yakult Vietnam Co Ltd 3.5 3.9 4.4 4.9 5.2
International Dairy 4.2 3.9 3.9 4.0 4.1
Products JSC (IDP)

Nutifood Nutrition Food 2.0 2.2 2.5 2.5 2.6
JSC
A&B Foods & Beverage Co - - - - -
Ltd
Agro Nutrition - - - - -
International JSC
Others 3.9 4.9 4.9 5.0 5.3
Total 100.0 100.0 100.0 100.0 100.0
Table 6 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2019-2022
% retail value rsp

Brand (GBO) Company (NBO) 2019 2020 2021 2022
Vinamilk Vietnam Dairy Products 53.8 52.7 51.6 50.5

JSC (Vinamilk)
Susu Vietnam Dairy Products 9.1 9.7 10.4 10.8
JSC (Vinamilk)
Yomost (Royal FrieslandCampina 11.9 11.0 10.5 10.2
FrieslandCampina NV) Vietnam Co Ltd
TH True Yogurt TH Food Chain JSC 5.3 5.6 5.8 6.0
Yakult (Yakult Yakult Vietnam Co Ltd 3.9 4.4 4.9 5.2
Honsha Co Ltd)
Probi Vietnam Dairy Products 3.1 3.4 3.6 3.7
JSC (Vinamilk)
KUN International Dairy 2.7 2.8 2.8 2.9
Products JSC (IDP)
Nuti Nutifood Nutrition Food 2.2 2.5 2.5 2.6
JSC
Dutch Lady (Royal FrieslandCampina 1.9 1.8 1.7 1.6
FrieslandCampina NV) Vietnam Co Ltd
LIF International Dairy 1.3 1.2 1.2 1.2
Products JSC (IDP)
Yo-Yo A&B Foods & Beverage Co - - - -
Ltd
Ancomilk Agro Nutrition - - - -
International JSC
Others Others 4.9 4.9 5.0 5.3
Total Total 100.0 100.0 100.0 100.0
Table 7 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2017-2022
% retail value rsp

2017 2018 2019 2020 2021 2022
Retail Channels 100.0 100.0 100.0 100.0 100.0 100.0

- Retail Offline 100.0 99.9 99.7 99.5 99.5 99.5
-- Grocery Retailers 98.9 98.7 98.4 98.1 98.1 98.3
--- Convenience Retail 0.7 1.0 1.5 1.9 2.0 2.2
---- Convenience Stores 0.7 1.0 1.5 1.9 2.0 2.2
---- Forecourt Retailers - - - - - -
--- Supermarkets 20.1 20.3 20.6 21.3 21.7 21.9
--- Hypermarkets 5.7 6.0 6.2 6.8 7.1 7.2

--- Discounters - - - - - -
--- Warehouse Clubs - - - - - -
--- Food/drink/tobacco 3.1 3.3 3.4 3.4 3.5 3.5
specialists
--- Small Local Grocers 69.3 68.2 66.8 64.8 63.8 63.5
-- Non-Grocery Retailers - - - - - -
--- General Merchandise - - - - - -
Stores
--- Apparel and - - - - - -
Footwear Specialists
--- Appliances and - - - - - -
Electronics Specialists
--- Home Products - - - - - -
Specialists
--- Health and Beauty - - - - - -
Specialists
--- Leisure and - - - - - -
Personal Goods
Specialists
--- Other Non-Grocery - - - - - -
Retailers
-- Vending - - - - - -
-- Direct Selling 1.0 1.2 1.3 1.4 1.4 1.2
- Retail E-Commerce 0.0 0.1 0.3 0.5 0.5 0.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 8 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2022-
2027
2022 2023 2024 2025 2026 2027
-- Plain Yoghurt ('000 208.5 220.6 234.1 249.1 265.7 284.3

tonnes)
-- Flavoured Yoghurt 23.4 24.9 26.6 28.4 30.4 32.6
('000 tonnes)
-- Drinking Yoghurt 168.5 182.9 197.5 212.3 227.2 241.9
(million litres)
- Yoghurt (Not - - - - - -
calculable)
(million litres)
Yoghurt and Sour Milk - - - - - -
Products (Not calculable)
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 9 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2022-
2027
VND billion
2022 2023 2024 2025 2026 2027
-- Plain Yoghurt 11,761.1 12,466.7 13,264.6 14,166.6 15,186.6 16,340.8

-- Flavoured Yoghurt 1,847.5 1,971.3 2,111.2 2,267.5 2,442.0 2,637.4
-- Drinking Yoghurt 9,225.7 10,056.0 10,910.8 11,783.7 12,667.5 13,554.2

- Yoghurt 22,834.3 24,494.1 26,286.6 28,217.7 30,296.1 32,532.4
Yoghurt and Sour Milk 22,834.3 24,494.1 26,286.6 28,217.7 30,296.1 32,532.4
Products
trade sources
Table 10 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume
Growth 2022-2027
% volume growth
2022/23 2022-27 CAGR 2022/27 Total

- Yoghurt - - -
Yoghurt and Sour Milk Products - - -
trade sources
Table 11 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value
Growth 2022-2027
% constant value growth

2022/2023 2022-27 CAGR 2022/27 Total

- Yoghurt 7.3 7.3 42.5
Yoghurt and Sour Milk Products 7.3 7.3 42.5
trade sources

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Yoghurt and Sour Milk Products

LIST OF CONTENTS AND TABLES

YOGHURT AND SOUR MILK

Drinking yoghurt with live probiotics continues to draw attention thanks

Vinamilk maintains to dominate the category

Reduced sugar yoghurt proving popular

PROSPECTS AND OPPORTUNITIES

Yoghurt still full of potential as A healthy and indulgent food

Innovation will remain A key sales driver

2017 2018 2019 2020 2021 2022

-- Plain Yoghurt ('000 146.6 160.8 175.9 188.2 197.7 208.5

-- Plain Yoghurt 7,369.4 8,253.7 9,211.2 10,132.3 10,790.8 11,761.1

-- Plain Yoghurt 5.5 7.3 42.2

% current value growth

-- Plain Yoghurt 9.0 9.8 59.6

% retail value rsp

Vietnam Dairy Products 66.8 66.0 65.8 65.5 65.0

Products JSC (IDP)

% retail value rsp

Vinamilk Vietnam Dairy Products 53.8 52.7 51.6 50.5

% retail value rsp

Retail Channels 100.0 100.0 100.0 100.0 100.0 100.0

--- Hypermarkets 5.7 6.0 6.2 6.8 7.1 7.2

2022 2023 2024 2025 2026 2027

-- Plain Yoghurt ('000 208.5 220.6 234.1 249.1 265.7 284.3

-- Plain Yoghurt 11,761.1 12,466.7 13,264.6 14,166.6 15,186.6 16,340.8

-- Drinking Yoghurt 9,225.7 10,056.0 10,910.8 11,783.7 12,667.5 13,554.2

-- Plain Yoghurt 5.8 6.4 36.4

% constant value growth

-- Plain Yoghurt 6.0 6.8 38.9

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