Starchy Roots in Vietnam

Euromonitor International
February 2022
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2021 DEVELOPMENTS ............................................................................................................... 1
Foodservice and institutional sales continue to struggle in 2021 .............................................. 1
Disruptions in supply chain hinder retail growth ........................................................................ 1
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Full recovery of foodservice and institutional sales hindered by post-pandemic consumer
behaviour .................................................................................................................................. 2
Cassava to continue declining trend in retail sales, while foodservice demand will see early
improvement ............................................................................................................................. 2
Summary 1 Major Processors of Starchy Roots 2021 ..................................................... 2
CATEGORY DATA ....................................................................................................................... 3
Table 1 Total Sales of Starchy Roots by Category: Total Volume 2016-2021 .......... 3
Table 2 Total Sales of Starchy Roots by Category: % Total Volume Growth
2016-2021 .................................................................................................... 3
Table 3 Retail Sales of Starchy Roots by Category: Volume 2016-2021 .................. 3
Table 4 Retail Sales of Starchy Roots by Category: % Volume Growth 2016-
2021 ............................................................................................................. 3
Table 5 Retail Sales of Starchy Roots by Category: Value 2016-2021 ..................... 4
Table 6 Retail Sales of Starchy Roots by Category: % Value Growth 2016-
2021 ............................................................................................................. 4
Table 7 Retail Sales of Starchy Roots by Packaged vs Unpackaged: %
Volume 2016-2021 ....................................................................................... 4
Table 8 Forecast Total Sales of Starchy Roots by Category: Total Volume
2021-2026 .................................................................................................... 4
Table 9 Forecast Total Sales of Starchy Roots by Category: % Total Volume
Growth 2021-2026 ....................................................................................... 5
Table 10 Forecast Retail Sales of Starchy Roots by Category: Volume 2021-
2026 ............................................................................................................. 5
Table 11 Forecast Retail Sales of Starchy Roots by Category: % Volume
Growth 2021-2026 ....................................................................................... 5
Table 12 Forecast Retail Sales of Starchy Roots by Category: Value 2021-
2026 ............................................................................................................. 5
Table 13 Forecast Retail Sales of Starchy Roots by Category: % Value Growth
2021-2026 .................................................................................................... 6

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STARCHY ROOTS IN VIETNAM

KEY DATA FINDINGS
▪ Total volume sales decrease by 5% in 2021 to 1.6 million tonnes
▪ Potatoes is the best performing category in 2021, with total volume sales increasing by 2% to
291,000 tonnes
▪ Total volume sales are set to rise at a CAGR of 5% over the forecast period to 2.1 million
tonnes

2021 DEVELOPMENTS

Foodservice and institutional sales continue to struggle in 2021

The emergence of the pandemic in Vietnam in 2020 led to the introduction of various
restrictions to control the spread of the virus, including the closure of foodservice
establishments, schools and places of work, and leading to declining volume sales of starchy
roots through both foodservice and institutional channels. However, with thorough contact
tracing and isolation of infected cases, community infection was limited and businesses were
permitted to fully reopen during the second half of the year. This scenario helped to offset the
potential for more severe declines in 2020, as some Vietnamese resumed traditional
consumption habits.
However, 2021 saw the Delta variant emerge in the country, resulting in a new wave of
COVID-19 cases, and forcing the government to implement extreme regulations for areas of
high infection. This included the Official Instruction No.16, which forced the total closure of
places of work, schools and foodservice, including takeaway and home delivery options. This
led to even stronger volume declines for starchy roots in 2021 through both foodservice and
institutional channels.

Disruptions in supply chain hinder retail growth

Demand for starchy roots through retail in Vietnam was fairly stable over much of the review
period, as these products are commonly used to prepare local dishes. Home seclusion as a
result of the pandemic led to a notable switch in demand from foodservice and institutional
channels towards retail in 2020. However, although the supply of starchy roots was considered
sufficient, 2021 witnessed supply chain disruption. Transportation was a particular issue as
border restrictions in areas with high infection rates meant that delivery drivers had to show
proof of vaccine certification before they were permitted to enter, thereby limiting manpower for
transportation given the low vaccination rate in Vietnam earlier in the year. Such supply chain
disruption reduced accessibility of fresh starchy roots such as cassava, potatoes and sweet
potatoes, whether unpackaged or packaged, to retailers and therefore end consumers, despite
the increased demand for home consumption amidst prolonged lockdowns.
The dominant unpackaged format of starchy roots is widely sold in traditional grocery
retailers: up until September 2021, many traditional grocery retailers were closed for four
months because of high community transmission and clusters surrounding and/or within these
traditional wet markets. Hence, the combination of factors slowed demand for starchy roots via
retail in 2021 compared to the previous year.

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PROSPECTS AND OPPORTUNITIES

Full recovery of foodservice and institutional sales hindered by post-

pandemic consumer behaviour
Heading into 2022, as Vietnam continues the rollout of its nationwide vaccination programme,
it is likely that some social distancing measurements will be relaxed, allowing the reopening of
foodservice establishments as well as the resumption of in-person working and learning.
However, a full recovery in foodservice sales of starchy roots to pre-pandemic levels is not
expected until 2024, due to the shift in working and consumption behaviour in a post-pandemic
scenario. With the likelihood of community safety concerns lingering over the early part of the
forecast period, working from home is expected to be the norm, at least in the short term, with
institutional sales, a niche channel for starchy roots, not expected to fully recover by 2026. In
line with unstable financial resources, some consumers are expected to adopt thriftier lifestyles
and reduce out of home consumption. In addition to domestic demand issues, the earlier
recovery of foodservice is expected to be hindered by the slow return of international tourism.
On the other hand, demand for starchy roots, particularly the dominant sweet potatoes, through
retail will remain stable, as they are a popular ingredient in many local dishes.

Cassava to continue declining trend in retail sales, while foodservice

demand will see early improvement
Starchy roots are widely consumed in Vietnam. However, they are not considered to be a
staple food for daily consumption and therefore their usage is largely dependent on pricing. The
average unit price of cassava consistently trended upwards over the review period at much
higher rates compared to potatoes and sweet potatoes. In 2021, the pandemic disrupted the
international trade of cassava, which caused shortages in imports for further industrial
processing compared to other products such as tapioca starch and other products such as dried
cassava chips.
Local processors turned to domestic suppliers for their cassava production, further pushing up
the average unit price. While foodservice and institutional sales of cassava are set to see
improving demand in 2022 in line with a return to these channels as restrictions relax, overall
demand for this produce, including via retail, is set to decline over the course of the forecast
period, with fresh cassava and processed variants increasingly focused on exports.

Summary 1 Major Processors of Starchy Roots 2021

Company name Product type Rank

Vietnam National Vegetable, Domestic Roots 1

Fruit And Agricultural Product
Corporation Jsc

Dalat GAP company Domestic Roots 2

VinEco Agricultural Domestic Roots 3

Investment, Development and
Productions LLC

Source: Euromonitor International from company reports, company research, trade press, trade sources

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CATEGORY DATA
Table 1 Total Sales of Starchy Roots by Category: Total Volume 2016-2021

'000 tonnes
2016 2017 2018 2019 2020 2021

Cassava 484.9 497.0 504.4 503.1 453.8 369.6

Potatoes 254.4 262.5 270.0 278.1 285.1 291.2
Sweet Potatoes 773.5 810.0 821.2 837.6 869.3 862.9
Other Roots 102.2 104.5 107.0 109.9 113.2 113.2
Starchy Roots 1,614.9 1,674.0 1,702.6 1,728.7 1,721.4 1,636.9
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Total Sales of Starchy Roots by Category: % Total Volume Growth 2016-2021

% total volume growth

2020/21 2016-21 CAGR 2016/21 Total

Cassava -18.5 -5.3 -23.8

Potatoes 2.1 2.7 14.4
Sweet Potatoes -0.7 2.2 11.6
Other Roots 0.0 2.1 10.8
Starchy Roots -4.9 0.3 1.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Retail Sales of Starchy Roots by Category: Volume 2016-2021

'000 tonnes
2016 2017 2018 2019 2020 2021

Cassava 73.0 74.6 75.3 71.5 66.5 59.9

Potatoes 229.3 236.5 243.0 250.3 260.3 268.6
Sweet Potatoes 637.3 665.8 685.8 709.8 759.5 765.4
Other Roots 84.2 86.0 87.8 90.5 94.6 96.9
Starchy Roots 1,023.8 1,062.8 1,091.9 1,122.1 1,180.9 1,190.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Retail Sales of Starchy Roots by Category: % Volume Growth 2016-2021

% volume growth
2020/21 2016-21 CAGR 2016/21 Total

Cassava -10.0 -3.9 -17.9

Potatoes 3.2 3.2 17.1
Sweet Potatoes 0.8 3.7 20.1
Other Roots 2.5 2.9 15.1
Starchy Roots 0.8 3.1 16.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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Table 5 Retail Sales of Starchy Roots by Category: Value 2016-2021

VND billion
2016 2017 2018 2019 2020 2021

Cassava 297.5 328.3 381.3 420.3 432.9 423.7

Potatoes 8,939.2 8,512.6 8,505.0 8,930.3 9,734.0 10,408.7
Sweet Potatoes 14,291.3 15,646.8 15,310.4 16,688.3 18,690.9 20,503.7
Other Roots 1,940.3 2,066.2 2,196.1 2,375.1 2,612.6 2,812.6
Starchy Roots 25,468.2 26,553.9 26,392.8 28,414.0 31,470.4 34,148.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 Retail Sales of Starchy Roots by Category: % Value Growth 2016-2021

% current value growth

2020/21 2016-21 CAGR 2016/21 Total

Cassava -2.1 7.3 42.4

Potatoes 6.9 3.1 16.4
Sweet Potatoes 9.7 7.5 43.5
Other Roots 7.7 7.7 45.0
Starchy Roots 8.5 6.0 34.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 Retail Sales of Starchy Roots by Packaged vs Unpackaged: % Volume 2016-

2021

% retail volume
2016 2017 2018 2019 2020 2021

Packaged 0.4 0.5 0.6 0.8 0.5 0.7

Unpackaged 99.6 99.5 99.4 99.2 99.5 99.3
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 Forecast Total Sales of Starchy Roots by Category: Total Volume 2021-2026

'000 tonnes
2021 2022 2023 2024 2025 2026

Cassava 369.6 406.5 411.3 402.6 373.3 341.7

Potatoes 291.2 307.9 325.2 344.6 365.4 387.2
Sweet Potatoes 862.9 905.3 955.9 1,018.9 1,092.4 1,171.9
Other Roots 113.2 120.5 127.7 136.0 144.7 153.7
Starchy Roots 1,636.9 1,740.3 1,820.1 1,902.1 1,975.8 2,054.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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Table 9 Forecast Total Sales of Starchy Roots by Category: % Total Volume Growth
2021-2026

% total volume growth

2021/22 2021-26 CAGR 2021/26 Total

Cassava 10.0 -1.6 -7.6

Potatoes 5.8 5.9 33.0
Sweet Potatoes 4.9 6.3 35.8
Other Roots 6.5 6.3 35.8
Starchy Roots 6.3 4.6 25.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Retail Sales of Starchy Roots by Category: Volume 2021-2026

'000 tonnes
2021 2022 2023 2024 2025 2026

Cassava 59.9 52.1 44.3 36.7 29.4 23.6

Potatoes 268.6 277.8 287.8 298.7 310.7 323.1
Sweet Potatoes 765.4 777.1 796.7 822.0 854.9 890.4
Other Roots 96.9 99.5 102.4 105.6 109.1 112.7
Starchy Roots 1,190.8 1,206.4 1,231.2 1,263.1 1,304.1 1,349.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Retail Sales of Starchy Roots by Category: % Volume Growth 2021-
2026

% volume growth
2021/22 2021-26 CAGR 2021/26 Total

Cassava -13.0 -17.0 -60.6

Potatoes 3.4 3.8 20.3
Sweet Potatoes 1.5 3.1 16.3
Other Roots 2.7 3.1 16.3
Starchy Roots 1.3 2.5 13.4
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Retail Sales of Starchy Roots by Category: Value 2021-2026

VND billion
2021 2022 2023 2024 2025 2026

Cassava 423.7 394.0 358.6 319.1 277.6 242.1

Potatoes 10,408.7 10,825.7 11,281.1 11,777.0 12,318.7 12,887.7
Sweet Potatoes 20,503.7 21,881.7 23,397.4 25,054.6 26,883.5 28,864.3
Other Roots 2,812.6 2,947.8 3,101.3 3,274.8 3,471.3 3,680.6
Starchy Roots 34,148.6 36,049.2 38,138.4 40,425.4 42,951.2 45,674.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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Table 13 Forecast Retail Sales of Starchy Roots by Category: % Value Growth 2021-
2026

% constant value growth

2021/2022 2021-26 CAGR 2021/26 Total

Cassava -7.0 -10.6 -42.8

Potatoes 4.0 4.4 23.8
Sweet Potatoes 6.7 7.1 40.8
Other Roots 4.8 5.5 30.9
Starchy Roots 5.6 6.0 33.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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