Yoghurt and Sour Milk Products

in Vietnam
Euromonitor International
September 2023
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2023 DEVELOPMENTS ............................................................................................................... 1
Yoghurt Continues To Record A Strong Performance In 2023 ................................................. 1
The Competition Intensifies In Yoghurt ..................................................................................... 1
On-the-go Consumption Boosts The Popularity Of Pouch Packaging In Drinking Yoghurt ...... 2
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Bright Outlook For Yoghurt ....................................................................................................... 2
Yoghurt To Trend Towards Zero Fat And Sugar Innovation ..................................................... 3
Local Players To Exploit Competitive Advantages ................................................................... 3
CATEGORY DATA ....................................................................................................................... 4
Table 1 Sales of Yoghurt and Sour Milk Products by Category: Volume 2018-
2023 ............................................................................................................. 4
Table 2 Sales of Yoghurt and Sour Milk Products by Category: Value 2018-
2023 ............................................................................................................. 4
Table 3 Sales of Yoghurt and Sour Milk Products by Category: % Volume
Growth 2018-2023 ....................................................................................... 4
Table 4 Sales of Yoghurt and Sour Milk Products by Category: % Value
Growth 2018-2023 ....................................................................................... 5
Table 5 NBO Company Shares of Yoghurt and Sour Milk Products: % Value
2019-2023 .................................................................................................... 5
Table 6 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2020-
2023 ............................................................................................................. 5
Table 7 Distribution of Yoghurt and Sour Milk Products by Format: % Value
2018-2023 .................................................................................................... 6
Table 8 Forecast Sales of Yoghurt and Sour Milk Products by Category:
Volume 2023-2028 ....................................................................................... 6
Table 9 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value
2023-2028 .................................................................................................... 7
Table 10 Forecast Sales of Yoghurt and Sour Milk Products by Category: %
Volume Growth 2023-2028 .......................................................................... 7
Table 11 Forecast Sales of Yoghurt and Sour Milk Products by Category: %
Value Growth 2023-2028 ............................................................................. 7

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YOGHURT AND SOUR MILK

PRODUCTS IN VIETNAM
KEY DATA FINDINGS
▪ Retail value sales grow by 9% in current terms in 2023 to VND24.3 trillion
▪ Yoghurt is the best performing category in 2023, with retail value sales rising by 9% in current
terms to VND24.3 trillion
▪ Vietnam Dairy Products JSC (Vinamilk) is the leading player in 2023, with a retail value share
of 63%
▪ Retail sales are set to grow at a current value CAGR of 10% (2023 constant value CAGR of
6%) over the forecast period to VND39.8 trillion

2023 DEVELOPMENTS

Yoghurt Continues To Record A Strong Performance In 2023

Retail volume sales of yoghurt are projected to continue to post robust and good growth over
2023. Inflationary pressure on prices is set to push fast retail current value growth that is double
that of the expected retail volume increment. Retail sales of yoghurt are growing due to various
factors. Firstly, yoghurt is highly versatile and can be used in cooking and snacking, making it an
appealing option to a wide range of consumers. Additionally, local consumers have a positive
perception of yoghurt, because of its high protein content. This is particularly important as
protein is considered essential for a healthy diet. Furthermore, yoghurt is known for its
functionality in aiding digestion and boosting the immune system, which further adds to its
appeal among consumers. The Coronavirus (COVID-19) experience has significantly increased
awareness of and the demand for products that provide this functionality. Overall, these factors
contribute to the continued success of yoghurt sales.

The Competition Intensifies In Yoghurt

There is growing pressure on Vietnam Dairy Products JSC (Vinamilk)’s retail value share,
although the player is expected to maintain its dominance at the end of the review period. With
yoghurt continuing to grow, it is becoming a large enough category to attract more investors,
with further room for growth predicted. 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. This is especially the case in categories where
products have a short shelf life, with cross-country distribution more problematic due to the need
for cold chain storage.
Domestic players are investing strongly 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
local dairy producers more competitive, including within yoghurt, while consumers benefit from
more choice. Importantly, Vinamilk continues to benefit from ongoing investments. These
include the investment in its Vinamilk Green Farm model, which forms part of its efforts to
become more sustainable. This investment received a lot of media attention towards the end of
the review period, and further improved the company’s image and reputation among local
consumers.

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Nonetheless, the competition continues to hot up for Vinamilk, which is projected to continue
to lose retail value share in 2023. Yakult Vietnam Co Ltd registered the highest retail value
share growth in 2022, and it is set to continue to do so in 2023, once again closely followed by
TH Food Chain. Yakult Vietnam has grown rapidly in the review period, especially due to the
robust rise of drinking yoghurt. This upward trend can be ascribed to a variety of factors,
including changing consumer tastes for healthier beverage options and increased awareness of
the multiple health advantages connected with drinking probiotic yoghurt. Yakult Vietnam has
successfully tapped into this demand trend. These products, with an emphasis on digestive
health benefits, align closely with the consumer search for food options that not only taste good,
but also offer possible health benefits. Yakult effectively taps into the growing consumer
awareness of the significance of keeping a healthy gut flora by integrating probiotics into its
products. This analytical method enables customers to make informed food choices and focus
their general health and wellbeing.

On-the-go Consumption Boosts The Popularity Of Pouch Packaging In

Drinking Yoghurt
The increasing popularity of plastic pouches in drinking yoghurt can be attributed to the
growing trend for the go consumption. This type of packaging offers numerous advantages,
making it a preferred choice for manufacturers, retailers and consumers alike. It is increasingly
widely perceived to offer versatility, convenience and portability and be easy to stock and store.
Small pouch packaging is suitable for the needs of parents, who look for products to give their to
consume at or on the way to school Drinking yoghurt products designed for children often
feature visually appealing and vibrant graphics on packaging.

PROSPECTS AND OPPORTUNITIES

Bright Outlook For Yoghurt

Yoghurt is poised for a promising performance, with strong retail volume and value (constant
2023 prices) growth projected over the forecast period. On the other hand, sour milk products is
set to remain negligible, although there is the potential to tap into the health and affordability
factors driving yoghurt. Yoghurt benefits strongly from a health perception, as well as the offer of
a wide range of affordable products. During periods of economic instability, it is observed that
consumers often shift their preferences towards more essential products. This trend is expected
to have a positive impact on the demand for yoghurt in the short to medium term. Yoghurt,
perceived to offer nutritious and relatively affordable options, is likely to benefit from this
consumer behaviour. These products offer a range of health benefits, including probiotics and
essential vitamins, making them attractive choices for individuals seeking to maintain a
balanced diet during challenging economic times. Furthermore, the versatility of yoghurt allows
for various consumption patterns. Yoghurt can be consumed as a stand-alone snack,
incorporated into meals or used as ingredients in recipes. This flexibility adds to the appeal of
yoghurt and contributes to sustained and fast-growing demand.
All types of yoghurt are likely to continue to benefit from a healthy image in the forecast
period. Moreover, yoghurt is seen as a healthier guilt-free treat by many consumers. Spurred by
education campaigns during the COVID-19 pandemic, consumers are more aware of the health
benefits of yoghurt, including the ability of some products to help support a healthy immune
system. In addition, as more households possess refrigeration appliances in Vietnam, the
demand for yoghurt is only likely to grow. Refrigeration appliances like fridges allow consumers
to buy yoghurt in larger quantities for consumption at a later date, rather than having to

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consume it on the day of purchase. Likewise, the expansion of modern grocery retailers should
support interest in yoghurt. As supermarkets and hypermarkets typically have more refrigeration
units, they are able to stock a wider variety of yoghurt brands and products.

Yoghurt To Trend Towards Zero Fat And Sugar Innovation

Innovation is set to remain a key sales driver in the category in the forecast period.
Consumers in Vietnam are generally willing to try new flavours and/or new variants. Therefore,
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 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 dynamism and novelty and help to stimulate
demand. As such, while drinking yoghurt and plain yoghurt are predicted to remain the main
sales drivers, flavoured yoghurt is also projected to see strong retail volume and value (constant
2023 prices) growth over the forecast period.
As the demand for yoghurt grows, so does 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 is set to remain a key influence, which
could help to drive demand for products with high protein content, such as Greek yoghurt, as
well as the expanding range of probiotic yoghurts.
Yoghurt's “natural” health positioning is anticipated to be driven by zero fat and sugar
innovations. These novelties help to address the consumer demand for healthier snacks and
meals. Manufacturers are, therefore, offering fat-free, sugar-free yoghurt to appeal to health-
conscious consumers. Yoghurt's fat-free nature is highlighted and promoted as supporting
weight management and heart health. Many consumers in Vietnam are watching their calorie
consumption and looking for low-fat options. In this vein, low-fat yoghurt is seen as a healthy
and guilt-free way to enjoy a treat or indulgence. A zero sugar emphasis in yoghurt fits with the
growing awareness of the potential harm to health caused by sugar. Health-conscious
consumers have avoided yoghurt and sour milk products because of their high sugar and calorie
content. This avoidance originates from health and diet concerns. Due to the COVID-19
epidemic, this consumer group is growing. Thus, manufacturers and retailers are actively
introducing health and wellness-orientated options to boost the consumer base and sales.

Local Players To Exploit Competitive Advantages

Yoghurt is experiencing fast retail volume and value sales growth, making it an increasingly
attractive category for investors. The category is held to offer ample room for expansion. Over
the forecast period, international players are likely to enter the fray. However domestic players,
especially Vinamilk, are set to exploit their competitive advantages over international players.
One advantage that domestic players in Vietnam have is their familiarity with the local market,
and they possess a deep understanding of the preferences and needs of the Vietnamese
consumers.
There is a notable trend among domestic players for substantial investments in the local dairy
industry, thereby demonstrating a strong commitment to its long-term growth and development.
One of the key aspects of enhancing cow farming involves various strategies, such as the
establishment and expansion of cow farms, the allocation of funds for the research and
development of cow products, and the implementation of advanced production technologies.
These measures collectively contribute to the overall development and improvement of the
industry. It is highly probable that these investments will significantly enhance the

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competitiveness of local dairy producers, particularly in the realm of yoghurt production. As a

result, consumers will be able to enjoy a wider range of options and benefits.

CATEGORY DATA
Table 1 Sales of Yoghurt and Sour Milk Products by Category: Volume 2018-2023

2018 2019 2020 2021 2022 2023

Yoghurt and Sour Milk - - - - - -

Products (Not calculable)
- Sour Milk Products - - - - - -
(million litres)
- Yoghurt (Not - - - - - -
calculable)
-- Drinking Yoghurt 108.2 124.4 139.3 154.6 163.1 169.7
(million litres)
-- Flavoured Yoghurt 17.3 19.1 20.8 22.1 23.2 24.4
('000 tonnes)
-- Plain Yoghurt ('000 160.8 175.9 188.2 197.7 205.6 212.8
tonnes)
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 2018-2023

VND billion
2018 2019 2020 2021 2022 2023

Yoghurt and Sour Milk 14,821.2 17,024.2 18,996.6 20,640.0 22,371.3 24,279.4
Products
- Sour Milk Products - - - - - -
- Yoghurt 14,821.2 17,024.2 18,996.6 20,640.0 22,371.3 24,279.4
-- Drinking Yoghurt 5,329.0 6,394.9 7,290.2 8,165.0 8,929.5 9,720.1
-- Flavoured Yoghurt 1,238.5 1,418.1 1,574.1 1,684.2 1,848.0 2,033.5
-- Plain Yoghurt 8,253.7 9,211.2 10,132.3 10,790.8 11,593.9 12,525.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2018-
2023

2022/23 2018-23 CAGR 2018/23 Total

Yoghurt and Sour Milk Products (Not - - -

calculable)
- Sour Milk Products (% volume growth) - - -
- Yoghurt (Not calculable) - - -
-- Drinking Yoghurt (% volume growth) 4.0 9.4 56.9
-- Flavoured Yoghurt (% volume growth) 5.0 7.1 40.8
-- Plain Yoghurt (% volume growth) 3.5 5.8 32.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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Table 4 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2018-
2023

% current value growth

2022/23 2018-23 CAGR 2018/23 Total

Yoghurt and Sour Milk Products 8.5 10.4 63.8

- Sour Milk Products - - -
- Yoghurt 8.5 10.4 63.8
-- Drinking Yoghurt 8.9 12.8 82.4
-- Flavoured Yoghurt 10.0 10.4 64.2
-- Plain Yoghurt 8.0 8.7 51.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2019-2023

% retail value rsp

Company 2019 2020 2021 2022 2023

Vietnam Dairy Products 66.0 65.8 65.5 63.6 62.5

JSC (Vinamilk)
FrieslandCampina Vietnam 13.8 12.8 12.2 11.9 11.8
Co Ltd
Yakult Vietnam Co Ltd 3.9 4.4 5.6 6.9 7.5
TH Food Chain JSC 5.3 5.6 5.8 6.8 7.3
International Dairy 3.9 3.9 4.0 4.2 4.3
Products JSC (IDP)
Nutifood Nutrition Food JSC 2.2 2.5 2.5 2.6 2.7
A&B Foods & Beverage Co Ltd - - - - -
Agro Nutrition - - - - -
International JSC
Others 4.9 4.9 4.3 4.0 3.9
Total 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 6 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2020-2023

% retail value rsp

Brand (GBO) Company (NBO) 2020 2021 2022 2023

Vinamilk Vietnam Dairy Products 52.7 51.6 50.1 49.4

JSC (Vinamilk)
Yomost (Royal FrieslandCampina Vietnam 11.0 10.5 10.2 10.2
FrieslandCampina NV) Co Ltd
Susu Vietnam Dairy Products 9.7 10.4 10.0 9.6
JSC (Vinamilk)
Yakult (Yakult Honsha Yakult Vietnam Co Ltd 4.4 5.6 6.9 7.5
Co Ltd)
TH True Yogurt TH Food Chain JSC 5.6 5.8 6.8 7.3
Probi Vietnam Dairy Products 3.4 3.6 3.5 3.4
JSC (Vinamilk)
KUN International Dairy 2.8 2.8 2.9 3.1
Products JSC (IDP)

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Nuti Nutifood Nutrition Food JSC 2.5 2.5 2.6 2.7

Dutch Lady (Royal FrieslandCampina Vietnam 1.8 1.7 1.6 1.6
FrieslandCampina NV) Co Ltd
LIF International Dairy 1.2 1.2 1.2 1.3
Products JSC (IDP)
Yo-Yo A&B Foods & Beverage Co Ltd - - - -
Ancomilk Agro Nutrition - - - -
International JSC
Others Others 4.9 4.3 4.0 3.9
Total Total 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 7 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2018-2023

% retail value rsp

2018 2019 2020 2021 2022 2023

Retail Channels 100.0 100.0 100.0 100.0 100.0 100.0

- Retail Offline 99.9 99.7 99.5 99.5 98.8 97.6
-- Grocery Retailers 98.7 98.4 98.2 98.1 97.3 95.9
--- Convenience Retail 1.0 1.5 1.9 2.0 2.2 2.5
---- Convenience Stores 1.0 1.5 1.9 2.0 2.2 2.5
---- Forecourt Retailers - - - - - -
--- Supermarkets 20.3 20.6 21.3 21.7 22.4 22.6
--- Hypermarkets 6.0 6.2 6.8 7.1 7.4 7.8
--- Discounters - - - - - -
--- Warehouse Clubs - - - - - -
--- Food/drink/tobacco 3.3 3.4 3.4 3.5 3.6 3.6
specialists
--- Small Local Grocers 68.2 66.8 64.8 63.8 61.7 59.4
-- 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 1.2 1.3 1.4 1.4 1.5 1.7
- Retail E-Commerce 0.1 0.3 0.5 0.5 1.2 2.4
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 Sales of Yoghurt and Sour Milk Products by Category: Volume 2023-
2028

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2023 2024 2025 2026 2027 2028

Yoghurt and Sour Milk - - - - - -

Products (Not calculable)
- Sour Milk Products - - - - - -
(million litres)
- Yoghurt (Not - - - - - -
calculable)
-- Drinking Yoghurt 169.7 177.3 186.7 197.5 209.8 223.6
(million litres)
-- Flavoured Yoghurt 24.4 26.0 27.8 29.7 31.8 34.2
('000 tonnes)
-- Plain Yoghurt ('000 212.8 222.5 233.7 246.5 261.3 278.3
tonnes)
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 2023-
2028

VND billion
2023 2024 2025 2026 2027 2028

Yoghurt and Sour Milk 24,279.4 25,519.4 26,980.1 28,669.6 30,607.5 32,816.5
Products
- Sour Milk Products - - - - - -
- Yoghurt 24,279.4 25,519.4 26,980.1 28,669.6 30,607.5 32,816.5
-- Drinking Yoghurt 9,720.1 10,204.6 10,795.4 11,474.9 12,243.6 13,113.8
-- Flavoured Yoghurt 2,033.5 2,175.9 2,336.9 2,516.8 2,718.2 2,942.3
-- Plain Yoghurt 12,525.8 13,139.0 13,847.8 14,677.9 15,645.8 16,760.4
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume
Growth 2023-2028

2023/24 2023-28 CAGR 2023/28 Total

Yoghurt and Sour Milk Products (Not - - -

calculable)
- Sour Milk Products (% volume growth) - - -
- Yoghurt (Not calculable) - - -
-- Drinking Yoghurt (% volume growth) 4.5 5.7 31.8
-- Flavoured Yoghurt (% volume growth) 6.5 7.0 40.1
-- Plain Yoghurt (% volume growth) 4.6 5.5 30.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value
Growth 2023-2028

% constant value growth

2023/2024 2023-28 CAGR 2023/28 Total

Yoghurt and Sour Milk Products 5.1 6.2 35.2

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- Sour Milk Products - - -

- Yoghurt 5.1 6.2 35.2
-- Drinking Yoghurt 5.0 6.2 34.9
-- Flavoured Yoghurt 7.0 7.7 44.7
-- Plain Yoghurt 4.9 6.0 33.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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