Written by Vietnam Dairy Industry
[Shanghai, China – CRI Report] – The dairy industry in Vietnam is undergoing a remarkable transformation, with revenues nearly doubling from USD 4.4 billion in 2017 to a staggering USD 8.4 billion in 2021. However, domestic production still lags behind, meeting less than half of the surging demand. Imported dairy products in Vietnam reached a substantial USD 11.8 billion in 2021, marking a significant 12.4% year-on-year increase.
According to insightful analysis by CRI, over 200 dairy producers operated in Vietnam by the close of 2021. The market is predominantly commanded by major players such as Vinamilk, Nestle Vietnam, Nutifood, Frieslandcampina, and TH Group. Impressively, the number of cows in Vietnam is set to surge from 330,000 in 2019 to 700,000 by 2030.
Fresh milk production in Vietnam achieved an impressive 1.2 billion liters in 2021 and is projected to soar to 2 billion liters by 2030. Despite this growth, domestic fresh milk production can only fulfill 40-50% of local demand, leading to heavy reliance on imports.
Beyond fresh milk imports, Vietnam also brings in cows, animal nutrition products, and animal feed production materials. To stay competitive, local firms are actively seeking quality management and food safety solutions, while larger enterprises are investing in Industrial 4.0 technologies and research and development.
Intriguingly, Vietnam’s milk consumption per capita in 2021 was only 28 liters, trailing behind Thailand (35 liters) and Singapore (45 liters), indicating substantial room for growth. CRI anticipates a surge in milk consumption, reaching 40 liters per capita by 2030, driven by Vietnam’s large, youthful population (approximately 100 million people) and the rising purchasing power of the burgeoning middle class.
Dairy companies are also seizing the opportunity to cater to Vietnam’s elderly population (65+), expected to reach 14% by 2040, up from 7% in 2020.
Moreover, Vietnam’s dairy exports are on an upward trajectory, with a total value surpassing USD 300 million. These exports reach more than 40 countries, with China granting transaction codes to eight Vietnamese dairy companies (20 factories) for product export.
In terms of product segmentation, milk powder and liquid milk account for nearly three-quarters of Vietnam’s dairy market size. The majority of imported milk powder is transformed into reconstituted milk. Among liquid milk options, UHT milk, prized for its extended shelf life, particularly in areas with limited cold chain facilities, takes precedence.
CRI’s analysis highlights the fastest-growing segment in Vietnam’s dairy market in 2021 as milk powder, with production volumes surging by approximately 13% year-on-year, followed by yogurt, liquid milk, and more.
Additionally, the demand for cheese and butter is on the rise due to the increasing influence of Western cuisine in Vietnam, particularly among the urban youth.
CRI envisions robust demand for dairy products in Vietnam’s market from 2022 to 2031, presenting lucrative opportunities for investors. Organic dairy products, natural fresh milk items, and dairy-infused health food products are poised for rapid growth in the years ahead.
Source: Research Report on Vietnam’s Dairy Industry 2022-2031
Contact:
Eileen Gu
Marketing
Phone : 86-02168521029
Email : info@cri-report.com
Related： Booming Growth Projected: Vietnam Courier Services and E-Commerce Market Set to Flourish