PERFORMANCE
REPORT

The fast-moving consumer goods (FMCG) sector in Vietnam saw accelerated growth in 2024, with a YoY increase of 2.3% being ahead of 2023’s 1.1%. In the dairy industry, although consumer spending dipped slightly by 0.3% YoY in 2024, it improved from the 1% decline in 2023. In terms of distribution channels, modern trade outpaced traditional trade, recording a 6.5% YoY increase compared to a 2.1% decline. This underscores the continued shift toward modern retail models.

Vietnam’s dairy market remains highly dynamic, with active participation from both domestic and international players. In 2024, the leading companies focused investments on sustainable development, product innovation, and multichannel marketing strategies to consolidate their market positions. A notable example of sustainable investment is the “Green Farm”, an ecological dairy farm model that reflects a commitment to sustainability while enhancing brand appeal among environmentally conscious consumers. Product innovation and multi-touchpoint consumer engagement were also essential for companies looking to enhance their competitive capabilities. Overall, the market position of major players in 2024 remained largely unchanged compared to the previous year.

• Health and convenience: As consumers increasingly seek products that are both delicious and beneficial to their health, demand for low-sugar, low-fat, high-protein, and organic options has exploded. At the same time, the growing preference for on-the-go convenience has led to innovations in packaging solutions, including paper cartons, tubes, and ready-to-drink items, while the demand for family-sized products has fueled the popularity of larger packaging options.
• Food service: The food service industry continues its post-COVID-19 recovery, driven by the expansion of food service outlets, rising disposable incomes, and elevated appeal of Western cuisine. This growth has created new opportunities for the dairy industry. Several dairy products such as cheese, butter, and cream are expected to see higher demand in food service as restaurants and cafés increasingly incorporate these ingredients into their menus.
• Rising silver population (55+ years old): Consumers over 55 years old are becoming increasingly focused on health and nutrition, driving demand for dairy products fortified with calcium, vitamin D, collagen, omega-3, and probiotics to support joint health and immune system. Additionally, the demand for organic milk, sugar-free milk, and lactose-free milk is on the rise, spurred by specific dietary requirements.
• New technologies: In addition to advancements in health-focused and convenience-driven products as previously mentioned, the dairy industry is seeing the emergence of cutting-edge technologies, with Vinamilk leading the way as the first adopter in Vietnam, such as double vacuum, ultrafiltration, and 6 HMOs.

Consumers over 55 years old are becoming increasingly focused on health and nutrition, driving demand for dairy products fortified with calcium, vitamin D, collagen, omega-3, and probiotics to support joint health and immune system. Additionally, the demand for organic milk, sugar-free milk, and lactose-free milk is on the rise, spurred by specific dietary requirements.

Vietnam’s dairy market is expected to sustain moderate singledigit growth from 2024 to 2029, according to Euromonitor. This growth is driven by increased health consciousness, a growing middle class, and the expansion of modern retail channels. Premium categories, including high-protein milk, organic milk, and nut milk, are anticipated to experience stronger growth. Other categories such as yogurt and ice cream are set to benefit from increasing adoption of refrigeration appliances in homes and retail outlets, while condensed milk and cream continue to thrive, supported by Vietnam’s strong coffee culture.