Better For You Packaged Food in

Vietnam
Euromonitor International
February 2022
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2021 DEVELOPMENTS ............................................................................................................... 1
Consumers show little interest in BFY packaged food .............................................................. 1
Desire for familiarity an obstacle to development of BFY packaged food ................................. 1
Hope lies with the young........................................................................................................... 2
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Core consumer base economically resilient ............................................................................. 2
Opportunities for reduced sugar packaged food ....................................................................... 2
Growing appreciation of health as well as Westernisation trend set to promote BFY packaged
food in the aftermath of the pandemic ...................................................................................... 3
CATEGORY DATA ....................................................................................................................... 3
Table 1 Sales of BFY Packaged Food by Category: Value 2016-2021 ..................... 3
Table 2 Sales of BFY Packaged Food by Category: % Value Growth 2016-
2021 ............................................................................................................. 4
Table 3 Distribution of BFY Packaged Food by Format: % Value 2016-2021 ........... 5
Table 4 Forecast Sales of BFY Packaged Food by Category: Value 2021-
2026 ............................................................................................................. 6
Table 5 Forecast Sales of BFY Packaged Food by Category: % Value Growth
2021-2026 .................................................................................................... 7

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BETTER FOR YOU PACKAGED FOOD

IN VIETNAM
KEY DATA FINDINGS
▪ Retail value sales rise by 7% in current terms in 2021 to VND46.3 billion
▪ Retail sales are set to increase at a current value CAGR of 10% (2021 constant value CAGR
of 6%) over the forecast period to VND75.0 billion

2021 DEVELOPMENTS

Consumers show little interest in BFY packaged food

While the COVID-19 crisis has served to heighten consumer health consciousness, it has not
had a particularly positive impact on demand for better for you packaged food. Prior to the onset
of the pandemic, the government and its various health related ministries and agencies
endeavoured to make consumers more aware and better informed about the potential health
risks of consuming too much of certain types of food, such as sugar, fat and salt. The onset of
the global pandemic heightened these efforts as well as consumer awareness. Moreover, while
the SARS-CoV-2 virus proved highly problematic for all consumers in the country, those with
underlying health conditions were more susceptible to catching it and becoming seriously ill.
Nonetheless, better for you packaged food has remained a minor category, with reduced fat
packaged food in the form of reduced fat sauces, dressings and condiments being the only BFY
category to register non-negligible value sales.
Moreover, the category has seen growth slow down during the COVID-19 crisis, as
consumers have been impacted by concerns about the pandemic, lockdown, food stockpiling,
unemployment and reduced incomes. At the same time, the difficulties in reaching consumers
have led manufacturers to limit their marketing activities. In combination with a very limited
product offer, this lack of marketing support has meant that consumer awareness has remained
low.
Even where consumers are aware of BFY variants, they often find their taste not to their
liking, and therefore favour standard products. Consumers other than a small number of affluent
demographics and expatriates generally have little interest in these products and are
unimpressed by or unaware of their health claims or benefits, while also often viewing them as
expensive. Most consumers have very limited purchasing power and can only afford essential
products, offering little scope for them to spend more in search of a healthier diet.

Desire for familiarity an obstacle to development of BFY packaged food

During the COVID-19 crisis, many consumers have turned to familiar brands and products
both because of the yearning for a sense of security and the fact that they have tended to do
their shopping near to home, especially during the long periods of social distancing and
lockdown in 2021. The demand for familiar brand sand products has weakened sales of BFY
packaged food, as such products have yet to establish themselves in consumers’ regular
shopping. The focus on stockpiling during the crisis has further strengthened this effect, as
consumers have looked to ensure that they have supplies of essential food items.

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Hope lies with the young

The greatest hope for the development of BFY packaged food in the Vietnamese market lies
with younger consumers. Younger consumers tend to be more health conscious than their older
counterparts, as well as less fixed in their purchasing and dietary habits and, therefore, more
open to trying new products. As well as the general rise in health consciousness amongst
younger consumers, they are also displaying a notable increase in awareness of the role of diet
in maintaining health and wellness. The incidence of people developing diabetes has reportedly
doubled in Vietnam over the past decade. In fact, according to the Vietnam Society of
Endocrinology and Diabetes, diabetes was the third leading cause of death in the country. In a
similar vein, local people have seen reports indicating that cardiovascular problems related not
just to high alcohol and tobacco consumption and work-related stress but also to excessive fat
and salt intake are increasing – even amongst adults as young as 28-30 years old. This
knowledge, gained from widely publicised information, is leading a small but growing number of
people to consider reducing, if not entirely foregoing, their consumption of sugar, salt and fat this
is expected to further boost their interest in consuming BFY packaged food. In addition, the
significant role of social media in younger consumers’ daily lives is contributing to a rise in body-
consciousness, which is further supporting concerns about the intake of sugar and fat, in
particular.

PROSPECTS AND OPPORTUNITIES

Core consumer base economically resilient

While the COVID-19 crisis is expected to have an economic impact that endures well beyond
the point that the disease has become a managed fact of life, its effect on the core consumer
base for better for you packaged food is likely to be relatively limited. The key consumers of
BFY packaged food are in the high- or middle-income segments, which have been less severely
impacted by measures imposed to limit the spread of COVID-19 than lower-income consumers.
Moreover, those consumers that do regularly purchase better for you packaged food products
tend to be committed to healthy diets and unwilling to purchase alternative products that they
deem to be less healthy. Although these factors provide some insulation against the impact of
the COVID-19 crisis on BFY packaged food, they also serve to limit the category’s potential to
expand its consumer base.
As a result, BFY packaged food’s immediate growth prospects are likely to rely on generating
sales of premium items amongst higher-income consumers. Affluent health conscious
consumers tend to be willing to trade up to more premium-orientated brands if they feel they
provide compelling health benefits.

Opportunities for reduced sugar packaged food

Since the pandemic, the importance of health is set to grow stronger with demand for healthy
food such as better-for-you products set to rise. People will want healthy foods in order to enjoy
good health and better protect themselves from disease. However, the negative economic
consequences of the virus could lead to a reduction in investment in new product developments
among industry players even though new BFY products are usually developed from existing
regular products, making it relatively more cost effective than launching a totally new brand.
Industry players will also focus on communicating health benefits and engaging with consumers
and developing their efforts made in this regard during the pandemic. Moreover, as education
and living standards in Vietnam improve, consumers will become more conscious of their fat,
sugar and salt intake and its relationship with obesity, heart disease and other diet-related

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health problems, all of which will support both volume and value growth in BFY packaged food
over the forecast period.
Sugar has become a particularly sharp focus for concerns about the role of diet in the
development of obesity, diabetes and heart disease. Sugar content is increasingly being
signalled as foods are positioned in health terms, both in retail and in foodservice. As a result,
reduced-sugar products are expected to grow well in the forecast period. This is likely to
stimulate new product launches, especially in dairy, such as reduced sugar shelf stable milk. In
the past, only the brands from the main category players such as TH Food Chain Jsc or
Vietnam Dairy Products Joint Stock Company (Vinamilk), have been available. However, the
product range is now widening and featuring a variety of other brands.

Growing appreciation of health as well as Westernisation trend set to

promote BFY packaged food in the aftermath of the pandemic
The Vietnamese have also developed an appreciation of many aspects of Western culture
(including Western food) and associate the more developed countries with modern technology,
highly educated people and high living standards. People tend to believe that Western products
are of high quality and more advanced. As Western packaged food companies continue to
penetrate the Vietnamese market, their BFY products will become more readily accessible. As
Vietnamese people increasingly care more about their health and trust in Western product
quality, multinational players will likely introduce more BFY products which Vietnamese
consumers will increasingly embrace. However, while average incomes are set to decline as a
consequence of COVID-19, at least in the short to mid-term, rising awareness of the importance
of staying healthy is likely to be a boon to this category.

CATEGORY DATA
Table 1 Sales of BFY Packaged Food by Category: Value 2016-2021

VND billion
2016 2017 2018 2019 2020 2021

-- BFY Reduced Fat 30.6 33.5 37.0 40.2 43.5 46.3

Packaged Food
--- Reduced Fat Cakes - - - - - -
--- Reduced Fat Chilled - - - - - -
Processed Meat and
Seafood
--- Reduced Fat - - - - - -
Chocolate Confectionery
--- Reduced Fat Dairy - - - - - -
--- Reduced Fat Frozen - - - - - -
Meat, Seafood, Fruit
and Vegetables
--- Reduced Fat Ice Cream - - - - - -
--- Reduced Fat Ready - - - - - -
Meals
--- Reduced Fat Sauces, 30.6 33.5 37.0 40.2 43.5 46.3
Dressings and Condiments
--- Reduced Fat Savoury - - - - - -
Snacks Excl Nuts, Seeds
and Trail Mixes
--- Reduced Fat Shelf - - - - - -
Stable Meat, Seafood,

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Fruit and Vegetables

--- Reduced Fat Soup - - - - - -
--- Reduced Fat Spreads - - - - - -
excl Honey
--- Reduced Fat Sweet - - - - - -
Biscuits
-- BFY Reduced Salt Food - - - - - -
--- Reduced Salt Butter - - - - - -
and Spreads
--- Reduced Salt Ready - - - - - -
Meals
--- Reduced Salt - - - - - -
Sauces, Dressings and
Condiments
--- Reduced Salt - - - - - -
Savoury Snacks Excl
Nuts, Seeds and Trail
Mixes
--- Reduced Salt Shelf - - - - - -
Stable Meat, Seafood,
Fruit and Vegetables
--- Reduced Salt Soup - - - - - -
-- BFY Reduced Sugar - - - - - -
Packaged Food
--- Reduced Sugar - - - - - -
Confectionery
--- Reduced Sugar Ice - - - - - -
Cream
--- Reduced Sugar Shelf - - - - - -
Stable Meat, Seafood,
Fruit and Vegetables
--- Reduced Sugar - - - - - -
Spreads excl Honey
--- Reduced Sugar Sweet - - - - - -
Biscuits
--- Reduced Sugar Yoghurt - - - - - -
- Better For You 30.6 33.5 37.0 40.2 43.5 46.3
Packaged Food
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of BFY Packaged Food by Category: % Value Growth 2016-2021

% current value growth

2020/21 2016-21 CAGR 2016/21 Total

-- BFY Reduced Fat Packaged Food 6.5 8.6 51.2

--- Reduced Fat Cakes - - -
--- Reduced Fat Chilled Processed Meat - - -
and Seafood
--- Reduced Fat Chocolate Confectionery - - -
--- Reduced Fat Dairy - - -
--- Reduced Fat Frozen Meat, Seafood, - - -
Fruit and Vegetables
--- Reduced Fat Ice Cream - - -
--- Reduced Fat Ready Meals - - -
--- Reduced Fat Sauces, Dressings and 6.5 8.6 51.2
Condiments
--- Reduced Fat Savoury Snacks Excl - - -

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Nuts, Seeds and Trail Mixes

--- Reduced Fat Shelf Stable Meat, - - -
Seafood, Fruit and Vegetables
--- Reduced Fat Soup - - -
--- Reduced Fat Spreads excl Honey - - -
--- Reduced Fat Sweet Biscuits - - -
-- BFY Reduced Salt Food - - -
--- Reduced Salt Butter and Spreads - - -
--- Reduced Salt Ready Meals - - -
--- Reduced Salt Sauces, Dressings and - - -
Condiments
--- Reduced Salt Savoury Snacks Excl - - -
Nuts, Seeds and Trail Mixes
--- Reduced Salt Shelf Stable Meat, - - -
Seafood, Fruit and Vegetables
--- Reduced Salt Soup - - -
-- BFY Reduced Sugar Packaged Food - - -
--- Reduced Sugar Confectionery - - -
--- Reduced Sugar Ice Cream - - -
--- Reduced Sugar Shelf Stable Meat, - - -
Seafood, Fruit and Vegetables
--- Reduced Sugar Spreads excl Honey - - -
--- Reduced Sugar Sweet Biscuits - - -
--- Reduced Sugar Yoghurt - - -
- Better For You Packaged Food 6.5 8.6 51.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Distribution of BFY Packaged Food by Format: % Value 2016-2021

% retail value rsp

2016 2017 2018 2019 2020 2021

Store-Based Retailing 98.3 98.2 98.0 98.1 98.0 97.8

- Grocery Retailers 98.3 98.2 98.0 98.1 98.0 97.8
-- Modern Grocery 83.9 84.3 83.7 83.7 83.8 86.3
Retailers
--- Convenience Stores 32.5 32.6 32.6 32.7 32.9 34.2
--- Discounters - - - - - -
--- Forecourt Retailers 1.0 1.2 1.1 1.0 0.9 0.8
--- Hypermarkets 40.2 40.2 39.1 38.7 38.0 38.8
--- Supermarkets 10.2 10.3 10.9 11.3 12.0 12.5
-- Traditional Grocery 14.4 13.9 14.3 14.4 14.2 11.5
Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small 4.9 5.0 6.0 6.7 7.2 7.1
Grocers
-- Other Grocery 9.5 8.9 8.3 7.7 7.0 4.4
Retailers
- Non-Grocery Specialists - - - - - -
Non-Store Retailing 1.7 1.8 2.0 1.9 2.0 2.2
- Vending - - - - - -
- Homeshopping - - - - - -
- E-Commerce 1.7 1.8 2.0 1.9 2.0 2.2
- Direct Selling - - - - - -
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

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Table 4 Forecast Sales of BFY Packaged Food by Category: Value 2021-2026

VND billion
2021 2022 2023 2024 2025 2026

-- BFY Reduced Fat 46.3 48.1 50.5 53.6 57.3 61.9

Packaged Food
--- Reduced Fat Cakes - - - - - -
--- Reduced Fat Chilled - - - - - -
Processed Meat and
Seafood
--- Reduced Fat - - - - - -
Chocolate Confectionery
--- Reduced Fat Dairy - - - - - -
--- Reduced Fat Frozen - - - - - -
Meat, Seafood, Fruit
and Vegetables
--- Reduced Fat Ice Cream - - - - - -
--- Reduced Fat Ready - - - - - -
Meals
--- Reduced Fat Sauces, 46.3 48.1 50.5 53.6 57.3 61.9
Dressings and Condiments
--- Reduced Fat Savoury - - - - - -
Snacks Excl Nuts, Seeds
and Trail Mixes
--- Reduced Fat Shelf - - - - - -
Stable Meat, Seafood,
Fruit and Vegetables
--- Reduced Fat Soup - - - - - -
--- Reduced Fat Spreads - - - - - -
excl Honey
--- Reduced Fat Sweet - - - - - -
Biscuits
-- BFY Reduced Salt Food - - - - - -
--- Reduced Salt Butter - - - - - -
and Spreads
--- Reduced Salt Ready - - - - - -
Meals
--- Reduced Salt - - - - - -
Sauces, Dressings and
Condiments
--- Reduced Salt - - - - - -
Savoury Snacks Excl
Nuts, Seeds and Trail
Mixes
--- Reduced Salt Shelf - - - - - -
Stable Meat, Seafood,
Fruit and Vegetables
--- Reduced Salt Soup - - - - - -
-- BFY Reduced Sugar - - - - - -
Packaged Food
--- Reduced Sugar - - - - - -
Confectionery
--- Reduced Sugar Ice - - - - - -
Cream
--- Reduced Sugar Shelf - - - - - -
Stable Meat, Seafood,
Fruit and Vegetables

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--- Reduced Sugar - - - - - -

Spreads excl Honey
--- Reduced Sugar Sweet - - - - - -
Biscuits
--- Reduced Sugar Yoghurt - - - - - -
- Better For You 46.3 48.1 50.5 53.6 57.3 61.9
Packaged Food
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 5 Forecast Sales of BFY Packaged Food by Category: % Value Growth 2021-
2026

% constant value growth

2021/2022 2021-26 CAGR 2021/26 Total

-- BFY Reduced Fat Packaged Food 4.0 6.0 33.8

--- Reduced Fat Cakes - - -
--- Reduced Fat Chilled Processed Meat - - -
and Seafood
--- Reduced Fat Chocolate Confectionery - - -
--- Reduced Fat Dairy - - -
--- Reduced Fat Frozen Meat, Seafood, - - -
Fruit and Vegetables
--- Reduced Fat Ice Cream - - -
--- Reduced Fat Ready Meals - - -
--- Reduced Fat Sauces, Dressings and 4.0 6.0 33.8
Condiments
--- Reduced Fat Savoury Snacks Excl - - -
Nuts, Seeds and Trail Mixes
--- Reduced Fat Shelf Stable Meat, - - -
Seafood, Fruit and Vegetables
--- Reduced Fat Soup - - -
--- Reduced Fat Spreads excl Honey - - -
--- Reduced Fat Sweet Biscuits - - -
-- BFY Reduced Salt Food - - -
--- Reduced Salt Butter and Spreads - - -
--- Reduced Salt Ready Meals - - -
--- Reduced Salt Sauces, Dressings and - - -
Condiments
--- Reduced Salt Savoury Snacks Excl - - -
Nuts, Seeds and Trail Mixes
--- Reduced Salt Shelf Stable Meat, - - -
Seafood, Fruit and Vegetables
--- Reduced Salt Soup - - -
-- BFY Reduced Sugar Packaged Food - - -
--- Reduced Sugar Confectionery - - -
--- Reduced Sugar Ice Cream - - -
--- Reduced Sugar Shelf Stable Meat, - - -
Seafood, Fruit and Vegetables
--- Reduced Sugar Spreads excl Honey - - -
--- Reduced Sugar Sweet Biscuits - - -
--- Reduced Sugar Yoghurt - - -
- Better For You Packaged Food 4.0 6.0 33.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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