Vietnam Packaged Food: Opportunities vs Challenges
Key highlights in Vietnam Packaged Food sector:
The “Must-Have” in Vietnamese family expenditure
Packaged Foods hold first place and second place in rural and urban household FMCG baskets respectively. Packaged Food products are also the most frequently purchased categories.
Different tastes among different regions
Sweeter in south, saltier in central while sourer and more bought cooking aid categories skew to north. Hanoians prefer to traditional categories while Saigoneses are willing to try new things.
A highly competitive market
The number of new products launched in Packaged Food sector is double and even triple compared to Dairy and Beverage sector, which enables consumer to have a wide variety of choices. And the market will become more competitive than ever.
Growth potential prevails
Spending for packaged foods is expected to increase in long-term, especially higher income groups.
How do consumers change behaviour when getting richer?
- Bigger repertoires.
- Bulkier baskets.