Yoghurt and Sour Milk Products

in Vietnam
Euromonitor International
August 2024
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2024 DEVELOPMENTS ............................................................................................................... 1
Leader facing increasing competition ....................................................................................... 1
Expanding offer......................................................................................................................... 2
Expanding range of pack sizes ................................................................................................. 2
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Health to play key role in development of yoghurt .................................................................... 2
New players and products to further intensify competition ........................................................ 3
Increasing presence of refrigeration appliances ....................................................................... 3
CATEGORY DATA ....................................................................................................................... 4
Table 1 Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-
2024 ............................................................................................................. 4
Table 2 Sales of Yoghurt and Sour Milk Products by Category: Value 2019-
2024 ............................................................................................................. 4
Table 3 Sales of Yoghurt and Sour Milk Products by Category: % Volume
Growth 2019-2024 ....................................................................................... 4
Table 4 Sales of Yoghurt and Sour Milk Products by Category: % Value
Growth 2019-2024 ....................................................................................... 4
Table 5 NBO Company Shares of Yoghurt and Sour Milk Products: % Value
2020-2024 .................................................................................................... 5
Table 6 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2021-
2024 ............................................................................................................. 5
Table 7 Distribution of Yoghurt and Sour Milk Products by Format: % Value
2019-2024 .................................................................................................... 6
Table 8 Forecast Sales of Yoghurt and Sour Milk Products by Category:
Volume 2024-2029 ....................................................................................... 6
Table 9 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value
2024-2029 .................................................................................................... 7
Table 10 Forecast Sales of Yoghurt and Sour Milk Products by Category: %
Volume Growth 2024-2029 .......................................................................... 7
Table 11 Forecast Sales of Yoghurt and Sour Milk Products by Category: %
Value Growth 2024-2029 ............................................................................. 7

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YOGHURT AND SOUR MILK

PRODUCTS IN VIETNAM
KEY DATA FINDINGS
▪ Retail value sales increase by 9% in current terms in 2024 to VND27.0 trillion
▪ Yoghurt is the best performing category in 2024, with retail value sales growing by 9% in
current terms to VND27.0 trillion
▪ Vietnam Dairy Products JSC (Vinamilk) is the leading player in 2024, with a retail value share
of 60%
▪ Retail sales are set to rise at a current value CAGR of 10% (2024 constant value CAGR of
6%) over the forecast period to VND42.5 trillion

2024 DEVELOPMENTS

Leader facing increasing competition

Yoghurt and sour milk products is set to see strong current value growth in Vietnam in 2024.
Vietnam Dairy Products JSC (Vinamilk) is set to remain the leading player in the category.
Vinamilk’s strong portfolio covers all segments, from products for children to adults, from regular
yoghurt to Greek yoghurt, and yoghurt with fermented purple sticky rice. There is growing
pressure on the leader’s retail value share, though it 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 being 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 amongst local
consumers.
Nonetheless, the competition continues to hot up for Vinamilk, which is projected to continue
to lose retail value share in 2024. Yakult Vietnam is one player that 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 consumer tastes shifting towards 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

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make informed food choices and focus on their general health and wellbeing. More brands and
alternatives have appeared recently, further intensifying the competition. For example, Morinaga
no fat yoghurt, launched in 2024, and Meiji Bulgaria yoghurt, which was also introduced in 2024.
In addition, plant-based yoghurt is becoming increasingly visible as well, including products from
Veyo and Cocobella.

Expanding offer
The growing demand for yoghurt and sour milk products in Vietnam is being supported by the
ongoing health and wellness trend. As a result, manufacturers are extending the range of
products on offer to better meet the needs of health conscious consumers. Towards the end of
the review period, players such as Vinamilk and TH Milk introduced lower sugar products that
offer a better taste than no sugar options but are seen as healthier than regular sweetened
products. No fat and lower fat products have also been introduced, including a lower fat product
from Meiji and a no fat yoghurt from Morinaga.
As well as seeking lower levels of sugar and fat in yoghurt, health conscious consumers are
increasingly looking for more active health benefits. This is supporting growing interest in
probiotic products, with drinking yoghurt with live culture seeing a notable increase in interest
amongst consumers in Vietnam. The rise of such products is being supported by the expanding
presence of chillers/fridges in both retailing stores and consumer households, which is making
this kind of product easier to stock and store to sell or consume later. Existing players are
investing more in extending their product ranges. For example, players such as TH Milk, which
started offering spoonable yoghurt at first, have since launched new drinking yoghurts with live
culture. At the same time, existing players in drinking yoghurt with live culture have developed
new flavours to offer more options to consumers.

Expanding range of pack sizes

In addition, consumers have access to an expanding range of package sizes, ranging from
65g and 100g single-serve options to 500g multi-serve products such as those offered by Dalat
Milk and Meiji. The increasing popularity of plastic pouches in drinking yoghurt can be attributed
to the growing trend for on-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 to be easy to
stock and store. Small pouch packaging is suitable for the needs of parents, who look for
products to give their children 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

Health to play key role in development of yoghurt

Yoghurt and sour milk products is set to grow strongly over the forecast period. Yoghurt
benefits strongly from a healthy image, 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.

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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. Consumers
are becoming more aware of the health benefits of yoghurt, including the ability of some
products to help to support a healthy immune system. In particular, education and brand
advocacy have led to rising awareness of the benefits of probiotics in terms of gut health, as
well as other positionings such as immunity, mood management, and aiding sleep. This is
accelerating the rise in demand for yoghurts with live cultures. As they become more health
conscious, consumers are increasingly preferring good-for-health products such as yoghurt.
Consumers are deeply recognising that building up their strength from inside the body is safer
and better than taking medicine. Therefore, they see adding more yoghurt to their daily nutrition
as preferable.

New players and products to further intensify competition

The forecast period is set to see a further intensification of competition in the yoghurt and sour
milk products category. There are more new players, including both local and international
companies, entering the market. Partly as a result, there are more new products being
introduced to the market targeting an ever broader range of consumer requirements and
preferences. At the same time, there is a growing number of plant-based yoghurt products on
the market, with demand being underpinned by the increasing number of people looking to cut
down on meat and dairy consumption because of concerns about health and wellness, the
environment, and animal welfare.
While international players are likely to enter the fray over the forecast period, 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 Vietnamese
consumers.
There is a notable trend amongst 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 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.

Increasing presence of refrigeration appliances

As more households possess refrigeration appliances in Vietnam, the demand for yoghurt is
only likely to grow. Refrigeration appliances such as fridges allow consumers to buy yoghurt in
larger quantities for consumption at a later date, rather than having to 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.

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CATEGORY DATA
Table 1 Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-2024

2019 2020 2021 2022 2023 2024

Yoghurt and Sour Milk - - - - - -

Products (Not calculable)
- Sour Milk Products - - - - - -
(million litres)
- Yoghurt (Not - - - - - -
calculable)
-- Drinking Yoghurt 124.4 139.3 154.6 163.1 173.4 185.2
(million litres)
-- Flavoured Yoghurt 19.1 20.8 22.1 23.2 24.5 26.1
('000 tonnes)
-- Plain Yoghurt ('000 175.9 188.2 197.7 205.6 212.1 219.5
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 2019-2024

VND billion
2019 2020 2021 2022 2023 2024

Yoghurt and Sour Milk 17,193.2 19,232.3 20,982.2 22,857.3 24,829.5 26,992.6
Products
- Sour Milk Products - - - - - -
- Yoghurt 17,193.2 19,232.3 20,982.2 22,857.3 24,829.5 26,992.6
-- Drinking Yoghurt 6,563.9 7,525.9 8,507.2 9,436.0 10,352.7 11,325.9
-- Flavoured Yoghurt 1,418.1 1,574.1 1,684.2 1,827.4 1,988.2 2,179.1
-- Plain Yoghurt 9,211.2 10,132.3 10,790.8 11,593.9 12,488.6 13,487.6
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 2019-
2024

2023/24 2019-24 CAGR 2019/24 Total

Yoghurt and Sour Milk Products (Not - - -

calculable)
- Sour Milk Products (% volume growth) - - -
- Yoghurt (Not calculable) - - -
-- Drinking Yoghurt (% volume growth) 6.8 8.3 48.9
-- Flavoured Yoghurt (% volume growth) 6.3 6.4 36.6
-- Plain Yoghurt (% volume growth) 3.5 4.5 24.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2019-
2024

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% current value growth

2023/24 2019-24 CAGR 2019/24 Total

Yoghurt and Sour Milk Products 8.7 9.4 57.0

- Sour Milk Products - - -
- Yoghurt 8.7 9.4 57.0
-- Drinking Yoghurt 9.4 11.5 72.5
-- Flavoured Yoghurt 9.6 9.0 53.7
-- Plain Yoghurt 8.0 7.9 46.4
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 2020-2024

% retail value rsp

Company 2020 2021 2022 2023 2024

Vietnam Dairy Products 65.0 63.9 61.7 60.6 59.8

JSC (Vinamilk)
FrieslandCampina Vietnam 12.6 12.0 11.4 10.9 10.5
Co Ltd
Yakult Vietnam Co Ltd 4.4 5.5 6.7 7.3 7.7
TH Food Chain JSC 5.6 5.7 6.6 7.0 7.4
International Dairy 3.9 4.0 4.1 4.2 4.2
Products JSC (IDP)
Royal FrieslandCampina NV 1.2 1.6 2.2 2.7 2.8
Nutifood Nutrition Food JSC 2.4 2.5 2.6 2.7 2.8
A&B Foods & Beverage Co Ltd - - - - -
Others 4.9 4.8 4.6 4.6 4.7
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 2021-2024

% retail value rsp

Brand (GBO) Company (NBO) 2021 2022 2023 2024

Vinamilk Vietnam Dairy Products 50.5 48.8 47.9 47.4

JSC (Vinamilk)
Susu Vietnam Dairy Products 9.9 9.5 9.4 9.4
JSC (Vinamilk)
Yomost (Royal FrieslandCampina Vietnam 10.3 9.8 9.4 9.0
FrieslandCampina NV) Co Ltd
Yakult (Yakult Honsha Yakult Vietnam Co Ltd 5.5 6.7 7.3 7.7
Co Ltd)
TH True Yogurt TH Food Chain JSC 5.7 6.6 7.0 7.4
Probi Vietnam Dairy Products 3.5 3.4 3.3 3.1
JSC (Vinamilk)
KUN International Dairy 2.8 2.9 2.9 3.0
Products JSC (IDP)
Betagen Royal FrieslandCampina NV 1.6 2.2 2.7 2.8
NutiMilk Nutifood Nutrition Food JSC 2.0 2.1 2.2 2.3
Dutch Lady (Royal FrieslandCampina Vietnam 1.7 1.6 1.5 1.5
FrieslandCampina NV) Co Ltd
LIF International Dairy 1.2 1.2 1.2 1.3
Products JSC (IDP)

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Nuvi Nutifood Nutrition Food JSC 0.5 0.5 0.5 0.5

Yo-Yo A&B Foods & Beverage Co Ltd - - - -
Nuti Nutifood Nutrition Food JSC - - - -
Others Others 4.8 4.6 4.6 4.7
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 2019-2024

% retail value rsp

2019 2020 2021 2022 2023 2024

Retail Channels 100.0 100.0 100.0 100.0 100.0 100.0

- Retail Offline 99.7 99.5 99.5 99.4 99.3 99.2
-- Grocery Retailers 98.4 98.2 98.1 97.9 97.6 97.5
--- Convenience Retailers 1.5 1.9 2.0 2.3 2.6 2.8
---- Convenience Stores 1.5 1.9 2.0 2.3 2.6 2.8
---- Forecourt Retailers - - - - - -
--- Supermarkets 20.6 21.3 21.7 22.5 23.0 23.3
--- Hypermarkets 6.2 6.8 7.1 7.4 7.9 8.0
--- Discounters - - - - - -
--- Warehouse Clubs - - - - - -
--- Food/drink/tobacco 3.4 3.4 3.5 3.6 3.7 3.8
specialists
--- Small Local Grocers 66.8 64.8 63.8 62.1 60.4 59.6
-- 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 1.3 1.4 1.4 1.5 1.7 1.8
- Retail E-Commerce 0.3 0.5 0.5 0.6 0.7 0.8
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 2024-
2029

2024 2025 2026 2027 2028 2029

Yoghurt and Sour Milk - - - - - -

Products (Not calculable)
- Sour Milk Products - - - - - -

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(million litres)
- Yoghurt (Not - - - - - -
calculable)
-- Drinking Yoghurt 185.2 198.2 212.4 228.2 245.5 264.6
(million litres)
-- Flavoured Yoghurt 26.1 27.8 29.8 31.9 34.2 36.8
('000 tonnes)
-- Plain Yoghurt ('000 219.5 227.7 236.8 247.0 258.6 271.5
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 2024-
2029

VND billion
2024 2025 2026 2027 2028 2029

Yoghurt and Sour Milk 26,992.6 28,427.7 30,009.3 31,753.4 33,677.8 35,803.0
Products
- Sour Milk Products - - - - - -
- Yoghurt 26,992.6 28,427.7 30,009.3 31,753.4 33,677.8 35,803.0
-- Drinking Yoghurt 11,325.9 12,005.4 12,761.8 13,604.0 14,542.7 15,589.8
-- Flavoured Yoghurt 2,179.1 2,314.2 2,462.3 2,624.8 2,803.3 2,999.5
-- Plain Yoghurt 13,487.6 14,108.1 14,785.3 15,524.5 16,331.8 17,213.7
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 2024-2029

2024/25 2024-29 CAGR 2024/29 Total

Yoghurt and Sour Milk Products (Not - - -

calculable)
- Sour Milk Products (% volume growth) - - -
- Yoghurt (Not calculable) - - -
-- Drinking Yoghurt (% volume growth) 7.0 7.4 42.9
-- Flavoured Yoghurt (% volume growth) 6.7 7.1 40.9
-- Plain Yoghurt (% volume growth) 3.7 4.3 23.7
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 2024-2029

% constant value growth

2024/2025 2024-29 CAGR 2024/29 Total

Yoghurt and Sour Milk Products 5.3 5.8 32.6

- Sour Milk Products - - -
- Yoghurt 5.3 5.8 32.6
-- Drinking Yoghurt 6.0 6.6 37.6
-- Flavoured Yoghurt 6.2 6.6 37.7
-- Plain Yoghurt 4.6 5.0 27.6

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Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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