Vietnam’s milk consumption stays quite low

(VAN) Vietnam is in the group of countries with low consumption of milk and dairy products. However, the demand for drinking milk and dairy products is increasing in the country.

According to Industry and Trade Information Centre under the Ministry of Industry and Trade, a market research by Euromonitor showed that in 2020, Vietnam's milk consumption was 1.76 million tonnes of milk and dairy products, an increase of 8.6 per cent compared with that of 2019.

Vietnam's per capita milk consumption stood at 26-27 kg per year – a quite low rate as the world’s average per capita milk consumption was about 100 kg per year and the average consumption in Asian countries was 38 kg per person per year.

However, the local market for milk and dairy products sees improved growth. 

According to a market report by Kantar Worldpanel, demand for milk and dairy products in Vietnam is increasing with positive signals thanks to the young population, increased average income, increasing trend for using products that add nutrition and improve the immune system. The country’s consumers also tend to use convenient branding products and those that meet food safety regulations.

In 2020, the revenue of milk and dairy products in Vietnam reached VND64.4 trillion, an increase of 10.3 per cent compared with that of 2019.

The revenue is expected to achieve the growth of 7-8 per cent yearly during the period from 2021 to 2025, reaching about VNĐ3.8 trillion in 2025. Of that, yoghurt revenue is expected to grow fastest with the compound annual growth rate (CAGR) of 12 per cent per year.

Income statements of milk companies in Vietnam last year showed that they were lightly affected by COVID-19 pandemic. 

In 2020, Vinamilk had consolidated revenue of nearly VND 60 trillion, an increase of nearly 6 per cent compared with that of 2019 and made its member companies – GTN and MCM – achieve impressive growths just one year after being merged.

With export revenue growth of 7.4 per cent last year, Vinamilk made impressive contributions to Vietnam’s milk sector, particularly during a difficult time for the country’s economy because of COVID-19 pandemic’s impacts.