Vietnam Frozen Food Market Outlook to 2030

Vietnam Frozen Food Market Overview

• The Vietnam Frozen Food market is valued at USD 1.7 billion, based on a five-year historical analysis, driven by the increasing demand for convenience foods. Urbanization and a fast-paced lifestyle have led consumers to rely more on ready-to-eat frozen products, particularly in urban centers like Ho Chi Minh City and Hanoi. The expansion of cold chain infrastructure has also allowed companies to increase the distribution of frozen goods, ensuring higher product quality and availability across regions. Reliable data from Vietnams Ministry of Industry and Trade suggests that the market is growing rapidly due to consumer trends and infrastructural advancements.

• Ho Chi Minh City and Hanoi dominate the Vietnam Frozen Food market, primarily due to their large populations, developed retail infrastructure, and higher disposable incomes. These cities also benefit from better logistics networks, including advanced cold storage systems, which facilitate a smoother supply chain for frozen foods. Furthermore, the rapid development of online food delivery services and an increasing preference for convenience meals contribute to the dominance of these metropolitan areas.
• In 2023, the Ministry of Health updated its guidelines for the import of frozen food products, mandating that all frozen goods entering Vietnam must meet the Hazard Analysis Critical Control Point (HACCP) standards. This regulatory framework has led to a 10% increase in rejected shipments due to non-compliance with these stricter safety guidelines, according to the Ministry of Health

Vietnam Frozen Food Market Segmentation

By Product Type: Vietnam's Frozen Food market is segmented by product type into frozen seafood, frozen vegetables and fruits, frozen meat and poultry, frozen ready meals, and frozen bakery products. Recently, frozen seafood has a dominant market share due to Vietnams strong seafood export industry and the increasing consumer preference for seafood-based meals. Companies like Minh Phu Seafood Corporation play a significant role in the supply chain, ensuring that the product quality remains high through stringent standards. Furthermore, the global demand for sustainable seafood has bolstered the presence of frozen seafood in the local market.

By Distribution Channel: The Vietnam Frozen Food market is segmented by distribution channel into supermarkets and hypermarkets, convenience stores, online retail, and HoReCa (Hotels, Restaurants, and Catering). Supermarkets and hypermarkets have a dominant market share in this segment, primarily due to the established trust and convenience they provide to consumers. Chains like Saigon Co.op and VinMart have built large-scale freezer sections that offer a variety of frozen products, ensuring accessibility to high-quality frozen goods for everyday consumers. The convenience of purchasing frozen food in bulk from these large outlets is a key factor driving this segment's dominance.

Vietnam Frozen Food Market Competitive Landscape

The Vietnam Frozen Food market is dominated by a mix of local players like Minh Phu Seafood Corporation and Vinh Hoan Corporation, as well as international companies like CJ Foods and KIDO Foods. This market consolidation showcases the dominance of established players with robust cold chain networks, wide distribution channels, and strong relationships with local farmers and producers. The competitive landscape is also influenced by mergers, acquisitions, and strategic partnerships aimed at expanding product portfolios and market reach.

Vietnam Frozen Food Industry Analysis

Growth Drivers

• Increasing Consumer Demand for Convenience Foods: With Vietnam's urbanization rate reaching 38% in 2023, the demand for convenient, ready-to-eat food options like frozen foods has surged. A growing number of dual-income households and the increasing pace of life in urban areas have led to a 30% rise in consumption of frozen food products compared to fresh options, according to Vietnam's Ministry of Industry and Trade. This trend is bolstered by the country's rising GDP per capita, which stood at $4,264 in 2023, supporting the affordability of convenience foods.
• Urbanization and Growing Middle-Class Population: Vietnam's middle-class population is projected to expand to 25 million people by 2025, up from 21 million in 2022, as reported by the World Bank. This demographic shift is driving increased spending on premium frozen food products, particularly in urban centers like Ho Chi Minh City and Hanoi, where urbanization rates are accelerating at 3.5% annually. The middle-class demand for high-quality, imported frozen foods continues to grow, particularly for products such as frozen seafood and processed meals.
• Expansion of Cold Chain Infrastructure: Vietnam has been investing heavily in cold chain logistics, with a 20% increase in new cold storage facilities recorded between 2022 and 2023. These investments are driven by both the public and private sectors to accommodate the expanding frozen food market. This expansion is vital as Vietnam aims to modernize its food supply chain, with 80% of cold storage capacities now meeting international standards, according to the Vietnam Logistics Business Association

Market Challenges

• High Energy Costs in Frozen Food Storage: The rising energy costs in Vietnam, particularly in urban areas, pose a significant challenge to the frozen food market. Energy prices have increased by approximately 5% annually from 2022 to 2024, reaching an average cost of 8.45 US cents per kWh in 2024, according to the Vietnam Electricity Corporation. This escalation directly impacts the operational costs of cold storage facilities, making frozen food products less competitive compared to fresh alternative.
• Consumer Perception of Frozen Foods vs Fresh Foods: Vietnamese consumers traditionally prefer fresh foods over frozen alternatives, with 65% of households still prioritizing fresh food purchases in 2023, based on a survey by the General Statistics Office of Vietnam. This consumer perception, rooted in cultural preferences, presents a barrier to market growth, particularly in rural areas where fresh produce is more accessible and affordable.

Vietnam Frozen Food Market Future Outlook

Over the next five years, the Vietnam Frozen Food market is expected to witness significant growth, driven by rising consumer demand for convenience foods and healthier frozen options. Continuous advancements in cold chain technology, along with government support for the food processing industry, are likely to further fuel market expansion. Key growth drivers will include the increasing adoption of frozen foods in the HoReCa sector, as well as the rise of e-commerce platforms offering frozen food delivery services. Furthermore, the growing trend toward plant-based frozen products is expected to create new opportunities in the market.

Opportunities

• Rise in E-commerce and Online Food Delivery Platforms: The e-commerce sector in Vietnam has been growing rapidly, with a 35% increase in online grocery sales in 2023, driven largely by the pandemic and shifting consumer behaviors. Companies such as Tiki and Shopee have expanded their frozen food categories, making frozen food products more accessible to a wider range of consumers. The growth of e-commerce has enabled manufacturers to reach previously untapped rural markets, where cold storage infrastructure may be limited.
• Growing Demand for Plant-Based and Healthy Frozen Food Options: There has been a notable rise in demand for plant-based frozen food products in Vietnam, reflecting global health trends. A 2023 survey conducted by the Vietnam Ministry of Health found that 28% of urban consumers prefer plant-based frozen meals over traditional options. The growing health consciousness among middle-class consumers is driving demand for healthier frozen alternatives, such as plant-based proteins and low-calorie meals, opening new avenues for market growth.