Vietnam Cheese Market

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Vietnam Cheese Market Overview

• The Vietnam Cheese Market is valued at USD 370 million, based on a five-year historical analysis. This growth is primarily driven by increasing consumer demand for dairy products, rising health consciousness, the growing popularity of Western cuisine among Vietnamese consumers, and the influence of Western fast-food chains. The market has seen a significant shift towards premium cheese products, reflecting changing dietary preferences and lifestyle choices.(source)(source)
• Key cities such as Ho Chi Minh City and Hanoi dominate the market due to their large urban populations and higher disposable incomes. These metropolitan areas are also experiencing a surge in modern retail formats and food service establishments, which further boosts cheese consumption. The urbanization trend and the influx of international food brands have contributed to the growing cheese market in these regions.(source)
• The Circular No. 21/2019/TT-BNNPTNT, 2019 issued by the Ministry of Agriculture and Rural Development governs food safety standards in the dairy sector. This regulation establishes quality control measures for dairy production including cheese, requiring compliance with hygiene standards, microbial limits, and labeling requirements for manufacturers. The initiative ensures product traceability and safety thresholds, supporting consumer confidence and the growth of the domestic cheese market.(source)

Vietnam Cheese Market Segmentation

By Source: The cheese market can be segmented based on the source of milk used in production. The primary subsegments include Cow's Milk Cheese and Goat's Milk Cheese. Cow's Milk Cheese is the dominant segment due to its widespread availability and consumer preference. Goat's Milk Cheese, while less common, is gaining traction among health-conscious consumers seeking alternative dairy options. The increasing awareness of the nutritional benefits of goat's milk is driving its demand.

By Type: The cheese market can also be segmented by type, which includes Cheddar, Mozzarella, Processed Cheese, and Others. Cheddar cheese is the leading type, favored for its versatility in cooking and snacking. Mozzarella is popular in the food service sector, particularly in pizza and Italian cuisine. Processed Cheese is gaining popularity due to its convenience and longer shelf life, appealing to busy consumers. The "Others" category includes specialty cheeses that cater to niche markets.(source)

Vietnam Cheese Market Competitive Landscape

The Vietnam Cheese Market is characterized by a dynamic mix of regional and international players. Leading participants such as FrieslandCampina Vietnam, Nutifood, TH True Milk, Vinamilk, Fonterra, Lactalis, Danone, Bel Group, Saputo, Ho Chi Minh Dairy Products, M?c Châu Milk, S?a B?t Hòa Bình, NutriMilk, Cô Gái Hà Lan, Bông Sen contribute to innovation, geographic expansion, and service delivery in this space.

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Vietnam Cheese Market Industry Analysis

Growth Drivers

• Increasing Demand for Dairy Products: The Vietnamese dairy market has seen a significant increase, with consumption rising to 1.6 million tons in future. This growth is driven by a burgeoning middle class, which is projected to reach 34 million in future, leading to higher disposable incomes. The demand for cheese, particularly among urban consumers, is expected to rise as they seek diverse dairy options, contributing to a projected increase in cheese consumption to 55,000 tons in future.
• Rising Health Consciousness Among Consumers: Health awareness in Vietnam is on the rise, with 62% of consumers actively seeking healthier food options. This trend is reflected in the dairy sector, where cheese is increasingly viewed as a source of protein and calcium. The World Health Organization recommends dairy consumption, which aligns with the growing preference for nutritious foods. Consequently, cheese sales are expected to grow, with a projected increase in demand for low-fat and fortified cheese products by 22% in future.
• Growth of the Food Service Sector: The food service industry in Vietnam is expanding rapidly, with the number of restaurants increasing by 16% annually. This growth is fueled by a rising tourism sector, which welcomed over 20 million international visitors in future. As restaurants diversify their menus to include international cuisines, the demand for cheese in dishes such as pizzas and pastas is expected to rise, leading to an estimated increase in cheese usage in food services by 32% in future.

Market Challenges

• Limited Local Production Capacity: Vietnam's cheese production capacity is currently limited, with local manufacturers producing only 27,000 tons annually. This shortfall is exacerbated by a lack of advanced dairy processing technology and skilled labor. As a result, the country relies heavily on imports, which accounted for 62% of cheese consumption in future. This dependency poses a challenge for local market players aiming to meet the growing demand for cheese.
• High Import Tariffs on Cheese Products: The Vietnamese government imposes import tariffs on cheese products, which can reach up to 22%. This high tariff rate increases the cost of imported cheese, making it less accessible to consumers. In future, the average price of imported cheese was approximately $9 per kilogram, limiting market growth. These tariffs hinder the competitiveness of foreign brands and restrict the variety available to consumers, impacting overall market expansion.

Vietnam Cheese Market Future Outlook

The Vietnam cheese market is poised for significant growth, driven by increasing consumer demand for diverse dairy products and a shift towards healthier eating habits. As the food service sector continues to expand, opportunities for cheese integration into various cuisines will rise. Additionally, local producers are likely to invest in technology and innovation to enhance production capabilities, addressing current limitations. The market is expected to evolve with a focus on sustainability and premiumization, catering to the changing preferences of health-conscious consumers.

Market Opportunities

• Development of Local Cheese Varieties: There is a significant opportunity for local producers to develop unique Vietnamese cheese varieties. By leveraging local ingredients and flavors, producers can cater to domestic tastes while promoting cultural heritage. This initiative could potentially increase local cheese production by 42% in future, enhancing market competitiveness and consumer interest.
• Growth in E-commerce for Dairy Products: The rise of e-commerce in Vietnam presents a lucrative opportunity for cheese sales. With online grocery sales projected to reach $3.5 billion in future, cheese brands can tap into this growing market. By establishing robust online platforms, companies can reach a broader audience, particularly urban consumers who prefer the convenience of online shopping, potentially increasing sales by 27% in the next two years.

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