Vietnam dairy alternatives market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Vietnam Dairy Alternatives Market Overview

• The Vietnam Dairy Alternatives Market is valued at USD 135 million, based on a five-year historical analysis. This growth is primarily driven by increasing health consciousness among consumers, a shift towards plant-based diets, and rising lactose intolerance rates. The market has seen a surge in demand for dairy alternatives, particularly among younger demographics who are more inclined to explore non-dairy options. The rising popularity of veganism, environmental sustainability concerns, and the expansion of retail channels have further accelerated market adoption of plant-based dairy products.
• Key cities such as Ho Chi Minh City and Hanoi dominate the market due to their large urban populations and higher disposable incomes. These cities are also witnessing a growing trend of health-conscious consumers, leading to increased availability and consumption of dairy alternatives. The presence of numerous health food stores, supermarkets, and the flourishing retail sector supports the market's growth in these regions. Northern Vietnam, in particular, is noted for advanced retail infrastructure and elevated consumer awareness, contributing to greater market penetration.
• The Vietnamese government has taken steps to promote the production and consumption of plant-based products, including dairy alternatives. Under the Decision No. 155/QD-TTg issued by the Prime Minister in 2023, incentives such as tax reductions and support for sustainable agricultural practices have been introduced for companies producing plant-based foods. The regulation also includes initiatives to educate consumers about the benefits of plant-based diets, aiming to enhance food security and support sustainability in the country.

Vietnam Dairy Alternatives Market Segmentation

By Type:The market is segmented into various types of dairy alternatives, including soy milk, almond milk, coconut milk, oat milk, rice milk, cashew milk, pea milk, and others. Each type caters to different consumer preferences and dietary needs, with soy milk being the most popular due to its high protein content and versatility. Almond and coconut milk are also gaining traction, particularly among health-conscious consumers seeking low-calorie options. The market is further diversified with oat, rice, cashew, and pea milk, reflecting the broadening consumer interest in functional and innovative plant-based beverages.

By Product Category:The market is also segmented by product category, which includes plant-based milk, plant-based yogurt, plant-based cheese, plant-based creamers, plant-based ice cream, and others. Plant-based milk dominates the category due to its widespread acceptance and versatility in various culinary applications. The growing trend of veganism and lactose intolerance has further propelled the demand for plant-based yogurt and cheese. Non-dairy creamers and ice creams are increasingly available, driven by consumer interest in functional and indulgent plant-based products.

Vietnam Dairy Alternatives Market Competitive Landscape

The Vietnam Dairy Alternatives Market is characterized by a dynamic mix of regional and international players. Leading participants such as TH True Milk, Nutifood, Vinasoy, FrieslandCampina Vietnam, Alpro (Danone), Oatly Group AB, Fonterra Brands Vietnam, Vinamilk (Vietnam Dairy Products JSC), Cocofina Ltd., Pureharvest, Silk (Danone North America), So Delicious (Danone North America), Califia Farms, Ripple Foods, Blue Diamond Growers contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Dairy Alternatives Market Industry Analysis

Growth Drivers

• Increasing Health Consciousness:The Vietnamese population is increasingly prioritizing health, with 65% of consumers actively seeking healthier food options. This trend is supported by a report from the Ministry of Health indicating that 50% of adults are reducing dairy intake due to lactose intolerance or health concerns. As a result, the demand for dairy alternatives, such as almond and soy milk, is expected to rise significantly, with sales projected to reach 1.5 million liters in future.
• Rising Vegan and Plant-Based Diet Trends:The number of vegans in Vietnam has increased by 35% over the past three years, driven by a growing awareness of animal welfare and environmental issues. According to the Vietnam Vegan Society, approximately 2 million people now identify as vegan. This shift is fostering a robust market for plant-based dairy alternatives, with an estimated 250,000 new consumers entering the market annually, further propelling growth in this sector.
• Government Support for Sustainable Products:The Vietnamese government has implemented policies to promote sustainable agriculture, including an initiative that allocates $6 million to support the development of plant-based products. This funding aims to enhance production capabilities and encourage local farmers to transition to sustainable practices. As a result, the dairy alternatives market is expected to benefit from increased investment and innovation, leading to a projected 20% growth in product offerings in future.

Market Challenges

• High Production Costs:The production of dairy alternatives in Vietnam faces significant challenges due to high raw material costs, which can reach up to $1,500 per ton for nuts and legumes. This financial burden is exacerbated by the limited availability of local suppliers, forcing manufacturers to rely on imports. Consequently, the average production cost for dairy alternatives is estimated to be 25% higher than traditional dairy products, hindering competitive pricing strategies in the market.
• Limited Consumer Awareness:Despite the growing interest in dairy alternatives, consumer awareness remains low, with only 40% of the population familiar with available products. A survey by the Vietnam Food Association revealed that many consumers still associate dairy alternatives with inferior taste and nutritional value. This lack of awareness poses a significant barrier to market penetration, as companies struggle to educate potential customers about the benefits and variety of dairy alternatives available.

Vietnam Dairy Alternatives Market Future Outlook

The Vietnam dairy alternatives market is poised for significant growth, driven by increasing health consciousness and a shift towards plant-based diets. As consumer preferences evolve, companies are expected to innovate with new flavors and formulations, catering to diverse tastes. Additionally, the government's support for sustainable practices will likely enhance production capabilities. In future, the market is anticipated to witness a surge in e-commerce sales, making dairy alternatives more accessible to consumers across the country, further solidifying their market presence.

Market Opportunities

• Expansion of Distribution Channels:The growth of e-commerce platforms in Vietnam presents a significant opportunity for dairy alternative brands. With online grocery sales projected to reach $1.5 billion in future, companies can leverage digital channels to reach a broader audience, enhancing product visibility and accessibility. This shift is expected to drive sales growth by 30% as more consumers opt for online shopping.
• Development of New Flavors and Varieties:There is a growing demand for diverse flavors and formulations in the dairy alternatives market. By introducing innovative products, such as coconut yogurt and oat milk, companies can cater to evolving consumer preferences. This trend is supported by a market analysis indicating that 45% of consumers are willing to try new flavors, creating a lucrative opportunity for brands to expand their product lines and capture market share.