# Vietnam Edible Oil (2022-2027) --- ## Report Summary Gain insights into the Vietnam edible oil market size at USD 1,456.2 million by 2027, showcasing consumer demand, market segmentation, and competitive strategies shaping product diversification and health-based innovation. --- ## Vietnam Edible Oil Market Table of Contents Table of Contents - 1. Executive Summary - 1.1. Executive Summary: Vietnam Edible Oil Market - 2. Country Overview - 2.1. Country Demographics - 2.2. Vietnam Population Analysis - 2.3. Trade Scenario (By Value), 2018-2022 - 3. Vietnam Edible Oil Market Overview - 3.1. Business Cycle - 3.2. Vietnam Edible Oil Ecosystem - 3.3. Value Chain Analysis - 3.4. Overview of retail sector in Vietnam - 3.5. Cross Comparison of types of fats in oils - 3.6. Types of cooking oil – Cross Comparison, 2022 - 4. Industry Analysis of Vietnam Edible Oil Market - 4.1. Porter’s five forces analysis - 4.2. Swot Analysis - 4.3. Growth Drivers - 4.4. Growth Drivers Impacting Vietnam Edible Oil Market - 4.5. Technological Innovations in Indonesia Edible Oil Market - 4.6. Challenges Faced by Vietnam Edible Oil Market - 4.7. Marketing and Promotional Strategies - 5. Market Sizing and Segmentations - 5.1. Vietnam Edible Oil Market Size basis revenue generated and volume, 2018-2022 - 5.2. Market Segmentation on the basis of type of oil, 2022 - 5.3. Market segmentation on the basis of type of sales channel,2022 - 6. End User Analysis - 6.1. Cross Comparison between End Users - 6.2. End Users Decision Making Parameters - 6.3. Consumption and buying behavior of Vietnamese people, 2022 - 7. Competition Framework of Vietnam Edible Oil Market, 2022 - 7.1. Competitive Landscape, 2022 - 7.2. Market Share of major players in Vietnam Edible Oil Market, 2022 - 7.3. Cross Comparison between major edible oil companies in Vietnam, 2022 - 7.4. Product Landscape of Major Edible Oil Players in Vietnam, 2022 - 8. Future Outlook and Projections of the Industry, 2022-2027F - 8.1. Vietnam Edible Oil Future Market Size basis revenue generated and volume, 2022-2027F - 8.2. Market Segmentation on the basis of type of oil & mode of sales, 2027F - 9. Analyst Recommendations - 9.1. Best Practices to Achieve Success in Edible Oil Market - 9.2. Recommendations - 10. Research Methodology - 10.1. Market Definitions and Assumptions - 10.2. Abbreviations - 10.3. Market Sizing Approach - 10.4. Consolidated Research Approach - 10.5. Sample Size Inclusion - 10.6. Limitation and Future Conclusion - 11. Disclaimer - 12. Contact Us --- ## Vietnam Edible Oil Market Overview Vietnam Edible Oil Market Highlights The Vietnam Edible Oil Market reached USD 1,057.7 million in 2022, reflecting a historic CAGR of -1.4% during the period 2018–2022. Looking ahead, the market is projected to grow significantly, expected to reach USD 1,456.2 million by 2027 at a CAGR of 6.6% during the forecast period 2022–2027. Major companies operating in the market include Calofic, Tuong An, Kido Nha Be, Tan Binh, and A Long Food. Key growth drivers supporting this expansion include an increasing inclination towards healthier lifestyles, a growing population, the rapid development of Vietnam’s food industry, and the ongoing expansion of retail infrastructure across the country. *Vietnam Edible Oil Market reached USD 1,057.7 Mn in 2022. The CAGR during the historic period 2018-2022 was -1.4%.* --- ## Vietnam Edible Oil Market Definition ### Market Definition **Vietnam edible oil market** It is defined as the sum of the revenue of leading players that constitute major share in Indonesia. This includes only revenues generated from domestic sales of edible oils excluding revenue generated from exports and other third parties. **Monounsaturated fats** Monounsaturated fat is a type of dietary fat. It is one of the healthy fats, along with polyunsaturated fat. Monounsaturated fats are liquid at room temperature but start to harden when chilled **Trans fats** Trans-fat is a type of dietary fat. Of all the fats, trans fat is the worst for your health. Too much trans-fat in your diet increases your risk for heart disease and other health problems. **Saturated fats** Saturated fat is a type of dietary fat. It is one of the unhealthy fats, along with trans-fat. These fats are most often solid at room temperature. Foods like butter, palm and coconut oils, cheese, and red meat have high amounts of saturated fat. **Polyunsaturated fats** Polyunsaturated fats are usually liquid at room temperature and are referred to as “oils.” They’re found mostly in fatty fish, plant-based oils, seeds and nuts. **Supermarket** A supermarket is a self-service shop offering a wide variety of food, beverages and household products, organized into sections. **Hypermarket** A hypermarket is a large retail store that combines the features of a supermarket and a department store, offering a wide range of products, including groceries, household items, clothing, electronics, and more, all under one roof. **LDH** Lactate dehydrogenase is an enzyme that the body uses during the process of turning sugar into energy for your cells to use. **HDL** HDL (high-density lipoprotein) cholesterol, sometimes called “good” cholesterol, absorbs cholesterol in the blood and carries it back to the liver. **FFB** Palm oil is extracted from fresh fruit bunches (FFB) by a mechanical process. --- ## Taxonomy | ID | Parent ID | Label | | --- | --- | --- | | 1 | | Vietnam Edible Oil Market | | 2 | 1 | Type of Oil | | 3 | 1 | Mode of Sales Channel | | 4 | 1 | Type of Sales Channel | | 5 | 2 | Palm Oil | | 6 | 2 | Soy Oil | | 7 | 2 | Coconut Oil | | 8 | 2 | Peanut Oil | | 9 | 2 | Others (Rapeseed Oil, Sunflower oil, Olive Oil, Sesame, etc.) | | 10 | 3 | Retail E-Commerce | | 11 | 3 | Retail Offline | | 12 | 4 | Small Local Grocers | | 13 | 4 | Supermarkets | | 14 | 4 | Hypermarkets | | 15 | 4 | Convenience Stores | | 16 | 4 | Retail E-Commerce | --- ## Vietnam Edible Oil Market Ecosystem ### Market Ecosystem **Ecosystem for Vietnam Edible Oil Market** The ecosystem of Vietnam's edible oil market includes major players such as Calofic, Tuong An, Kido Nha Be, Tan Binh, and A Long Food. These companies lead the market by providing a variety of high-quality edible oils, catering to both domestic and commercial needs. Their strong distribution networks, innovative production techniques, and commitment to quality ensure they meet the growing demand for edible oils across Vietnam. --- ## Vietnam Edible Oil Market Segmentation ### Vietnam Edible Oil Market Segmentation by Type of Oil, 2022 (in %) The Vietnam edible oil market features a diverse mix of oil types catering to different consumer preferences. Palm oil dominates with a market share of 67.8%, valued for its versatility in cooking and widespread availability. Soy oil follows at 18.7% and is the second most popular, as it has been catching consumers’ attention due to it being perceived as good for cardiovascular health. Coconut oil holds a significant share of 12.3%, favored for its unique flavor and various culinary applications. Peanut oil, although less common, occupies 1.0% of the market and is appreciated for its distinct taste in certain dishes. Other oils such as rapeseed, sunflower, olive, and sesame collectively make up only 0.3% of the market due to their niche uses and relatively lower popularity. Palm oil's dominance is supported by its affordability, versatility, and widespread use in both household and commercial cooking applications, making it a staple in Vietnamese cuisine. ### Vietnam Edible Oil Market Segmentation by Mode of Sales Channel, 2022 (in %) In the Vietnam edible oil market, sales occur through two modes: retail e-commerce and retail offline. Retail offline, encompassing physical stores like supermarkets and convenience stores, holds a dominant market share of 98.1%. This preference for offline shopping is rooted in traditional consumer habits, as Vietnamese shoppers often prefer to personally inspect and purchase products in-store. Moreover, offline retailers have built trust and rapport with customers over time. Conversely, retail e-commerce, with a smaller market share of 1.9%, faces challenges such as limited internet access in certain areas and concerns about product authenticity. The dominance of retail offline reflects the prevailing consumer behavior and market dynamics in Vietnam. ### Vietnam Edible Oil Market Segmentation by Type of Sales Channel, 2022 (in %) In Vietnam's edible oil market, sales channels vary across different platforms. Small grocers stand out as the dominant player, commanding an impressive 87.9% market share. This is largely due to their extensive presence across the country, offering convenience to consumers in both urban and rural areas. Moreover, many Vietnamese consumers prefer shopping at small grocers due to the personalized service and familiar environment they provide. Supermarkets and hypermarkets follow, holding 6.7% and 5.0% market shares respectively, appealing to those seeking a wider range of products and a more modern shopping experience. Meanwhile, convenience stores and e-commerce platforms hold smaller market shares of 0.3% and 0.1% respectively, reflecting their limited reach and niche appeal in the Vietnamese market. Overall, the dominance of small grocers underscores their significance as a primary sales channel for edible oils in Vietnam. --- ## Vietnam Edible Oil Market Industry Analysis ### Porter’s Five Force Analysis of Vietnam Edible Oil Market **Threat of New Entry** New Companies like Wilmar International plans to expand which increases the local threat. Companies adopt innovations like developing healthy & nutritious cooking oil increasing the competition in the industry. **Power of Buyer** Buyers seek cooking oil that promotes heart health & helps manage obesity. Buyers in Vietnam tend to be price sensitive. Also, the availability of alternatives makes the bargaining power of buyers moderate. **Threat of Substitution** There are different types of oils available for cooking like Mustard oil, Olive oil, peanut oil, etc. Thus, the threat of substitutes is low. **Power of Suppliers** A small number of suppliers dominate the market limiting buyers' alternatives. Suppliers with well-known & trusted brands have an advantage. Vietnam is highly dependent on Indonesia & Malaysia for importing palm oil thus making the power of suppliers high. **Competitive Rivalry** The competitive rivalry among industry leaders is rather intense. Companies like Calofic, Tuong An Oil & more launch value-added services to strengthen their footprint. Therefore, competitive rivalry in the market is high. ### SWOT Analysis of Vietnam Edible Oil Market **Opportunity:** Government's support in expanding and modernizing domestic edible oil production facilities. The growing popularity of e-commerce is opening up new channels for Vietnamese edible oil producers to reach consumers. The ASEAN Economic Community (AEC) is creating a single market for goods and services in Southeast Asia, which will present new opportunities for Vietnamese edible oil producers to export their products to other ASEAN countries. **Strength:** Vietnam is a major agricultural producer & has large land area suitable for growing oilseeds such as soybeans & rapeseed. The country has a growing population & rising middle class with increasing awareness of the health benefits of healthy fats which is driving demand for edible oils. The government is investing in research & development to improve crop yields and quality. **Threat:** Vietnamese producers face stiff competition from international players like Wilmar International, which has invested in facilities for palm oil production. Climate change is another threat, as it can lead to crop failures & supply chain disruptions which give rise to price fluctuations. Increasing consumer awareness of the environmental impact of palm oil is leading to some consumers boycotting the product. **Weakness:** Vietnam is a net importer of edible oils & is therefore vulnerable to global price fluctuations. The industry is fragmented, with a large number of small-scale producers. This makes it difficult to achieve economies of scale and compete with larger international players. There is a lack of modern processing and storage facilities, which leads to high product wastage. ### Growth Drivers of Vietnam Edible Oil Market **Inclination towards healthy lifestyle** Health consciousness is a significant driver of the Vietnam edible oil market, with consumers increasingly prioritizing healthier cooking options. There has been a notable rise in awareness regarding the health benefits of specific oils, such as olive oil and those rich in omega-3 fatty acids. Import data indicates a substantial increase in the consumption of healthier oils like olive oil, with imports reaching 28.5 thousand metric tons in 2020. This trend is further influenced by the growing prevalence of lifestyle-related health conditions, prompting consumers to make more informed choices about their dietary habits. Consequently, there is a heightened demand for healthier cooking oils in Vietnam, prompting market growth and encouraging manufacturers to expand their offerings to include a broader range of healthier options. **Growing Population** Population growth is a significant driver of the Vietnam edible oil market. Vietnam's population has steadily increased over the years, reaching over 99 million people in 2022, from around 93 million in 2016 according to the World Bank. This growth creates a larger consumer market for edible oils, as more households require cooking oils for their daily meals. Additionally, Vietnam's population growth rate was approximately 0.9% annually from 2010 to 2020, as reported by the General Statistics Office of Vietnam. Urbanization often accompanies population growth, further boosting demand due to changing lifestyles and dietary preferences. With a growing population, the demand for edible oils is expected to continue rising, driving market growth and presenting opportunities for manufacturers and retailers to cater to the needs of Vietnamese consumers. **Growth of Vietnam Food Industry** The growth of Vietnam's food industry significantly influences the demand for edible oils. According to the Ministry of Industry and Trade of Vietnam, the sector's value-added output expanded at an annual rate of 8% between 2010 and 2022. This growth is driven by economic development, urbanization, and shifting consumer preferences. Moreover, the food processing industry contributes substantially to Vietnam's GDP, accounting for around 15%. This underscores its importance in the national economy and its role in driving demand for edible oils. As the food industry continues to prosper, the need for edible oils as essential ingredients in food processing will likely increase, presenting opportunities for market expansion and business growth. **Retail Expansion** Retail expansion in Vietnam has significantly bolstered the growth of the edible oil market. The country witnessed a notable surge in modern retail outlets like supermarkets and hypermarkets, surpassing 800 establishments by 2020. This proliferation offers consumers widespread access to diverse edible oil options. Urbanization and evolving consumer preferences towards convenient shopping experiences have largely propelled this expansion. Additionally, the emergence of online retail channels has further democratized access to edible oils nationwide. Notably, Vietnam's retail sector demonstrated robust performance, with its value-added output increasing by 8.3% in 2019, as reported by the Ministry of Industry and Trade of Vietnam. This data underscores the dynamic retail landscape in Vietnam and its profound influence on edible oil consumption patterns. ### Challenges in Vietnam Edible Oil Market **Dependence on Imports** Relying on imports means the market is vulnerable to disruptions in the global supply chain like shipping delays, trade disputes, or geopolitical conflicts. For eg, Indonesia, the largest palm oil exporter, banned palm oil export in 2022 leading to rise in its prices. **Lack of Technology and Infrastructure** A lack of infrastructure, including storage facilities, transportation networks & distribution channels can lead to delays, losses, and increased costs along the supply chain. Thus, upgrading processing facilities, expanding storage capacity, and promoting research and innovation can enhance the competitiveness. **Urbanization and Dietary Shifts** As urbanization increases in developing countries, dietary habits and traditional meal patterns are expected to shift towards processed foods that have a high content of vegetable oil. Vegetable oil consumption in Vietnam is, therefore, expected to remain high due to high population growth and consequent urbanization. **Vulnerability to Climate Change** Scientists found that the change in yields is due to projected increases in temperature, shifts in rainfall patterns, and elevated surface carbon dioxide concentrations from human-caused greenhouse gas emissions. These changes would make it more difficult to grow maize in the tropics. ### Government Regulations and Initiatives **National Food Security Strategy (2011)** This strategy aims to bolster food security by promoting domestic production and enhancing access to safe and nutritious food. It includes measures such as: - Investment in agricultural infrastructure, with an allocated budget of USD 500 million over five years. - Support for smallholder farmers through subsidized loans and training programs, benefiting over 2 million farmers annually. - Implementation of technology-driven agricultural practices, resulting in a 20% increase in crop yields by 2025. **Vietnam Sustainable Agriculture Transformation Project (2017)** Supported by the World Bank with a funding of USD 200 million, this project focuses on sustainable agriculture practices and market access. Key initiatives include: - Adoption of climate-smart agriculture techniques, leading to a 15% reduction in greenhouse gas emissions from agriculture. - Development of 500 Farmer Producer Organizations (FPOs) to strengthen farmer's bargaining power and increase their income by 30%. - Establishment of 100 modern agro-processing facilities, facilitating market linkages and increasing agricultural exports by 25%. **National Action Plan for Food Safety (2018-2025)** This action plan commits USD 100 million for enhancing food safety standards and practices. It encompasses: - Strengthening food safety inspection systems with the establishment of 50 specialized inspection teams across the country. - Launching nationwide public awareness campaigns, reaching over 10 million consumers annually through educational programs and workshops. - Implementing a digital food traceability system, enabling real-time tracking of food products from farm to fork, covering 80% of the market by 2025. **Vietnam Food Industry Development Strategy (2020)** This strategy allocates USD 1 billion for the development of the food industry. It includes: - Incentives for food processing companies, such as tax breaks and subsidies, leading to a 20% increase in foreign direct investment in the sector. - Establishment of 10 Food Innovation Hubs to foster research and development in food technology, resulting in the launch of 100 new food products annually. - Collaboration with international partners to promote Vietnamese food products in global markets, targeting a 30% increase in food exports by 2025. **Food Safety Law Amendment (2021)** This amendment introduces stricter regulations and penalties to ensure food safety. It includes: - Imposition of fines up to USD 100,000 for violations of food safety standards, resulting in a 50% reduction in foodborne illness cases by 2025. - Mandatory certification for food importers and exporters, leading to a 40% decrease in the importation of unsafe food products. - Establishment of a Food Safety Authority with a dedicated budget of USD 50 million for enforcing food safety regulations and conducting research on emerging foodborne pathogens. --- ## Company Profile of major players of India Edible Oil Market | Year | Company | Description | | --- | --- | --- | | 1996 | Calofic | CALOFIC Corporation (CALOFIC) is the joint venture between Vietnam Vegetable Oils Industry Corporation (VOCARIMEX) and Wilmar International Group, Singapore. The venture began in 1996, with an investment that started at USD 22 million and has since increased to USD 261 million. CALOFIC is one of the most successful joint venture companies across Vietnam and has spearheaded the manufacturing and processing of vegetable oils in the country. Since establishment, product quality is the driving force behind CALOFIC, with continual improvements in processing and investments in new technologies. | | 1996 | Tuong An | A Vietnamese company with 45 years of experience, Tuong An always acknowledges the strict requirements of Vietnamese culinary arts when it comes to great dishes. For that reason, Tuong An constantly invests in its state-of-the-art refining production line and combines it with traditional know-how to provide its customers with excellent cooking oils to create excellent dishes. | | 1996 | Kido Nha Be | KIDO Corporation was established in 1993 and has become one of the leading Food & Flavor companies in Vietnam. In its 22-year history, KIDO Group has remained the market leader in confectionery across a wide array of products such as confectionery, cookies and ice - cream under the KIDO brand name. In 2015, aiming to expand and develop into essential food, KIDO Group was officially established. By promoting existing platforms, KIDO continues to maintain and develop its leading position in the frozen industry with Ice-Cream, Milk & Dairy products and expands its product portfolio to the food and beverage industry mainly with cooking oil, instant noodles, seasoning seeds, sauces, coffee, convenient packaged foods. to take care of Vietnamese family kitchens and meet customers’ needs throughout the day. | | 1996 | Tan Binh | Tan Binh Vegetable Oil Joint Stock Company with more than 50 years of construction and development, the products are manufactured on modern equipment lines and production technology imported from advanced countries such as Japan, USA, Germany. Up to now, the company has a total capacity of 70,000 tons/year. All products are produced on modern machinery and equipment, undergo rigid quality control process that ensure only the best to be delivered to our customers. | | 1996 | An Long Food | An Long's factory is also the company's headquarters located in Long Dinh - Long Cang industrial cluster, Long An province, with an area of nearly 3 hectares of land for construction with a capacity of 700 tons/day, always ensuring to meet the needs of consumers on a variety of products. ALF’s distribution network is nationwide, with more than 200 domestic distributors and nearly 3000 points of sale, which makes it easy for ALF to connect with customers | --- ## Vietnam Edible Oil Market by Future Market Size ### Vietnam Edible Oil Market by Future Market Size Revenue, 2022-2027 (in USD Mn) The Vietnam edible oil market is anticipated to experience significant growth, with projections indicating an increase from USD 1057.7 Mn in 2022 to USD 1456.2 Mn by 2027. This growth, projected at a CAGR of 6.6% during the forecast period 2022–2027, is driven by various factors. Health-conscious consumers are expected to continue driving demand for healthier edible oils, such as those with low saturated fats, high monounsaturated fats, and omega-3 fatty acids. Companies like Tuong An and Tanh Binh would focus on educational marketing to educate consumers about the nutritional aspects and applications of their edible oils. Calofic is to expand digital marketing and e-commerce platforms to reach tech-savvy consumers, with e-commerce revenue expected to grow at a CAGR of ~12% during 2023–2027. The anticipated highest annual growth of 8.4% in 2027 suggests a sustained upward trend, likely fueled by ongoing economic development, urbanization, and a growing emphasis on healthier lifestyles among Vietnamese consumers. --- ## Vietnam Edible Oil Market Macroeconomic Indicators ### Population of Vietnam, 2014-2022, in Million The population of Vietnam reached 99.5 million in 2022 as compared to 90.7 million in 2014. The population growth in Vietnam continuously grew at a constant rate in past years. ### Overview of Land Area in Vietnam (in Sq. Km), 2022 The total land area in Vietnam was 313,429 Sq. Km in 2022. Out of this total area the agricultural land area is 147,311.6 Sq. Km. and forest area is 123,491.0 Sq. Km. ### Major Agricultural region in Vietnam The major agricultural region in Vietnam are Red River delta and Mekong River Delta. Rice is considered as the most important crop in Vietnam and it is grown principally in Red and Mekong River Deltas. ### Vietnam GDP, 2014-2022, in Bn USD The GDP of Vietnam reached USD 408.8 Bn in 2022 from USD233.45 Bn in 2014. The GDP grew with a constant rate throughout the time period 2014-2022. --- ## Frequently Asked Questions Find quick answers to common questions about Vietnam’s growing edible oil market **Q: How big is Vietnam Edible Oil Market?** A: Vietnam Edible Oil Market reached USD 1,057.7 Mn in 2022. The CAGR during the historic period 2018-2022 was -1.4%. **Q: Which major companies involved in Vietnam Complex NPK Fertilizer Market?** A: Calofic, Tuong An, Kido Nha Be, Tan Binh, and An Long Food are some of the major players in the Vietnam Edible Oil Market. **Q: Which factors are driving Vietnam Complex NPK Fertilizer Market?** A: Inclination towards a healthy lifestyle, growing population, growth of Vietnam food industry, and retail expansion are some of the major growth drivers of Vietnam Edible Oil Market. **Q: What is the future of Vietnam Complex NPK Fertilizer Market?** A: The Vietnam Edible Oil Market is Expected to reach USD 1,456.2 Mn by 2027 with a CAGR of 6.6% during the forecast period 2022-2027.