Packaged Food - Vietnam: Euromonitor International: Country Market Insight November 2010

Packaged Food - Vietnam
Euromonitor International : Country Market Insight November 2010
Packaged Food
Vietnam
List of Contents and Tables

PACKAGED FOOD IN VIETNAM..............................................................................................1
Executive Summary..............................................................................................................................1 Brighter Economic Outlook Drives Growth.......................................................................................1 Health and Wellness Emerge, While Food Safety Remains Hot Topic................................................1 Intense Competition Between Local and International Players..........................................................1 the Important Role of Distribution Network.......................................................................................1 Expected Strong Future Sales Growth...............................................................................................1 Key Trends and Developments...........................................................................................................1 Environmental Concern Increases.....................................................................................................1
Current Impact...............................................................................................................2 Outlook...........................................................................................................................2 Future Impact.................................................................................................................2

Health and Wellness Continues As A Big Trend.................................................................................2

the Government Promotes Local Products.........................................................................................3

Mergers and Acquisitions on the Rise................................................................................................4

the Development of Modern Retailing................................................................................................5

Market Data..........................................................................................................................................6 Table 1 Sales of Packaged Food by Category: Volume 2005-2010............................................6 Table 2 Sales of Packaged Food by Category: Value 2005-2010...............................................7 Table 3 Sales of Packaged Food by Category: % Volume Growth 2005-2010..........................7 Table 4 Sales of Packaged Food by Category: % Value Growth 2005-2010..............................8 Table 5 GBO Shares of Packaged Food 2005-2009....................................................................8 Table 6 NBO Shares of Packaged Food 2005-2009....................................................................9 Table 7 NBO Brand Shares of Packaged Food 2006-2009.......................................................10 Table 8 Penetration of Private Label by Category 2005-2009..................................................11 Table 9 Sales of Packaged Food by Distribution Format: % Analysis 2005-2010...................11 Table 10 Sales of Packaged Food by Category and Distribution Format: % Analysis 2010....12 Table 11 Forecast Sales of Packaged Food by Category: Volume 2010-2015.........................13 Table 12 Forecast Sales of Packaged Food by Category: Value 2010-2015.............................14 Table 13 Forecast Sales of Packaged Food by Category: % Volume Growth 2010-2015........14 Table 14 Forecast Sales of Packaged Food by Category: % Value Growth 2010-2015...........15 Foodservice Key Trends and Developments................................................................................15 Headlines........................................................................................................................................15 Trends.............................................................................................................................................16 Competitive Landscape....................................................................................................................16
Euromonitor International
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Packaged Food
Vietnam
Prospects.........................................................................................................................................16 Category Data.................................................................................................................................17 Table 15 Foodservice Sales of Packaged Food by Category: Volume 2005-2010...................17 Table 16 Foodservice Sales of Packaged Food by Category: % Volume Growth 2005-2010..18 Table 17 Forecast Foodservice Sales of Packaged Food by Category: Volume 2010-2015.....18 Table 18 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2010-2015.........................................................................................................19 Impulse and Indulgence Products Key Trends and Developments..........................................19 Headlines........................................................................................................................................19 Trends.............................................................................................................................................20 Competitive Landscape....................................................................................................................20 Prospects.........................................................................................................................................21 Category Data.................................................................................................................................21 Table 19 Sales of Impulse and Indulgence Products by Category: Volume 2005-2010...........21 Table 20 Sales of Impulse and Indulgence Products by Category: Value 2005-2010..............22 Table 21 Sales of Impulse and Indulgence Products by Category: % Volume Growth 20052010..................................................................................................................22 Table 22 Sales of Impulse and Indulgence Products by Category: % Value Growth 2005-2010 ..........................................................................................................................22 Table 23 Company Shares of Impulse and Indulgence Products 2005-2009............................23 Table 24 Brand Shares of Impulse and Indulgence Products 2006-2009..................................23 Table 25 Forecast Sales of Impulse and Indulgence Products by Category: Volume 2010-2015 ..........................................................................................................................24 Table 26 Forecast Sales of Impulse and Indulgence Products by Category: Value 2010-201525 Table 27 Forecast Sales of Impulse and Indulgence Products by Category: % Volume Growth 2010-2015.........................................................................................................25 Table 28 Forecast Sales of Impulse and Indulgence Products by Category: % Value Growth 2010-2015.........................................................................................................25 Nutrition/staples Key Trends and Developments........................................................................25 Headlines........................................................................................................................................26 Trends.............................................................................................................................................26 Competitive Landscape....................................................................................................................26 Prospects.........................................................................................................................................27 Category Data.................................................................................................................................27 Table 29 Sales of Nutrition/Staples by Category: Volume 2005-2010.....................................27 Table 30 Sales of Nutrition/Staples by Category: Value 2005-2010........................................28 Table 31 Sales of Nutrition/Staples by Category: % Volume Growth 2005-2010....................28 Table 32 Sales of Nutrition/Staples by Category: % Value Growth 2005-2010.......................28 Table 33 Company Shares of Nutrition/Staples 2005-2009......................................................29 Table 34 Brand Shares of Nutrition/Staples 2006-2009............................................................30 Table 35 Forecast Sales of Nutrition/Staples by Category: Volume 2010-2015.......................31 Table 36 Forecast Sales of Nutrition/Staples by Category: Value 2010-2015..........................31 Table 37 Forecast Sales of Nutrition/Staples by Category: % Volume Growth 2010-2015.....31 Table 38 Forecast Sales of Nutrition/Staples by Category: % Value Growth 2010-2015........32 Meal Solutions Key Trends and Developments...........................................................................32 Headlines........................................................................................................................................32 Trends.............................................................................................................................................32 Competitive Landscape....................................................................................................................33 Prospects.........................................................................................................................................33 Category Data.................................................................................................................................34 Table 39 Sales of Meal Solutions by Category: Volume 2005-2010........................................34
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Table 40 Sales of Meal Solutions by Category: Value 2005-2010...........................................34 Table 41 Sales of Meal Solutions by Category: % Volume Growth 2005-2010.......................34 Table 42 Sales of Meal Solutions by Category: % Value Growth 2005-2010..........................35 Table 43 Company Shares of Meal Solutions 2005-2009.........................................................35 Table 44 Brand Shares of Meal Solutions 2006-2009...............................................................36 Table 45 Forecast Sales of Meal Solutions by Category: Volume 2010-2015..........................37 Table 46 Forecast Sales of Meal Solutions by Category: Value 2010-2015.............................37 Table 47 Forecast Sales of Meal Solutions by Category: % Volume Growth 2010-2015........38 Table 48 Forecast Sales of Meal Solutions by Category: % Value Growth 2010-2015...........38 Definitions............................................................................................................................................38 Summary 1 Research Sources....................................................................................................39
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PACKAGED FOOD IN VIETNAM

EXECUTIVE SUMMARY
Brighter Economic Outlook Drives Growth
Packaged food in Vietnam continued to develop in 2010. Potential growth was more optimistic than ever due to the continuous signs of the economic recovery which included a higher GDP growth. In addition to consumers confidence in spending quickly returning, continuously growing personal incomes and rapid urbanisation both drove up sales value of not only necessities such as sauces, dressings and condiments but also indulgence and premium segments such as confectionery, ice cream and sweet savoury snacks. Moreover, the constant spreading of modern lifestyles and Western-influenced culture opened up huge potential growth for untraditional food such as cheese, pasta and ready meals.
Health and Wellness Emerge, While Food Safety Remains Hot Topic
Consumers are becoming more conscious of the food and ingredients that they eat. Products with additional content such as Vitamin, Omega-3, iodine, pre/pro biotic sold fast which led to further launches of new healthbenefited products in all segments. Furthermore, negative experiences from a series of food quality and safety scandals towards the end of the review period made consumers more cautious about the nutritional content of food products.
Intense Competition Between Local and International Players

Even though local companies still hold their ground firmly in some segments such as sauces, dressings and condiments, dairy and snacks, foreign players are making their moves. The unit price increase is less volatile due to increasing consumption power and dense participation make packaged food a much more competitive environment. Thus, manufacturers, local and international alike, are enforcing their marketing activities as well as investing heavily in new product development and quality management to attract consumers and boost sales growth.
the Important Role of Distribution Network

Distribution network has become a key factor for companies success, particularly in packaged food. It has been proven that a widespread and effective distribution system can increase the market coverage of the product, make it more accessible for consumers and certainly raise brand awareness. Apart from the traditional retail channels, modern channels such as supermarkets/hypermarkets and convenience shops are the focus of companies when it comes to product launches or promotional campaigns. To expand packaged food to new areas, various methods are employed by manufacturers including building up their own sales agent system or cooperating with regional wholesalers.
Expected Strong Future Sales Growth

Packaged foods sales value is predicted to continue growing strongly over the forecast period. Even though some segments such as rice and sauces, dressings and condiments may reach their maturity soon, an improved economic outlook will help key areas such as dairy and confectionery perform well, while urbanisation pushes market expansion plans forward and increases the speed of expansion. Convenience and indulgence food products will robustly grow and enhance the whole industrys performance.
KEY TRENDS AND DEVELOPMENTS

Environmental Concern Increases
The environmental concern is a rising issue among consumers in Vietnam which deeply affects companies reputation and sales growth in many industries, including packaged food. In recent years, public media and the
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government started several campaigns to raise consumers awareness about serious environmental problems caused by the rapid industrialisation and their long-term negative impacts on the land and the community as a whole. This led to changes in perception and actions from consumers, manufacturers and governments toward the issue. In 2008, a scandal related to Vedan (Vietnam) Enterprise Corp Ltd broke out and greatly affected packaged food in many ways. In order to reduce costs and increase profit, Vedan recklessly discharged its production waste into the nearby Thi Vai river in Dong Nai province without any filtering process over a long period of time, which led to water pollution and toxic poisoning and serious health deterioration of all people living by the river. The scandal continued to be one of the hot topics in Vietnam in 2010, as more and more people living nearby the river sued the company and demanded compensation for the effects it caused on their health. Current Impact In the Vedan case, which was filed to legal court, the company had to pay out large fines and remuneration for the affected victims. Until the case is cleared and all the final actions are made, Vedans production and sales are very much restricted. From being the leader in monosodium glutamate (MSG), it saw its sales dropping by three times from 2008 to 2010 as many people boycotted the brand, while many big retailers refused to carry the companys products. On the other hand, its main competitor Ajinomoto Vietnam Co Ltd, with its excellent Environment Management System (EMS) was awarded by the Ministry of Natural Resources and Environment in 2009 for its great efforts on protecting and improving the environment. Thus, Ajinomoto got consumers attention amidst the Vedans crisis and continued taking over Vedans share in 2008 and 2009. The Vedan scandal rang an alarming bell and made manufacturers realise that the products price and quality were not the only most important features to capture sales, but also their image and corporate social responsibility. Outlook As consumers are becoming better educated about environmental issues and the impact on their lives, this trend is expected to grow even stronger in the future. Since the participation in packaged food is generally intense with increasing numbers of brands, consumers have many choices to make. Thus, their decision factors also grow from more than just quality and price but also to brand and company image. Furthermore, the Vietnamese government is planning to build up a solid environmental law to have better control over environment-related activities of companies in general. The environmental issue, hence, is expected to become a critical factor to either reinforce or damage companies reputations in the future. Future Impact Since the government and consumers concern about environmental issues will continue to grow, manufacturers are anticipated to take this into their business strategies and turn it into a competitive advantage. In an effort to become more environmentally friendly, companies will invest strongly in the waste filtering/discharging technology, one example being the EMS (Environment Management System) by Ajinomoto. Their environment-related activities will be revealed publicly to gain consumers affection and support. Marketing activities, particularly advertisements can be used as a tool to increase the companys reputation in protecting and improving environment. Green food products are expected to become more popular among consumers in the near future.
Health and Wellness Continues As A Big Trend

Consumer awareness for health and wellness is growing. As the economy continues to improve and people have higher disposable income, they will be able to afford better products, and thus start to look at the nutritional value of the products they purchase instead of just taste and price.
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In 2010, this trend continued to rise strongly, especially in the big cities such as Ha Noi and Ho Chi Minh, where people are more educated about food nutrition and can afford more expensive products than other areas in the country. Regular health and nutrition programmes were aired on television, and articles were seen in many newspapers constantly helping to keep this trend on top of packaged foods hot topics. Current Impact In general, consumers now pay more attention to products labelling to learn about their nutritional content. Information on calorie, fat and sugar is usually paid the most attention to as consumers are generally worried about long-term health effects, such as diabetes or obesity. Meanwhile, fortified nutrients for extra health benefits, such as vitamins, omega-3 or minerals, are gaining consumers preference since they are perceived to help prevent sickness in the long-term. Following this trend, some manufacturers took action to put additional nutritional ingredients in their existing products, or to develop new products with enhanced nutritional value. For example, Vietnam Dairy Products VSC (Vinamilk), the leader in yoghurt, was the first company to add pre biotic ingredients in most of its spoonable and drinking yoghurt products in 2007 and 2008, and has since earned consumers increasing trust and loyalty. Another good example is Acecook Vietnam JSC with its newly launched De Nhat cooking oil in 2009, which is fortified with omega-3 and vitamin A. This product was advertised to be beneficial for the heart and eyes, and recorded good success during its first year of being launched. Outlook Driven by rising incomes and the desire for better living standards, the health and awareness trend in Vietnam is expected to move along with the global trend and continue developing further in the future. As most consumers will have better education, together with continuous efforts from the government and manufacturers to raise peoples awareness about health issues, they are expected to have better and more sophisticated knowledge about health and wellness, and have higher demand for these products. The target market of this trend, in the short-run, however would remain limited to the major cities, such as Ho Chi Minh and Ha Noi. It is because, firstly, they are more highly educated and accessible to updated information about health from various forms of media, including the internet. Secondly, higher disposable income also allows them to afford premium products with extra health benefits. Future Impact Although health and wellness products are still very much a niche area in Vietnam, rising consumer awareness for this trend opens up new opportunities for the manufacturers. More competition venue will be created, and the brands will have more ways to differentiate themselves rather than just taste or price. Thus, industry players are expected to be active to catch the consumer trends and realise what they need in order to launch products that satisfy the correct demand. However, as products with additional nutrition are in general considered more premium than other products, manufacturers must be cautious with the prices they charge. Although consumers are willing to pay the extra money for more nutrition and better quality, price is still one of their top considerations when making a purchasing decision. Thus, it is very important not to over-price a product, or it might result in failure no matter how nutritious it is.
the Government Promotes Local Products

At the beginning of 2009, the Vietnamese government initiated a nationwide campaign called Vietnamese consumers use Vietnamese products to promote the consumption of local brands to support the local manufacturers in the competition with their foreign counterparts. The campaign was carried out with exhibition events introducing good quality local brands, which constantly moved from one province to another in order to reach as many consumers as possible, especially those in smaller towns and rural areas, who had less access to packaged food products. As these shows were mostly supported and funded by the government, they drew lots of participation from the local manufacturers, even those smaller ones which usually could not afford to attend other trade events.
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In conjunction with the campaign, many supermarkets/hypermarkets, local and foreign chains alike, placed many promotions and discount programmes for local brands to capture consumer attention while local brands were in the spotlight. This further added to the effectiveness of the campaign. Current Impact The campaign began during the economic crisis when consumers were tightening their budgets, which appeared to be the right timing that contributed to its success. As many of the local brands had cheaper prices than their foreign competitors, yet of similar quality, they, aided by various promotion programmes from the government and retailers, captured consumers favour successfully. Many big supermarkets/hypermarkets and chains, such as Big C, Fivimart and Hapromart announced in local newspapers that local products in their stores increased to about 70% of all goods by the end of 2009. It was observed that local products tended to perform better in some categories than others, such as confectionery, snacks, or frozen processed food. Outlook Although already lasting for more than a year, the programme continued into mid-2010, as the trade shows continued to move further to more remote areas to promote and introduce local products to more consumers. Differing from the same events in big cities, which focused on promoting local brands as a cheaper, yet similar quality, alternative to multinational brands, these trade shows in small towns and rural areas focused on promoting local brands such as high quality, yet affordable, alternatives to the cheaper products from China. Future Impact As the programme continues to spread out wider in the country, its effect is also expected to expand gradually. However, its effectiveness might vary across different regions and industries. The campaign might be more successful in the rural areas, where local brands have to compete with unbranded products from China, which are usually cheaper. Thus, with the governments promotion, these consumers might realise the benefit of using local brands, which are usually more strictly controlled in their quality and manufacturing standard. On the other hand, local brands might face more difficulty in the urban areas, where consumers have a lot more choices from the multinational players. As the economic crisis eases off and consumer confidence starts to increase again, these multinational brands also become more affordable, which present more threats to the local brands, which usually compete on price. From this campaign, it can be observed that the consumers generally prefer local brands, or brands with a local image. One example is the various commercials using traditional customs and local image to attract consumers that can be seen more and more on television during 2009/2010. Thus, for foreign brands to compete with the local brands more effectively, they should find ways to localise themselves. One successful example is Knorr stock cube by Unilever Vietnam International Co Ltd. The brand always emphasises Vietnamese traditions in its advertising, which is one of the factors contributing to its leading success in stock cubes over many years.
Mergers and Acquisitions on the Rise

In the crowded and highly competitive environment of packaged food in Vietnam, mergers and acquisitions were some of the ways manufacturers looked at to expand their business, and they occurred more than ever in 2009/2010. The most dynamic company could be Vietnam Dairy Products JSC (Vinamilk). The company bought out Lam Son Milk Co Ltd in May, and F&N Vietnam Food Co Ltd in June 2010. International Consumer Products Corp (ICP), another big player in the local FMCG industry, acquired Thuan Phat Food Processing & Trading Co, one of the major players in sauces, dressings and condiments in late 2009 only after three months of negotiation. Current Impact ICP was already a well-known company in other FMCG industries in Vietnam, such as beauty and personal care. Its acquisition of Thuan Phat, one of the leading players in fish sauce, helped it put the first step to its expansion in the local packaged food industry and also strengthen its popularity. The deal leveraged on the strength of both companies, as Thuan Phat already had a good brand name, while ICP had a very strong distribution network throughout the country. Thus, it is expected to bring success to both players in the longterm.
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On the other hand, Vinamilk was already a major player in packaged food and its brand image and has been well-known and trusted by many consumers for years. Thus, its acquisition of Lam Son and F&N Vietnam would serve as an expansion to its production capability, which will also help Vinamilks growth in the longterm. Outlook As packaged food becomes ever more crowded with many medium and small players, there are more opportunities for merger and acquisition activities in the near future. Large companies, domestic and multinational alike, would view these activities as a quick and efficient way to expand their business. For new foreign companies, acquiring a local company would be the first step to help it localise and understand the domestic environment better. Other kinds of company activities, such as joint ventures and strategic alliances, will also increase in the near future as companies realise the potential when they leverage on each others strengths. Future Impact As more and more companies look into the potential of merging or acquiring other players, packaged food is expected to be very dynamic in the near future. Segments which are more fragmented, such as sauces, dressings and condiments, as well as confectionery and snacks, are expected to notice more chances of these activities taking place. There are also opportunities in the more consolidated segments, when the top players absorb smaller players to increase their market coverage, such as in the case of Vinamilk above.
the Development of Modern Retailing

Vietnam is seeing a strong rise in modern retail channels, such as supermarkets/hypermarkets and food/drink specialist retailers. This trend is clearly observed in big cities, such as Ho Chi Minh, Ha Noi and Da Nang. The share of sales value from these channels in the whole retailing industry continues to increase year by year. Consumers prefer them over the traditional channels because of their great shopping environment, clear products information of safety and origin, and better customer service. Some products, such as chilled processed food and cheese are even more exclusively distributed through supermarkets/supermarkets or food specialist retailers and seldom found in traditional grocery retailers. On the other hand, traditional retail channels, such as wet market and independent grocery stores still play the dominant role in suburban and rural areas, which could be attributed mostly to underdeveloped infrastructure and lack of consumer demand. Current Impact With the ever-changing retailing conditions in Vietnam, manufacturers need to understand local packaged food in order to have the right distribution strategy for success. One strategy that many manufacturers adopted in 2009/2010 was on-site promotion in supermarkets/hypermarkets. Besides the usual press advertisements and television commercials, taste tests were carried out fairly often as a direct way to promote food products to the mass consumers. For instant, Agrex SaiGon frozen processed food by Saigon Export Foodstuffs and Agricultural Products JSC and Lisa Mayonnaise by Ajinomoto Vietnam Co Ltd were some of the brands that were promoted frequently in big supermarkets throughout the country. On the other hand, expansion strategy was quite different in the rural areas, where traditional retailers were still dominant. In these areas, word-of-mouth remained by far the most effective marketing tool, and manufacturers had to rely on them in order to be successful. Thus, companies needed to have good commission schemes and maintain good relationships with the independent retailers as they were the ones that directly affected their products sales. Outlook Although traditional retailing will continue to dominate packaged food as a whole, modern retailing will gradually take over traditional retailers share in the near future. Rapid urbanisation will gradually smudge the
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disparity between urban and rural areas, and make the rural areas a more promising market as large cities become more and more saturated. Modern retailing, such as supermarkets/hypermarkets and food/drink specialist retailers, is expected to spread to suburban areas and newly developed cities and towns, which will definitely help manufacturers to increase their products availability and have better management over the distribution process. Future Impact The development of modern retailers in Vietnam will be an ideal environment to cultivate the growth of packaged food, since many food products are quickly perishable and require great conditions of preservation to maintain products quality and protect consumers health. Promotional campaigns and further point-of-sale activities will be carried out more often at these retail outlets because of the regular large and diversified consumer group. On the other hand, traditional retailers will continue to play an important role in the whole market as they are usually a more convenient choice. Thus, manufacturers are expected to pay attention to both the modern and traditional retailers in order to have a wide spread distribution network to ensure their success.
MARKET DATA
Table 1 Sales of Packaged Food by Category: Volume 2005-2010 2005 Baby Food (Not calculable) Bakery ( tonnes) Canned/Preserved Food ( tonnes) Chilled Processed Food ( tonnes) Confectionery ( tonnes) Dairy (Not calculable) Dried Processed Food ( tonnes) Frozen Processed Food ( tonnes) Ice Cream ('000 litres) Meal Replacement ( tonnes) Noodles ( tonnes) Oils and Fats ( tonnes) Pasta ( tonnes) Ready Meals ( tonnes) Sauces, Dressings and Condiments ( tonnes) Snack Bars ( tonnes) Soup ( tonnes) Spreads ( tonnes) Sweet and Savoury Snacks ( tonnes) Impulse and Indulgence Products (Not calculable) Nutrition/Staples (Not calculable) Meal Solutions ( tonnes) Packaged Food (Not calculable)
Source: Notes:
2006 319,545.4 12,156.7 2,407.2 40,589.2 337,096.0 15,083.3 38,175.5 692.4 319,328.6 389,484.3 3,246.2 4,125.0 233,888.5 470.0 778.2 21,990.0 264,005.8 -
2007 349,568.6 13,695.8 2,730.4 44,076.6 367,588.1 17,475.9 41,759.1 740.9 346,906.8 443,801.4 3,570.8 4,608.6 261,507.9 530.0 875.1 24,582.1 295,939.9 -
2008 380,985.2 15,168.7 3,068.8 47,709.6 394,319.5 19,834.7 43,875.1 785.4 370,795.9 492,506.6 3,874.3 5,091.8 297,013.4 580.0 962.7 27,009.3 335,665.5 -
2009 411,461.5 16,663.3 3,415.2 51,464.6 433,019.5 22,226.8 45,726.8 828.5 406,599.5 536,704.2 4,145.5 5,592.6 327,119.2 630.0 1,041.0 29,221.9 370,054.5 -
2010 447,825.8 18,109.1 3,832.9 55,736.9 463,181.6 24,881.3 49,112.8 878.3 433,136.1 582,219.5 4,456.4 6,114.3 356,801.7 670.0 1,125.7 31,529.9 404,295.0 -
295,952.3 10,763.5 2,111.0 37,789.4 304,857.9 13,028.0 35,230.8 672.3 289,275.3 343,296.7 2,959.1 3,695.7 211,790.9 420.0 717.8 19,588.6 238,113.4 -
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Sum of sectors does not equal total packaged food because of double counting (eg canned soup is included in soups and canned foods) Packaged food, baby food and dairy volume sales cannot be consolidated due to different unit measurements (eg confectionery in tonnes and ice cream in litres)
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Table 2 VND billion
Sales of Packaged Food by Category: Value 2005-2010
2005 Baby Food Bakery Canned/Preserved Food Chilled Processed Food Confectionery Dairy Dried Processed Food Frozen Processed Food Ice Cream Meal Replacement Noodles Oils and Fats Pasta Ready Meals Sauces, Dressings and Condiments Snack Bars Soup Spreads Sweet and Savoury Snacks Impulse and Indulgence Products Nutrition/Staples Meal Solutions Packaged Food
Source: Notes:
2006 6,411.4 7,151.0 533.1 198.8 2,937.1 10,194.0 9,879.8 805.2 1,741.7 220.0 9,624.5 8,404.8 129.5 182.0 7,525.6 17.1 64.7 2,479.1 10,853.3 38,613.4 9,079.8 58,546.4
2007 7,736.3 8,422.1 620.9 228.3 3,323.8 11,568.4 11,733.5 976.5 1,998.9 246.4 11,434.5 9,973.8 147.7 206.6 8,535.2 19.1 76.1 2,904.7 12,609.7 45,354.5 10,380.1 68,345.0
2008 9,164.5 10,039.7 730.7 280.2 3,798.8 13,171.9 13,858.7 1,197.3 2,253.1 283.4 13,504.1 11,753.5 166.9 241.9 10,065.5 22.0 89.1 3,398.2 14,720.1 53,067.5 12,295.7 80,084.6
2009 10,788.2 11,691.5 852.4 339.7 4,256.2 15,419.3 16,597.1 1,443.7 2,502.3 318.8 16,179.9 13,594.2 185.2 284.4 11,527.5 25.1 101.4 3,898.5 16,877.8 62,262.2 14,188.4 93,330.5
2010 12,638.5 13,710.5 979.8 415.9 4,828.4 17,851.2 19,467.5 1,745.7 2,889.7 360.2 18,969.7 15,665.3 207.5 331.0 13,074.7 28.5 115.6 4,431.4 19,514.5 72,411.3 16,244.5 108,174.3
5,252.0 6,171.7 459.5 172.6 2,578.5 9,057.0 8,343.7 671.6 1,515.1 200.0 8,123.0 7,170.0 115.7 161.7 6,719.4 15.5 55.8 2,129.1 9,362.9 33,095.5 8,038.7 50,495.9
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Sum of sectors does not equal total packaged food because of double counting (eg canned soup is included in soups and canned foods)
Table 3
Sales of Packaged Food by Category: % Volume Growth 2005-2010 2009/10 2005-10 CAGR 8.6 11.0 12.7 8.1 8.7 13.8 6.9 5.5 8.4 11.1 8.5 10.6 11.0 9.8 9.4 10.0 2005/10 TOTAL 51.3 68.2 81.6 47.5 51.9 91.0 39.4 30.6 49.7 69.6 50.6 65.4 68.5 59.5 56.8 61.0 -
Baby Food (Not calculable) Bakery (% volume growth) Canned/Preserved Food (% volume growth) Chilled Processed Food (% volume growth) Confectionery (% volume growth) Dairy (Not calculable) Dried Processed Food (% volume growth) Frozen Processed Food (% volume growth) Ice Cream (% volume growth) Meal Replacement (% volume growth) Noodles (% volume growth) Oils and Fats (% volume growth) Pasta (% volume growth) Ready Meals (% volume growth) Sauces, Dressings and Condiments (% volume growth) Snack Bars (% volume growth) Soup (% volume growth) Spreads (% volume growth) Sweet and Savoury Snacks (% volume growth) Impulse and Indulgence Products (Not calculable)
8.8 8.7 12.2 8.3 7.0 11.9 7.4 6.0 6.5 8.5 7.5 9.3 9.1 6.3 8.1 7.9 -
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Nutrition/Staples (Not calculable) Meal Solutions (% volume growth) Packaged Food (Not calculable)
Source: Notes:
9.3 -
11.2 -
69.8 -
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Sum of sectors does not equal total packaged food because of double counting (eg canned soup is included in soups and canned foods) Volume sales cannot be consolidated due to different unit measurements (eg confectionery in tonnes and ice cream in litres)
Table 4
Sales of Packaged Food by Category: % Value Growth 2005-2010
% current value growth 2009/10 Baby Food Bakery Canned/Preserved Food Chilled Processed Food Confectionery Dairy Dried Processed Food Frozen Processed Food Ice Cream Meal Replacement Noodles Oils and Fats Pasta Ready Meals Sauces, Dressings and Condiments Snack Bars Soup Spreads Sweet and Savoury Snacks Impulse and Indulgence Products Nutrition/Staples Meal Solutions Packaged Food
Source: Notes:
2005-10 CAGR 19.2 17.3 16.4 19.2 13.4 14.5 18.5 21.1 13.8 12.5 18.5 16.9 12.4 15.4 14.2 12.9 15.7 15.8 15.8 17.0 15.1 16.5
2005/10 TOTAL 140.6 122.2 113.2 141.0 87.3 97.1 133.3 159.9 90.7 80.1 133.5 118.5 79.4 104.7 94.6 83.3 107.2 108.1 108.4 118.8 102.1 114.2
17.2 17.3 14.9 22.4 13.4 15.8 17.3 20.9 15.5 13.0 17.2 15.2 12.0 16.4 13.4 13.5 14.0 13.7 15.6 16.3 14.5 15.9
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Sum of sectors does not equal total packaged food because of double counting (eg canned soup is included in soups and canned foods)
Table 5 % retail value rsp Company
GBO Shares of Packaged Food 2005-2009
2005 8.8 5.9 0.5 2.8 2.8 2.5 2.3 1.6 2.2 2.5 2.9
2006 9.2 6.3 0.5 2.9 2.9 2.6 2.4 1.7 2.4 2.3 2.9
2007 9.6 6.8 1.2 3.0 2.9 2.7 2.5 1.9 2.5 2.2 2.8
2008 10.1 7.2 3.0 5.0 3.2 3.0 2.9 2.6 2.5 2.7 2.2 2.6
2009 11.0 7.6 5.4 4.7 3.1 3.1 3.1 2.7 2.6 2.5 2.3 2.1
Vietnam Dairy Products JSC (Vinamilk) Ace Cook Co Ltd Masan Group Corp Royal FrieslandCampina NV Tuong An Vegetable Oil JSC Abbott Laboratories Inc Kinh Do Corp FFM Bhd Ajinomoto Co Inc Asia Food Industry Co Ltd Kuok Oils & Grains Pte Ltd (KOG) VIFON - Vietnam Food
Page
Packaged Food
Vietnam
Industries Joint Stock Co Mead Johnson Nutrition Co Nestl SA Golden Hope Group Ve Wong Corp Tan Binh Vegetable Oil JSC Bien Hoa Confectionery Corp (Bibica) Mars Inc Colusa Miliket Foodstuff JSC (COMIFOOD) Binh An Vegetable Oil JSC Saigon Trading Group (SATRA) Thien Huong Food Co Perfetti Van Melle Group Lotte Group Haiha Confectionery JSC Halong Canned Food JSC Lactalis, Groupe Kraft Foods Inc Vedan International (Holdings) Ltd Artisanal Generics Others Total
Source:
2.2 1.5 1.3 1.8 1.2 0.2 1.5 0.6 0.6 0.7 0.7 0.5 0.7 0.5 0.5 0.3 2.8 4.3 0.1 43.4 100.0
2.2 1.7 1.3 1.9 1.2 0.2 1.4 0.7 0.6 0.7 0.7 0.5 0.7 0.5 0.5 0.3 2.5 4.1 0.1 42.5 100.0
1.9 1.8 1.2 1.8 1.2 0.2 1.3 0.7 0.7 0.9 0.7 0.6 0.7 0.5 0.5 0.4 1.8 3.9 0.1 41.0 100.0
1.9 1.7 1.3 1.7 1.2 1.1 1.1 0.8 0.7 0.9 0.7 0.7 0.7 0.6 0.5 0.5 0.9 3.8 0.0 32.3 100.0
2.0 1.9 1.6 1.3 1.2 1.1 1.1 1.0 0.7 0.7 0.7 0.7 0.7 0.7 0.6 0.5 0.5 0.5 3.6 0.0 28.7 100.0
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources
NBO Shares of Packaged Food 2005-2009
2005 8.8 0.5 4.7 2.8 2.8 2.5 1.6 2.2 2.8 1.7 2.3 1.5 1.3 1.8 1.2 0.2
2006 9.3 0.5 4.7 2.9 2.9 2.6 1.7 2.4 2.8 1.9 2.0 1.7 1.3 1.9 1.2 0.2
2007 9.7 1.2 4.7 3.0 2.9 2.7 1.9 2.5 2.7 2.0 1.9 1.8 1.2 1.8 1.2 0.2
2008 10.2 7.2 3.0 4.8 3.2 3.0 2.9 2.5 2.7 2.5 2.0 1.9 1.7 1.3 1.7 1.2 1.1
2009 11.0 7.6 5.4 5.0 4.7 3.1 3.1 3.1 2.6 2.5 2.1 2.0 1.9 1.6 1.3 1.2 1.1 1.1
Vietnam Dairy Products JSC (Vinamilk) Acecook Vietnam JSC Masan Food Corp Cai Lan Oils & Fats Industries Co Ltd FrieslandCampina Vietnam Co Ltd Tuong An Vegetable Oil JSC Abbott Vietnam Co Ltd Kinh Do Corp Ajinomoto Vietnam Co Ltd Asia Food Industry Co Ltd VIFON - Vietnam Food Industries Joint Stock Co Mead Johnson Nutrition (Vietnam) Co Ltd Nestl Vietnam Ltd Golden Hope Nha Be Edible Oils Co Ltd Saigon Vewong Joint Venture Co Tan Binh Vegetable Oil JSC Bien Hoa Confectionery Corp (Bibica) Mars Confectionery
Page
Packaged Food
Vietnam
Vietnam Colusa Miliket Foodstuff JSC (COMIFOOD) Binh An Vegetable Oil JSC Vissan Co Ltd Thien Huong Food Co Perfetti Van Melle Vietnam Ltd Lotte Vietnam Co Ltd Haiha Confectionery JSC Halong Canned Food JSC Lactalis, Groupe Kraft Foods Inc Vedan (Vietnam) Enterprise Corp Ltd Hai Chau Confectionery JSC Dutch Lady Vietnam Food & Beverage Co Ltd Uni-President Vietnam Co Ltd Acecook Vietnam Co Ltd Wrigley Jr Co, William Artisanal Generics Others Total
Source:
1.5 0.6 0.6 0.7 0.7 0.5 0.6 0.5 0.5 0.3 2.8 0.4 5.5 0.9 5.9 1.2 4.3 0.1 33.8 100.0
1.4 0.7 0.6 0.7 0.7 0.5 0.6 0.5 0.5 0.3 2.5 0.4 5.4 1.0 6.3 1.1 4.1 0.1 32.9 100.0
1.3 0.7 0.7 0.9 0.7 0.6 0.6 0.5 0.5 0.4 1.8 0.5 5.3 0.5 6.8 1.1 3.9 0.1 31.8 100.0
1.1 0.8 0.7 0.9 0.7 0.6 0.6 0.6 0.5 0.5 0.9 0.5 5.0 0.2 3.8 0.0 29.9 100.0
1.0 0.7 0.7 0.7 0.7 0.6 0.6 0.6 0.5 0.5 0.5 0.5 3.6 0.0 28.4 100.0
Table 7 % retail value rsp Brand Vinamilk Dutch Lady Tuong An Vina Acecook Neptune Ong Tho Ajinomoto Hao Hao Omachi Gau Do Dielac Hao 100 Gain Nam Ngu A-One Simply Marvela Kinh Do Nakydaco Chin-Su Tam Thai Tu
NBO Brand Shares of Packaged Food 2006-2009
Company Vietnam Dairy Products JSC (Vinamilk) FrieslandCampina Vietnam Co Ltd Tuong An Vegetable Oil JSC Acecook Vietnam JSC Cai Lan Oils & Fats Industries Co Ltd Vietnam Dairy Products JSC (Vinamilk) Ajinomoto Vietnam Co Ltd Acecook Vietnam JSC Masan Food Corp Asia Food Industry Co Ltd Vietnam Dairy Products JSC (Vinamilk) Acecook Vietnam JSC Abbott Vietnam Co Ltd Masan Food Corp Saigon Vewong Joint Venture Co Cai Lan Oils & Fats Industries Co Ltd Golden Hope Nha Be Edible Oils Co Ltd Kinh Do Corp Tan Binh Vegetable Oil JSC Masan Food Corp Masan Food Corp
2006 3.3 2.9 2.4 2.6 1.6 1.7 1.3 1.3 1.3 1.4 1.3 1.3 1.9 0.4 -
2007 3.7 3.0 2.5 2.6 1.9 0.2 1.8 1.4 1.3 0.1 1.2 1.3 1.4 1.4 1.8 0.5 0.3
2008 4.0 3.2 3.0 2.6 2.6 2.4 2.4 0.4 1.8 1.5 1.5 1.4 1.1 1.3 1.3 1.3 1.5 1.7 0.7 0.7
2009 4.6 3.4 3.1 3.0 2.7 2.6 2.6 2.4 1.7 1.7 1.6 1.4 1.4 1.4 1.3 1.3 1.3 1.3 1.2 1.0 0.9
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Packaged Food
Vietnam
Colusa Miliket Enfagrow Hello PediaSure Vissan Vi Huong Ngon Ngon Milo Milk Dutch Lady Vua Bep Vina Acecook Hao Hao Hao 100 Doublemint Artisanal Others Total
Source:
Colusa Miliket Foodstuff JSC (COMIFOOD) Mead Johnson Nutrition (Vietnam) Co Ltd Asia Food Industry Co Ltd Abbott Vietnam Co Ltd Vissan Co Ltd Thien Huong Food Co VIFON - Vietnam Food Industries Joint Stock Co Nestl Vietnam Ltd Vietnam Dairy Products JSC (Vinamilk) Dutch Lady Vietnam Food & Beverage Co Ltd Uni-President Vietnam Co Ltd Acecook Vietnam Co Ltd Acecook Vietnam Co Ltd Acecook Vietnam Co Ltd Wrigley Jr Co, William
1.3 0.8 0.7 0.8 0.6 0.7 0.9 0.7 0.5 3.9 1.0 2.4 2.4 1.5 0.7 4.1 52.3 100.0
1.1 0.9 0.8 0.7 0.7 0.9 0.9 0.7 0.5 3.8 0.5 2.9 2.4 1.5 0.6 3.9 50.8 100.0
1.0 0.8 0.8 0.7 0.7 0.9 0.9 0.7 0.5 3.6 0.2 3.8 49.0 100.0
0.8 0.8 0.8 0.7 0.7 0.7 0.7 0.7 0.6 3.6 48.0 100.0
Table 8 % retail value rsp
Penetration of Private Label by Category 2005-2009
2005 Meal Solutions Sauces, Dressings and Condiments

Source:
2006 0.1 0.2
2007 0.1 0.1
2008 0.1 0.1
2009 0.1 0.1
0.1 0.1
Sales of Packaged Food by Distribution Format: % Analysis 2005-2010
2005 Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Independent Small Grocers Forecourt Retailers Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total 100.0 95.1 11.5 56.7 0.3 56.4 27.0 4.9 3.9 0.9 100.0
2006 100.0 94.9 11.9 57.1 1.6 55.5 25.9 5.1 4.1 1.0 100.0
2007 100.0 94.8 12.5 57.2 2.5 54.8 25.0 5.2 4.2 1.1 100.0
2008 100.0 94.8 12.9 57.5 3.2 54.4 24.4 5.2 4.0 1.1 100.0
2009 100.0 94.8 13.7 57.3 3.5 53.8 23.7 5.2 3.9 1.3 100.0
2010 100.0 94.8 14.7 57.0 3.8 53.2 23.1 5.2 3.9 1.3 100.0
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Source:
Sales of Packaged Food by Category and Distribution Format: % Analysis 2010
BF Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Independent Small Grocers Forecourt Retailers Confectionery specialists Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total 100.0 57.0 18.5 0.0 38.5 2.0 36.5 0.0 0.0 43.0 32.0 11.0 0.0 0.0 0.0 0.0 0.0 100.0 DPF Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Independent Small Grocers Forecourt Retailers Confectionery specialists Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total 100.0 100.0 13.4 0.0 71.4 4.0 67.4 0.0 15.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 P Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Independent Small Grocers Forecourt Retailers 100.0 100.0 63.0 0.0 26.0 5.5 20.5 0.0
B 100.0 100.0 12.0 0.0 33.3 3.1 30.1 0.0 54.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 FPF 100.0 100.0 26.0 0.0 74.0 1.0 73.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 RM 100.0 100.0 51.5 0.0 48.5 2.0 46.5 0.0
CPF 100.0 100.0 35.2 0.0 51.5 3.8 47.7 0.0 13.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 IC 100.0 100.0 7.5 0.0 17.3 1.7 15.5 0.0 75.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 SDC 100.0 100.0 7.5 0.0 63.5 6.0 57.5 0.0
CHPF 100.0 100.0 28.3 0.0 67.1 0.9 66.2 0.0 4.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 MR 100.0 65.5 26.5 0.0 39.0 0.0 39.0 0.0 0.0 34.5 34.5 0.0 0.0 0.0 0.0 0.0 0.0 100.0 SB 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
C 100.0 99.7 23.8 0.0 32.2 9.5 22.7 0.0 16.0 27.7 0.3 0.3 0.0 0.0 0.0 0.0 0.0 0.0 100.0 N 100.0 100.0 12.5 0.0 72.5 4.0 68.5 0.0 15.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 S 100.0 100.0 33.0 0.0 67.0 4.0 63.0 0.0
D 100.0 100.0 22.3 0.0 56.1 2.8 53.3 0.0 21.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 OF 100.0 100.0 7.0 0.0 84.5 3.0 81.5 0.0 8.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 SPR 100.0 100.0 27.5 0.0 69.5 6.5 63.0 0.0
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Vietnam
Confectionery specialists Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total
11.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 SSS
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0
29.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0
3.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0
Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Independent Small Grocers Forecourt Retailers Confectionery specialists Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total
Source: Key:
100.0 100.0 19.5 0.0 54.5 6.0 48.5 0.0 26.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources BF = baby food; B = bakery; C = canned/preserved food; CHPF = chilled processed food; C = confectionery; D = dairy; DPF = dried processed food; FPF = frozen processed food; IC = ice cream; MR = meal replacement; N = noodles; OF = oils and fats; P = pasta; RM = ready meals; SDC = sauces, dressings and condiments; SB = snack bars; S = soup; SPR = spreads; SSS = sweet and savoury snacks
Table 11
Forecast Sales of Packaged Food by Category: Volume 2010-2015 2010 2011 485,309.1 19,601.7 4,280.2 60,311.9 491,494.0 27,690.2 52,546.1 932.7 457,602.2 2012 525,105.3 21,167.4 4,758.9 65,160.4 519,113.1 30,668.5 56,052.8 993.3 481,169.7 2013 565,121.2 22,775.4 5,279.9 70,333.7 545,717.3 33,715.5 59,617.9 1,060.9 503,565.7 2014 605,781.6 24,427.6 5,839.4 75,817.2 568,774.3 36,830.7 63,208.4 1,135.1 522,140.0 2015 647,388.2 26,127.4 6,444.5 81,492.8 585,270.8 39,916.2 66,799.6 1,216.9 533,918.5
Baby Food (Not calculable) Bakery ( tonnes) Canned/Preserved Food ( tonnes) Chilled Processed Food ( tonnes) Confectionery ( tonnes) Dairy (Not calculable) Dried Processed Food ( tonnes) Frozen Processed Food ( tonnes) Ice Cream ('000 litres) Meal Replacement ( tonnes) Noodles ( tonnes)
447,825.8 18,109.1 3,832.9 55,736.9 463,181.6 24,881.3 49,112.8 878.3 433,136.1
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Oils and Fats ( tonnes) Pasta ( tonnes) Ready Meals ( tonnes) Sauces, Dressings and Condiments ( tonnes) Snack Bars ( tonnes) Soup ( tonnes) Spreads ( tonnes) Sweet and Savoury Snacks ( tonnes) Impulse and Indulgence Products (Not calculable) Nutrition/Staples (Not calculable) Meal Solutions ( tonnes) Packaged Food (Not calculable)
Source:
582,219.5 4,456.4 6,114.3 356,801.7 670.0 1,125.7 31,529.9 404,295.0 -
625,820.5 4,746.1 6,654.3 383,207.2 710.0 1,206.0 33,708.7 435,489.3 -
666,485.9 5,030.8 7,228.3 406,012.8 760.0 1,281.9 35,872.6 463,367.6 -
706,490.7 5,307.5 7,831.2 428,014.3 800.0 1,354.9 37,999.1 490,585.0 -
745,414.7 5,572.9 8,445.5 448,978.9 840.0 1,425.0 39,981.6 516,916.6 -
782,812.0 5,795.8 9,087.5 468,419.7 870.0 1,491.9 41,757.5 541,777.9 -
Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
Table 12 VND billion
Forecast Sales of Packaged Food by Category: Value 2010-2015
2010 Baby Food Bakery Canned/Preserved Food Chilled Processed Food Confectionery Dairy Dried Processed Food Frozen Processed Food Ice Cream Meal Replacement Noodles Oils and Fats Pasta Ready Meals Sauces, Dressings and Condiments Snack Bars Soup Spreads Sweet and Savoury Snacks Impulse and Indulgence Products Nutrition/Staples Meal Solutions Packaged Food
Source:
2011 13,670.2 14,887.3 1,031.7 464.8 5,067.8 19,341.2 20,909.0 1,937.2 3,012.3 374.6 20,354.0 16,820.1 223.0 352.2 13,761.5 30.5 121.5 4,748.4 20,844.2 78,072.8 17,225.7 116,147.5
2012 14,737.4 16,126.4 1,094.8 517.8 5,353.4 20,926.7 22,345.6 2,134.9 3,123.8 391.5 21,730.4 17,979.3 238.6 376.0 14,406.2 32.5 127.8 5,067.7 22,221.3 83,919.8 18,186.1 124,333.1
2013 15,828.6 17,359.1 1,165.3 574.9 5,680.8 22,567.1 23,662.1 2,345.2 3,228.9 411.1 22,984.3 19,156.5 254.1 402.5 15,028.1 34.4 134.3 5,385.9 23,649.9 89,722.9 19,147.8 132,527.8
2014 16,904.5 18,642.7 1,243.4 637.3 6,047.5 24,081.8 24,835.6 2,567.0 3,338.3 435.7 24,093.3 20,368.5 269.4 431.4 15,613.1 36.3 140.5 5,699.5 25,160.1 95,289.6 20,097.1 140,555.4
2015 17,959.7 19,974.7 1,330.0 704.9 6,457.9 25,507.1 25,730.2 2,791.3 3,508.6 464.0 24,920.4 21,631.8 284.2 463.1 16,146.3 38.1 146.3 6,008.4 26,779.0 100,561.6 21,010.6 148,361.5
12,638.5 13,710.5 979.8 415.9 4,828.4 17,851.2 19,467.5 1,745.7 2,889.7 360.2 18,969.7 15,665.3 207.5 331.0 13,074.7 28.5 115.6 4,431.4 19,514.5 72,411.3 16,244.5 108,174.3
Table 13
Forecast Sales of Packaged Food by Category: % Volume Growth 2010-2015 2014/15 2010-15 CAGR 7.6 7.6 11.0 7.9 4.8 2010/15 TOTAL 44.6 44.3 68.1 46.2 26.4
Baby Food (Not calculable) Bakery (% volume growth) Canned/Preserved Food (% volume growth) Chilled Processed Food (% volume growth) Confectionery (% volume growth) Dairy (Not calculable) Dried Processed Food (% volume growth)
6.9 7.0 10.4 7.5 2.9
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Packaged Food
Vietnam
Frozen Processed Food (% volume growth) Ice Cream (% volume growth) Meal Replacement (% volume growth) Noodles (% volume growth) Oils and Fats (% volume growth) Pasta (% volume growth) Ready Meals (% volume growth) Sauces, Dressings and Condiments (% volume growth) Snack Bars (% volume growth) Soup (% volume growth) Spreads (% volume growth) Sweet and Savoury Snacks (% volume growth) Impulse and Indulgence Products (Not calculable) Nutrition/Staples (Not calculable) Meal Solutions (% volume growth) Packaged Food (Not calculable)
Source:
8.4 5.7 7.2 2.3 5.0 4.0 7.6 4.3 3.6 4.7 4.4 4.8 -
9.9 6.3 6.7 4.3 6.1 5.4 8.2 5.6 5.4 5.8 5.8 6.0 -
60.4 36.0 38.6 23.3 34.5 30.1 48.6 31.3 29.9 32.5 32.4 34.0 -
Table 14
Forecast Sales of Packaged Food by Category: % Value Growth 2010-2015
% constant value growth 2010-15 CAGR Baby Food Bakery Canned/Preserved Food Chilled Processed Food Confectionery Dairy Dried Processed Food Frozen Processed Food Ice Cream Meal Replacement Noodles Oils and Fats Pasta Ready Meals Sauces, Dressings and Condiments Snack Bars Soup Spreads Sweet and Savoury Snacks Impulse and Indulgence Products Nutrition/Staples Meal Solutions Packaged Food
Source:
2010/15 TOTAL 42.1 45.7 35.7 69.5 33.7 42.9 32.2 59.9 21.4 28.8 31.4 38.1 37.0 39.9 23.5 33.8 26.6 35.6 37.2 38.9 29.3 37.2
7.3 7.8 6.3 11.1 6.0 7.4 5.7 9.8 4.0 5.2 5.6 6.7 6.5 6.9 4.3 6.0 4.8 6.3 6.5 6.8 5.3 6.5
FOODSERVICE KEY TRENDS AND DEVELOPMENTS

Headlines
Foodservice volume is set to continue to perform well in 2010 in general Strong growth of foodservice in 2010 bolsters growth of the industry Cheese is predicted to record the strongest growth with 24% in 2010 Confectionery is set to record the lowest growth rate at 3%
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Packaged Food
Vietnam
Foodservice remains fragmented with many players Forecast growth will remain strong for most products, except for some niches such as confectionery
Trends
Growth of foodservice was bolstered by the strong growth of foodservice in the country, especially in large cities such as Ha Noi and Ho Chi Minh, in 2009/2010. With the rise of disposable income, better living standards and improving consumer confidence, more and more people dined out at restaurants and other foodservice outlets. Thus, many foodservice products continued to record healthy growth in 2010. 2010s growth is predicted to be on par with 2009s. Even though there were more foodservice outlets opened and more people were eating out due to their busy lifestyles and improving living standards, there were also some other factors that hindered growth of this industry. One main factor was the food safety issue, which entered the spotlight over the past few years due to constant media attention. Many foodservice outlets, especially the mid to low-end ones, were found to have low safety and hygiene standards, which dampened many peoples desire to dine out. As both the retail and foodservice industries in Vietnam had not reached maturity at the end of the review period, there was not much interplay between them, but the situation was more as though they grew in tandem. For example, the rise of fast food outlets over the review period raised consumer awareness for Western food, such as pasta and cheese, which also helped the retail sales of these products. Cheese is predicted to continue to record exceptionally strong growth at 24% in 2010, due to the rise of Western fast food chains. Brands such as Kentucky Fried Chicken, Pizza Hut, and Lotteria were extremely popular in the urban young consumers. As cheese was one of the common main ingredients for all of these restaurants, it enjoyed a strong performance over the review period due to the health growth of these chains. On the other hand, confectionery is predicted to be the slowest growing with 3% in 2010. Confectionery is an impulse/indulgence product that is consumed mostly by the young population, who usually prefer to enjoy these products at home or together as a group in their own time.
Competitive Landscape
Due to high levels of fragmentation within foodservice, there was no clear overall leader. Each company focused on its strength and strived to be the leader of its own category. For instance, in sauces, dressings and condiments, Thuan Phat Co Ltd was one of the main players. The company focused on building its popularity on fish sauce and pickled products, in which it was already a major player for over ten years. No companies expected to have their shares increase or decrease significantly in 2010 due to the fact that foodservice was very crowded with many players. There was also not much innovation observed, but players usually competed on price and quality. One key strategy used by many foodservice suppliers for their success was to offer a wide product portfolio, while maintaining their pricing low. Foodservice operators would choose a cheaper brand given its quality was acceptable in order to maintain their profit ratio. Because of this, local players had an advantage over multinational players as they were not affected by import tax and could keep their prices lower. Foodservice was dominated with local players. However, with the rise of Western fast food and other foodservice outlets in the country, multinational players gained their shares over local players as they had the expertise to manufacture many products that the domestic players did not. This led to many big local players, such as Kinh Do Corp and Cau Tre Export Goods Processing JSC to spend on new product development in order to compete with the multinational players.
Prospects
Growth in the foodservice industry is expected to continue to be strong for many products, with the rising number of restaurants and other foodservice outlets in Vietnam. This trend is expected to be fuelled by improving economy and living standard, which will lead to more and more people dining out. Furthermore, continuous urbanisation will also play a role in pushing the penetration of foodservice outlets into more areas in the country, which in turn help to maintain strong growth for packaged food foodservice industry.
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In general, the growth rate is expected to slow down towards the end of the forecast period as foodservice becomes increasingly crowded and reaches maturity. More importantly, rising awareness on health and wellness may lead to a rising trend in eating at home, as home-cooked food is usually perceived to be healthier than food in restaurants. Besides rising health and wellness, another major threat to growth is the food safety issue. Constant media attention raises consumer concerns about the safety and hygiene of food served in foodservice outlets, especially those positioned in the mid- to low-end segments. Thus, for consumers who do have not large disposable incomes to be able to afford premium restaurants, yet still want a nice healthy meal, they would prefer to cook at home. Due to a high level of fragmentation of the industry, there is little company activity expected over the forecast period. Most players will focus on their own strengths to expand their distribution network and relationship with more foodservice operators in order to win deals. Price competition, although expected to remain as one of the main factors affecting sales, will not be the most important criteria, but rather quality and brand image. As consumers have rising concerns over food safety and hygiene, restaurants also want to ensure that they have their food from reliable sources. Thus, companies should pay attention to maintain their quality and improve their standards in order to be successful, rather than compete based solely on price.
Category Data
Table 15 Foodservice Sales of Packaged Food by Category: Volume 2005-2010 2005 Baby Food (Not calculable) Bakery ( tonnes) Canned/Preserved Food ( tonnes) Chilled Processed Food ( tonnes) Confectionery ( tonnes) Dairy (Not calculable) Dried Processed Food ( tonnes) Frozen Processed Food ( tonnes) Ice Cream ('000 litres) Meal Replacement ( tonnes) Noodles ( tonnes) Oils and Fats ( tonnes) Pasta ( tonnes) Ready Meals ( tonnes) Sauces, Dressings and Condiments ( tonnes) Snack Bars ( tonnes) Soup ( tonnes) Spreads ( tonnes) Sweet and Savoury Snacks ( tonnes) Impulse and Indulgence Products (Not calculable) Nutrition/Staples (Not calculable) Meal Solutions ( tonnes) Packaged Food (Not calculable)
Source:
2006 29,808.5 9,617.8 35.7 432.9 26,830.2 3,512.7 11,604.7 20,239.4 44,977.9 2,408.0 135.0 116,004.5 80.0 485.9 1,962.0 129,250.7 -
2007 32,512.9 10,317.5 40.3 446.5 29,594.6 3,950.1 12,738.4 22,329.0 50,096.4 2,769.2 144.5 126,358.8 90.0 530.3 2,342.7 140,756.7 -
2008 35,766.4 11,016.2 45.1 460.3 32,406.5 4,404.5 13,847.0 24,493.8 55,510.4 3,101.5 153.9 136,784.4 100.0 578.1 2,691.5 152,350.0 -
2009 38,668.8 11,689.3 50.0 473.2 35,417.6 4,867.2 14,993.5 26,897.4 61,106.7 3,396.2 163.1 145,394.1 110.0 616.4 3,036.6 162,110.6 -
2010 41,782.7 12,397.2 55.8 485.0 38,904.7 5,414.8 16,298.8 29,686.3 66,966.3 3,735.8 172.1 154,003.6 110.0 660.1 3,395.1 171,981.4 -
27,668.6 9,016.1 31.5 420.2 24,286.5 3,180.2 10,617.5 18,301.6 40,490.9 2,075.9 127.4 103,851.0 70.0 450.6 1,627.6 116,148.7 -
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Table 16
Foodservice Sales of Packaged Food by Category: % Volume Growth 2005-2010 2009/10 2005-10 CAGR 8.6 6.6 12.1 2.9 9.9 11.2 8.9 10.2 10.6 12.5 6.2 8.2 9.5 7.9 15.8 8.2 2005/10 TOTAL 51.0 37.5 77.3 15.4 60.2 70.3 53.5 62.2 65.4 80.0 35.1 48.3 57.1 46.5 108.6 48.1 -
Baby Food (Not calculable) Bakery (% volume growth) Canned/Preserved Food (% volume growth) Chilled Processed Food (% volume growth) Confectionery (% volume growth) Dairy (Not calculable) Dried Processed Food (% volume growth) Frozen Processed Food (% volume growth) Ice Cream (% volume growth) Meal Replacement (% volume growth) Noodles (% volume growth) Oils and Fats (% volume growth) Pasta (% volume growth) Ready Meals (% volume growth) Sauces, Dressings and Condiments (% volume growth) Snack Bars (% volume growth) Soup (% volume growth) Spreads (% volume growth) Sweet and Savoury Snacks (% volume growth) Impulse and Indulgence Products (Not calculable) Nutrition/Staples (Not calculable) Meal Solutions (% volume growth) Packaged Food (Not calculable)
Source:
8.1 6.1 11.5 2.5 9.8 11.3 8.7 10.4 9.6 10.0 5.5 5.9 0.0 7.1 11.8 6.1 -
Table 17
Forecast Foodservice Sales of Packaged Food by Category: Volume 2010-2015 2010 2011 44,872.1 13,097.8 62.0 496.0 42,516.3 5,975.4 17,562.3 32,605.3 73,009.7 4,072.0 180.7 162,198.6 120.0 703.0 2012 47,736.4 13,786.9 68.3 506.2 46,222.6 6,541.7 18,837.1 35,635.5 79,241.2 4,397.8 188.8 169,715.1 120.0 746.9 2013 50,467.8 14,471.5 74.6 515.8 50,011.3 7,103.6 20,111.4 38,753.9 85,618.6 4,727.6 196.4 176,173.9 130.0 791.9 2014 53,025.2 15,151.3 80.8 524.5 53,848.3 7,645.8 21,372.8 41,933.6 92,091.9 5,058.6 203.8 182,001.8 130.0 837.7 2015 55,226.4 15,829.0 86.8 532.8 57,696.2 8,161.7 22,598.0 45,144.1 98,605.4 5,387.4 210.9 186,835.0 140.0 884.9
Baby Food (Not calculable) Bakery ( tonnes) Canned/Preserved Food ( tonnes) Chilled Processed Food ( tonnes) Confectionery ( tonnes) Dairy (Not calculable) Dried Processed Food ( tonnes) Frozen Processed Food ( tonnes) Ice Cream ('000 litres) Meal Replacement ( tonnes) Noodles ( tonnes) Oils and Fats ( tonnes) Pasta ( tonnes) Ready Meals ( tonnes) Sauces, Dressings and Condiments ( tonnes) Snack Bars ( tonnes) Soup ( tonnes) Spreads ( tonnes)
41,782.7 12,397.2 55.8 485.0 38,904.7 5,414.8 16,298.8 29,686.3 66,966.3 3,735.8 172.1 154,003.6 110.0 660.1
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Sweet and Savoury Snacks ( tonnes) Impulse and Indulgence Products (Not calculable) Nutrition/Staples (Not calculable) Meal Solutions ( tonnes) Packaged Food (Not calculable)
Source:
3,395.1 171,981.4 -
3,761.7 181,453.8 -
4,122.9 190,232.0 -
4,470.3 197,953.5 -
4,783.0 205,009.7 -
5,047.0 211,052.5 -
Table 18
Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 20102015 2014/15 2010-15 CAGR 5.7 5.0 9.2 1.9 8.2 8.6 6.8 8.7 8.0 7.6 4.2 3.9 4.9 6.0 8.3 4.2 2010/15 TOTAL 32.2 27.7 55.6 9.9 48.3 50.7 38.6 52.1 47.2 44.2 22.6 21.3 27.3 34.0 48.7 22.7 -
Baby Food (Not calculable) Bakery (% volume growth) Canned/Preserved Food (% volume growth) Chilled Processed Food (% volume growth) Confectionery (% volume growth) Dairy (Not calculable) Dried Processed Food (% volume growth) Frozen Processed Food (% volume growth) Ice Cream (% volume growth) Meal Replacement (% volume growth) Noodles (% volume growth) Oils and Fats (% volume growth) Pasta (% volume growth) Ready Meals (% volume growth) Sauces, Dressings and Condiments (% volume growth) Snack Bars (% volume growth) Soup (% volume growth) Spreads (% volume growth) Sweet and Savoury Snacks (% volume growth) Impulse and Indulgence Products (Not calculable) Nutrition/Staples (Not calculable) Meal Solutions (% volume growth) Packaged Food (Not calculable)
Source:
4.2 4.5 7.5 1.6 7.1 6.7 5.7 7.7 7.1 6.5 3.5 2.7 7.7 5.6 5.5 2.9 -
IMPULSE AND INDULGENCE PRODUCTS KEY TRENDS AND DEVELOPMENTS

Headlines
Impulse and indulgence products is set to record value growth of 16% to reach VND20 trillion in 2010 Increasingly busier lifestyles drives demand for comfort food, thus pushing growth of impulse and indulgence products Savoury biscuits and crackers is predicted to record the strongest growth of 27% in terms of value sales Prices across all impulse and indulgence products continue to grow due to inflation and fluctuated exchange rates Kinh Do Corp gains some share and remains as leader
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Impulse and indulgence products is expected to grow by a constant value CAGR of 7%
Trends
In 2010, impulse and indulgence products is set to continue to see healthy growth despite the fact that consumers interest in health and wellness is growing. Increasingly busy and stressful lifestyles, especially in the big cities like Ho Chi Minh and Ha Noi was one of the main factors contributing to growth, as consumers looked for comfort food to soothe themselves after a long day at work. Growing distribution networks was another contributing factor, as more and more companies expanded to the small towns and rural areas to avoid the crowded and almost matured urban market. Product development was one of the important methods carried out by manufacturers to reach out to more consumers and maintain healthy growth for the whole industry. For instance, local confectionery manufacturers such as Bien Hoa Confectionery Corp (Bibica) and Haiha Confectionery JSC constantly launched new products with more sophisticated packaging to target adult consumers besides the main target market of children. 2010s expected growth will be on par with the review period as consumer demand remains strong and it has still not yet matured in general. Although the urban markets, such as Ha Noi and Ho Chi Minh, started to show signs of maturity in some products such as sweet and savoury snacks and sugar confectionery, strong demand in other products and manufacturers continuous efforts to expand to unexploited markets helped to maintain healthy growth for the whole industry. Savoury biscuits and crackers is set to record the strongest growth in value terms of 27% in 2010 as this segment is considered by many consumers to be generally healthier than other impulse and indulgence products. Savoury biscuits and crackers, which usually taste similar to natural food such as vegetables or oatmeal, were perceived to be healthier than their sweet alternatives. There are no particular products that looks set to underperform overall. All impulse and indulgence products are predicted to show double digit growth in Vietnam in 2010. This could be due to the fact that different products are targeted at different consumers. For instance, sugar confectionery is aimed at low and middle-income consumers, while chocolate confectionery is more popular with the middle and premium segments. Impulse and indulgence products could be found in a wide range of distribution channels, from the modern retailers, such as supermarkets/hypermarkets to traditional retailers, such as wet markets and independent small grocers. Cakes, pastries and bakery products could also be found in many bakeries throughout the country. Together with the rise of modern retailing, supermarkets/hypermarkets also became more popular for impulse and indulgence products in 2010. Packaging innovations could be observed mostly in products such as biscuits and confectionery, as they these are usually used as gifts on specially occasions. Packaging, together with quality, was one of consumers main considerations whenever they purchased these products as gifts. Thus, attractive, sophisticated packaging would definitely help in promoting a brand. Examples of companies which were active in packaging were Kinh Do, Haiha Confectionery or Bien Hoa Confectionery. The unit price of all impulse and indulgence products continued to increase in 2010 as inflation remained high and the cost of raw materials continued to rise. Products that used more imported ingredients than the others, such as sweet and savoury snacks and chocolate confectionery, saw prices increase more due to the devaluation of Vietnam Dong over US Dollar.
Kinh Do Corp continued to lead with 13% share in value terms in 2009. With strong marketing activities continuously used over the years, the company managed to establish a strong brand name locally. Moreover, with a wide distribution network throughout the country, it was able to reach out to more consumers than many of its competitors in impulse and indulgence products. Kinh Do was also the company which saw the most growth in value share, gaining one percentage point in 2009, which was mostly attributable to its continuous marketing and product development efforts. The company also launched several new snacks products end of 2009, such as Sachi Extreme Taste extruded snack, which promises another successful year for it in 2010.
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Manufacturers were very active in terms of advertising in 2010. Big players, such as Kinh Do, Bien Hoa Confectionery and PepsiCo constantly launched new products and continuously ran television commercials, together with promotions and competitions with prizes to attract consumers. All of these activities were very effective as they attracted the younger consumers; the main target of many impulse and indulgence categories. There was little participation from private label in impulse and indulgence products. As private label is still very much underdeveloped in Vietnam, it is usually focused within nutrition/staples instead as these products have larger value and more demand. Moreover, the fact that the main target audience of impulse and indulgence products are young people also made it difficult for private label to enter, as these consumers pay much attention to brand image. Impulse and indulgence products has a good mix of domestic and multinational players, which tend to target different consumer income segments. Multinational players usually aim at the mid to high-end consumers, while domestic players are more popular for the low-end. Multinational brands are also more prominent in modern products, such as extruded snacks and chocolate confectionery, while local brands are more favoured for traditional products, such as fruit snacks and sugar confectionery. For impulse and indulgence products, besides good taste, companies have to maintain their brand image in order to be successful. This is because the main target audience of many impulse and indulgence products are the younger population, who are usually strongly affected by peer pressure and word-of-mouth. Thus, active advertising and promotions could help a brand to build awareness, as well as maintain its image to keep it top of consumers minds in a crowded environment.
Prospects
Impulse and indulgence products are expected to grow by over 6% in constant value terms over the forecast period. Increasing young population and busy lifestyles, together with rising incomes and living standards, will help to fuel demand and maintain good growth for the whole industry. Savoury biscuits and crackers will continue to be the leading performer due to its healthy image and acquired taste. In general, growth is expected to see a declining trend towards the review period as many products will lose their novelty while the other starts to reach their maturity. Moreover, increasing consumer awareness for health and wellness is a threat to the whole industry. Many impulse and indulgence products are considered very unhealthy with high sugar and calorie content and low level of nutrition. Thus, many consumers, especially young females, would avoid these products to stay healthy and keep fit. Following various mergers and acquisition activities in other packaged food categories, there might be potential for company activities in impulse and indulgence products in the near future. Big players, such as Kinh Do and Bien Hoa Confectionery, might see the opportunity in absorbing smaller companies to expand their product portfolio, production capability or distribution coverage. The unit price is expected to continue to rise over the forecast period with the increased raw material prices. More importantly, as manufacturers need to spend on research to develop more sophisticated and healthier products, their costs are expected to transfer to the consumers. Nonetheless, this would not affect sales much as price is not consumers main purchasing factor. New products launched by big companies, such as Kinh Do, Bien Hoa Confectionery and PepsiCo, in 2009/2010, would most likely be successful in the near future, as these companies have the large budgets for advertising and promotions, as well as being able to leverage on their existing brand names and strong distribution network. However, their success could be short-term due to strong competition in the industry. Thus, manufacturers are expected to launched new products continuously, and constantly remind the consumers about their brands with active promotions and advertisements.
Category Data
Table 19 Sales of Impulse and Indulgence Products by Category: Volume 2005-2010 2005 Confectionery ( tonnes) Pastries ( tonnes) 37,789.4 1,325.9 2006 40,589.2 1,493.8 2007 44,076.6 1,705.7 2008 47,709.6 1,909.0 2009 51,464.6 2,144.0 2010 55,736.9 2,429.4
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Cakes ( tonnes) Biscuits ( tonnes) Ice Cream ('000 litres) Sweet and Savoury Snacks ( tonnes) Snack Bars ( tonnes) Impulse and Indulgence Products (Not calculable)
Source:
14,178.2 44,722.3 35,230.8 19,588.6 -
15,057.5 50,658.3 38,175.5 21,990.0 -
16,181.8 58,512.7 41,759.1 24,582.1 -
17,442.6 66,991.0 43,875.1 27,009.3 -
18,715.8 75,509.8 45,726.8 29,221.9 -
20,176.9 86,032.1 49,112.8 31,529.9 -
Sales of Impulse and Indulgence Products by Category: Value 2005-2010
2005 Confectionery Pastries Cakes Biscuits Ice Cream Sweet and Savoury Snacks Snack Bars Impulse and Indulgence Products
Source:
2006 2,937.1 60.1 1,071.3 2,564.0 1,741.7 2,479.1 10,853.3
2007 3,323.8 74.4 1,224.1 3,083.8 1,998.9 2,904.7 12,609.7
2008 3,798.8 93.2 1,421.3 3,755.6 2,253.1 3,398.2 14,720.1
2009 4,256.2 114.0 1,634.5 4,472.4 2,502.3 3,898.5 16,877.8
2010 4,828.4 136.9 1,888.4 5,339.7 2,889.7 4,431.4 19,514.5
2,578.5 49.2 952.3 2,138.7 1,515.1 2,129.1 9,362.9
Table 21 % volume growth
Sales of Impulse and Indulgence Products by Category: % Volume Growth 2005-2010
2009/10 Confectionery Pastries Cakes Biscuits Ice Cream Sweet and Savoury Snacks Snack Bars Impulse and Indulgence Products
Source:
2005-10 CAGR 8.1 12.9 7.3 14.0 6.9 10.0 -
2005/10 TOTAL 47.5 83.2 42.3 92.4 39.4 61.0 -
8.3 13.3 7.8 13.9 7.4 7.9 -
Table 22
Sales of Impulse and Indulgence Products by Category: % Value Growth 2005-2010
% current value growth 2009/10 Confectionery Pastries Cakes Biscuits Ice Cream Sweet and Savoury Snacks Snack Bars Impulse and Indulgence Products
Source:
2005-10 CAGR 13.4 22.7 14.7 20.1 13.8 15.8 15.8
2005/10 TOTAL 87.3 178.2 98.3 149.7 90.7 108.1 108.4
13.4 20.2 15.5 19.4 15.5 13.7 15.6
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Company Shares of Impulse and Indulgence Products 2005-2009
2005 10.5 6.2 0.9 3.6 2.7 3.3 1.4 2.3 1.9 1.8 1.3 2.3 1.3 1.2 0.9 0.9 1.0 1.2 1.1 0.8 0.8 0.6 0.7 1.4 0.5 0.7 0.6 0.8 6.4 0.7 0.6 0.8 38.9 100.0
2006 10.8 6.3 0.9 3.8 3.0 3.3 1.6 2.4 2.0 2.0 1.4 2.2 1.4 1.2 0.8 1.0 1.0 1.2 1.1 0.7 0.7 0.6 0.6 1.0 0.5 0.2 0.7 0.6 0.8 6.2 0.6 0.6 0.8 38.5 100.0
2007 11.1 6.3 0.8 3.8 3.1 3.1 2.2 2.5 2.1 2.0 1.6 1.9 1.4 1.1 0.8 1.1 1.0 0.9 0.9 0.7 0.7 0.6 0.6 0.6 0.5 0.4 0.7 0.5 0.8 5.8 0.5 0.8 39.1 100.0
2008 11.8 6.3 6.2 3.9 3.4 3.1 2.5 2.6 2.2 2.1 1.7 1.8 1.5 1.1 1.0 1.1 1.0 0.8 0.8 0.7 0.7 0.6 0.6 0.6 0.5 0.4 0.6 0.4 0.5 0.8 0.8 37.8 100.0
2009 12.6 6.4 5.9 3.9 3.5 3.2 2.7 2.6 2.4 2.2 1.9 1.8 1.4 1.2 1.1 1.1 1.0 0.9 0.8 0.8 0.8 0.7 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.4 0.8 36.3 100.0
Kinh Do Corp Bien Hoa Confectionery Corp (Bibica) Mars Confectionery Vietnam Perfetti Van Melle Vietnam Ltd Lotte Vietnam Co Ltd Haiha Confectionery JSC Kraft Foods Inc Hai Chau Confectionery JSC Tan Tan Food & Foodstuff Co Orion Food Vina Co Ltd Liwayway Food Industry Co Ltd Tuyen Ky Co Ltd Quang Ngai Sugar Co Special Aquatic Jointstock Co (SEASPIMEXVIETNAM) Triko Foods Co Vinabico Confectionery JSC Huu Nghi High Quality Confectionery JSC Ken Ken (Vietnam) Food Manufacturing Co Ltd Meiji Holdings Co Ltd Apollo Food Industries Sdn Bhd Vietnam Dairy Products JSC (Vinamilk) European Foods PCL Thuy Ta Co Ltd Cholon Investment & Import-Export Co (CHOLIMEX) Dong Khanh Food Industrial Co Ltd Trang An Confectionery Co PepsiCo Inc Kim Phong Co Vinamit JSC Storck KG, August Meiji Seika Kaisha Ltd Wrigley Jr Co, William Cadbury Schweppes Plc Danone, Groupe Artisanal Others Total
Source:
Brand Shares of Impulse and Indulgence Products 2006-2009
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Brand AFC Doublemint Hai Chau Kinh Do Lotte Hai Ha Tan Tan Oishi Bibica Orion Hura Cool Air Ritz Tuyen Ky Alpenliebe New Choice Jelly Happydent Sachi Quang Ngai Xylitol Merino Good Choice Seaspimex Apollo Vinamilk Juicy Fruit Cosy Marie Euro Ken Ken Mentos Doublemint Cool Air Juicy Fruit Artisanal Others Total
Source:
Company Kinh Do Corp Mars Confectionery Vietnam Hai Chau Confectionery JSC Kinh Do Corp Lotte Vietnam Co Ltd Haiha Confectionery JSC Tan Tan Food & Foodstuff Co Liwayway Food Industry Co Ltd Bien Hoa Confectionery Corp (Bibica) Orion Food Vina Co Ltd Bien Hoa Confectionery Corp (Bibica) Mars Confectionery Vietnam Kraft Foods Inc Tuyen Ky Co Ltd Perfetti Van Melle Vietnam Ltd Triko Foods Co Perfetti Van Melle Vietnam Ltd Kinh Do Corp Quang Ngai Sugar Co Lotte Vietnam Co Ltd Kinh Do Corp Kinh Do Corp Special Aquatic Jointstock Co (SEASPIMEXVIETNAM) Apollo Food Industries Sdn Bhd Vietnam Dairy Products JSC (Vinamilk) Mars Confectionery Vietnam Kinh Do Corp European Foods PCL Ken Ken (Vietnam) Food Manufacturing Co Ltd Perfetti Van Melle Vietnam Ltd Wrigley Jr Co, William Wrigley Jr Co, William Wrigley Jr Co, William
2006 2.3 2.4 4.0 2.3 2.3 2.0 1.4 2.1 1.8 1.5 0.9 1.7 1.1 0.8 0.8 0.6 1.0 0.7 0.8 0.8 1.1 0.7 0.7 1.0 0.6 3.7 1.3 0.8 0.8 58.0 100.0
2007 2.5 2.5 3.9 2.4 2.2 2.1 1.6 2.0 1.8 1.6 1.0 1.5 1.1 0.8 0.9 0.8 1.0 0.7 0.8 0.8 0.9 0.7 0.7 0.7 0.6 3.3 1.4 0.8 0.8 58.0 100.0
2008 2.9 2.9 2.6 3.9 2.6 2.3 2.2 1.7 2.0 1.9 1.8 1.5 1.2 1.3 1.1 1.0 0.9 0.9 1.0 0.8 0.8 0.8 0.8 0.7 0.8 0.7 0.6 0.7 0.8 56.6 100.0
2009 3.2 2.7 2.6 2.6 2.6 2.5 2.4 1.9 1.9 1.9 1.8 1.6 1.4 1.3 1.1 1.1 1.0 1.0 1.0 0.9 0.9 0.8 0.8 0.8 0.8 0.7 0.7 0.7 0.7 0.7 0.8 55.0 100.0
Table 25
Forecast Sales of Impulse and Indulgence Products by Category: Volume 2010-2015 2010 2011 60,311.9 2,704.2 21,610.4 96,733.7 52,546.1 33,708.7 2012 65,160.4 2,992.5 23,037.9 107,555.6 56,052.8 35,872.6 2013 70,333.7 3,296.4 24,485.9 118,539.7 59,617.9 37,999.1 2014 75,817.2 3,603.6 25,968.2 129,887.7 63,208.4 39,981.6 2015 81,492.8 3,903.4 27,479.9 140,976.1 66,799.6 41,757.5
Confectionery ( tonnes) Pastries ( tonnes) Cakes ( tonnes) Biscuits ( tonnes) Ice Cream ('000 litres) Sweet and Savoury Snacks ( tonnes)
55,736.9 2,429.4 20,176.9 86,032.1 49,112.8 31,529.9
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Snack Bars ( tonnes) Impulse and Indulgence Products (Not calculable)

Source:
Forecast Sales of Impulse and Indulgence Products by Category: Value 2010-2015
2010 Confectionery Pastries Cakes Biscuits Ice Cream Sweet and Savoury Snacks Snack Bars Impulse and Indulgence Products
Source:
2011 5,067.8 149.7 2,005.0 5,861.0 3,012.3 4,748.4 20,844.2
2012 5,353.4 162.2 2,118.8 6,395.4 3,123.8 5,067.7 22,221.3
2013 5,680.8 175.0 2,234.5 6,944.8 3,228.9 5,385.9 23,649.9
2014 6,047.5 187.8 2,349.6 7,537.4 3,338.3 5,699.5 25,160.1
2015 6,457.9 200.7 2,465.4 8,137.9 3,508.6 6,008.4 26,779.0
4,828.4 136.9 1,888.4 5,339.7 2,889.7 4,431.4 19,514.5
Table 27
Forecast Sales of Impulse and Indulgence Products by Category: % Volume Growth 2010-2015
% volume growth 2014/15 Confectionery Pastries Cakes Biscuits Ice Cream Sweet and Savoury Snacks Snack Bars Impulse and Indulgence Products
Source:
2010-15 CAGR 7.9 9.9 6.4 10.4 6.3 5.8 -
2010/15 TOTAL 46.2 60.7 36.2 63.9 36.0 32.4 -
7.5 8.3 5.8 8.5 5.7 4.4 -
Table 28
Forecast Sales of Impulse and Indulgence Products by Category: % Value Growth 20102015
% constant value growth 2010-15 CAGR Confectionery Pastries Cakes Biscuits Ice Cream Sweet and Savoury Snacks Snack Bars Impulse and Indulgence Products
Source:
2010/15 TOTAL 33.7 46.6 30.6 52.4 21.4 35.6 37.2
6.0 7.9 5.5 8.8 4.0 6.3 6.5
NUTRITION/STAPLES KEY TRENDS AND DEVELOPMENTS
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Headlines
Nutrition/staples is set to record 16% value growth to reach VND72 trillion in 2010 Increasing consumer awareness for health and wellness strongly affects nutrition/staples Rice, the most common staple in Vietnam, will continue to see strongest growth with 26% in 2010 Unit price of all categories increase due to high inflation and rising price of raw materials Vietnam Dairy Products JSC (Vinamilk) and Acecook Vietnam JSC continue to be the leading players Nutrition/staples is expected to grow by a7% constant value CAGR over the forecast period
Trends
Increasing consumer awareness for health and wellness is the main factor contributing to nutrition/staples growth in 2010. Products such as drinking milk and yoghurt continue seeing strong growth as more and more consumers become aware of its nutrition benefits. On the other hand, packaged breads and rice are taking over unpackaged/artisanal products as consumers perceive them to be more hygienic and safer. Increasing Western influence is another contributing factor to the industrys growth in 2010. Foods like bread and pasta are gradually becoming more popular choices as staples compared to the traditional rice and noodles, attributed to the increasing popularity of Western foodservice outlets in the country and television shows. Consumers, especially the youth who are more adaptable to changes and affected by Western culture, are more willing to buy pasta or bread to eat at home as a substitute to rice. 2010s expected growth of most products are on par with the review period. Being staples and essential products, they are not so much affected by the economic situation, as consumers still need to purchase and consume them regularly. Rice, the most common staple in Vietnam, is set to continue to record the strongest growth of 26% in 2010. The rise of modern retailers, such as supermarkets/hypermarkets, drives the growth of packaged rice as consumers shift to these products from unpackaged rice, which is perceived as less hygienic and of lower quality. On the other hand, other dairy is predicted to record the lowest of nutrition/staples, yet still show very strong growth at 10% in 2010. Products in this category include cream and condensed/evaporated milk. Cream remains a very niche segment, and usually found only in modern retailers, while condensed/evaporated milk is very mature with very high penetration. Thus, both of these are predicted to see slow growth, which makes dairy underperform as a whole. Nutrition/staples can be found in almost every type of grocery retailers, from traditional retailers like open markets and independent small grocers, to modern retailers such as supermarkets/hypermarkets. Some products such as drinking milk, yoghurt, and rice even have their own specialist shops, which usually carry a wide range of varieties for consumers to choose from. There was little packaging innovation in nutrition/staples in 2010, as manufacturers focused on maintaining low prices. Being essential products, their packaging was also not a major factor affecting consumer decisions, but rather their quality and price.
Vietnam Dairy Products JSC (Vinamilk) and Acecook Vietnam JSC continued to lead nutrition/staples with a combined 28% value share. Being the leading players in the biggest categories, dairy and noodles, gave these two companies a clear competitive edge over the rest. Vinamilk is a well-known and trusted brand in Vietnam, especially after the melamine scandal in 2008 when it stood out as one of the few companies which had its entire products test negative for melamine. On the other hand, Acecook Vietnam, with its wide brand portfolio targeting different income segments, managed to maintain its position with strong advertising and promotions. Vinamilk was also the most dynamic player in 2009, gaining one percentage share in value share. Already having a strong brand name and consumer trust, active advertisements and product development activities pushed its growth strongly to achieve a great performance. The company launched its new product ginger yoghurt in 2009, which captured consumer attention for its distinctive taste and combined health benefits of
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ginger and yoghurt. Moreover, Vinamilk was also one of the few companies to offer pre/pro biotic drinking and spoonable yoghurt, and thus benefited from first mover advantage to capitalise on the rising health and wellness trend. As nutrition/staples products are the most consumed in everyday meals, consumers usually look for quality and price when they make their purchasing decisions. In 2009/2010, there have been many product developments targeting the rising health and wellness awareness of the consumers. For example, Cai Lan Oils & Fats launched new product Neptune 1:1:1 which was advertised as having the perfect ratio of saturated, polyunsaturated and monounsaturated fat. This trend is expected to continue in the future, and manufacturers should develop new products along this line in order to be successful. Private label products remained negligible. However, with the rise of supermarkets/hypermarkets over the past few years, private label is expected to perform better in the near future. Brands from big retailers, such as Wow by Big C, or Co.opMart by Co.opMart, will most likely extend even further to nutrition/staples, especially essential products such as rice and bread. Nutrition/staples saw a good mix of domestic and multinational players over the review period. While the domestic players dominated the more traditional categories, such as rice, oils and fats, and noodles, multinational players dominated categories that usually required more developed knowledge and nutritional expertise, such as baby food, breakfast cereals and meal replacement products. Products that are not usually consumed by local people, such as pasta and cheese, were also dominated by foreign players as domestic players saw little potential to enter these segments.
Prospects
Nutrition/staples is expected to see a 7% CAGR in constant value terms over the forecast period. As many products are essential to most peoples everyday meals, demand is expected to be stable and remain strong. Rising health and wellness trend will continue to affect most nutrition/staples products, as consumers constantly look out for healthier and more nutritious solutions. Thus, brands which offer more nutritional content, while maintaining the good taste and a reasonable price, will promise much growth potential. Rising popularity of Western culture, with the help of the increasing number of Western foodservice outlets and television shows, will also affect consumer behaviour in nutrition/staples. Western products, such as pasta, might develop as another staple alternative to the traditional rice and noodle. However, actions from the manufacturers and distributors to increase awareness are also expected in order to maintain growth, as even though many young consumers like to eat Western food, they are not familiar enough to cook them at home. Growth is expected to slow down towards the end of forecast period as the products reach their maturity and demand becomes stable. Condensed/evaporated milk is one example of a matured product, which saw much slower growth than the rest of the segment in 2010. There is not much threat to growth as most products in nutrition/staples are everyday food items and consumers would still have to purchase them regardless of the situation, especially for products such as rice, noodles and bread. New products launched in 2009/2010 are expected to perform well over the forecast period, given that most of them focus on the rising health and wellness trend. However, their success still depends strongly on their taste and price, which are also the key factors consumers look for when they purchase food products. These products might trigger even more new products to be launched, which mostly will also emphasise the consumers rising concern of food safety and nutrition.
Category Data
Table 29 tonnes 2005 Bread Breakfast Cereals Dairy 235,696.6 29.3 2006 252,303.9 31.9 2007 273,132.7 35.7 2008 294,602.8 39.7 2009 315,048.4 43.6 2010 339,139.5 48.0 Sales of Nutrition/Staples by Category: Volume 2005-2010
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Meal Replacement Products Oils and Fats Baby Food Spreads Pasta Noodles Rice Nutrition/Staples
Source:
672.3 343,296.7 717.8 2,959.1 289,275.3 12,200.0 -
692.4 389,484.3 778.2 3,246.2 319,328.6 14,030.0 -
740.9 443,801.4 875.1 3,570.8 346,906.8 16,555.4 -
785.4 492,506.6 962.7 3,874.3 370,795.9 19,038.7 -
828.5 536,704.2 1,041.0 4,145.5 406,599.5 21,608.9 -
878.3 582,219.5 1,125.7 4,456.4 433,136.1 24,850.3 -
Sales of Nutrition/Staples by Category: Value 2005-2010
2005 Bread Breakfast Cereals Dairy Meal Replacement Products Oils and Fats Baby Food Spreads Pasta Noodles Rice Nutrition/Staples
Source:
2006 3,450.3 5.3 10,194.0 220.0 8,404.8 6,411.4 64.7 129.5 9,624.5 108.7 38,613.4
2007 4,033.4 6.3 11,568.4 246.4 9,973.8 7,736.3 76.1 147.7 11,434.5 131.6 45,354.5
2008 4,762.2 7.6 13,171.9 283.4 11,753.5 9,164.5 89.1 166.9 13,504.1 164.4 53,067.5
2009 5,461.7 8.9 15,419.3 318.8 13,594.2 10,788.2 101.4 185.2 16,179.9 204.7 62,262.2
2010 6,335.0 10.5 17,851.2 360.2 15,665.3 12,638.5 115.6 207.5 18,969.7 258.0 72,411.3
3,026.9 4.6 9,057.0 200.0 7,170.0 5,252.0 55.8 115.7 8,123.0 90.6 33,095.5
Sales of Nutrition/Staples by Category: % Volume Growth 2005-2010
2009/10 Bread Breakfast Cereals Dairy Meal Replacement Products Oils and Fats Baby Food Spreads Pasta Noodles Rice Nutrition/Staples
Source:
2005-10 CAGR 7.5 10.3 5.5 11.1 9.4 8.5 8.4 15.3 -
2005/10 TOTAL 43.9 63.6 30.6 69.6 56.8 50.6 49.7 103.7 -
7.6 10.2 6.0 8.5 8.1 7.5 6.5 15.0 -
Table 32
Sales of Nutrition/Staples by Category: % Value Growth 2005-2010
% current value growth 2009/10 Bread Breakfast Cereals Dairy Meal Replacement Products Oils and Fats Baby Food Spreads 16.0 17.9 15.8 13.0 15.2 17.2 14.0 2005-10 CAGR 15.9 17.9 14.5 12.5 16.9 19.2 15.7 2005/10 TOTAL 109.3 127.5 97.1 80.1 118.5 140.6 107.2
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Pasta Noodles Rice Nutrition/Staples

Source:
12.0 17.2 26.0 16.3
12.4 18.5 23.3 17.0
79.4 133.5 184.7 118.8
Company Shares of Nutrition/Staples 2005-2009
2005 13.3 7.2 4.3 4.2 3.4 0.3 4.3 2.6 3.2 2.2 2.8 1.3 2.2 0.8 1.0 1.0 0.7 0.6 0.4 0.5 0.6 0.6 0.4 0.3 0.4 0.2 0.2 8.4 0.3 1.4
2006 13.9 7.1 4.4 4.4 3.6 0.0 4.2 2.9 2.7 2.6 2.8 1.3 2.1 0.9 1.0 1.0 0.8 0.7 0.5 0.5 0.7 0.6 0.4 0.4 0.4 0.3 0.3 8.2 0.3 1.6
2007 14.4 7.1 4.6 4.4 3.8 0.4 4.1 3.0 2.6 2.8 2.7 1.2 1.9 1.0 1.1 1.4 0.8 0.7 0.5 0.6 0.6 0.5 0.4 0.4 0.4 0.3 0.2 0.3 8.0 0.3 0.7
2008 15.2 10.8 7.2 4.9 4.5 4.0 0.7 3.8 3.0 2.6 2.6 2.5 1.4 1.7 1.1 1.2 1.3 0.8 0.7 0.6 0.6 0.6 0.6 0.5 0.4 0.3 0.3 0.2 0.3 7.6 0.3 0.2
2009 16.3 11.3 7.5 7.1 4.7 4.6 3.7 3.2 3.1 2.9 2.6 2.4 1.8 1.5 1.5 1.2 1.1 1.1 0.8 0.7 0.7 0.6 0.6 0.6 0.5 0.4 0.3 0.3 0.3 0.3 -
Vietnam Dairy Products JSC (Vinamilk) Acecook Vietnam JSC Cai Lan Oils & Fats Industries Co Ltd FrieslandCampina Vietnam Co Ltd Tuong An Vegetable Oil JSC Abbott Vietnam Co Ltd Asia Food Industry Co Ltd Masan Food Corp VIFON - Vietnam Food Industries Joint Stock Co Mead Johnson Nutrition (Vietnam) Co Ltd Nestl Vietnam Ltd Golden Hope Nha Be Edible Oils Co Ltd Tan Binh Vegetable Oil JSC Saigon Vewong Joint Venture Co Colusa Miliket Foodstuff JSC (COMIFOOD) Kinh Do Corp Binh An Vegetable Oil JSC Thien Huong Food Co Lactalis, Groupe Fonterra Brands (Vietnam) Co Ltd Nhu Lan Bakery Unibel SA Duc Phat Private Enterprise Vietnam Nutrition JSC Hanoi Milk JSC F&N Vietnam Food Co Ltd Dong Tam Nutrition Food JSC Bao Ngoc Private Enterprise Asia Bakery & Confectionery Pte Enterprise Hipp GmbH & Co Vertrieb KG Dutch Lady Vietnam Food & Beverage Co Ltd Meiji Dairies Corp Uni-President Vietnam Co Ltd
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Packaged Food
Vietnam
Acecook Vietnam Co Ltd Artisanal Generics Others Total

Source:
9.0 6.4 0.1 15.2 100.0
9.5 6.0 0.1 14.0 100.0
10.2 5.7 0.1 13.1 100.0
5.5 0.1 12.0 100.0
5.1 0.1 11.3 100.0
Table 34 % retail value rsp Brand Vinamilk Dutch Lady Tuong An Vina Acecook Neptune Ong Tho Hao Hao Omachi Gau Do Dielac Hao 100 Gain Simply Marvela Nakydaco A-One Colusa Miliket Enfagrow Kinh Do Hello PediaSure Vi Huong Ngon Ngon Milo Milk Ridielac Meizan Prsident Tu Quy Nhu Lan Dutch Lady Vua Bep Vina Acecook Hao Hao
Brand Shares of Nutrition/Staples 2006-2009
Company Vietnam Dairy Products JSC (Vinamilk) FrieslandCampina Vietnam Co Ltd Tuong An Vegetable Oil JSC Acecook Vietnam JSC Cai Lan Oils & Fats Industries Co Ltd Vietnam Dairy Products JSC (Vinamilk) Acecook Vietnam JSC Masan Food Corp Asia Food Industry Co Ltd Vietnam Dairy Products JSC (Vinamilk) Acecook Vietnam JSC Abbott Vietnam Co Ltd Cai Lan Oils & Fats Industries Co Ltd Golden Hope Nha Be Edible Oils Co Ltd Tan Binh Vegetable Oil JSC Saigon Vewong Joint Venture Co Colusa Miliket Foodstuff JSC (COMIFOOD) Mead Johnson Nutrition (Vietnam) Co Ltd Kinh Do Corp Asia Food Industry Co Ltd Abbott Vietnam Co Ltd Thien Huong Food Co VIFON - Vietnam Food Industries Joint Stock Co Nestl Vietnam Ltd Vietnam Dairy Products JSC (Vinamilk) Vietnam Dairy Products JSC (Vinamilk) Cai Lan Oils & Fats Industries Co Ltd Lactalis, Groupe VIFON - Vietnam Food Industries Joint Stock Co Nhu Lan Bakery Dutch Lady Vietnam Food & Beverage Co Ltd Uni-President Vietnam Co Ltd Acecook Vietnam Co Ltd Acecook Vietnam Co Ltd
2006 4.7 4.4 3.6 4.0 2.5 2.0 2.0 2.1 2.0 2.8 1.3 2.0 1.3 0.9 1.1 1.1 1.0 1.4 1.1 0.8 0.8 0.7 0.8 1.3 0.5 6.0 1.6 3.6 3.7
2007 5.4 4.6 3.7 3.9 0.4 2.7 2.2 2.0 2.0 2.1 2.7 1.2 1.7 1.3 1.0 1.2 1.1 1.4 1.4 1.1 0.8 0.9 0.7 0.8 1.2 0.5 5.7 0.7 4.3 3.6
2008 5.9 4.9 4.5 3.8 3.9 3.6 0.7 2.8 2.3 2.3 2.1 1.9 2.0 2.5 1.4 1.5 1.2 1.1 1.3 1.1 1.3 1.3 1.0 0.8 0.9 0.8 0.8 1.0 0.6 5.4 0.2 -
2009 6.7 5.0 4.7 4.6 4.0 3.9 3.5 2.6 2.6 2.4 2.2 2.1 2.0 1.9 1.8 1.5 1.3 1.2 1.2 1.2 1.1 1.1 1.0 1.0 1.0 1.0 0.9 0.8 0.7 0.7 -
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Packaged Food
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Hao 100 Artisanal Others Total

Source:
Acecook Vietnam Co Ltd
2.2 6.0 30.8 100.0
2.3 5.7 29.8 100.0
5.5 29.5 100.0
5.1 29.5 100.0
Table 35 tonnes
Forecast Sales of Nutrition/Staples by Category: Volume 2010-2015
Source:
2011 364,208.4 52.4 932.7 625,820.5 1,206.0 4,746.1 457,602.2 28,329.3 -
2012 391,462.4 56.9 993.3 666,485.9 1,281.9 5,030.8 481,169.7 32,012.1 -
2013 418,737.6 61.6 1,060.9 706,490.7 1,354.9 5,307.5 503,565.7 35,853.6 -
2014 446,255.9 66.2 1,135.1 745,414.7 1,425.0 5,572.9 522,140.0 39,976.7 -
2015 474,958.0 70.8 1,216.9 782,812.0 1,491.9 5,795.8 533,918.5 44,374.2 -
339,139.5 48.0 878.3 582,219.5 1,125.7 4,456.4 433,136.1 24,850.3 -
Forecast Sales of Nutrition/Staples by Category: Value 2010-2015
Source:
2011 6,860.3 11.4 19,341.2 374.6 16,820.1 13,670.2 121.5 223.0 20,354.0 296.6 78,072.8
2012 7,437.7 12.3 20,926.7 391.5 17,979.3 14,737.4 127.8 238.6 21,730.4 338.2 83,919.8
2013 7,991.5 13.2 22,567.1 411.1 19,156.5 15,828.6 134.3 254.1 22,984.3 382.1 89,722.9
2014 8,553.7 14.2 24,081.8 435.7 20,368.5 16,904.5 140.5 269.4 24,093.3 428.0 95,289.6
2015 9,155.5 15.2 25,507.1 464.0 21,631.8 17,959.7 146.3 284.2 24,920.4 477.2 100,561.6
6,335.0 10.5 17,851.2 360.2 15,665.3 12,638.5 115.6 207.5 18,969.7 258.0 72,411.3
Forecast Sales of Nutrition/Staples by Category: % Volume Growth 2010-2015
2014/15 Bread Breakfast Cereals Dairy Meal Replacement Products Oils and Fats Baby Food Spreads Pasta Noodles Rice Nutrition/Staples
Source:
2010-15 CAGR 7.0 8.1 6.7 6.1 5.8 5.4 4.3 12.3 -
2010/15 TOTAL 40.0 47.5 38.6 34.5 32.5 30.1 23.3 78.6 -
6.4 6.9 7.2 5.0 4.7 4.0 2.3 11.0 -
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Table 38
Forecast Sales of Nutrition/Staples by Category: % Value Growth 2010-2015
% constant value growth 2010-15 CAGR Bread Breakfast Cereals Dairy Meal Replacement Products Oils and Fats Baby Food Spreads Pasta Noodles Rice Nutrition/Staples
Source:
2010/15 TOTAL 44.5 45.5 42.9 28.8 38.1 42.1 26.6 37.0 31.4 85.0 38.9
7.6 7.8 7.4 5.2 6.7 7.3 4.8 6.5 5.6 13.1 6.8
MEAL SOLUTIONS KEY TRENDS AND DEVELOPMENTS

Headlines
Meal solutions set to record growth of 15% to reach VND16 trillion Increasingly busy lifestyles is the main contributing factor to growth in 2010 Chilled processed meats is predicted to be the strongest growing category at 24% Unit price moves up due to inflation and rising material costs Masan Food Corp leads in 2009 with 22% value share Meal solutions is expected to grow by a 5% CAGR over the forecast period in constant value terms
Trends
In 2010, meal solutions is set to record growth of 15% to reach VND16 trillion in current value sales. Increasingly busy lifestyles was the main contributing factor to growth. As consumers, especially those in big cities such as Ha Noi and Ho Chi Minh, led busier and more stressful lives, they had less time to cook and preferred these products over fresh food and they required less preparation and cooking time. Many canned/preserved food segments are predicted to see slower growth in 2010 than the review period. On the other hand, chilled and frozen processed food is set to see stronger growth in 2010. The reason is that, firstly, canned/preserved food is a more mature category compared to chilled and frozen processed food. Secondly, chilled and frozen processed foods are both perceived to contain fewer preservatives than canned/preserved food, and are thus safer for consumption. Chilled processed meats is set to be the strongest growth category with 24% in 2010, attributable to many factors such as active advertisements and promotions, and busier lifestyles. Chilled processed meat products were strongly promoted in supermarkets/hypermarkets, where consumers could taste-test products before purchasing. Chilled processed meats also won over other categories as a solution for a quick meal due to the fact that many local consumers are already acquired to its taste. Jambon and ham were amongst the most popular chilled processed meats, which can be eaten with many Vietnamese dishes. On the other hand, canned/preserved vegetables is predicted to record the slowest growth at 10%, the only category with single-digit growth in 2010. The main reason is that local consumers strongly prefer fresh vegetables, which are perceived to have more nutrition and superior taste. Meal solutions products were mostly distributed by supermarkets/hypermarkets or food/drink specialist retailers, as they have large spaces and can afford cold storage facilities to maintain products quality. Some
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canned/preserved food products which do not require cold storage also can be found in traditional retailers such as independent small grocers. Together with the rise of modern retailers over the review period, consumers also shifted to purchase more meal solutions products at supermarkets and food specialist retailers as they can find more varieties there. The unit price continued to rise in 2010 due to inflation and rising raw material costs. Nonetheless, it did not affect the value and volume sales of meal solutions much as the target audience for these products are the middle and high-income groups who have busy lifestyles and require quick meals.
Masan Food Corp led meal solutions with 22% value share in 2009. Being leader of the biggest category, sauces, dressings and condiments gave Masan clear competitive edge over the rest. Masan was also the best performing company with an impressive five percentage point share gain in 2009. From a tiny company, the company expanded quickly to obtain the third position in 2007, and leader in 2008, attributed to its wise strategy and strong distribution network. Masan took advantage of many food scandals in 2007 and 2008, particularly in sauces, dressings and condiments, when it launched several products emphasising their safety with certification from the Ministry of Health. The company successfully answered consumers needs for safe products, and saw its brands double in sales year-on-year. In 2009, the company continued to gain share strongly as the food safety issue still lingered in many consumers minds. One of the key new products launched was De Nhat fish sauce by Acecook Vietnam. It was a good example of new product development that captured the rising health trend. The brand was fortified with iodine and iron, which stood out from the other brands as fish sauce, a very traditional product in Vietnam, was not usually paid attention to by the manufacturers in terms of its nutritional content. Although that did not guarantee its success, as consumers also looked for good taste besides the nutrition, it definitely helped De Nhat to gain consumers interest upon its launch. As these products are aimed at providing a quick meal for busy consumers, ease of use and good taste were some of the important factors for success. Thus, companies constantly tried to launch new products with new flavours, new varieties with easier to use packaging to attract buyers. For instant, Halong Canned Food launched new versions of its famous tuna in oil and pork liver paste, which featured smaller portions in aluminium pouches. The product was targeted at the office workers as these could fit easily into their bags and were just enough for one person. Although there were a few private label products participating in meal solutions, such as Co.opMart by Co.opMart, Wow by Big C, their sales were still minimal compared to other brands. The main reason was that private label faced tough competition from big brands, which had larger budgets for advertising and promotion. Lack of consumer awareness also hindered growth of private label in Vietnam. Meal solutions had a good mix of domestic and multinational players. Domestic players dominated preserved and processed food, as they had the advantage in understanding local tastes and flavour. On the other hand, multinational players dominated in sauces, dressings and condiments, especially monosodium glutamate (MSG) and stock cubes, as they were the first to enter meal solutions and have since established good and trusted brand names.
Prospects
Meal solutions is expected to grow by a 5% constant value CAGR over the forecast period. Urbanisation and increasingly busy lifestyles will be the key factors fuelling demand. Continuous new products development with better taste and more varieties from the manufacturers is also expected to keep consumers interested in these products. The growth rate is expected to slow down towards the end of the forecast period as the products novelty wear off and they reach maturity. Moreover, rising consumer awareness for the health and wellness trend would also hinder growth of products such as canned/preserved food, frozen and chilled processed food as they are perceived as not as healthy as fresh food. Besides the main threat of rising consumer awareness over health and wellness, the rise of foodservice outlets is also a contributing threat. As there are more and more good restaurants, especially in larger cities such as Ho Chi Minh and Ha Noi, busy consumers would choose to eat out instead of eating at home.
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As there was little company activity over the review period, and there is little company activity expected over the forecast period either. Most companies in meal solutions have small to big scale, making it difficult for them to acquire each other. However, there might be an opportunity for foreign players to buy out smaller domestic companies as a way to localise themselves and penetrate the market faster. New products in 2009/2010 are expected to perform well, as they feature better and more convenient packaging and good quality. However, given the constant product development rate and the fact that meal solutions is very crowded with many players, their success might be short-term. Thus, manufacturers have to constantly look out for new trends and launch new products to capture consumer interest.
Category Data
Table 39 '000 tonnes 2005 Ready Meals Canned/Preserved Food Frozen Processed Food Dessert Mixes Dinner Mixes Chilled Processed Food Sauces, Dressings and Condiments Soup Meal Solutions
Source:
Sales of Meal Solutions by Category: Volume 2005-2010
2006 4.1 12.2 15.1 2.4 233.9 0.5 264.0
2007 4.6 13.7 17.5 2.7 261.5 0.5 295.9
2008 5.1 15.2 19.8 3.1 297.0 0.6 335.7
2009 5.6 16.7 22.2 3.4 327.1 0.6 370.1
2010 6.1 18.1 24.9 3.8 356.8 0.7 404.3
3.7 10.8 13.0 2.1 211.8 0.4 238.1
Sales of Meal Solutions by Category: Value 2005-2010
2005 Ready Meals Canned/Preserved Food Frozen Processed Food Dessert Mixes Dinner Mixes Chilled Processed Food Sauces, Dressings and Condiments Soup Meal Solutions
Source:
2006 182.0 533.1 805.2 198.8 7,525.6 17.1 9,079.8
2007 206.6 620.9 976.5 228.3 8,535.2 19.1 10,380.1
2008 241.9 730.7 1,197.3 280.2 10,065.5 22.0 12,295.7
2009 284.4 852.4 1,443.7 339.7 11,527.5 25.1 14,188.4
2010 331.0 979.8 1,745.7 415.9 13,074.7 28.5 16,244.5
161.7 459.5 671.6 172.6 6,719.4 15.5 8,038.7
Sales of Meal Solutions by Category: % Volume Growth 2005-2010
2009/10 Ready Meals Canned/Preserved Food Frozen Processed Food Dessert Mixes Dinner Mixes Chilled Processed Food Sauces, Dressings and Condiments 9.3 8.7 11.9 12.2 9.1
2005-10 CAGR 10.6 11.0 13.8 12.7 11.0
2005/10 TOTAL 65.4 68.2 91.0 81.6 68.5
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Packaged Food
Vietnam
Soup Meal Solutions

Source:
6.3 9.3
9.8 11.2
59.5 69.8
Table 42
Sales of Meal Solutions by Category: % Value Growth 2005-2010
% current value growth 2009/10 Ready Meals Canned/Preserved Food Frozen Processed Food Dessert Mixes Dinner Mixes Chilled Processed Food Sauces, Dressings and Condiments Soup Meal Solutions
Source:
2005-10 CAGR 15.4 16.4 21.1 19.2 14.2 12.9 15.1
2005/10 TOTAL 104.7 113.2 159.9 141.0 94.6 83.3 102.1
16.4 14.9 20.9 22.4 13.4 13.5 14.5
Company Shares of Meal Solutions 2005-2009
2005 2.0 10.1 4.0 3.2 17.4 1.7 2.9 2.4 1.5 1.6 1.2 1.1 1.1 1.0 1.0 0.7 0.6 0.9 0.6
2006 2.8 10.7 4.2 3.4 16.0 1.7 2.7 1.8 2.4 1.5 1.6 1.3 1.1 1.1 1.0 1.0 0.8 0.7 0.9 0.6
2007 6.1 12.7 4.5 3.5 12.0 2.0 2.3 2.0 2.3 1.5 1.5 1.3 1.2 1.2 1.1 1.1 1.0 0.9 0.9 0.9 0.6
2008 16.7 16.2 4.6 3.6 5.9 2.3 2.3 2.1 2.2 1.6 1.5 1.4 1.3 1.2 1.1 1.2 1.1 1.0 1.0 1.0 0.7
2009 21.7 17.4 4.9 3.8 3.2 2.4 2.3 2.2 2.1 1.9 1.5 1.4 1.3 1.3 1.2 1.1 1.1 1.1 1.1 1.0 0.7
Masan Food Corp Ajinomoto Vietnam Co Ltd Vissan Co Ltd Halong Canned Food JSC Vedan (Vietnam) Enterprise Corp Ltd Miwon Vietnam Co Ltd Saigon Vewong Joint Venture Co Unilever Vietnam International Co Ltd Trung Thanh Co Ltd Hung Thinh Co Ltd Thuan Phat Food Processing & Trading Co Bay Hong Hanh Production Trading Service Co Ltd Cau Tre Export Goods Processing JSC Saigon Aquatic Products Trading JSC Hanh Phuc Co Ltd Cholon Investment & Import-Export Co (CHOLIMEX) Special Aquatic Jointstock Co (SEASPIMEXVIETNAM) An Giang Fisheries Import Export Co (Agifish) Nestl Vietnam Ltd Long Hai Fish Sauce Enterprise Ltd Lien Thanh Co Ltd
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Tuyen Ky Co Ltd Song Huong Co Ltd Vietnam National Vegetable, Fruit & Agricultural Product Corp (Vegetexco) Vianco Joint Venture Enterprise Co Ltd Muoi Thu Fish Sauce Co Ltd Nam Duong Sauce Enterprise Hien Thanh Co Ltd Saigon Export Foodstuffs and Agricultural Products JSC Quang Hung Co Ltd APT Aquatic Products Trading Co Unilever Best Foods & Elida P/S Vietnam Co Ltd Private Label Others Total
Source:
0.5 0.6 0.5
0.5 0.6 0.5
0.6 0.6 0.5
0.6 0.7 0.5
0.6 0.6 0.5
0.7 0.3 0.5 0.3 0.3 0.3 1.2 1.7 0.1 38.2 100.0
0.7 0.3 0.6 0.3 0.3 0.3 1.2 0.1 37.0 100.0
0.7 0.3 0.5 0.3 0.3 0.3 0.1 35.0 100.0
0.7 0.4 0.4 0.3 0.3 0.3 0.1 25.9 100.0
0.4 0.4 0.4 0.3 0.3 0.3 0.1 21.7 100.0
Table 44 % retail value rsp Brand Ajinomoto Nam Ngu Chin-Su Tam Thai Tu Vissan Ha Long Vedan Miwon A-One Knorr Trung Thanh Hung Thinh Thuan Phat Hong Hanh Cau Tre APT Hanh Phuc Seaspimex Cholimex Agifish
Brand Shares of Meal Solutions 2006-2009
Company Ajinomoto Vietnam Co Ltd Masan Food Corp Masan Food Corp Masan Food Corp Vissan Co Ltd Halong Canned Food JSC Vedan (Vietnam) Enterprise Corp Ltd Miwon Vietnam Co Ltd Saigon Vewong Joint Venture Co Unilever Vietnam International Co Ltd Trung Thanh Co Ltd Hung Thinh Co Ltd Thuan Phat Food Processing & Trading Co Bay Hong Hanh Production Trading Service Co Ltd Cau Tre Export Goods Processing JSC Saigon Aquatic Products Trading JSC Hanh Phuc Co Ltd Special Aquatic Jointstock Co (SEASPIMEXVIETNAM) Cholon Investment & Import-Export Co (CHOLIMEX) An Giang Fisheries
2006 10.3 2.6 4.2 3.4 16.0 1.7 2.7 1.8 2.4 1.5 1.6 1.3 1.1 1.1 1.0 1.0 0.8
2007 12.3 0.3 3.4 2.1 4.5 3.5 12.0 2.0 2.3 2.0 2.3 1.5 1.5 1.3 1.2 1.2 1.1 1.0 1.0 0.9
2008 15.9 6.9 4.8 4.8 4.6 3.6 5.9 2.3 2.3 2.1 2.2 1.6 1.5 1.4 1.3 1.2 1.1 1.1 1.1 1.0
2009 16.9 9.2 6.4 5.8 4.9 3.8 3.2 2.4 2.3 2.1 2.1 1.9 1.5 1.4 1.3 1.3 1.2 1.1 1.1 1.1
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Packaged Food
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Maggi Long Hai Con Voi Do Tuyen Ky Song Huong Vegetexco
Viet An Aji-ngon Muoi Thu Nam Duong APT Private label Others Total
Source:
Import Export Co (Agifish) Nestl Vietnam Ltd Long Hai Fish Sauce Enterprise Ltd Lien Thanh Co Ltd Tuyen Ky Co Ltd Song Huong Co Ltd Vietnam National Vegetable, Fruit & Agricultural Product Corp (Vegetexco) Vianco Joint Venture Enterprise Co Ltd Ajinomoto Vietnam Co Ltd Muoi Thu Fish Sauce Co Ltd Nam Duong Sauce Enterprise APT Aquatic Products Trading Co Private Label
0.7 0.9 0.6 0.5 0.6 0.5
0.9 0.9 0.6 0.6 0.6 0.5
1.0 1.0 0.7 0.6 0.7 0.5
1.1 1.0 0.7 0.6 0.6 0.5
0.4 0.4 0.3 0.6 1.2 0.1 38.6 100.0
0.4 0.4 0.3 0.5 0.1 36.5 100.0
0.4 0.3 0.4 0.4 0.1 27.4 100.0
0.4 0.4 0.4 0.4 0.1 22.9 100.0
Table 45 '000 tonnes
Forecast Sales of Meal Solutions by Category: Volume 2010-2015
2010 Ready Meals Canned/Preserved Food Frozen Processed Food Dessert Mixes Dinner Mixes Chilled Processed Food Sauces, Dressings and Condiments Soup Meal Solutions
Source:
2011 6.7 19.6 27.7 4.3 383.2 0.7 435.5
2012 7.2 21.2 30.7 4.8 406.0 0.8 463.4
2013 7.8 22.8 33.7 5.3 428.0 0.8 490.6
2014 8.4 24.4 36.8 5.8 449.0 0.8 516.9
2015 9.1 26.1 39.9 6.4 468.4 0.9 541.8
6.1 18.1 24.9 3.8 356.8 0.7 404.3
3 VERSIONS OF THIS TABLE:

Table 46 VND billion 2010 Ready Meals Canned/Preserved Food Frozen Processed Food Dessert Mixes Dinner Mixes Chilled Processed Food Sauces, Dressings and Condiments Soup Meal Solutions
Source:
Forecast Sales of Meal Solutions by Category: Value 2010-2015
2011 352.2 1,031.7 1,937.2 464.8 13,761.5 30.5 17,225.7
2012 376.0 1,094.8 2,134.9 517.8 14,406.2 32.5 18,186.1
2013 402.5 1,165.3 2,345.2 574.9 15,028.1 34.4 19,147.8
2014 431.4 1,243.4 2,567.0 637.3 15,613.1 36.3 20,097.1
2015 463.1 1,330.0 2,791.3 704.9 16,146.3 38.1 21,010.6
331.0 979.8 1,745.7 415.9 13,074.7 28.5 16,244.5
Page
37
Packaged Food
Vietnam
Forecast Sales of Meal Solutions by Category: % Volume Growth 2010-2015
2014/15 Ready Meals Canned/Preserved Food Frozen Processed Food Dessert Mixes Dinner Mixes Chilled Processed Food Sauces, Dressings and Condiments Soup Meal Solutions
Source:
2010-15 CAGR 8.2 7.6 9.9 11.0 5.6 5.4 6.0
2010/15 TOTAL 48.6 44.3 60.4 68.1 31.3 29.9 34.0
7.6 7.0 8.4 10.4 4.3 3.6 4.8
Table 48
Forecast Sales of Meal Solutions by Category: % Value Growth 2010-2015
% constant value growth 2010-15 CAGR Ready Meals Canned/Preserved Food Frozen Processed Food Dessert Mixes Dinner Mixes Chilled Processed Food Sauces, Dressings and Condiments Soup Meal Solutions
Source:
2010/15 TOTAL 39.9 35.7 59.9 69.5 23.5 33.8 29.3
6.9 6.3 9.8 11.1 4.3 6.0 5.3
DEFINITIONS
This report analyses the market for Packaged Food in Vietnam. For the purposes of the study, the market has been defined as follows: Chocolate confectionery Sugar confectionery Gum Baked goods Biscuits Breakfast cereals Snack bars Meal replacement products Spreads Ice cream Drinking milk products Yoghurt Cheese
Page
38
Packaged Food
Vietnam
Other dairy products Oils and fats Baby food Sweet and savoury snacks Soup Pasta Noodles Sauces, dressings and condiments Ready meals Canned/preserved food Frozen processed food Dried processed food Chilled processed food
Sources used during research include the following:

Summary 1 Official Sources Research Sources Agriculture & Agri-Food Canada Hanoi Commerce Department Institute of Economics International Food Policy Research Institute, Washington Ministry of Agriculture & Rural Development Ministry of Trade National Center for Social Sciences & Humanity National Stock Exchange Committee Trade & Enterprise New Zealand US Commercial Service US Department of Commerce Vietnam Custom Trade Associations American Chamber of Commerce (Vietnam) Fisheries Scientific technological Economic Information Centre (FICEN) Food & FoodStuff Association of Ho Chi Minh City National Institute of Nutrition Vietnam Association of Seafood Exporters & Producers (VASEP) Vietnam Chamber of Commerce & Industry Vietnam Dairy Association Vietnam High Quality Goods Association Trade Press Bao moi Bao Thuong Mai
Page
39
Packaged Food
Vietnam
Bao Viet Nam Binh Dinh Binh Duong Communist Party of Vietnam Online Cong An Nhan Dan Dan Tri Dien Dan Doanh Nghiep Doanh Nhan Sai Gon Food Development Lab IP MEDIA JSC Just Food Kinh Te 24h Lao Dong Marketing online Nguoi Lao Dong Nhip Cau Dau Tu Phap Luat Quang Ngai Sai Gon Giai Phong Sai Gon Tiep Thi Sai Gon Times Online, The Sai GonTiep Thi Sao Vang Dat Viet Sieu Thi Hang Chat Luong Sieu Viet Marketing JSC Thanh Nien Online Thoi Bao Kinh Te Sai Gon Thuong Hieu Viet Tuoi Tre Viet Bao Vietnam branding Vietnam Business News Vietnam News Vietnam+ vietnambranding.com VietnamNet VietTime VnEconomy VnTrades Voice of Vietnam News
Source: Euromonitor International
Page
40

Packaged Food - Vietnam: Euromonitor International: Country Market Insight November 2010

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Packaged Food - Vietnam

Euromonitor International : Country Market Insight November 2010

List of Contents and Tables

PACKAGED FOOD IN VIETNAM

Intense Competition Between Local and International Players

the Important Role of Distribution Network

Expected Strong Future Sales Growth

KEY TRENDS AND DEVELOPMENTS

Health and Wellness Continues As A Big Trend

the Government Promotes Local Products

Mergers and Acquisitions on the Rise

the Development of Modern Retailing

Table 2 VND billion

Sales of Packaged Food by Category: Value 2005-2010

Sales of Packaged Food by Category: % Value Growth 2005-2010

Table 5 % retail value rsp Company

GBO Shares of Packaged Food 2005-2009

Table 6 % retail value rsp Company

NBO Shares of Packaged Food 2005-2009

NBO Brand Shares of Packaged Food 2006-2009

Table 8 % retail value rsp

Penetration of Private Label by Category 2005-2009

2005 Meal Solutions Sauces, Dressings and Condiments

2006 0.1 0.2

2007 0.1 0.1

2008 0.1 0.1

2009 0.1 0.1

Table 9 % retail value rsp

Sales of Packaged Food by Distribution Format: % Analysis 2005-2010

Table 10 % retail value rsp

Sales of Packaged Food by Category and Distribution Format: % Analysis 2010

447,825.8 18,109.1 3,832.9 55,736.9 463,181.6 24,881.3 49,112.8 878.3 433,136.1

582,219.5 4,456.4 6,114.3 356,801.7 670.0 1,125.7 31,529.9 404,295.0 -

625,820.5 4,746.1 6,654.3 383,207.2 710.0 1,206.0 33,708.7 435,489.3 -

666,485.9 5,030.8 7,228.3 406,012.8 760.0 1,281.9 35,872.6 463,367.6 -

706,490.7 5,307.5 7,831.2 428,014.3 800.0 1,354.9 37,999.1 490,585.0 -

745,414.7 5,572.9 8,445.5 448,978.9 840.0 1,425.0 39,981.6 516,916.6 -

782,812.0 5,795.8 9,087.5 468,419.7 870.0 1,491.9 41,757.5 541,777.9 -

Table 12 VND billion

Forecast Sales of Packaged Food by Category: Value 2010-2015

6.9 7.0 10.4 7.5 2.9

Forecast Sales of Packaged Food by Category: % Value Growth 2010-2015

FOODSERVICE KEY TRENDS AND DEVELOPMENTS

IMPULSE AND INDULGENCE PRODUCTS KEY TRENDS AND DEVELOPMENTS

Impulse and indulgence products is expected to grow by a constant value CAGR of 7%

14,178.2 44,722.3 35,230.8 19,588.6 -

15,057.5 50,658.3 38,175.5 21,990.0 -

16,181.8 58,512.7 41,759.1 24,582.1 -

17,442.6 66,991.0 43,875.1 27,009.3 -

18,715.8 75,509.8 45,726.8 29,221.9 -

20,176.9 86,032.1 49,112.8 31,529.9 -

Table 20 VND billion

Sales of Impulse and Indulgence Products by Category: Value 2005-2010

2006 2,937.1 60.1 1,071.3 2,564.0 1,741.7 2,479.1 10,853.3

2007 3,323.8 74.4 1,224.1 3,083.8 1,998.9 2,904.7 12,609.7

2008 3,798.8 93.2 1,421.3 3,755.6 2,253.1 3,398.2 14,720.1

2009 4,256.2 114.0 1,634.5 4,472.4 2,502.3 3,898.5 16,877.8

2010 4,828.4 136.9 1,888.4 5,339.7 2,889.7 4,431.4 19,514.5

2,578.5 49.2 952.3 2,138.7 1,515.1 2,129.1 9,362.9

Table 21 % volume growth

Sales of Impulse and Indulgence Products by Category: % Volume Growth 2005-2010

2005-10 CAGR 8.1 12.9 7.3 14.0 6.9 10.0 -