Vietnam Dairy Industry

VIETNAM DAIRY INDUSTRY

Milk is an important and essential food but due to its high price compared to the average income of Vietnamese people, spending on this product is limited. Spending on milk accounts for more than 10% of total food expenditure in Vietnam. In the period of 2010-2018, revenue of dairy enterprises has been constantly growing at an average rate, Vietnam's dairy industry has grown at CAGR of 12.7%/year. Revenue growth of the dairy industry was mainly attributed to two main segments: powdered milk and liquid milk, accounting for 75% of the total market value.

Vietnam's liquid milk market has a compound annual growth rate of 20.9% in the period of 2010 - 2018. By the end of September 2019, revenue of liquid milk consumption in Vietnam increased rapidly compared to the same period in 2018. Sales of powdered milk grew continuously during the period from 2010 to 2018, with a compound annual growth rate (CAGR) of 19.4% during this period. Sales of powdered milk in the first 9 months of 2019 increased compared to the same period in 2018. Sales of condensed milk in the first quarter of 2019 increased by 4.3% compared to the same period in 2018. According to the author's forecast, the dairy market Especially, although the growth is slow, it will still maintain a stable growth rate of around 5%/year for the next 5 years.

The dairy industry has been actively contributing to the country's economy with rapid growth, the following year is always higher than the previous year, an average of 15-17%/year. Vietnam's dairy processing industry has been planned to develop to 2020, with a vision to 2025 with innovative mechanisms and policies to help businesses in the industry develop and increase competition when integrating.