Features of Vietnam’s confectionery industry
In recent years, along with the development of the economy and the increase in population size with a young structure, confectionery is one of the industries with high and stable growth rate in Vietnam.
In recent years, along with the development of the economy and the increase in population size with a young structure, confectionery is one of the industries with high and stable growth rate in Vietnam. According to BMI’s report on the food and beverage industry, the sales growth rate of the confectionery industry (including chocolate) in the period 2010-2014 is estimated at 8-10%.
The Vietnamese confectionery industry has the following characteristics:
Firstly: The main input materials of the confectionery industry include flour, sugar, the rest are milk, eggs and other materials. In which, imported materials are flour (almost all), and sugar (partially imported), flavoring and some additives, accounting for a large proportion of the cost. Therefore, the fluctuation of flour and sugar prices on the world market will have certain impacts on the price of confectionery.
Second: The Vietnamese confectionery market is seasonal in nature. Consumption volume usually increases sharply from the 8th lunar month (Mid-Autumn Festival) to the Lunar New Year with key items bearing Vietnamese traditional flavors such as mooncakes, hard and soft candies, and high-quality biscuits. grade, jams, nuts. Meanwhile, the consumption of confectionery is quite slow after the Lunar New Year and summer due to the hot climate.
Third: The confectionery production technology lines of enterprises are quite modern and uniform, all imported from famous countries for confectionery production such as technology for chocolate coated cakes (Korea), technology for confectionery production. biscuit technology (Denmark, UK, Japan)…
Fourth: Vietnam is a potential market with a high growth rate (10-12%) compared to the regional average (3%) and the world average (1-1.5%). The reason is that the average consumption of confectionery in Vietnam is still quite low (1.8 kg/person/year) compared to the world average of 2.8 kg/person/year.
VnCharm
Source: Characteristics of Vietnam’s confectionery industry , Tri Viet Securities Joint Stock Company (TVSC).
