- In 2014, in baked goods, local brands continued to grow. These local companies not only regularly launched new product developments but also further expanded their distribution networks, which helped them stay competitive and attract more consumers. Furthermore, the government's continuous support for the promotion of Vietnam products and efforts by the Vietnamese retail union encouraged consumers to favour Vietnamese brands. As a result, in baked goods local brands had more advantages than international ones.
- In 2014, Kinh Do Corp strengthened its leading position and increased its retail value share to 12%. The longstanding presence in the country, good reputation and product quality, reasonable prices, nationwide distribution network, and marketing and promotional activities were the company's competitive advantages. Furthermore, compared to many other rivals, the company had a more diversified product portfolio. As a result, in both 2013 and 2014, the company not only maintained its leadership but also registered the strongest current value growth within the category.
- Baked goods is expected to register a CAGR of 6% in constant terms over the forecast period to reach VND22.8 trillion in 2019. This expectation is supported by anticipated economic recovery, better living standards, busier lifestyles and more exposure to Western culture. Furthermore, many Vietnamese consumers are likely to continue to opt for baked goods to replace traditional breakfast options such as noodles and other street food due to hygiene concerns.
- The trend towards more premium branded biscuits started in 2010 and continued into 2014. Better living standards, increasing consumer awareness of health and wellness, and growing concern for food hygiene were the key factors that supported this trend. Local media reported many cases of food poisoning and food products with harmful ingredients, which made consumers more cautious when choosing food products. Many Vietnamese consumers believe quality is aligned to price and are willing to pay for expensive products. In general, thanks to these reasons, premiumisation in biscuits continued in 2014.
- Kinh Do Corp remained the leading player with a 37% value share in 2014. The company ranked first in both savoury biscuits/crackers and sweet biscuits with 55% and 32% value shares in 2014, respectively. The good reputation, strong brand equity and well diversified product portfolio were the company's competitive advantages. Furthermore, the company possessed an efficient distribution network across 64 cities of Vietnam covering both modern and traditional channels. Compared to other rivals in biscuits, Kinh Do Corp was more active in terms of marketing and promotional activities especially for special occasions such as the Lunar New Year.
- Over the forecast period, biscuits is expected to register a CAGR of 6% in constant value terms. This high expectation is supported by the anticipated economic recovery, higher living standards and increasing premiumisation in biscuits. Furthermore, manufacturers are likely to launch new product developments and marketing and promotional activities to help stimulate demand for biscuits and boost sales.
- In 2014, breakfast cereals recorded current value growth of 14%. This good performance was thanks to consumers' busier lifestyles, increased sophistication and greater exposure to Western lifestyles. Towards the end of the preview period, many Vietnamese consumers became more familiar with breakfast cereals, which are readily available in big supermarkets/hypermarkets and convenience stores. As a result, in 2014, the category's current value growth was one percentage point higher than in 2013 despite the ongoing economic downturn.
- Kellogg Co remained the leader in breakfast cereals in 2014 and accounted for 71% of retail value sales. The company has a diversified product portfolio, a good reputation and a wide distribution network. In addition, its marketing strategy that targeted children was effective. However, the company's value share declined in 2014 due largely to the fast development of its main rival, Nestlé Vietnam Ltd.
- Breakfast cereals is expected to register a CAGR of 9% in constant value terms over the forecast period to reach VND59 billion in 2019. The high expectation for the category is supported by increasing exposure to Western culture, expected economic recovery, better living standards and manufacturers' efforts to stimulate demand for breakfast cereals. Indeed, these players are predicted to further invest in educating consumers about the benefits of breakfast cereals.
Discover the latest market trends and uncover sources of future market growth for the Bakery industry in Vietnam with research from Euromonitor's team of in-country analysts.
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The Bakery in Vietnam market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Bakery in Vietnam?
- What are the major brands in Vietnam?
- How will increasingly volatile wheat commodity prices impact retail prices and sales performance?
- What are the market opportunities for high fibre products?
- Are consumers in developing markets moving from unpackaged/artisanal to packaged/industrial offerings?
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