Vietnam Ready-To-Eat Food Market Assessment, By Category, By Packaging Type, By Distribution Channel, By End-user, By Region, Opportunities, and Forecast, 2016-2030F

The Vietnam Ready-To-Eat Food Market was estimated at USD 410 million in 2022 and is expected to reach USD 957.88 million by 2030. The market is expected to increase significantly in recent years and is projected to witness a CAGR of 11.19% during the forecast period 2023-2030. The main drivers boosting the growth of the ready-to-eat food market in Vietnam include increased e-commerce sales, a rise in consumer health consciousness, and continued technological advancements in packaging. The demand for frozen food is growing across the nation due to rapid urbanization and an increase in the number of women employed. The retail sector is becoming more digitalized, and e-commerce is expanding its market share, giving consumers more access to high-quality frozen food products. According to the World Bank, 74.21% of people in Vietnam were estimated to be internet users in 2021. Industry participants are investing in creating an effective supply chain to meet the expanding consumer needs and offer extra amenities like prompt doorstep delivery and generous discounts to attract customers.

Furthermore, in the Vietnam Ready-To-Eat Food Market, manufacturers continuously engage in innovation and product development to align with evolving consumer preferences. Numerous companies are diversifying their product lines by incorporating many ready-to-eat meals and beverages. The industry is witnessing a notable rise in investment, with companies expanding their operations and production capabilities to keep pace with the increasing demand for ready-to-eat options. Moreover, several companies are forging partnerships and collaborations with other industry players to enhance the variety of their product offerings further.

Increasing Busy Schedules

The main factor influencing the market expansion include hectic lifestyles, which have increased consumer desire for easy-to-prepare meals. Long working hours, commutes, and other daily commitments leave little time for cooking and meal preparation. Ready-to-eat food products provide a convenient solution for individuals with busy schedules. They offer quick and easy meal options that require minimal preparation time, allowing people to enjoy a hot, delicious, and satisfying meal without investing much time or effort. The demand for ready-to-eat food is also increasing in Vietnam as a result of the country's fast urbanization. Vietnamese customers are more willing to spend more on high-end and convenient food items due to rising disposable incomes, resulting in the market for ready-to-eat food expanding. Customers may now easily access and buy ready-to-eat food products, thanks to the expanding number of supermarkets and hypermarkets. In addition, a movement in customer preferences towards wholesome, ready-to-eat food options has increased the number of healthier options available in the market.

Meeting Consumer Preferences

Vietnamese consumers are increasingly seeking out options that are quick, easy, and convenient to prepare, as well as healthy and affordable. To meet shifting consumer demands, producers in the Vietnam ready-to-eat food sector are continually producing new items. Several businesses are diversifying their product offerings to include a variety of prepared food and drinks. In order to fulfil the rising demand for ready-to-eat meals, there has been an increase in investment in the Vietnam ready-to-eat food industry, with several businesses extending their operations and production capabilities. In 2022 , Charoen Pokphand Foods Public Company Limited achieved a revenue of USD 17.8 million from sales, demonstrating a 20% increase compared to the previous year. To offer a broader range of products, many businesses are now forging alliances and partnerships with other market participants.

Rise of Convenience Stores

The demand for ready meals is now expanding beyond Western countries, and Vietnam is no exception. The emergence of convenience stores such as FamilyMart, Circle K, GS 25, and Ministop is catering to urban shoppers seeking convenient ready-to-eat food options. These stores strategically position themselves in high-traffic locations to attract on-the-go consumers. Their offerings typically include a modest selection of prepared food that can be conveniently heated in a microwave, along with various beverage choices. As more people lead busy lives, convenience stores strategically position themselves in high-traffic locations, making it convenient for on-the-go consumers to access ready-to-eat food options. These stores offer a diverse range of prepared meals that are easy to consume, with many items designed to be heated in a microwave for quick consumption.

The convenience of grabbing a ready-to-eat meal or snack while on the move appeals to busy professionals, students, and individuals with limited time for meal preparation. Furthermore, the selection of ready-to-eat food products in convenience stores continues to expand to meet the evolving preferences of consumers. As these stores become go-to destinations for quick and hassle-free meals, the demand for ready-to-eat food in Vietnam experiences significant growth.

Impact of COVID-19

Due to the increased local involvement in the purchase of dry food as a result of cleanliness concerns, it is projected that the expansion of COVID-19 will boost the sales of Ready-To-Eat Food throughout Vietnam. However, it is projected that the rapid increase in demand for packaged foods in 2020 will be hampered by a shortfall in supply caused by the complete lockdown and stoppage of industrial activities. Increased hygiene concerns in the later part of 2020 and the beginning of 2021, however, would present profitable growth prospects for the Vietnam Ready-To-Eat Food market in the upcoming years because it would take time for the COVID spread to slow down.

Key Players Landscape and Outlook

There are many companies in Vietnam, competing for customers in the fiercely competitive Ready-To-Eat Food business, including Charoen Pokphand Foods Public Company Limited, Vinh Hoan Corporation, Acecook Vietnam Joint Stock Company, and Sao Ta Food Joint Stock Company. By investing in distribution channels, these firms ensure easy accessibility of their products, which in turn has a positive impact on their market share and revenue growth. Furthermore, several major market players are working on manufacturing new innovative food items to satisfy the cravings of the younger generations. In July 2023, Acecook launched dehyderated instant soup cubes by the name Kanli which are now easily available in supermarkets including E-Mart, Family Mart and Aeon.