Vietnam Food & Drink Report

Published 02 July 2015

  • 142 pages
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  • Includes 3 free updated quarterly reports
$1,295.00
Vietnam Food & Drink Report

BMI View: We hold a positive outlook for the Vietnamese consumer, as the government targets economic growth through public spending and promoting investment and exports. We forecast real GDP growth at 6.4% in 2015 and 6.6% in 2016 , on the back of supportive government policies, as well as a strong outlook for foreign investment and exports . However, political risks remain in the form of Chinese tensions, which we believe will continue for some time.

Headline Industry Data (local currency)

  • 2015 total food consumption growth: +18.0%; compound annual growth rate (CAGR) 2014 to 2019: +18.6%.

  • 2015 per capita food consumption growth: +17.0%; CAGR to 2019: +17.6%.

  • 2015 alcoholic drinks value sales growth: +8.0%; CAGR to 2019: +10.0%.

  • 2015 soft drinks value sales growth: +9.3%; CAGR to 2019: +11.0%.

  • 2015 mass grocery retail sales growth: +10.8%; CAGR to 2019: +11.5%.

Key Industry Trends

Emerging Middle Class To Drive Sector Growth : Vietnam remains one of our top markets in emerging Asia over our 2019 forecast period. Compared with its regional peers, incomes are low, with about 17% of Vietnamese households having annual net incomes below USD1,000 in 2014, compared to less than 5% in Indonesia and Thailand. Nonetheless, rapid private consumption growth - our Asia Country Risk team forecasts real private consumption to grow at a compound annual rate of 6.3% over 2014-2019 - will strongly benefit the food sector, considering the country's low income level. With an additional 6.4mn households moving above purely subsistence levels between 2014 and 2019 and falling into the USD5,000-plus income bracket, we expect the demand for non-essential, branded food products to increase, benefiting categories such as chocolate confectionery and carbonated soft drinks.

AB InBev Opens First Brewery In Vietnam: In June 2015, Belgium-based beverage company Anheuser- Busch InBev (AB InBev) opened its first brewery in Vietnam as part of its strategy to tap the...

BMI Industry View
7
SWOT
9
Food
9
Drink
11
Mass Grocery Retail
13
Industry Forecast
15
Consumer Outlook
15
Food
18
Food Consumption
18
Table: Food Consumption Indicators - Historical Data & Forecasts (Vietnam 2012-2019)
19
Canned Food
20
Confectionery
20
Table: Confectionery Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Vietnam 2012-2019)
23
Pasta
24
Table: Pasta Volume Sales, Production & Trade - Historical Data & Forecasts (Vietnam 2014-2019)
25
Dairy
25
Table: Dairy Volume Sales, Production & Trade - Historical Data & Forecasts (Vietnam 2014-2019)
25
Drink
27
Alcoholic Drinks
27
Table: Alcoholic Drinks Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Vietnam 2014-2019)
29
Hot Drinks
30
Table: Hot Drink Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Vietnam 2014-2019)
31
Soft Drinks
33
Table: Soft Drinks Sales, Production & Trade (Vietnam 2014-2019)
34
Mass Grocery Retail
36
Table: Mass Grocery Retail Sales By Format - Historical Data & Forecasts (Vietnam 2014-2019)
40
Table: Grocery Retail Sales By Format (%)
40
Trade
41
Table: Trade Balance - Historical Data & Forecasts (Vietnam 2014-2019)
42
Macroeconomic Forecast
43
Economic Analysis
43
Table: Economic Activity (Vietnam 2010-2019)
48
Industry Risk Reward Index
49
Asia Pacific - Risk/Reward Index
49
Table: Asia Pacific Food & Drink Risk/Reward Index Q315
50
Vietnam Risk/Reward Index
54
Market Overview
56
Food
56
Agriculture
56
Food Processing
57
Food Consumption
57
Drink
59
Hot Drinks
59
Soft Drinks
59
Alcoholic Drinks
60
Mass Grocery Retail
63
Table: Mass Grocery Retail Sales By Format (Vietnam 2006-2015)
64
Industry Trends And Developments
66
Food
66
Key Industry Trends And Developments
66
Drink
72
Key Industry Trends And Developments
72
Mass Grocery Retail
81
Key Industry Trends And Developments
81
Competitive Landscape
85
Table: Key Players In Vietnam's Food Sector
85
Table: Key Players In Vietnam's Drink Sector
85
Table: Key Players In Vietnam's Mass Grocery Retail Sector
87
Company Profile
88
Vinamilk
88
Table: Vietnam - Planned Investment In Milk Production Capacity
95
Table: Vinamilk - M&A Activity outside Vietnam
96
Table: Vinamilk - Financial Highlights, 2008-2014
100
Unilever Vietnam
101
Nestl- Vietnam
104
Masan Consumer
106
San Miguel Pure Foods Vietnam Co Ltd
109
Hanoi Beer Alcohol Beverage Corp (Habeco)
111
Saigon Beer Alcohol And Beverage Corporation (Sabeco)
114
Carlsberg
116
Saigon Co-op
119
Global Industry Overview
122
Table: Food and Drink Core Views - Q115 Roundup
129
Demographic Forecast
131
Table: Population Headline Indicators (Vietnam 1990-2025)
132
Table: Key Population Ratios (Vietnam 1990-2025)
132
Table: Urban/Rural Population & Life Expectancy (Vietnam 1990-2025)
133
Table: Population By Age Group (Vietnam 1990-2025)
133
Table: Population By Age Group % (Vietnam 1990-2025)
134
Glossary
136
Food & Drink
136
Mass Grocery Retail
136
Methodology
138
Industry Forecast Methodology
138
Sector-Specific Methodology
139
Sources
139
Risk/Reward Index Methodology
140
Table: Food & Drink Risk/Reward Index Indicators
141
Table: Weighting
142

The Vietnam Food & Drink Report features BMI Research's market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.

BMI's Vietnam Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in Vietnam.

Key Benefits

  • Benchmark BMI's independent food and drink industry forecasts for Vietnam to test other views - a key input for successful budgeting and strategic business planning in the Vietnamese food and drink market.
  • Target business opportunities and risks in Vietnam through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering food and drink manufacturing and consumption and the mass grocery retail market.

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the food, drink and mass grocery retail sectors and within the broader political, economic and business environment.

BMI’s Food and Drink Risk Reward Index

BMI’s Risk Reward Index provides investors (food and drink manufacturers and mass grocery retailers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic points. These provide indices of highest to lowest appeal to investors, with each position explained.

Food Forecasts

BMI’s food chapter is divided into sections such as meat, fish, confectionary, dairy and canned foods, and provides insight into each market’s food industry, centred on a forecast to end-2019 for the sector. The chapter includes the following elements:

  • Industry Forecast Scenario: Historical data series and a forecast to end-2019 for growth of key indicators within a market’s food industry. Indicators include food consumption, food consumption as % of GDP, canned food sales, confectionery sales and food and drink imports and exports, among others.
  • Industry Developments: A summary of corporate developments, including news on M&As, FDI, expansions, closures and financial results, in addition to analysis and explanation of the latest industry events and how these could influence further investment.
  • Market Overview: An overview of the structure of the market, introducing the key players and discussing underlying trends.

Drink Forecasts

Segmented the same way as BMI’s food chapter, the drink section provides insight into each market’s drink industry, centred on a forecast to end-2019 for the sector. Forecast indicators include alcoholic and soft drink sales by value, volume and sub-sector and tea and coffee sales, among others.

Mass Grocery Retail Forecasts

Segmented the same way as BMI’s food and drink chapters, the mass grocery retail section provides insight into each market’s grocery retail industry, centred on a forecast to end-2019 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets, hypermarkets, convenience and discount stores) and a breakdown of the organised retail sector versus the traditional sector, among others.

Competitive Landscape

Illustration of the mass grocery retail and food and drink industries via rankings tables comparing revenues, number of outlets and number of employees. This chapter also includes data-rich, in-depth regional analysis of the market position, business strategies and investment potential of the region’s leading mass grocery retail and food and drink operators.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Food & Drink reports draw on an extensive network primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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