Market Overview
Vietnam Frozen Food Market has valued at
USD 1755.53 million in 2022 and is anticipated to project robust growth in the
forecast period with a CAGR of 8.72% through 2028. The Vietnam Frozen Food
Market has witnessed substantial growth and transformation in recent years,
reflecting changing consumer lifestyles, increased urbanization, and a growing
preference for convenient and ready-to-eat food products. This market has become
a dynamic and integral part of the country's food industry, offering a wide
range of frozen food options to consumers.
Rapid urbanization has led to busier
lifestyles, with many households opting for quick and convenient meal
solutions. Frozen foods, with their ease of preparation and longer shelf life,
have become a go-to option for urban consumers. Modern Vietnamese consumers are
increasingly seeking out convenient, time-saving options. This shift in
consumer habits has fueled the demand for frozen food products that are easy to
store and prepare.
Frozen food products are widely
available in various retail channels, including supermarkets, convenience
stores, and online platforms. This accessibility has played a pivotal role in
driving market growth. The Vietnam Frozen Food Market encompasses a wide range
of products, including frozen fruits and vegetables, ready meals, frozen meat
and seafood, and frozen snacks. This diversification allows consumers to choose
from an array of options to suit their tastes and dietary preferences.
Some consumers may still perceive fresh
food as superior to frozen alternatives. Overcoming this perception requires
educating consumers about the benefits of frozen foods, including their
nutritional value and convenience. As with any convenience food, there is a
need to address concerns about additives and preservatives in frozen products.
Manufacturers should prioritize using high-quality ingredients and minimizing
additives. Maintaining a cold chain is crucial for the quality and safety of
frozen foods. Ensuring efficient and reliable cold storage and transportation
is a challenge.
Manufacturers can continue to innovate
by introducing healthier, more natural, and ethnically diverse frozen food
options. The market can promote the convenience of frozen foods for consumers
with busy schedules or those looking for quick meal solutions. The growth of
e-commerce provides opportunities for online sales of frozen food products,
allowing consumers to order from the comfort of their homes.
Key Market Drivers
Changing
Lifestyle and Urbanization
One of the primary drivers fueling the
growth of the Vietnam Frozen Food Market is the changing lifestyle of the
population, particularly in urban areas. As urbanization continues to
accelerate, there is a growing demand for convenient and time-saving food
options. The fast-paced urban lifestyle, with longer working hours and hectic
schedules, has led consumers to seek easy-to-prepare, ready-made frozen meals
and snacks.
In urban households, where both partners
are often employed, the need for quick and hassle-free meal solutions has
become a priority. Frozen foods offer a convenient alternative to traditional
cooking, allowing consumers to prepare meals with minimal effort and time. This
trend is further amplified by the increasing number of single-person households
and smaller families in urban areas, as these consumers often prefer
portion-controlled frozen meals to reduce food wastage.
Furthermore, the rise of e-commerce and
online grocery delivery services has made frozen foods even more accessible to
urban consumers. They can conveniently order a variety of frozen products from
their smartphones and have them delivered to their doorsteps. This has led to
increased adoption of frozen foods, especially in urban centers like Ho Chi
Minh City and Hanoi.
Expansion
of Retail Channels
The expansion and diversification of
retail channels have played a significant role in driving the growth of the
Vietnam Frozen Food Market. Traditional wet markets and mom-and-pop stores are
still prevalent in the country, but modern retail formats such as supermarkets,
hypermarkets, and convenience stores have gained substantial traction in both
urban and rural areas.
Modern retail outlets provide consumers
with a wide selection of frozen food products, including frozen fruits and
vegetables, meat and seafood, ready-to-eat meals, and more. The availability of
these products in modern stores has made it easier for consumers to discover
and purchase frozen foods. Moreover, the modern retail sector offers a more
controlled and hygienic environment for frozen food storage, ensuring that
products maintain their quality.
The growth of convenience stores has
been particularly notable, as these outlets cater to consumers looking for
quick, on-the-go meal options. These stores often stock a variety of frozen
snacks and microwavable products, making it convenient for consumers to grab a
frozen meal when they are in a hurry.
Online grocery platforms and food
delivery services have also played a pivotal role in expanding the reach of
frozen foods. Consumers can now order frozen products online, further enhancing
the market's accessibility and convenience.
Increasing
Health and Wellness Consciousness
The rising awareness of health and
wellness has had a profound impact on the Vietnam Frozen Food Market. Consumers
are becoming more conscious of the nutritional content and ingredient quality
of the foods they consume. In response to this trend, frozen food manufacturers
have introduced healthier frozen options to meet consumer demands.
One of the key drivers of this
health-conscious trend is the growing concern about food safety and hygiene.
Consumers are increasingly looking for products that are produced and handled
under strict quality control measures to minimize the risk of contamination.
Frozen foods are often perceived as safer and more reliable in terms of food
safety compared to some fresh food products.
To cater to health-conscious consumers,
frozen food producers have expanded their product portfolios to include
low-sodium, low-sugar, and low-fat options. Additionally, there is a growing
demand for frozen fruits and vegetables that retain their nutritional value
through the freezing process. These products are particularly popular among
consumers looking to increase their daily intake of fruits and vegetables
without the risk of spoilage.
Furthermore, the demand for organic and
natural frozen foods has increased. These products are often free from
artificial additives, preservatives, and genetically modified organisms (GMOs).
The emphasis on organic and natural ingredients aligns with the desire for
healthier and more sustainable food choices.
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Key Market Challenges
Cold
Chain Infrastructure and Distribution Challenges
One of the most significant challenges
facing the Vietnam Frozen Food Market is the inadequate cold chain
infrastructure and distribution network. Maintaining the required temperature
levels from production to storage, transportation, and retail outlets is
crucial for preserving the quality and safety of frozen food products.
Unfortunately, Vietnam's cold chain infrastructure is still developing, and
there are several issues:
Limited Refrigerated Storage Facilities:
The availability of cold storage facilities is insufficient, particularly in
rural areas, where infrastructure development has lagged behind urban centers.
This results in difficulties in storing and distributing frozen products
effectively, leading to supply chain disruptions.
Transportation Constraints: The
transportation of frozen foods over long distances can be challenging,
especially in hot and humid weather conditions. Ensuring that the cold chain is
maintained throughout the distribution process is often a logistical hurdle.
Inadequate Temperature Monitoring:
Inconsistent temperature monitoring during transportation and storage can
result in product quality degradation or even safety concerns. Implementing
advanced tracking and monitoring systems is essential but often faces adoption
challenges.
Limited Rural Access: In rural areas,
where frozen food demand is also increasing, access to cold storage and
distribution infrastructure is limited, hindering market penetration.
Quality
and Safety Assurance
Maintaining the quality and safety of
frozen food products is a paramount concern, and several challenges are
associated with achieving this goal:
Food Safety Standards: Adhering to
rigorous food safety standards and regulations is essential. Ensuring that
frozen food products meet these standards at every stage of the supply chain
can be challenging, especially for smaller producers who may have limited
resources for quality control and testing.
Product Labeling and Information:
Providing clear and accurate information on packaging, including ingredients,
nutritional content, and preparation instructions, is crucial. Challenges arise
when producers fail to meet these requirements, potentially leading to consumer
confusion and safety concerns.
Quality Control: Maintaining consistent
product quality across batches is challenging, particularly for smaller
producers and local manufacturers. Ensuring that the freezing process is
effective and that the products are free from contaminants can be resource-intensive.
Consumer Education: Educating consumers
about proper storage, handling, and preparation of frozen food products is
essential to avoid foodborne illnesses. Insufficient knowledge among consumers
can lead to misuse and safety risks.
Consumer
Preferences and Market Competition
The Vietnam Frozen Food Market faces
evolving consumer preferences and increased competition, which can be both an
opportunity and a challenge:
Traditional vs. Modern Preferences:
While there is a growing trend of urbanization and busy lifestyles that drive
the demand for convenient frozen food products, there is also a strong
tradition of freshly prepared meals in Vietnamese cuisine. Balancing the demand
for traditional, fresh dishes with the convenience of frozen food can be
challenging.
Health and Nutrition Concerns: Consumers
are becoming more health-conscious and seeking nutritious, minimally processed
frozen food options. Producers need to adapt their products to cater to these
preferences while maintaining taste and affordability.
Competitive Landscape: The Vietnam
Frozen Food Market is becoming increasingly competitive, with both domestic and
international players vying for market share. This competition can lead to
price wars and lower profit margins for producers.
Product Innovation: Keeping up with
consumer preferences for new and innovative frozen food products is a
challenge. Manufacturers need to invest in research and development to offer
unique and appealing items.
Retail Environment: Changes in the
retail landscape, including the growth of e-commerce and online grocery
shopping, present both challenges and opportunities. Adapting to new retail
models and ensuring the cold chain is maintained during online deliveries is
essential.
Key Market Trends
Rising Demand for Convenience and Time-Saving Solutions
In today's fast-paced
world, convenience has become a paramount factor influencing consumer choices.
As a result, the demand for frozen foods has surged in Vietnam. These products
offer several advantages that cater to the need for convenient and time-saving
meal solutions:
Ease of Preparation: Frozen
foods, whether ready-to-eat meals, frozen vegetables, or pre-marinated
proteins, simplify meal preparation. Consumers can quickly assemble a complete
meal without the need for extensive cooking or meal planning.
Extended Shelf Life: Frozen
foods have a longer shelf life compared to fresh products. This aspect appeals
to consumers who prefer to stock up on food items without worrying about
spoilage. It also aligns with the Vietnamese practice of buying groceries in
bulk.
Variety and Availability:
The frozen food market offers a wide array of products, including frozen
fruits, vegetables, seafood, poultry, and processed foods like spring rolls and
dumplings. This variety allows consumers to access diverse meal options and
experiment with different cuisines.
Frozen Ready-to-Eat Meals:
The popularity of frozen ready-to-eat meals is on the rise, offering a solution
for consumers seeking quick, tasty, and hassle-free dining experiences. These
meals cater to busy individuals and families who may not have the time to cook
from scratch.
Health and Wellness Emphasis
While convenience is a
significant driver in the frozen food market, health and wellness
considerations are increasingly shaping consumer choices. As consumers become
more health-conscious, the frozen food industry has responded with products
that align with their dietary and nutritional goals:
Nutrient-Rich Options: The
market now offers frozen foods that are rich in nutrients, making them a
healthy alternative to processed or fast food options. Frozen fruits and
vegetables, for instance, retain their essential vitamins and minerals.
Clean Label Products:
Consumers are showing a preference for clean label products with minimal
additives and preservatives. Many frozen food manufacturers are responding by
offering cleaner ingredient lists and transparency in labeling.
Plant-Based and Healthier
Alternatives: The growing global trend towards plant-based diets has influenced
the Vietnam frozen food market. Manufacturers are developing plant-based frozen
products, including plant-based meat alternatives and vegetarian frozen meals.
Portion Control: Frozen
foods often come in pre-portioned servings, making it easier for consumers to
manage their calorie intake and avoid overeating. This trend aligns with the
broader movement towards portion control and mindful eating.
Customization: Some frozen
food brands are allowing consumers to customize their meals, selecting specific
ingredients to suit their dietary preferences, such as gluten-free, low-sodium,
or low-fat options.
E-commerce and Digital Transformation
The rapid growth of
e-commerce and digital technology in Vietnam has had a significant impact on
the frozen food market. This trend reflects changing shopping behaviors and
preferences:
Online Grocery Shopping:
The convenience of online grocery shopping has driven the sales of frozen
foods. Consumers can easily browse through a wide selection of frozen products,
read reviews, and have their orders delivered to their doorstep.
Delivery Services: Many
e-commerce platforms offer same-day or next-day delivery services, ensuring
that frozen products reach consumers quickly and maintain their quality.
Digital Marketing and
Promotion: Frozen food brands are increasingly using digital marketing
strategies, including social media advertising and influencer partnerships, to
reach their target audience and showcase their products.
Consumer Reviews and
Recommendations: Online platforms allow consumers to leave reviews and
recommendations for frozen products. This user-generated content can
significantly influence purchasing decisions.
Mobile Apps and Meal
Planning: Mobile apps that assist with meal planning and recipe ideas have
become popular. These apps often suggest frozen food options for quick and
convenient meal preparation.
Data Analytics and
Personalization: Retailers and brands are utilizing data analytics to
understand consumer preferences better. This data is used to personalize
offers, promotions, and product recommendations.
Segmental Insights
Category Insights
Ready-to-Eat (RTE) foods have established a substantial presence
in the Vietnam Frozen Food Market, reflecting the changing consumer lifestyles,
urbanization, and the demand for convenient meal options. The popularity of RTE
frozen foods can be attributed to several key factors, which have contributed
to their significant share in the market.
Changing Consumer Lifestyles: With the fast-paced lifestyles of
modern consumers, there is an increasing demand for quick and convenient meal
solutions. Ready-to-Eat frozen foods cater to this need, offering a convenient
way to prepare meals without the time-consuming process of cooking from
scratch.
Urbanization: As Vietnam undergoes rapid urbanization, more
people are living in urban areas with limited time for meal preparation. This
demographic shift has driven the demand for frozen RTE options that provide a
quick and easy way to satisfy hunger and enjoy a variety of cuisines.
Variety and Convenience: The Vietnam Frozen Food Market offers a
diverse range of RTE options, including frozen pizzas, microwavable meals,
frozen snacks, and international cuisines. These choices cater to different
tastes and preferences, allowing consumers to enjoy restaurant-quality dishes
in the comfort of their homes.
Extended Shelf Life: Frozen RTE foods have an extended shelf
life, making them suitable for consumers who want to stock up on convenient
meal options and reduce food waste. The longer shelf life ensures that
consumers always have a readily available source of meals.
Economic Factors: While dining out can be expensive, RTE frozen
foods offer a more cost-effective alternative to restaurant dining. Consumers
can enjoy a restaurant-style experience at a fraction of the cost, making it an
attractive option for budget-conscious individuals and families.
Technological Advancements: Innovations in food processing and
freezing technologies have improved the quality of frozen RTE foods. These
advancements have enhanced the taste, texture, and nutritional value of these
products, making them more appealing to consumers.
Accessibility: Frozen RTE foods are widely available in
supermarkets, convenience stores, and online marketplaces. This accessibility
ensures that consumers can easily purchase these products and enjoy a
convenient meal solution whenever they desire.
Culinary Diversity: The Vietnam Frozen Food Market offers a wide
range of RTE options, allowing consumers to explore different cuisines and
flavors. Whether it's Vietnamese, Western, Asian, or international cuisine, the
diversity of choices appeals to a broad spectrum of tastes.
Meal Customization: Some RTE frozen food products offer
customization options, enabling consumers to add their preferred ingredients or
toppings to create a personalized dining experience. This feature enhances the
appeal of frozen RTE options.
Healthier Alternatives: The market has seen the introduction of
healthier RTE options, including those with reduced salt, sugar, and
preservatives. These products cater to health-conscious consumers who are
looking for convenient yet nutritious meal choices.
Distribution Channel Insights
Online retail channels have carved out a significant share in
the Vietnam Frozen Food Market, reshaping the way consumers access, purchase,
and enjoy frozen food products. This shift has been driven by several factors
that have propelled online sales to prominence in the market.
Convenience and Accessibility: Online platforms have redefined
the convenience of shopping for frozen food. Consumers can browse and purchase
a diverse range of frozen products from the comfort of their homes, eliminating
the need for physical store visits. This accessibility is especially valuable
in today's fast-paced, digital-driven world, where convenience is a top
priority for many consumers.
Wide Product Range: Online retailers offer an extensive
selection of frozen food products, from frozen fruits and vegetables to
ready-to-eat meals, meat, seafood, and baked goods. This diverse product range
allows consumers to explore and select products that cater to their specific
tastes and dietary preferences. Online platforms enable customers to compare
products, read reviews, and discover new items, creating a comprehensive
shopping experience.
Competitive Pricing and Discounts: Online marketplaces often
feature competitive pricing, discounts, and special promotions for frozen food
products. Shoppers can take advantage of these deals, especially during sales
events and promotional campaigns. The ability to compare prices across multiple
online sellers ensures that consumers secure the best deals on their frozen
food purchases.
Home Delivery Services: Online retailers provide the convenience
of home delivery for frozen food items. Consumers can have their frozen
products delivered to their doorsteps, eliminating the need to transport heavy
and bulky items from physical stores. This feature is particularly advantageous
for those with busy schedules or limited mobility.
Consumer Reviews and Ratings: Online platforms frequently
display customer reviews and ratings for frozen food products. Potential buyers
benefit from the experiences and insights of others who have purchased and used
these items. These reviews guide consumers in making informed decisions and
selecting products that align with their preferences.
Specialty and Niche Products: Online retailers are
well-positioned to offer specialty and niche frozen food products that may not
be readily available in local brick-and-mortar stores. This allows consumers to
access a wider variety of international or unique frozen items that cater to
specific dietary requirements or cultural tastes.
Convenience for Rural Areas: Online shopping eliminates
geographical limitations, ensuring that consumers from urban and rural areas of
Vietnam have access to a broad range of frozen food products. This is
particularly beneficial for individuals living in areas with limited access to
physical retail stores.
Secure Payment Options: The growth of online payment solutions
and digital wallets in Vietnam has made online shopping even more accessible
and secure. Consumers can make payments through a variety of methods, providing
flexibility and convenience.
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Regional Insights
Northern
Vietnam indeed holds a notable share within the Vietnam Frozen Food Market,
contributing significantly to the country's frozen food consumption and
industry dynamics.
Northern
Vietnamese cuisine, characterized by its diverse flavors and ingredients, often
includes dishes that incorporate frozen food items. The region's culinary
practices and recipes may involve the use of frozen vegetables, seafood, and
meats as key ingredients, driving the demand for frozen food products.
Northern
Vietnam, including cities like Hanoi and Hai Phong, hosts extensive
distribution networks. These networks efficiently supply frozen food products
to various urban and rural areas, ensuring widespread availability and
accessibility of frozen food items.
Urban
centers in Northern Vietnam experience rapid urbanization and evolving
lifestyles. The demand for convenient food options increases in these areas,
leading to a higher consumption of frozen foods due to their convenience,
longer shelf life, and easy preparation.
The
region features a diverse retail landscape, including supermarkets,
hypermarkets, convenience stores, and traditional markets. These retail
channels offer a wide range of frozen food products, catering to the
preferences of consumers with varying income levels and preferences.
As urban
populations grow busier, there's a heightened demand for time-saving meal
solutions. Frozen foods, with their convenience and quick preparation, appeal
to individuals seeking convenient meal options without compromising on taste or
nutritional value.
Consumers
in Northern Vietnam prioritize food safety and quality. Trusted frozen food
brands and products that adhere to strict quality standards and certifications
gain favor among consumers concerned about the safety and hygiene of their food
choices.
The
frozen food market in Northern Vietnam continues to grow, prompting
manufacturers and suppliers to introduce innovative frozen food varieties,
including frozen fruits, vegetables, seafood, and ready-to-eat meals, to cater
to evolving consumer preferences.
In
summary, Northern Vietnam's significant share in the Vietnam Frozen Food Market
is influenced by cultural culinary practices, changing lifestyles, a robust
distribution network, and the region's inclination towards convenient yet
quality food options. This sector's growth is likely to persist as frozen foods
increasingly become a staple in the Northern Vietnamese diet.
Recent Developments
In
December 2021, Strong Roots, a prominent plant-based frozen food company, and
McCain Foods, a globally recognized family-owned leader in frozen potato
specialties and appetizers, announced a strategic partnership. McCain Foods
will be making a USD 55 million investment in Strong Roots, acquiring a
minority stake in the business.
Key Market Players
- CP
Vietnam Livestock Joint Stock Company
- Sao
Ta Foods Joint Stock Company
- Vinh Hoan Corporation
- GreenFeed Vietnam Corp
- Cao
Phat Food Trading and Service Company Limited
- Kido
Foods Joint Stock Company
- Viet
Asia Foods Company Limited
- DALAT - JAPAN FOOD CO., LTD.
- L&H
Food Co., LTD.
- San Ha Co., Ltd.
-
Minh Phu Seafood Corp
|
By Category
|
By Product Type
|
By Distribution Channel
|
By Region
|
|
|
- Ready-to-Eat
- Ready-to-Cook
- Others
|
- Frozen Meat
- Frozen Poultry & Seafood
- Frozen Snacks
- Frozen Fruits & Vegetables
- Others
|
- Supermarkets/Hypermarkets
- Departmental Stores
- Specialty Stores
- Online
- Others
|
- Northern Vietnam
- Southern Vietnam
- Central Vietnam
|
|
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|
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Report Scope:
In this report, the Vietnam frozen food market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
·
Vietnam Frozen Food Market, By
Category:
o Ready-to-Eat
o Ready-to-Cook
o Others
·
Vietnam Frozen Food Market, By Product Type:
o Frozen Meat
o Frozen Poultry & Seafood
o Frozen Snacks
o Frozen Fruits & Vegetables
o Others
·
Vietnam Frozen Food Market, By Distribution Channel:
o Supermarkets/Hypermarkets
o Departmental Stores
o Specialty Stores
o Online
o Others
·
Vietnam Frozen Food Market, By Region:
o Northern Vietnam
o Southern Vietnam
o Central Vietnam
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Vietnam frozen food market.
Available Customizations:
Vietnam Frozen Food market report with the given market data,
TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
Vietnam Frozen Food Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]