Minh-Ngoc Nguyen
Research Expert covering Vietnam
Food retail industry in Vietnam - statistics & facts
Vietnam is among the fastest-growing economies worldwide. Apart from its exports, the domestic market has been another driver for its economic growth. Within Vietnam’s growing retail sector, the food retail industry has been evolving fast to meet the demand of its population. Although due to the global COVID-19 pandemic, the retail sales of goods and services in the country decreased slightly since 2020, the Vietnamese food market has been back on its growth track at the end of 2022.
As convenience is now among the most important criteria for purchasing a food item, many Vietnamese consumers have turned to packaged goods, leading to an increase in these products’ retail sales. Although fresh items still accounted for the highest sales of food and beverage products, packaged food has been catching up, with the second-highest sales. While traditional Vietnamese cuisine does not often include dairy, these products have grown into the most purchased packaged food items thanks to growing consumption. Additionally, other consumption trends have been observed among niche groups of consumers, such as the adoption of a plant-based diet and more sustainable consumption practices.
Changing retail landscape and consumption habits
Traditional retail channels such as street shops or wet markets still accounted for most of the grocery retail sales in Vietnam. However, in recent years, more and more consumers have chosen to shop at modern trade outlets, namely supermarkets and convenience stores. The penetration rate of modern retailers was especially high in urban areas. In Vietnam’s two largest cities Ha Noi and Ho Chi Minh City, consumers demonstrated a higher preference for these channels over traditional grocery outlets. All in all, modern retail outlets, such as supermarkets and convenience stores, have been mushrooming across Vietnam at the expense of a decreasing number of traditional markets in recent years.As convenience is now among the most important criteria for purchasing a food item, many Vietnamese consumers have turned to packaged goods, leading to an increase in these products’ retail sales. Although fresh items still accounted for the highest sales of food and beverage products, packaged food has been catching up, with the second-highest sales. While traditional Vietnamese cuisine does not often include dairy, these products have grown into the most purchased packaged food items thanks to growing consumption. Additionally, other consumption trends have been observed among niche groups of consumers, such as the adoption of a plant-based diet and more sustainable consumption practices.
