Vietnam Snack Food Market Outlook to 2028

Vietnam Snack Food Market Overview

• The Vietnam Snack Food Market was valued at USD 3.2 billion in 2023, driven by the rising demand for convenient and affordable food options, increasing urbanization, and a growing middle-class population. The market is segmented into savory snacks, confectionery, and bakery snacks, with savory snacks leading the market due to their popularity among young consumers and the rising trend of snacking between meals.
• Major players in the Vietnam Snack Food Market include Mondelez International, PepsiCo, Orion Group, Kinh Do Corporation, and URC Vietnam. These companies are recognized for their diverse product offerings, strong brand presence, and focus on affordable snack options tailored to local tastes. Mondelez International leads the market with its Oreo and Kinh Do brands, which cater to both premium and mass-market consumers.
• In major cities like Hanoi, Ho Chi Minh City, and Da Nang, the demand for premium snack options is growing, driven by higher disposable incomes and an increased focus on health-conscious products. The market in rural areas, however, remains focused on affordable, mass-market products.
• In 2023, PepsiCo expanded its presence in Vietnam with the introduction of new flavors of Lays potato chips, tapping into local preferences for spicy and tangy flavors. This innovation highlights the increasing competition among snack food brands to cater to diverse consumer tastes in Vietnam.

Vietnam Snack Food Market Segmentation

The Vietnam Snack Food Market can be segmented by product type, sales channel, and region:

• By Product Type: The market is segmented into savory snacks, confectionery, and bakery snacks. In 2023, savory snacks remain the dominant category, with products like potato chips, nuts, and extruded snacks being highly popular among the younger population. However, confectionery products, such as chocolates and candies, are gaining market share due to increasing consumer indulgence. The demand for bakery snacks is also on the rise, driven by the growing interest in on-the-go breakfast options like biscuits and cakes.
• By Sales Channel: The market is segmented by sales channel into supermarkets/hypermarkets, convenience stores, and online retailers. In 2023, supermarkets and hypermarkets dominate the market, offering a wide variety of snack brands and promotions. Convenience stores are rapidly growing in popularity due to their accessibility and the increasing number of store openings across urban and rural areas. Online retailers are also gaining traction, particularly among younger consumers, for the convenience of home delivery and a broader range of products.
• By Region: The market is segmented into North, East, West and South. In 2023, the southern region, including Ho Chi Minh City, leads the market, driven by high population density, urbanization, and rising disposable incomes. The northern region, led by Hanoi, is also a significant market, with growing demand for premium and health-conscious snack options. The central region is seeing steady growth, especially in tourist destinations where the demand for packaged snacks is rising.

Vietnam Snack Food Market Competitive Landscape

• Mondelez International: In 2023, Mondelez International introduced a new range of premium chocolate products under the Kinh Do brand, catering to the increasing demand for high-quality, indulgent snacks. This expansion aims to solidify Mondelezs position in the premium segment, leveraging its strong distribution network and focus on innovative flavors.
• PepsiCo: In 2024, PepsiCo announced the launch of a new line of healthy snack options under the Quaker brand, targeting health-conscious consumers in Vietnam. The new product line includes baked snacks with reduced fat and sugar content, in line with global trends towards healthier eating habits.

Vietnam Snack Food Market Analysis

Market Growth Drivers:

• Increasing Urbanization: In 2023, Vietnam's urban population reached over 37 million people, contributing to the demand for convenient, ready-to-eat snack options. Urban areas like Ho Chi Minh City and Hanoi are the primary drivers of snack consumption due to fast-paced lifestyles and rising disposable incomes.
• Rising Disposable Incomes: The growing middle-class population, with higher disposable incomes, is fueling demand for both affordable mass-market snacks and premium, health-oriented products. Consumers are willing to spend more on quality snacks, driving market growth.
• Health-conscious Consumer Trends: In 2023, around 5 million Vietnamese consumers actively sought healthier snack alternatives, such as baked snacks or snacks with reduced sugar and fat content, driving innovation in the product offerings by major brands and this trend is one of the major growth drivers.

Market Challenges:

• Distribution Challenges in Rural Areas: While urban areas in Vietnam offer a well-established distribution network, rural regions face challenges due to underdeveloped infrastructure, making it difficult for manufacturers to ensure timely distribution and product availability.
• Competition from Local Brands: The presence of numerous local brands in Vietnams snack food market intensifies competition, making it difficult for international players to capture a significant share. Local brands often have the advantage of lower production costs and a better understanding of local consumer preferences.
• Fluctuations in Raw Material Supply: Frequent fluctuations in the supply of raw materials, such as wheat, corn, and sugar, can cause production delays and impact the pricing structure. Unpredictable weather conditions and disruptions in the global supply chain contribute to inconsistent availability, affecting manufacturers' ability to maintain stable production levels.

Government Initiatives:

• Vietnams National Nutrition Strategy: The Vietnamese government launched its National Nutrition Strategy for 2021-2030, with an annual budget of approximately VND 500 billion which is USD 21 million. The strategy focuses on promoting healthier eating habits and improving public health by encouraging the production of healthier snack options.
• Support for E-commerce Development: The government has committed VND 1.2 trillion to develop and regulate the e-commerce infrastructure in Vietnam by 2025. This investment is particularly beneficial for snack food manufacturers, allowing them to leverage online platforms to reach a wider audience and streamline distribution channels.

Vietnam Snack Food Market Future Market Outlook

The Vietnam Snack Food Market is expected to experience steady growth, driven by increasing urbanization, rising disposable incomes, and a growing demand for healthy snack options.

Future Market Trends:

• Expansion of Health-conscious Snacks: As consumers become more health-conscious, the demand for snacks with reduced sugar, fat, and artificial additives is expected to grow. Companies are likely to focus on launching products that cater to this segment, such as baked snacks, low-calorie options, and snacks fortified with vitamins and minerals.
• Growth in Online Retail: The online retail segment is projected to expand significantly, driven by increasing internet penetration and the growing preference for online shopping. E-commerce platforms are expected to play a major role in the distribution of snack products, particularly in urban areas.
• Innovative Flavor Offerings: Snack food manufacturers are likely to introduce innovative flavors, combining traditional Vietnamese tastes with international influences. This trend is expected to attract younger consumers who seek novel and exciting snack options.