VietnamCredit About Us Cafe€redit Contact Us
Go to cart
Overview of Vietnam’s confectionery industry

Overview of Vietnam’s confectionery industry

Thursday 28, 07 2022
In recent years, Vietnam's confectionery industry has witnessed a fairly stable growth with an average growth rate of 8-10% per year.

Stable growth

The total confectionery output in 2020 of Vietnam was estimated at more than 200,000 tons and revenue was estimated at more than VND 40,000 billion. There was a slow-down in the revenue and output of this industry due to the impact of the Covid-19 epidemic.

Currently, the average confectionery consumption of Vietnamese people is about 2kg/person per year, which is quite low compared to the world average. However, Vietnam population is quite young so consumption of confectionery is expected to increase in the near future.

Stable growth

In the past two years, the growth rate of this industry has reached about 8-10%, instead of 15-20% like in the period from 2010 to 2015. However, in the eyes of foreign investors, Vietnam's market of nearly 100 million people is still attractive, because compared to the average growth rate of the confectionery industry in the world (which is about 1.5%) and the Southeast Asia (which is 3%), the growth rate of Vietnamese confectionery industry is still high.

Features of Vietnam’s confectionery industry

Vietnam's confectionery industry is highly dependent on imported raw materials. The main input materials of this industry include flour, sugar, milk, eggs and other materials. In which, imported materials are flour (almost all), sugar (partially imported), flavoring and some additives, which account for a large proportion of the cost. Therefore, fluctuations in the prices of these materials on the world market and fluctuations in the VND/USD exchange rate will greatly affect the price of confectionery products.

Currently, the main consumption market of Vietnamese confectionery companies is the domestic market (accounting for about 80%). The popular products of the market are mainly candy, cookies, sponge cake, moon cake, chocopie cake.

Features of Vietnam’s confectionery industry

According to the trend of the market, consumers are most interested in food products, confectioneries are only secondary, so in consumer spending, expenditure for confectionery totally depends on the income. Therefore, any small change in people's income will also affect the income of businesses in this field. In addition, the Vietnamese confectionery market has a distinct seasonality. Consumption volume usually increases sharply from the 8th lunar month (Mid-Autumn Festival) to the Lunar New Year with key items bearing Vietnamese traditional flavors such as mooncakes, hard and soft candies, and high-quality biscuits, jams, nuts. Meanwhile, the consumption of confectionery is quite low after the Lunar New Year and summer due to the hot climate.

Competition among enterprises in the industry

Currently, with nearly 100 million people, Vietnam has become a potential market not only for domestic enterprises but also for foreign companies. It is estimated that there are about 30 domestic confectionery enterprises, hundreds of small production facilities and a number of foreign importers participating in the market.

Competition among enterprises

Major domestic enterprises such as Kinh, Bibica, Hai Ha, Huu Nghi, Orion Vietnam are believe to hold about 75-80% of the market share. These enterprises are increasingly asserting their important position in the market with the diversity of products (for many different customers), quite good quality, and suitable for the taste of Vietnamese people. Meanwhile, small production facilities are gradually shrinking in terms of production scale due to low capital, outdated technology, lack of assurance of food quality and safety.

Source:, vietdata

Compiled by VietnamCredit

You may also like

Top 5 largest confectionery companies in Vietnam
Monday 01, 08 2022

Top 5 largest confectionery companies in Vietnam

Although there are thousands of confectionery manufacturers in Vietnam,...
Monday 02, 12 2019


When setting up a new company, there are many questions relating to head...
+84 981861066