According to Phu Hung Securities Joint Stock Company (PHS), contrary to the negative impact of COVID-19 on the global economy as well as on Vietnam, the consumption value of milk and dairy products is still growing strongly. Specifically, milk consumption in urban areas grew by 10% while in rural areas it grew by 15%.
In 2020, sales of dairy products in Vietnam reached 64.4 trillion VND, which is a growth rate of 10.3%. Sales of milk and dairy products in Vietnam are expected to maintain at 7-8% per year in the period 2021 - 2025, reaching a total value of about 93.8 trillion VND by 2025. In particular, yogurt is expected to have the highest growth rate with a CAGR of 12%/year.
According to the market report of Kantar Worldpanel, the demand for dairy products in Vietnam is experiencing positive changes due to the young population, increasing average income, and greater demand for nutritional supplements.
Vinamilk is the short name of Vietnam Dairy Products Joint Stock Company, which was established in 1976. The company is currently holding 43.3% market share and is leading Vietnam’s dairy industry. In addition to strong domestic distribution with a network of 244 distributors and nearly 140,000 sales points covering 64/64 provinces and cities, Vinamilk products are also exported to the United States, France, Canada, Poland, Germany, Middle East and Southeast Asia.
In 2020, Vinamilk’s total consolidated revenue was 59,723 billion VND, and its profit after tax was 11,236 billion VND, an increase of 6.5% and 5.9%, respectively.
FrieslandCampina Vietnam Co., Ltd. was established in 1995 with an annual investment of about 1 million USD. After nearly 30 years of operation, FrieslandCampina Vietnam has become one of the leading companies in the Vietnamese dairy industry. More than 2,400 farmer households have become the company’s partner, and are regularly trained and tested, providing about 170 tons of high-quality milk per day.
FrieslandCampina Vietnam is the first company in Vietnam to receive all four international certificates for management systems ISO 9000:2008 (on quality), ISO 14000:2004 (on environment), ISO 22000:2005 (on food safety) and OHSAS 18001: 2007 (on occupational health and safety) by Bureau Veritas.
Due to the fact that this company is foreign invested, its latest financial information is only available on request.
Nutifood Nutrition Food Joint Stock Company, formerly known as Thanh Tam Nutrition Food Joint Stock Company, was established on March 29, 2000. On June 16, 2011, the company changed its name to Nutifood Nutrition Food Joint Stock Company. Since its establishment, the company has always maitained its motto: "Always focus on improving customer satisfaction with products of appropriate quality, safety and best service with reasonable price", which makes NutiFood one of the leading food companies in Vietnam and in the region. With a nationwide distribution system, NutiFood has witnessed an annual increase of more than 250% in revenue.
As of December 2020, Nutifood’s brand value was 93.9 million USD, and it is the third largest dairy company in Vietnam.
TH True Milk was set up in 2008. The TH True Milk project was started in 2009 with the import of Israeli dairy technology and thousands of cows from New Zealand. Since then, the company has witnessed rapid growth.
According to market retail measurement data in November 2018, TH True Milk milk grew by nearly 22% in volume and 30% in revenue. So far, its market share in the fresh milk segment in urban retail channels has reached 40%.
Since 2017, TH True Milk Company has made leaps and bounds in business operation. The company’s net profit in 2017 was 319 billion VND, and in 2018 it was 450 billion VND. Within 5 years from 2014 to 2018, TH's net profit increased 15 times.
Abbott is a dairy company from the US that established an office in Ho Chi Minh City in 1995 and has about 100 employees in Vietnam. Abbott's main products in Vietnam are powdered milk such as Ensure, Pediasure, Similac, Grow...
In 2014 and 2015, this group's revenue reached 357 and 331 million USD, respectively. In 2016, Abbott's revenue skyrocketed to 434 million USD.
In 2016, Abbott attracted attention when it acquired Glomed, thereby owning 2 drug factories in Binh Duong. In addition, Abbott now indirectly owns nearly 52% of the charter capital at Domesco Pharmaceutical Company through its subsidiary, CFR International SPA.
Vietnam’s powdered milk market is considered to be extremely competitive. According to a report of a securities company, Vinamilk and Abbott are competing fiercely for the leading position in the powdered milk segment, in which Abbott has a slightly better position.
Source: Euromonitor, vneconomy
Compiled by Vietnam Credit