CHEESE IN VIETNAM
Euromonitor International
October 2015

CHEESE IN VIETNAM

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LIST OF CONTENTS AND TABLES
Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 1
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 3
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Table 13

Sales of Cheese by Category: Volume 2010-2015 ...................................... 3
Sales of Cheese by Category: Value 2010-2015 ......................................... 3
Sales of Cheese by Category: % Volume Growth 2010-2015 ...................... 3
Sales of Cheese by Category: % Value Growth 2010-2015 ......................... 4
Sales of Spreadable Processed Cheese by Type: % Value
Breakdown 2010-2015 ................................................................................. 4
Sales of Unprocessed Cheese by Type: % Value Breakdown 20102015 ............................................................................................................. 4
NBO Company Shares of Cheese: % Value 2011-2015 .............................. 5
LBN Brand Shares of Cheese: % Value 2012-2015 ..................................... 5
Distribution of Cheese by Format: % Value 2010-2015................................ 5
Forecast Sales of Cheese by Category: Volume 2015-2020........................ 6
Forecast Sales of Cheese by Category: Value 2015-2020........................... 6
Forecast Sales of Cheese by Category: % Volume Growth 2015-2020 ....... 7
Forecast Sales of Cheese by Category: % Value Growth 2015-2020 .......... 7

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CHEESE IN VIETNAM

CHEESE IN VIETNAM
HEADLINES
 Cheese registers value growth of 16%, to reach VND1,444 billion in 2015
 Exposure to Western culture boosts demand for cheese
 Spreadable processed cheese witnesses the highest value growth of 16% in 2015
 The average unit price of cheese continues to rise in 2015
 Bel Vietnam Ltd continues to lead cheese with a value share of 78% in 2015
 Cheese is set to register a value CAGR of 7% over the forecast period, to reach sales of
VND1,997 billion in 2020

TRENDS
 Towards the end of the review period, exposure to Western culture had a positive impact on demand for cheese, as Vietnamese consumers tended to cook more Western dishes for their family. In addition, consumers also purchased more cheese for their children, considering it to be an important source of protein that can support healthy growth.
 In 2015, cheese witnessed value growth of 16%, which was slower than the growth seen in
2014. The weak economy had a negative impact on the performance of cheese in 2015, as consumers demonstrated an increased tendency to towards greater frugality due to financial difficulties. Moreover, the cheese category has become more mature and thus could not sustain the high growth seen in most other years of the review period.
 Spreadable processed cheese registered the fastest value growth, with a rise of 16% in 2015.
The key consumers of spreadable processed cheese are children and youngsters. They tend to eat these products alone or with bread. The strong performance of spreadable processed cheese was also attributable to active marketing and promotional activities, as well as the nationwide distribution networks of the key operators.
 The average unit price of cheese continued to rise in 2015 due to rising input costs, notably for labour, fuel, and electricity. In addition, the depreciation of the Vietnamese dong also contributed to the increase in unit price, since many cheese brands were imported into
Vietnam.
 In Vietnam, packaged cheese is much more popular than unpackaged cheese. Cheese consumption in Vietnam remained relatively low and cheese-based cuisine is often cooked on special occasions. Most cheese products are packaged and imported from foreign countries.
 With regard to spreadable processed cheese, reconstituted cheese accounted for 96% of total value sales in 2015, while cream cheese accounted for 4%. Within unprocessed cheese, Brie was the most popular, accounting for 20% of total value sales. Camembert held a 17% value share, followed by Parmesan with 14%. Other variants were Edam and Gouda which accounted for 3% and 4% respectively.

COMPETITIVE LANDSCAPE
 Bel Vietnam Ltd dominated cheese in Vietnam, accounting for 78% of value sales in 2015.
The company operates a diversified product portfolio that consists of many brands, including
La Vache Qui Rit, Belcube and Babybel. Its distribution network covers both traditional and modern channels across the country, which gives it a competitive advantage. Bel Vietnam

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CHEESE IN VIETNAM

was also active in carrying out marketing and promotional activities and recorded the strongest increase in value share in 2015.
 Vietnam Dairy Products JSC (Vinamilk) saw the biggest increase in value sales in 2015, with a rise of 18%. However, its value share saw only a slight rise to 3%. Its Vinamilk brand is well known for its good price/quality ratio. The company made significant efforts at the end of the review period to expand its distribution network and run occasional discount programmes.
 International brands continued to dominate cheese in Vietnam. The most notable international companies were Bel Vietnam, Groupe Lactalis and Fonterra Brands (Vietnam) Co Ltd.
Vietnam Dairy Products was the only local company active in cheese. However, it faced a considerable challenge in terms of competing with international players.
 A key example of new product developments in 2014 was Susu Pho Mai Tuoi (Susu Fresh
Cheese) of Vietnam Dairy Products JSC (Vinamilk), which tastes slightly like yoghurt and targets children. Along with the new product, television advertisements and other marketing and promotional activities were launched in order to build consumer awareness. Another noteworthy new product development was My Cheese, under the umbrella Président brand, offered in three flavours including My Cheese Smokey Cheddar taste, My Cheese Emmental taste and My Cheese Chilli Cheddar taste. These products were introduced by one of the biggest distributors in cheese – Hoang Lan Commerce Co Ltd.
 In Vietnam, there was no clear classification of premium, standard or economy brands in cheese. There was relatively little variation in product prices in the category. Private label was non-existent in 2015.

PROSPECTS
 Sales of cheese are expected to rise at a value CAGR of 7% at constant 2015 prices over the forecast period. This will represent faster growth than that seen over the review period.
Growth will be fuelled by the increasing westernisation taking place in Vietnamese culture.
Vietnamese consumers increasingly prepare more Western cuisine in their daily meals, as well as on special occasions. The expected rise in the disposable income of many consumers is also having a positive impact on the demand for cheese. In addition, manufacturers are also set to engage in various marketing activities and expand their distribution network.
 Spreadable processed cheese is expected to register the strongest value growth rate at constant 2015 prices, rising at an anticipated CAGR of 7%. Consumers will become increasingly aware of the benefits of spreadable processed cheese and will be more inclined to use this product type on a regular basis. Parents will also encourage their children to eat spreadable processed cheese as part of a healthy diet to support growth and development.
 The average unit price of cheese is expected to decline gradually in terms of constant 2015 prices over the forecast period. Despite commodity price volatility, manufacturers will try to keep prices as low as possible. The decline in price also helped to support demand for cheese.  Modern distribution channels are likely to grow faster than traditional channels in terms of cheese distribution in Vietnam. In addition, the key consumers of cheese will remain those living in urban areas
 As competition becomes more intense, besides expanding distribution, operators in cheese are expected to pay more attention to marketing and promotional activities in order to build up brand equity and stimulate demand.
 New product developments launched in 2014, including Susu Pho Mai Tuoi and My Cheese, are expected to perform positively over the forecast period. Susu Pho Mai Tuoi is likely to

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CHEESE IN VIETNAM

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appeal to children and, being developed and distributed by Vietnam Dairy Products JSC
(Vinamilk), it will be strongly supported by a nationwide distribution network and active marketing and promotional activities. My Cheese is distributed by Hoang Lan Commerce Co
Ltd, which has up to 25 years’ experience in distributing cheese in Vietnam. As a result of these factors, these new product launches are expected to perform well going forward, which in turn will contribute to the intensifying competition in the category. They will also be instrumental in encouraging other players to introduce more new products in order to stay competitive. CATEGORY DATA
Table 1

Sales of Cheese by Category: Volume 2010-2015

tonnes
2010
Processed Cheese
- Spreadable Processed
Cheese
- Other Processed Cheese
Unprocessed Cheese
- Hard Cheese
-- Packaged Hard Cheese
-- Unpackaged Hard Cheese
- Soft Cheese
Cheese
Source:

2011

2012

2013

2014

2015

3,431.7
2,935.1

3,868.2
3,332.2

3,600.4
3,026.5

4,599.1
3,969.9

5,218.8
4,530.4

5,814.1
5,074.0

496.6
22.5
8.5
8.5
14.0
3,454.2

536.0
24.4
9.0
9.0
15.4
3,892.6

573.9
26.3
9.6
9.6
16.8
3,626.7

629.2
28.4
10.2
10.2
18.2
4,627.5

688.4
30.6
10.9
10.9
19.7
5,249.3

740.0
32.9
11.6
11.6
21.3
5,847.0

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Table 2

Sales of Cheese by Category: Value 2010-2015

VND billion
2010
Processed Cheese
- Spreadable Processed
Cheese
- Other Processed Cheese
Unprocessed Cheese
- Hard Cheese
-- Packaged Hard Cheese
-- Unpackaged Hard Cheese
- Soft Cheese
Cheese
Source:

2011

2012

2013

2014

2015

752.5
640.7

946.2
812.2

831.0
683.9

1,045.8
878.8

1,234.2
1,043.6

1,429.7
1,213.7

111.8
6.8
1.9
1.9
4.9
759.3

134.0
8.1
2.3
2.3
5.8
954.3

147.1
9.8
2.8
2.8
7.0
840.7

167.0
11.1
3.1
3.1
8.0
1,056.9

190.5
12.7
3.5
3.5
9.1
1,246.8

216.0
14.3
4.0
4.0
10.3
1,444.1

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Table 3

Sales of Cheese by Category: % Volume Growth 2010-2015

% volume growth
2014/15
Processed Cheese

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2010-15 CAGR

2010/15 Total

11.4

11.1

69.4

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CHEESE IN VIETNAM

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- Spreadable Processed Cheese
- Other Processed Cheese
Unprocessed Cheese
- Hard Cheese
-- Packaged Hard Cheese
-- Unpackaged Hard Cheese
- Soft Cheese
Cheese
Source:

12.0
7.5
7.6
7.0
7.0
8.0
11.4

11.6
8.3
7.9
6.5
6.5
8.7
11.1

72.9
49.0
46.0
37.0
37.0
51.5
69.3

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Table 4

Sales of Cheese by Category: % Value Growth 2010-2015

% current value growth
2014/15

Source:

2010/15 Total

15.8
16.3
13.4
13.2
12.8
12.8
13.3
15.8

Processed Cheese
- Spreadable Processed Cheese
- Other Processed Cheese
Unprocessed Cheese
- Hard Cheese
-- Packaged Hard Cheese
-- Unpackaged Hard Cheese
- Soft Cheese
Cheese

2010-15 CAGR
13.7
13.6
14.1
16.1
15.7
15.7
16.3
13.7

90.0
89.4
93.2
111.1
107.0
107.0
112.8
90.2

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Table 5

Sales of Spreadable Processed Cheese by Type: % Value Breakdown 20102015

% retail value rsp
2010
Cream Cheese
Reconstituted Cheese
Total
Source:

2011

2012

2013

2014

2015

3.8
96.2
100.0

3.6
96.4
100.0

3.5
96.5
100.0

3.5
96.5
100.0

3.5
96.5
100.0

3.6
96.5
100.0

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Table 6

Sales of Unprocessed Cheese by Type: % Value Breakdown 2010-2015

% retail value rsp
2010
Brie
Camembert
Edam
Gouda
Parmesan
Others
Total
Source:

2011

2012

2013

2014

2015

19.1
17.1
3.1
3.3
13.0
44.4
100.0

19.2
17.2
3.1
3.4
13.5
43.6
100.0

19.3
17.3
3.1
3.5
13.5
43.3
100.0

19.3
17.3
3.1
3.7
13.6
43.0
100.0

19.4
17.3
3.2
3.8
13.7
42.6
100.0

19.5
17.2
3.3
3.9
13.8
42.3
100.0

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CHEESE IN VIETNAM

Table 7

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NBO Company Shares of Cheese: % Value 2011-2015

% retail value rsp
Company

2011

Source:

2014

2015

74.0
9.4
6.3

77.0
8.8
5.7

78.0
8.7
5.4

78.3
8.6
5.3

4.3

4.2

3.6

3.2

3.3

1.3

1.5

1.4

1.3

1.2

-

0.6

0.4

0.3

0.3

0.4
0.3
0.6
2.4
100.0

0.4
0.2
3.3
100.0

3.1
100.0

3.0
100.0

3.0
100.0

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Table 8

LBN Brand Shares of Cheese: % Value 2012-2015

% retail value rsp
Brand

Company

Vinamilk
Bega
Anchor
Babybel
Philadelphia
Nouvelle Vache
Coon Tasty
Party Cube
Philadelphia
Others
Total

2012

2013

2014

2015

Bel Vietnam Ltd
Bel Vietnam Ltd
Lactalis, Groupe
Fonterra Brands
(Vietnam) Co Ltd
Vietnam Dairy Products
JSC (Vinamilk)
Bega Cheese Trading Co
Pty Ltd
Fonterra Brands
(Vietnam) Co Ltd
Bel Vietnam Ltd
Mondelez International Inc
Picon SA
Danone, Groupe
Bel Vietnam Ltd
Kraft Foods Inc

La Vache Qui Rit
Belcube
Président
Chesdale

Source:

2013

79.3
6.8
4.7

Bel Vietnam Ltd
Lactalis, Groupe
Fonterra Brands
(Vietnam) Co Ltd
Vietnam Dairy Products
JSC (Vinamilk)
Bega Cheese Trading Co
Pty Ltd
Mondelez International
Inc
Picon SA
Danone, Groupe
Kraft Foods Inc
Others
Total

2012

65.0
8.2
9.4
5.0

67.7
8.5
8.8
4.6

68.6
8.6
8.7
4.4

68.8
8.7
8.6
4.3

4.2

3.6

3.2

3.3

1.5

1.4

1.3

1.2

1.3

1.1

1.0

1.0

0.8
0.6
0.4
0.2
3.3
100.0

0.8
0.4
3.1
100.0

0.8
0.3
3.0
100.0

0.8
0.3
3.0
100.0

2014

2015

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Table 9

Distribution of Cheese by Format: % Value 2010-2015

% retail value rsp
2010

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2011

2012

2013

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Store-Based Retailing
- Grocery Retailers
-- Modern Grocery
Retailers
--- Convenience Stores
--- Discounters
--- Forecourt Retailers
--- Hypermarkets
--- Supermarkets
-- Traditional Grocery
Retailers
--- Food/drink/tobacco specialists --- Independent Small
Grocers
--- Other Grocery
Retailers
- Non-Grocery Specialists
-- Health and Beauty
Specialist Retailers
-- Other Foods NonGrocery Specialists
- Mixed Retailers
Non-Store Retailing
- Vending
- Homeshopping
- Internet Retailing
- Direct Selling
Total
Source:

100.0
100.0
41.4

100.0
100.0
41.2

100.0
100.0
41.7

100.0
100.0
42.5

100.0
100.0
43.4

100.0
100.0
44.3

1.0
9.6
30.7
58.6

1.0
10.1
30.1
58.8

1.1
10.1
30.5
58.3

1.3
10.5
30.8
57.5

1.5
10.9
31.0
56.6

1.8
11.3
31.2
55.8

-

-

-

-

-

-

58.6

58.8

58.3

57.5

56.6

55.8

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100.0

100.0

100.0

0.0
0.0
100.0

0.0
0.0
100.0

0.0
0.0
100.0

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Table 10

Forecast Sales of Cheese by Category: Volume 2015-2020

tonnes
2015
Processed Cheese
- Spreadable Processed
Cheese
- Other Processed Cheese
Unprocessed Cheese
- Hard Cheese
-- Packaged Hard Cheese
-- Unpackaged Hard Cheese
- Soft Cheese
Cheese
Source:

2016

2017

2018

2019

2020

5,814.1
5,074.0

6,344.2
5,555.2

6,864.3
6,026.0

7,388.8
6,501.3

7,939.6
7,001.7

8,530.3
7,539.9

740.0
32.9
11.6
11.6
21.3
5,847.0

789.0
35.2
12.4
12.4
22.8
6,379.4

838.4
37.6
13.2
13.2
24.4
6,901.9

887.5
40.2
14.1
14.1
26.1
7,428.9

938.0
42.9
15.0
15.0
28.0
7,982.6

990.4
46.0
16.0
16.0
30.0
8,576.3

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Table 11

Forecast Sales of Cheese by Category: Value 2015-2020

VND billion
2015
Processed Cheese
- Spreadable Processed

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2016

2017

2018

2019

2020

1,429.7
1,213.7

1,547.4
1,318.2

1,657.1
1,415.6

1,762.3
1,508.9

1,868.8
1,603.9

1,977.6
1,701.3

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CHEESE IN VIETNAM

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Cheese
- Other Processed Cheese
Unprocessed Cheese
- Hard Cheese
-- Packaged Hard Cheese
-- Unpackaged Hard Cheese
- Soft Cheese
Cheese
Source:

216.0
14.3
4.0
4.0
10.3
1,444.1

229.2
15.3
4.2
4.2
11.0
1,562.6

241.6
16.2
4.5
4.5
11.7
1,673.3

253.4
17.1
4.7
4.7
12.4
1,779.4

264.9
18.1
5.0
5.0
13.1
1,886.9

276.3
19.2
5.2
5.2
13.9
1,996.8

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Table 12

Forecast Sales of Cheese by Category: % Volume Growth 2015-2020

% volume growth
2015/16
Processed Cheese
- Spreadable Processed Cheese
- Other Processed Cheese
Unprocessed Cheese
- Hard Cheese
-- Packaged Hard Cheese
-- Unpackaged Hard Cheese
- Soft Cheese
Cheese
Source:

Table 13

2015-20 CAGR

2015/20 Total

9.1
9.5
6.6
7.0
6.6
6.6
7.3
9.1

8.0
8.2
6.0
6.9
6.5
6.5
7.1
8.0

46.7
48.6
33.8
39.7
37.3
37.3
41.0
46.7

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Forecast Sales of Cheese by Category: % Value Growth 2015-2020

% constant value growth
2015/2016
Processed Cheese
- Spreadable Processed Cheese
- Other Processed Cheese
Unprocessed Cheese
- Hard Cheese
-- Packaged Hard Cheese
-- Unpackaged Hard Cheese
- Soft Cheese
Cheese
Source:

2015-20 CAGR

2015/20 TOTAL

8.2
8.6
6.1
6.4
6.0
6.0
6.6
8.2

6.7
7.0
5.0
6.0
5.6
5.6
6.1
6.7

38.3
40.2
27.9
33.7
31.1
31.1
34.7
38.3

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