Vietnam is a major producer of baby food. In 2022, 114.6 thousand tons of baby food were produced in the country, while consumption amounted to about 136.2 thousand tons. The average growth rate of consumption for 2018-2022 was 2.8% annually, which exceeds the average growth rate of production, which for the same period amounted to 2.3% per year.
In the structure of baby food consumption in Vietnam, the largest volume fell on milk mixtures, the share of which in 2022 amounted to 84.1%. Milk mixtures on the Vietnamese market are mainly represented by dry milk mixtures for children 1-3 years old, they accounted for 66.0% of the volume of consumption of this type of product or 75.6 thousand tons in 2022.
The share of dry and ready-made baby food was 14.9% (20.3 thousand tons) and 1.0% (1.3 thousand tons) in the structure of baby food consumption in Vietnam, respectively. At the same time, over the past five years, their share has increased by 1.2% and 0.4%, respectively: in 2018-2022, the volume of consumption of dry baby food grew annually by 5.0%, ready—made baby food - by 16.7%.
In the structure of baby food consumption in Vietnam, in value terms, the largest volume also fell on milk mixtures, primarily dry milk mixtures for children 1-3 years old. In 2022, their share in the structure of baby food consumption was estimated at 59.8%, the share of other milk mixtures — at 24.7%. Dry and ready-made baby food followed by a significant margin, which accounted for 15.4% in total.
In 2018-2022, baby food in Vietnam was sold exclusively through retail trade, there were no sales of products in the catering sector.
A key player in the Vietnam baby food market is the local company Vietnam Dairy Products JSC (Vinamilk), which accounted for 27.2% of the baby food market in the country in 2022. The second place with a share of 18.7% was taken by another Vietnamese company — Nutifood Nutrition Food JSC. In third place was the American chemical and pharmaceutical corporation Abbott Laboratories Inc (16.7% of the Vietnamese market).
Import of baby food to Vietnam
In 2022, Vietnam's baby food imports amounted to 21.6 thousand tons by $249.8 million, which is 23.9% (by 6.8 thousand tons) lower than in 2021 in volume and by 18.0% (by $54.9 million) in value. In 2018-2022, the volume of imports of baby food on average increased annually by 5.1% by weight and by 5.9% by value.
In the structure of Vietnamese imports of baby food in volume in 2018-2022, Japan occupied a leading position, supplying 6.6 thousand tons of products to the country in 2022 (30.6% of imports). The second supplier, with a share of 11.7% (2.5 thousand tons), is Australia. In 2022, Russia supplied 2.3 thousand tons of baby food to Vietnam (10.5%), which is 32.6% lower compared to 2021.
In 2022, Vietnam as a whole reduced the volume of purchases of baby food in almost all countries that were previously major suppliers of these products.
The largest decrease was noted in shipments from Singapore — by 75.6% (or 5.3 thousand tons). Japan, on the contrary, increased supplies by 15.3% and displaced Singapore from the position of the largest supplier, which it occupied in 2021.
Japan was also the leading exporter of baby food to Vietnam in value terms. By the end of 2022, the country supplied 81.7 million US dollars worth of these products to the Vietnamese market (32.7% of imports). Australia exported baby food to Vietnam for 40.5 million US dollars (16.2%). Singapore also entered the top three suppliers of baby food in value terms with a share of 8.1%. In 2018-2021, Russia gradually increased the volume of deliveries of these products to Vietnam — from 5.2 million US dollars in 2018 to 28.1 million US dollars in 2021 in 2022. Russian exports amounted to US$ 19.7 million (7.9% of Vietnamese imports in value terms).
In 2018-2022, the most significant absolute increase in exports of baby food to Vietnam in value terms was demonstrated by Japan and Australia. In addition, China and Sweden have significantly increased the volume of deliveries of these products — up to 8.7 and 8.6 million US dollars in 2022, respectively. Singapore, on the contrary, reduced the export of baby food from 72.8 million US dollars in 2018 to 20.1 million US dollars in 2022.
In 2022, the average import price of baby food in Vietnam increased by 7.7% to $11,551 per ton. The most expensive products were supplied from China at a price of 30,851 US dollars per ton, which is 2.7 times higher than the average import price, and the Republic of Korea at a price of 18,100 US dollars per ton (1.6 times higher than the average price).
The lowest prices were recorded for products from France — US$ 5,800 per ton (49.8% lower than the average price) and New Zealand — US$ 6,714 per ton (41.9% lower). Baby food from Russia was supplied at a price of $8,565 per ton, which is 35.8% lower than the average price.
