Baby Milk & Infant Formula - Vietnam

Vietnam

Revenue in the Baby Milk & Infant Formula market amounts to €1.94bn in 2024. The market is expected to grow annually by 5.87% (CAGR 2024-2029).
In global comparison, most revenue is generated in China (€15,470m in 2024).
In relation to total population figures, per person revenues of €19.20 are generated in 2024.
In the Baby Milk & Infant Formula market, volume is expected to amount to 127.90m kg by 2029. The Baby Milk & Infant Formula market is expected to show a volume growth of 4.5% in 2025.
The average volume per person in the Baby Milk & Infant Formula market is expected to amount to 1.0kg in 2024.

Key regions: South Korea, India, United Kingdom, United States, Japan

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Analyst Opinion

The Baby Milk & Infant Formula Market in Vietnam has seen minimal growth due to factors such as changes in consumer preferences, increased competition, and stricter regulations. Despite this, the market is expected to continue growing, driven by the rising demand for nutritious and safe baby food products.

Customer preferences: As Vietnamese parents become more health-conscious, there is a growing trend towards organic and natural ingredients in baby milk and infant formula. This is driven by rising concerns over the safety and purity of traditional formula products. Additionally, there has been an increase in demand for lactose-free and hypoallergenic formulas, catering to the needs of babies with allergies or sensitivities. This trend is likely to continue as consumers prioritize the health and well-being of their children.

Trends in the market: In Vietnam, the Baby Milk & Infant Formula Market of the Baby Food Market within The Food market is experiencing a shift towards organic and natural products. This trend is driven by a growing awareness of health and nutrition, as well as concerns about the safety and quality of traditional formula products. As a result, major players in the market are investing in new product development and marketing campaigns to meet the demand for healthier options. This trend is expected to continue, with potential implications for industry stakeholders such as increased competition and the need for stricter regulations to ensure product safety and quality.

Local special circumstances: In Vietnam, the Baby Milk & Infant Formula Market is heavily influenced by the country's rapidly growing economy, urbanization, and increasing disposable income. The government's efforts to promote breastfeeding and regulate the marketing and sales of infant formula have also played a significant role in shaping the market. Moreover, cultural preferences for imported products, particularly from Western countries, have led to a high demand for premium and organic baby formula in Vietnam. These factors have created a unique market landscape, with domestic and international brands competing for market share.

Underlying macroeconomic factors: The growth of the Baby Milk & Infant Formula Market within The Food market is heavily influenced by macroeconomic factors such as economic stability, population growth, and government regulations. Countries with stable economies and a growing population, such as Vietnam, are experiencing a higher demand for baby milk and infant formula. Additionally, favorable government policies and investments in healthcare infrastructure have also contributed to the growth of the market. However, the market is also impacted by global economic trends, such as fluctuations in currency exchange rates and trade policies. These factors can affect the cost of production and distribution, ultimately impacting the market performance.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.