Annual figure continues to grow, according to Euromonitor International.
Milk revenue in Vietnam has been predicted to stand at VND92 trillion ($4.2 billion) by the end of the year by Euromonitor International, an international market researcher. Its prediction would put growth at 23 per cent when compared to milk revenue in 2014 of VND75 trillion ($3.4 billion), which itself was 20 per cent higher than in 2013.
Euromonitor International said that milk was one of the fastest growing goods in 2014 and will continue to grow. On average each person will drink from 27 to 28 liters per year by 2020, compared to 19 to 20 liters per year in 2014.
Liquid and powdered milk are the most important goods in the milk sector, accounting for 74 per cent of market value. Powdered milk is estimated to account for 45 per cent of the Vietnam market, with growth of 10.1 per cent in the 2010-2013 period. However, from 2014 to 2015 consumption was falling, especially in urban areas.
Consumers are willing to pay more for foreign powdered milk products, meaning foreign brand names such as Abbott, Friesland Campina Vietnam and Mead Johnson are covering almost all of the market. Domestic companies only contribute 30 per cent.
Liquid milk, meanwhile, accounts for 29 per cent of the total market value. There are only two giants in this field: Vinamilk and Friesland Campina Vietnam. According to VPBank Securities (VPBS), Vinamilk accounts for 49 per cent of the liquid milk market. Friesland Campina Vietnam accounts for 26 per cent, with the remainder held by TH Milk, Nutifood, IDP, Hanoi Milk, and others.