How Is Pudding Market Positioned In Vietnam?
Overview: The bakery market in
Vietnam is one of the most robust in the Asia-Pacific region with compounded
annual growth of 20-30% in recent years. The sector has embraced the latest
technologies to remain abreast of global trends. Addition to the expansion of
large chained outlets such as BreadTalk, Tour Les Jours and ABC, independent
small grocers (such as small bakers shops) were also seeing healthy growth in
urban and rural areas.
Market: The pudding market contributes
~% of the bakery market in Vietnam and witnessed a double digit growth of 10.8%
CAGR during the year 2015 to 2020. The market is currently at growth stage and
entry of international bakeries and food service joints along with increasing
disposable income and westernized cultures boosted the sales of pudding.
The growing urban population with its changing lifestyle patterns is
driving the market growth of puddings in Vietnam. Most of the pudding demands
for urban consumers are met by local bakery shops due to ease of availability
and affordable prices. However, the closure of foodservice outlets during
lockdown along with the strict government restrictions on gatherings during
COVID 19 has seriously affected the sales of puddings. Consumer footfall to
bakery shops and retailing stores has also decreased significantly post COVID
due to safety and health concerns. Because festivals are major sales drivers
for cakes and puddings in Vietnam, the sales performances of bakeries in 2020
as a whole proved to be weaker than expected.
Vietnam Pudding Market Segmentation
By Distribution Channel: The
standalone stores such as bakeries and confectioneries dominated the market
with ~% revenue share in 2020 due to its ease of convenience and product
offerings. Online food delivery apps such as Now, Grab and Goviet are
gaining traction post COVID19 making it convenient for consumers and creating
opportunities for many restaurants, small eateries and housewives to offer
bakery products to consumers.
However, traditional outlets, such as street stores and bakeries will
continue to remain familiar places to purchase pudding even as online channels
gain popularity due to the ease of convenience and impulse buying.
By Tier 1 and Tier 2 Cities:
Consumer preferences in terms of taste, flavor and price of pudding differ
depending on the region in Vietnam. Consumers especially under Tier 1 cities
prefer to consume pudding as a part of dessert under hotels and restaurants,
where premium is quite higher and falls under the range of above VND 20,000. Sales
through online channels are expected to remain highly concentrated under Tier-1
cities. However, consumers in Tier 2 cities prefer independent shops and street
stalls as they charge a lower price premium on the pudding and hence serve
under the price range of VND 10,000-15,000.
Independent bakery stores and HORECA’s are expected to expand across
Vietnam, especially in Tier 2 urban cities. Increase in disposable incomes in
cities such as Da Nang and Hai Phong in the next few years will boost the
sales.
Competitive Scenario in Vietnam Pudding Market
The pudding
industry in Vietnam is highly fragmented with ~
organized/semi-organized and ~ unorganized bakeries and ~ mn restaurants
& food outlets. Organized bakeries are utilizing social media to provide
targeted and cost-effective marketing. Lacking the large budgets of
international chains, local bakery cafes are eschewing traditional marketing to
rely on word-of-mouth recommendations and social media engagement. Tapping into
the artisanal market, smaller bakeries are concentrating on quality over
quantity, while larger chains such as Nyugen Son Bakeries, Starbucks and Coffee
House rely on creating larger quantities but with strong branding and
associated trust. Major companies providing puddings such as Nguyen Son Bakery,
Fresh Garden Bakery, Paris Gateaux Bakery, The Coffee House and Gong Cha Tea
compete on parameters including Product Pricing, Product Portfolio / Flavor
Variants, Quality / Reliability, Online Presence, Clientele / End User Base and
Geographical Location.
Vietnam Pudding Market Future Outlook and projections
The pudding
market in Vietnam is expected to experience medium level growth in the coming
years owing to increase in personal disposable income, changing consumer
lifestyles and behaviors, advances in baking tech and offerings and strategic
alliance with e-commerce platforms. Hotels and restaurants are establishing a
balance between good fats, healthy carbs, better sweeteners, wholesome
ingredients and satisfying flavor enhancements to help consumers maintain stability
between health and indulgence. Market expected to gain momentum owing to population
growth along with rising incomes, health consciousness and the thriving bakery
industry. Demand from Tier 1 and Tier 2 cities such as HCM, Hanoi and Da Nang
to dominate the market in the future. Technical innovation in bakery equipment is
expected to result in efficient delivery of a variety of artisanal baked
products at scale. New products such as fat free and sugar free pudding is
expected to boost the market growth in the coming years.
Key
Segments Covered in Vietnam Pudding Market:-
By
Distribution Channel
Standalone Sops (Bakery/Confectionery)
Online
HORECA’s
By Tier 1
and Tier 2 Cities Sales
Tier 1 Cities
Tier 2 Cities
Key Target
Audience:-
Pudding Manufacturers
Pudding Mix Manufacturers
Consultancy Companies
Bakeries/Confectioneries
Hotels and Restaurants
Time Period
Captured in the Report:-
Historical
Period: 2015-2020
Forecast
Period: 2020–2025
For More Information on the research report,
refer to below link:-
Vietnam Pudding Market
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