Global Market Research Reports : Ken Research: Entry of International Bakeries along with increasing Westernized Cultures and Growth in Consumer spending has fuelled the market growth: Ken Research

Wednesday, April 7, 2021

Entry of International Bakeries along with increasing Westernized Cultures and Growth in Consumer spending has fuelled the market growth: Ken Research

Technical innovation in bakery equipment to result in efficient delivery of a variety of artisanal baked products at scale.

Change in Demographics: Millennial and Gen Z generations (~34 Million, accounting for 35% of the population of Vietnam) are more exploratory and prefer convenient, ready-to-eat sweet dishes such as pastries, cakes and puddings.

Proliferation of Food Tech Apps: Online food delivery apps such as Now, Grab and Goviet is convenient for consumers and creates opportunities for many restaurants, small eateries and housewives to offer bakery products to consumers.

Small Indulgences: Smaller portion sizes are an ideal way to convert special occasion products like cakes and puddings into everyday indulgences combined with the convenience of on-the-go packages. Smaller or single serve primary packaging products saw increasing demand and remained more popular and common in puddings than large or family sized formats.

Seasonal Fluctuations: In-store bakery sales typically peak at the holiday seasons such as Tet, as the demand for cakes, puddings and other specialty desserts experiences triple-digit lifts versus off-peak, everyday item sales. Players usually have to bear the loss during the off-peak season.

Availability of Pudding Mix/Pudding Powders: The availability of instant pudding mix and pudding powders in supermarkets, groceries and other retail shops are causing threat to modern bakery stores. Value-conscious customers are gravitating towards the offerings of supermarkets for buying instant pudding mix while consumers concerned with health and quality are increasingly purchasing high-margin products from artisanal bakeries.

The report titled “Vietnam Pudding Market Outlook to 2025F – Driven by Robust Population of Millennial Consumers along with Proliferation of Food Tech Apps” by Ken Research suggested that the pudding market is further expected to grow in the near future owing to increase in consumer spending and ease of availability. Presence of numerous small and large bakeries competing in terms of prices and variants along with the introduction of healthy variants are increasing the sales. The market is expected to register a positive six year CAGR of 6.0% in terms of revenue during the forecast period 2020-2025F.