Vietnam’s ice cream market can grow to $206 mln in 2023

The retail sale value of Vietnam’s ice cream market can grow 8% year-on-year to VND4.9 trillion ($205.7 million) in 2023, market researcher Euromonitor reported.

According to “Ice Cream in Vietnam” of the London-based researcher, the Vietnamese market can post a compound annual growth rate (CAGR) of 10% to VND7.8 trillion ($327.5 million) in 2028.

Analyzing the market in 2023, Euromonitor said the growth this year is expected to be slower than the previous year, partly due to strong growth amid the resumption of international tourism in Vietnam last year. Besides, inflation taking a toll on household budget and consumers’ higher health and wellness awareness related to sugar consumption have led to impacts on the market, Euromonitor highlighted.

As ice cream is considered an affordable pleasure and Vietnamese consumers show low brand loyalty, introduction of new flavors and in-store promotions are suitable investments to attract consumers, Euromonitor recommended.

For example, top manufacturers like Kido, Unilever Vietnam, Nestlé Vietnam have brought about exotic flavors of black sugar pearl, guava, watermelon, strawberry yogurt, red bean, durian, green bean, and others. Examples of in-store promotions are branded freezers, frozen display cabinets, and others.

Previewing the market, Euromonitor said the demand for ice cream in Vietnam would continue rising, thanks to strong economic performance, higher disposable income, and full recovery of the tourism sector. Single-portion dairy ice cream will reap the best benefits from this trend, the researcher noted.

Regarding brand, local names will gain more favor because of their affordable prices and consumers’ patriotism. Euromonitor also emphasized Vietnam’s phenomenal economic growth in years has led to higher purchases of freezers at home, which would drive the consumption of ice cream, particularly take-home products.

Kido Group dominates market

Analyzing the ice cream market in Vietnam in 2019-2023, Euromonitor affirmed Kido Group, a local business, is the top company with a projected 46.7% the market share in 2023, up from 43.7% in 2021 and 45.9% in 2022.

The second one is Unilever Vietnam International Co. Ltd. with 11.5% in 2023, nearly unchanged from 11.7% in 2021 and 11.5% in 2022. Vietnam Dairy Products JSC (Vinamilk) is at the third place with 9% in 2023, down from 10.4% in 2021 and 9.3% in 2022. Other popular players are Trang Tien with 4% in 2023, down from 4.2% in 2021 and 4.1% in 2022; and Nestlé Vietnam with 3.3% in 2023, versus 3.3% in 2021 and 3.2% in 2022.

Regarding brands, Kido Group’s Merino and Celano top the market with estimated market shares of 25.9% and 19.6% in 2023, respectively. The third-placer is Vinamilk with 9%, followed by Cornetto of Unilever with 7.4%; Fanny, a local brand of Fanny Vietnam Co. Ltd., with 4%; local brand Trang Tien with 4%; and Paddle Pop and Wall’s, both under Unilever, with 2.1% and 2%, respectively.