Vietnam Likes Snacking
Vietnam is among the world’s most dynamic economies, thanks to a +6.81% growth rate and an ever-changing population demographics, which also lead to a food market transformation, particularly within “snacking” category, Kantar Worldpanel remarks.
The snacking segment recorded a 9.1% growth for urban consumers and 7% for rural consumers, in 2017.
The segment of snacking, which is present in the pantry of nearly every Vietnamese family, is the growth engine for the packaged foods category, thanks to spending uplift from consumers. Its consumer base has reached over 90% households in both urban are rural areas.
Innovation matters
Innovation is contributing to the dynamism of the snacking market, with more and more new launches every year to try and keep up with consumers’ evolving taste.
“In 2017, 71% of urban dour cities consumers and 67% of rural consumers are pleased with the increasing number of products on the market. New products that can meet consumers’ needs will be favored. This means that in order to stay competitive, not only within one category, but also across different categories, manufacturers have to push for innovation,” the analysts from Kantar say.
New flavors are on the rise, partly influenced by foreign cuisine introduced through globalization. Although some trends are widespread, regional differences in taste still exist, and localization remains vital for success.
One of the most important factors that can influence buying decision of snack foods is flavor, Kantar adds. “Together with the fast pace of economic integration in Vietnam, both foreign culture and cuisine are gradually accepted by Vietnamese consumers, particularly flavors like cheese, matcha, seaweed,” remarks the report.
On the other hand, snacking products are highly seasonal. Tet holiday, or the Vietnamese New Year, is the most important celebration in Vietnamese culture. The word is a shortened form of Tết Nguyên Đán, which is Sino-Vietnamese for “Feast of the First Morning of the First Day”, bolstered by Vietnamese gift-giving tradition and is a hot season for snacking, contributing significantly to the market’s annual value spending.
The growing number of mature families is opening new doors to untapped potentials. This demographic group has high snacking spending growth, in addition to emerging needs for snacks that are not only enjoyable, but also nutritious.