Dairy products and alternatives in 2025: The big picture
Dairy products and alternatives in Vietnam experienced a significant improvement during 2025, buoyed by the country's strong economic recovery and a renewed consumer focus on health. The first half of the year saw a notable GDP increase, which fuelled consumer spending and encouraged industry-wide innovation. Leading dairy companies responded by launching a range of new products, including items with reduced sugar and added nutrients for immunity and gut health. While cow's milk, particularly shelf stable varieties, remained a staple, fresh milk gained popularity in urban areas. This shift towards health and wellness also spurred a boom in yoghurt, with brand owners introducing products with high-protein content, natural ingredients and local flavours. Plant-based dairy has also seen considerable retail volume and value growth, driven by an interest in health and suitability for those with lactose intolerance, as major players reformulate products with less sugar and more protein.
Key trends in 2025
In Vietnam, the latest innovations in dairy have been driven by a strong focus on health and wellness. This trend is evident across several categories, as companies like Vinamilk, Lof International Dairy Products and TH Food Chain are responding to the consumer demand for healthier options. Products with reduced sugar and added functional benefits have become commonplace. For instance, Vinamilk launched its Green Farm line, which uses advanced technology to offer high-protein, low-fat and lactose-free variants without additives, catering to specific dietary needs. This emphasis on wellness also extends to children's nutrition, with brand owners developing fortified milks in appealing flavours to offer products aimed at brain development, energy, and vision health.
Competitive Landscape
Vinamilk is projected to consolidate its leading position in dairy products and alternatives with a marginal rise in retail value share over 2025, driven by an extensive rebranding and innovation strategy. Following its major refresh in 2023, the company reformulated and relaunched over 125 products in 2024, with more added in 2025. This focus on health and wellness, guided by the philosophy "Born by Nature, Perfected by Science," helped the company maintain a retail value share lead across a number of categories, including the biggest, drinking milk products, and the fastest-growing, yoghurt and sour milk products. In baby food, Vinamilk's Optimum brand made a breakthrough, becoming the first Vietnamese infant formula to be enriched with six human milk oligosaccharides (HMOs), a formulation that closely mimics breast milk. This commitment to quality was validated by international certifications and awards, including the Purity Award, reinforcing consumer trust and the brand's premium standing.
Channel developments
The distribution landscape of dairy products and alternatives in Vietnam remained a complex mix of traditional and modern channels during 2025. While family-owned small local grocers is projected to remain the dominant channel in retail value share terms, supported by strong sales of drinking milk, condensed milk and plant-based dairy, rapid urbanisation is playing a part in a downward trajectory in share. These ubiquitous shops have been crucial for reaching consumers in both urban and rural areas, but the rise of modern grocery channels, including supermarkets, hypermarkets and convenience stores, is changing consumer shopping habits. These modern grocery retail outlets, which many perceive offer a better shopping experience, greater product variety and comfort, have become particularly important for urban consumers and more niche products like butter, cheese and cream. For example, fresh and imported items often require refrigeration and can only be found in these more sophisticated stores.
What next for dairy products and alternatives?
Dairy products and alternatives in Vietnam is poised for continued expansion through the forecast period, fuelled by a confluence of positive factors. As the economy recovers and consumer disposable incomes rise, there will be a greater willingness to invest in higher-quality food products. This economic momentum, combined with an increasing focus on health and wellness among consumers, is expected to drive steady development and growth across the industry. This trend is particularly evident among urban consumers and parents who are willing to pay for products that offer clear nutritional benefits for themselves and their children. The diversification of product offerings and the entry of international players into the market are set to further contribute to this dynamic landscape.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Vietnam with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Vietnam, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Vietnam report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Vietnam?
- Which are the leading brands in Dairy Products and Alternatives in Vietnam?
- How are products distributed in Dairy Products and Alternatives in Vietnam?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Vietnam?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Vietnam
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in Vietnam
KEY DATA FINDINGS
Baby food makes modest retail volume sales gains amidst economic improvements in Vietnam
Abbott Vietnam competes fiercely with Vinamilk for leadership of baby food
Baby food distribution shifts towards modern and digital channels
Baby food is set for growth as Vietnam’s economy rebounds
Health-focused baby food to gain traction among increasingly knowledgeable parents
Social media and retail e-commerce to help drive baby food adoption among Urban parents
Butter and Spreads in Vietnam
KEY DATA FINDINGS
Butter and spreads rides Vietnam’s economic recovery
Tuong An Vegetable Oil dominates margarine while butter’s competitive landscape is fragmented
Modern grocery retailers and e-commerce reshape distribution
Butter to gain momentum while margarine shows maturity
Health trends meet culinary tradition
Social media to fuel butter's rise in Vietnam
Cheese in Vietnam
KEY DATA FINDINGS
Cheese benefits from a rebounding economy
Bel Vietnam consolidates its dominance in cheese
Modern retail and foodservice are driving trends in cheese distribution in Vietnam
Cheese to diversify beyond spreadable products
Health and wellness innovation to drive processed cheese’s performance
Social media to garner popularity for cheese among young consumers
Drinking Milk Products in Vietnam
KEY DATA FINDINGS
Vietnam's milk revolution is being driven by health and wellness and innovation
Vinamilk leads while Lof International Dairy Products rises
Shift to modern retail in milk distribution
Health trends to drive drinking milk products through the forecast period
Functional nutrition and clear labelling to help shape the category
Social media’s role to grow in drinking milk products
Yoghurt and Sour Milk Products in Vietnam
KEY DATA FINDINGS
Yoghurt benefits from Vietnam’s health-focused dairy boom
Vinamilk leads with science-driven innovation
Small local grocers under pressure in a category requiring refrigeration
Yoghurt is set to continue to develop and grow in the forecast period
Health and lifestyle aspects to drive performance
Social media to push awareness and popularity for yoghurt in Vietnam
Other Dairy in Vietnam
KEY DATA FINDINGS
Condensed milk reigns in other dairy
Vinamilk consolidates dominance with premium positioning and packaging innovation
Convenience stores and e-commerce are among the beneficiaries of changes in consumer behaviour and distribution infrastructure
Urbanisation and an improving economy to boost other dairy
Health trends to have a limited impact on other dairy consumption
Social media fosters engagement with other dairy
Plant-Based Dairy in Vietnam
KEY DATA FINDINGS
Plant-based dairy embraces health-orientated demand and innovation
Vinasoy dominates but Vinamilk adds dynamism to plant-based dairy
Plant-based dairy finds new paths to consumers
Growth forecast for plant-based dairy amid health and sustainability trends
Health trends to provide the momentum for plant-based dairy innovation
Social media to play a key role in consumer engagement and new product development
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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