Vietnam Probiotic Drinks Market - 2024-2027

Overview

The Vietnam Probiotic Drinks market recorded a value of US$ 501.23 million in 2023 and is expected to reach a value of US$ 657.54 million in 2027, growing at a CAGR of 7.15% during the forecast period (2024-2027).

The Vietnam probiotic drinks market experienced notable growth in 2023, driven by increasing consumer interest in digestive health and functional beverages. According to the Vietnam National Institute of Nutrition, 40% of urban consumers have incorporated probiotic drinks into their daily diets, recognizing their benefits for gut health and immunity. This trend is especially prominent in younger demographics, with 55% of consumers aged 18-35 opting for probiotic beverages as a regular part of their diet, contributing to the market's expansion.

Government efforts to promote health and wellness further accelerated the demand for probiotic drinks. The Ministry of Health reported a healthy year-on-year increase in sales of functional beverages, including probiotic drinks, in 2023. Public awareness campaigns have played a key role, in educating consumers about the health benefits of probiotics. Additionally, urbanization and the rise of the middle class have spurred demand for convenient, ready-to-drink probiotic options, particularly in large cities like Hanoi and Ho Chi Minh City.

Drivers

Expanding Urbanization and Demand for Convenient Health Products

The probiotic drinks market in Vietnam is experiencing significant growth, largely fueled by rapid urbanization and the increasing demand for convenient health products. As urban areas expand, modern Vietnamese consumers are turning to functional foods and beverages that fit into their busy lifestyles while offering health benefits. In 2023, Vietnam's urbanization rate reached 41%, contributing to a noticeable shift towards products like probiotic drinks that support gut health and overall well-being. The beverages have become popular due to their convenience, making them an easy choice for individuals seeking to maintain digestive health amidst fast-paced urban routines.

Health awareness is on the rise in Vietnam and with it, the consumption of probiotic drinks. Government initiatives and NGO campaigns, such as those from the Vietnam Health Improvement Project (VHIS) and the Ministry of Health (MOH), have been actively promoting the importance of gut health and preventive care. In a report by the MOH, around 65% of the urban population now regularly includes functional health products, including probiotics, in their diet.

The Vietnamese government has further supported this trend through campaigns that encourage healthier dietary choices, contributing to the market's expansion. The overall functional food market in Vietnam, including probiotic products, grew by 7.5% in 2023, with probiotic drinks making up a significant share of that growth. As urbanization continues and consumers become more focused on health, the probiotic drinks market is expected to see sustained growth in the coming years.

Technological Advancements in Fermentation and Probiotic Formulation

Technological advancements in fermentation processes and probiotic formulation are playing a pivotal role in driving the growth of Vietnam's probiotic drinks market. The country has seen significant improvements in the production of probiotics, with modern fermentation techniques enabling higher yields of beneficial bacteria and improved product stability. These innovations have made it possible to develop probiotic drinks that are more effective in delivering health benefits such as improved digestion and immune support.

The Vietnamese government, through institutions like the Ministry of Science and Technology, has been actively supporting research into food technology, including probiotic innovation. Local manufacturers are adopting cutting-edge fermentation techniques to ensure their products meet international quality standards while maintaining affordability for consumers.

The Ministry of Health (MOH) also highlights the importance of scientific advancements in functional food development, as seen in its 2023 report, which shows a 12% increase in the number of new probiotic-based products launched. Additionally organizations like the Vietnam Probiotic Association (VPA) have been collaborating with international researchers to refine these techniques, promoting industry-wide growth.

These technological breakthroughs have not only improved product quality but also expanded the probiotic drink offerings in Vietnam. In 2023, the functional beverage market, particularly probiotics, saw a growth rate of 8%, much of which can be attributed to the integration of new fermentation technologies. As technology continues to evolve, the probiotic drinks market in Vietnam is expected to experience further growth, driven by the demand for scientifically backed, high-quality health products.

Restraints

High Price Sensitivity Among Rural Consumers

High price sensitivity among rural consumers is a significant factor restraining the growth of the probiotic drinks market in Vietnam. While urban areas have embraced probiotic beverages as a convenient health solution, rural populations are more cautious due to the higher costs associated with these products. Many probiotic drinks, especially those with premium formulations or imported ingredients, are seen as luxury items in rural areas where disposable income is lower.

In 2023, it was reported that over 60% of the rural population in Vietnam refrained from purchasing probiotic drinks regularly due to their relatively high price points, despite understanding the potential health benefits. The Vietnam Farmers' Union and the Ministry of Agriculture and Rural Development (MARD), have focused on improving access to health products in rural areas.

However, these initiatives have not yet fully bridged the price gap for probiotic drinks. The Vietnam Nutrition Association (VNA) reports that rural consumers are more likely to prioritize essential foods over functional beverages, leading to slower market penetration in these regions. While health awareness is growing, the perception of probiotics as a non-essential, expensive item continues to be a barrier for rural consumers.

Segment Analysis

The Vietnam probiotic drinks market is segmented based on type, ingredient, application, age and distribution channel.

Drinkable Yogurt's Popularity as a Convenient, Nutritious Option Drives the Segment Growth

In Vietnam's rapidly evolving probiotic drinks market, drinkable yogurt has emerged as a significant player, capturing a substantial share of the industry. Recent market analyses highlight that drinkable yogurt's appeal stems from its unique combination of taste, convenience and health benefits. As Vietnamese consumers increasingly prioritize health and wellness, the demand for probiotic products has surged, with drinkable yogurt leading the charge.

International brands are introducing innovative flavors and formulations in the country to attract a broad demographic. For instance, In June 2024, Morinaga Nutritional Foods Vietnam JSC, part of Japan's Morinaga Milk Industry Co., Ltd, launched its new Morinaga Zero Fat Drink Yogurt. This product launch reflects the company's commitment to offering nutritious options that promote health and improve the quality of life for consumers.

Sustainability Analysis

The sustainability analysis of Vietnam's probiotic drinks market reveals a promising yet complex landscape shaped by increasing consumer demand for health-conscious products and a growing awareness of environmental issues. As the market expands, brands are increasingly focusing on sustainable practices to align with consumer values and regulatory standards. Key sustainability initiatives include sourcing raw materials responsibly, with many companies prioritizing organic and locally produced ingredients to minimize their carbon footprint and support local farmers.

Packaging innovation also plays a crucial role, with many brands shifting towards eco-friendly materials, such as biodegradable or recyclable packaging, to reduce plastic waste. Furthermore, manufacturers are exploring ways to enhance energy efficiency in production processes, adopting technologies that lower energy consumption and waste generation. The rising trend of plant-based probiotic drinks also contributes to sustainability, as these products typically have a lower environmental impact compared to dairy-based alternatives.

However, challenges remain, including the need for greater education among consumers regarding sustainable choices and the often-higher costs associated with eco-friendly practices. Additionally, the industry faces pressure to maintain product affordability while implementing sustainable measures.

Unmet Needs

The Vietnam probiotic drinks market, while experiencing growth, faces several unmet needs that hinder its full potential. One major gap is the limited accessibility of probiotic products in rural areas. In 2023, it was estimated that only about 40% of rural households had regular access to probiotic products, compared to 75% in urban areas. This uneven distribution creates a significant unmet need for affordable, accessible probiotic drinks in rural regions, where consumers are increasingly aware of their health benefits but lack viable purchasing options.

Another key unmet need is consumer education. While awareness of probiotics and their health benefits is rising, there is still a lack of in-depth knowledge about how these products work and why they are beneficial. Government organizations like the Ministry of Health (MOH) and NGOs such as the Vietnam Nutrition Association (VNA) have been working on awareness campaigns, but more extensive efforts are needed, especially in rural communities. A 2023 survey conducted by the VNA revealed that only 35% of rural consumers fully understood the benefits of probiotic drinks, compared to 60% in urban areas. Bridging this knowledge gap is critical for driving greater adoption of these products.

Competitive Landscape

The major players in the market include Vietnam Dairy Products Joint Stock Company (Vinamilk), LADYKOMBUCHA, Star Kombucha (Goody Group JSC), Chill Kombucha, Daissy Whole Foods Co. Ltd., RITA Food & Drink Co., Ltd., Nawon Food and Beverage Co., Ltd. and Best Natural Co., Ltd. (Bena Beverage).

By Type

• Drinkable Yogurt
• Kombucha
• Kefir
• Tepache
• Others

By Ingredient

• Lactobacillus
• Streptococcus
• Bifidobacterium
• Others

By Application

• Gastrointestinal Health
  • Gut Microbiota/Microbiome Balance
  • Digestion
  • Constipation
  • Bloating
  • Diarrhea
  • Leaky Gut
  • Inflammation
  • Immune System
  • Others
• Gluten sensitivity
• Abdominal Pain
• GERD/Helicobacter pylori
• Antibiotic-Associated Diarrhea/Post-Antibiotic Treatment
• Gut Flora/Gut Microbiome Restoration
• Others
• Vaginal Health
• Urinary Tract Health
  • Kidney Stones
  • UTIs
  • Others
• Oral Health
• Anti/Healthy Ageing
• Allergies/Asthma
• Bone & Joint Health
  • Osteoarthritis
  • Osteoporosis/Low Mineral Bone Density
  • Inflammation
• Brain/Mental Health
  • Sleep
  • Cognition
  • Mood
  • Depression
  • Focus
• Cardiovascular Health
• Circulation
• Energy/Fatigue Reduction
• Metabolic Syndrome/Blood Glucose
• Liver Health
• Energy
• Immunity/Respiratory Infections
• Nutrient Absorption
• Skin-Hair-Nails
  • Atopic Dermatitis & Eczema
  • Acne
  • Rosacea
  • Hair Growth/Hair Loss
  • Skin Microbiome
  • Others
• Sports
• Women's Health
  • Fertility
  • Menopause
  • Pregnancy
  • Pcos
  • Vaginal Health & Health Vaginal Microbiome
  • Vaginal Infections (Bv/Vvc)
  • Pregnancy Outcomes
  • Others
• Men's Health & Men's Fertility
• Weight Management
• Pediatric Health
  • Colic
  • Constipation
  • Regurgitation
  • Atopic Dermatitis
  • Others
• Others

By Age

• Infant
• Children
• Adults
• Seniors

By Distribution Channels

• Supermarkets/Hypermarkets
• Pharmacies and Drug Stores
• Convenience Stores
• Online Retailers
• Other Distribution Channels

Key Developments

• In April 2024, Yakult Honsha Co., Ltd. announced that its subsidiary, Yakult Vietnam Co., Ltd., launched Yakult Light, a low-calorie variant of its popular fermented milk drink which contains probiotics. This new product aims to cater to health-conscious consumers seeking lower-calorie options.

Why Purchase the Report?

• To visualize the Vietnam probiotic drinks market segmentation based on type, ingredient, application, age and distribution channel, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of Vietnam probiotic drinks market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Vietnam probiotic drinks report would provide approximately 39 tables, 58 figures and 210 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies