Vietnam Probiotic Food Market - 2024-2027

Overview

Vietnam Probiotic Food Market reached US$ 891.20 million in 2023 and is expected to reach US$ 1120.55 million by 2027, growing with a CAGR of 6.01% during the forecast period 2024-2027.

The probiotic food market in Vietnam experienced significant growth in 2023, driven by increasing consumer awareness about digestive health and overall well-being. According to a report by the Ministry of Health, nearly 42% of urban Vietnamese consumers included probiotic-rich foods such as yogurt and fermented beverages in their daily diets. The Vietnamese government has encouraged the consumption of functional foods, leading to more demand for probiotics in food products, especially in urban areas like Ho Chi Minh City and Hanoi, where health trends are rapidly evolving.

In rural areas, probiotic food adoption is also gaining traction, albeit at a slower pace. The Vietnam Nutrition Association highlighted that around 28% of rural households have started incorporating probiotic-rich foods into their diets in 2023, particularly due to campaigns promoting gut health. These campaigns were supported by government initiatives aimed at improving the nutritional standards of the population through the consumption of functional foods, leading to a greater market potential in non-urban regions.

Furthermore, the General Statistics Office of Vietnam estimated a 9% year-on-year growth in the functional food market in 2023, with probiotics playing a major role. Government-led efforts, such as the National Health Strategy, have been pivotal in ensuring that Vietnam meets its health targets, particularly in reducing gastrointestinal diseases. The Ministry of Health's 2023 report suggests that with continued awareness and policy support, the probiotic food sector in Vietnam is expected to expand further, driven by both domestic production and international partnerships.

Drivers

Technological Advancements in Probiotic Food Processing

Technological advancements in probiotic food processing have significantly contributed to the growth of Vietnam's probiotic food market in 2023. The Vietnam Institute of Biotechnology reported that innovations in fermentation technology have improved the stability and viability of probiotic strains in food products. This has enhanced the effectiveness of probiotics in promoting digestive health, making these products more appealing to consumers. In 2023, 38% of new probiotic food products launched in Vietnam were developed using advanced fermentation and encapsulation techniques, ensuring longer shelf life and better preservation of probiotic benefits.

Government support for technological innovation has further driven the market. According to a 2023 report from the Ministry of Science and Technology, Vietnam invested over US$ 20 million in research and development (R&D) focused on food technology, including probiotics. This investment has led to collaborations between domestic food manufacturers and international companies, improving the quality and accessibility of probiotic foods. In particular, new processing methods have allowed local producers to create cost-effective probiotic products, making them more affordable for the growing middle class in urban areas like Hanoi and Ho Chi Minh City.

The Vietnam Food Administration highlighted in 2023 that the adoption of modern probiotic food processing technologies has also expanded the variety of probiotic products available, ranging from yogurt and beverages to functional snacks. This technological progress, coupled with increased consumer demand for gut health solutions, is expected to boost the market further. The Administration predicts a 10% year-on-year increase in probiotic food production, driven largely by continued innovations in food processing techniques.

Expanding Middle Class with Higher Disposable Income

The rapid growth of Vietnam's middle class, coupled with rising disposable income, has been a key driver of the probiotic food market in 2023. According to data from the General Statistics Office of Vietnam, the country's middle class now represents nearly 40% of the population, a significant increase from 32% in 2020. This expanding demographic has shown a growing interest in health and wellness products, with probiotic-rich foods being a popular choice due to their perceived benefits for digestive health and overall well-being. As disposable income rises, consumers are more willing to invest in functional foods, including probiotic-infused products like yogurt and fermented beverages.

Government reports have also shown a direct correlation between increased income and consumer spending on health-related food products. The Ministry of Industry and Trade indicated that in 2023, there was a 15% rise in household spending on functional foods, including probiotics, driven by middle-class urban consumers in cities like Ho Chi Minh City and Da Nang. This trend is further supported by the growing awareness of probiotics' role in maintaining gut health, with a notable rise in demand for premium, high-quality probiotic foods and supplements, which were previously considered luxury items.

Additionally, a 2023 survey by the Vietnam National Institute of Nutrition revealed that nearly 60% of middle-class households now regularly purchase probiotic foods as part of their dietary routine. The increased spending power of this group has not only fueled demand for domestic probiotic products but also for international brands entering the market. As disposable income continues to grow, the probiotic food sector is expected to see sustained expansion, particularly among health-conscious, middle-class consumers.

Restraints

Limited Regulatory Framework for Probiotics

The probiotic food market in Vietnam faces significant challenges due to the country's limited regulatory framework governing probiotics. A 2023 report from the Vietnam Food Administration highlighted that there are currently no specific, comprehensive guidelines for the approval and labeling of probiotic products. This regulatory gap has led to inconsistent quality and efficacy across products in the market, with 35% of surveyed consumers expressing concerns over the authenticity of probiotic claims. The lack of standardized regulations for the production and sale of probiotic foods has created uncertainty, restricting market growth and consumer confidence.

Moreover, the Vietnam Ministry of Health's report review of functional food regulations revealed that while probiotics are recognized for their health benefits, the existing laws are outdated and insufficient to address the complexities of the modern probiotic food industry. The absence of clear standards for probiotic strain efficacy, dosage recommendations and quality control makes it difficult for manufacturers to comply with international best practices. As a result, only 40% of local probiotic products meet global standards, limiting their potential in both domestic and export markets. This has also made Vietnam less attractive for foreign companies looking to invest in the probiotic sector.

The Vietnam National Institute of Nutrition also reported in 2023 that the limited regulatory framework has hindered the development of consumer trust in probiotic products. Consumers are often unable to verify the claims made by manufacturers due to a lack of transparent labeling requirements. This uncertainty has restrained market expansion, especially in rural areas where regulatory oversight is weaker. Without updated and stringent regulations, the probiotic food market in Vietnam may continue to face challenges, stalling its full growth potential.

Segment Analysis

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

Widespread Consumer Acceptance and Innovation Drives the Segment Growth

Yogurt is widely accepted in Vietnam as a familiar and enjoyable probiotic food product, making it a dominant choice in the market. Its longstanding popularity and versatility drive consistent demand within the probiotic food market. Increasing awareness about the health benefits of probiotics has boosted yogurt consumption, as it is rich in beneficial bacteria that support digestive health. This health trend strongly aligns with the yogurt segment's leadership position in the Vietnam probiotic food market.

Yogurt is relatively affordable and readily available across urban and rural markets in Vietnam, which helps establish it as a go-to probiotic option in the market. Its accessibility across various retail formats, from supermarkets to convenience stores, further strengthens its market share. Vietnamese yogurt manufacturers are constantly innovating with flavors, packaging and functional benefits to attract consumers across age groups. These innovations in the yogurt segment make it more adaptable and appealing, maintaining its prominence in the market.

Sustainability Analysis

The market is increasingly focused on using locally sourced ingredients, which minimizes transportation emissions and supports regional agriculture. This trend toward locally produced probiotics aligns with sustainable practices that reduce the market's carbon footprint. Manufacturers in Vietnam's probiotic food market are adopting greener production methods. These methods cut operational costs and also contribute to the market's overall sustainability by reducing resource consumption and environmental impact.

Vietnamese consumers are becoming more aware of environmental issues and are favoring products from brands that demonstrate commitment to sustainability. This consumer preference is influencing the market, encouraging probiotic food brands to adopt more sustainable practices to maintain their market position. Sustainable packaging solutions are gaining traction in the market. As eco-conscious consumers demand greener alternatives, companies are shifting toward packaging that reduces plastic waste and aligns with Vietnam's environmental goals.

Unmet Needs

Vietnam's probiotic food market, despite its growth, continues to face several unmet needs that hinder its full potential. One of the most prominent gaps is consumer education and awareness. According to a 2023 report by the Vietnam National Institute of Nutrition, only 45% of the population is familiar with the health benefits of probiotics. This lack of awareness is particularly evident in rural areas, where only 25% of households have incorporated probiotic foods into their diets. A broader understanding of how probiotics support gut health, immunity and overall well-being remains a critical need for expanding the market beyond urban centers.

Another unmet need is the development of affordable probiotic food options. The Vietnam Ministry of Industry and Trade noted in 2023 that probiotic food products, especially those from international brands, are often priced too high for the average Vietnamese consumer. With 32% of the population still in lower-income brackets, as per the General Statistics Office, many households are unable to regularly purchase probiotic-rich foods like yogurt and supplements. Developing low-cost, locally produced probiotic options could bridge this affordability gap, making these functional foods more accessible to a larger segment of the population.

Finally, there is a significant need for a stronger regulatory framework that ensures the quality and efficacy of probiotic products. As reported by the Vietnam Food Administration in 2023, 40% of probiotic food products on the market do not meet international standards for probiotic content and strain viability. This lack of regulation creates uncertainty among consumers and healthcare professionals, leading to inconsistent product performance. To meet this need, Vietnam requires more stringent regulations that define clear standards for probiotic labeling, quality control and safety, which would build trust in the market and drive its growth further.

Competitive Landscape

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

By Type

• Yogurt
• Kefir
• Sauerkraut
• Tempeh
• Kimchi
• Miso
• Kombucha
• Others

By Ingredient

• Lactobacillus
• Streptococcus
• Bifidobacterium
• Others

By Application

• Gastrointestinal Health
  • Gut Microbiota/Microbiome Balance
  • Digestion
  • Constipation
  • Bloating
  • Diarrhea
  • Leaky Gut
  • Inflammation
  • 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 Channel

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

Key Developments

• In April 2021, Vietnam's leading nutrition group NutiFood signed a partnership with American nutrition group DuPont to continue research on probiotic foods and litesse for FDI (Foundation of Digestion & Immunity) formula, setting up a solid nutrition foundation for Vietnamese children.

Why Purchase the Report?

• To visualize the Vietnam probiotic food 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 food 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 Food market report would provide approximately 42 tables, 61 figures and 201 pages.

Target Audience 2024

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