How major dairy brands sustain market share in Vietnam’s shifting landscape
- gamlthvietdata
- 2 days ago
- 3 min read
In the context of fierce competition and shaken consumer trust due to counterfeit dairy products, major players have maintained their strong positions and continue to dominate the Vietnamese dairy market.
According to analysis from Modor Intelligence, Vietnam's dairy industry is currently one of the fastest-growing food and beverage markets in Southeast Asia, with a total market value projected to reach USD 4.2 billion in 2024 and a compound annual growth rate (CAGR) of 8.65% expected through 2029, potentially reaching USD 768.80 billion by that year.
At present, there are approximately 200 enterprises operating in Vietnam's dairy sector, including around 40 companies specializing in milk production and distribution. Domestic companies hold the majority share (around 75%), while foreign enterprises account for the remaining 25%.
The Vietnamese dairy market is becoming increasingly diversified, offering a wide range of products such as powdered milk, fresh milk, condensed milk, yogurt, functional dairy products, organic milk, lactose-free milk, plant-based alternatives, and hybrid products incorporating ingredients like fruits, grains, vegetables, and herbs. Product quality has also been continuously improved through the adoption of international food safety standards, stringent raw material control, and advanced production technologies.
Key domestic leaders in market share include Vinamilk, TH True Milk, Nutifood, IDP, and Moc Chau Milk. On the international front, notable companies include FrieslandCampina (Netherlands), Nestlé (Switzerland), Abbott (USA), Mead Johnson (USA), and Fonterra (New Zealand).
Vinamilk (Vietnam Dairy Products JSC) remains the dominant force in the industry, holding nearly 50% of the total market share as of the end of 2024. The company operates across multiple segments, including fresh milk, powdered milk, yogurt, condensed milk, and more recently, plant-based milk.
Beyond sustaining its domestic market leadership, Vinamilk has expanded its export footprint to over 50 countries and territories, growing its international sales while heavily investing in digital transformation and the development of eco-friendly, clean-label products.
TH True Milk ranks next, currently occupying approximately 30–45% of the packaged fresh milk segment in Vietnam. The company positions its products as premium, organic, and clean-label, with a strong focus on origin traceability and adherence to international farming standards. Besides its domestic presence, TH is expanding into international markets such as China, Laos, Russia, and several ASEAN countries.
FrieslandCampina Vietnam, the Dutch company behind the Dutch Lady brand, holds about 25% of the Vietnamese dairy market. Although a foreign enterprise, Dutch Lady has been present in Vietnam for over 25 years and is regarded as one of the most trusted brands among consumers.
Moc Chau Milk currently commands about 10% of the national dairy market, with a particularly strong presence in northern Vietnam, where it holds approximately 35% market share.
Nestlé Vietnam, though holding a smaller portion—around 7% of the market—focuses primarily on the pediatric nutrition and nutritional beverage segments through its brands Nestlé NAN and Milo.
The Vietnamese government has enacted various policies and regulations to protect and develop the domestic dairy industry.
The dairy sector must comply with state regulations on technical standards, food hygiene and safety, labeling, and advertising. These regulations aim to safeguard consumer rights and improve the overall quality of local dairy products. However, certain rules present challenges for dairy producers, such as the requirement to obtain food safety certification for each product category and restrictions on using terms like "colostrum," "breast milk," and "fresh milk" on product labels.
On the other hand, the dairy market also benefits from government incentives, including import tax exemptions on dairy ingredients for companies investing in dairy farming projects, as well as credit support, training, and technical consultancy for dairy farmers. Additionally, the sector’s export prospects are expanding thanks to free trade agreements that Vietnam has signed or is participating in, such as CPTPP, EVFTA, and RCEP.
(According to Doanh Nghiep & Do Thi)