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Milk market 2023: Businesses are under cost pressure when raw material prices rise to record highs

In 2023, the market outlook for milk and dairy products is not very positive. After going through a period of struggling with the Covid pandemic and continuing to be affected by the war between Russia and Ukraine, the price of input materials for the dairy processing industry has increased to a record high.

Vietnam's milk market is under a lot of pressure due to rising input raw material prices, many brands have had to change and increase milk prices by 5 to 10%. However, this price increase rate is still lower than the price of input materials, so the profits of milk enterprises this year are considered to be lower than last year.

Facing the current context, Vietnam's milk market is increasingly competitive. Enterprises are constantly researching and trading a variety of products such as powdered milk, fresh milk, condensed milk, yogurt, etc. to meet the increasing needs of people and gain market share from consumers. In the current market situation, even big companies like Vinamilk, TH True Milk,... are having to be wary of small competitors in the industry.


Vinamilk was founded in 1976, founded on the basis of taking over 3 milk factories left by the old regime. Currently, Vinamilk is the leading enterprise in the field of dairy product production in Vietnam, accounting for more than 55% of the market share. Although it is the giant with the most market share, this business is also under a lot of pressure from competitors, especially in the powdered milk segment.

As a giant in the industry, even though the business market situation is difficult, Vinamilk still keeps its revenue at a balanced level. Promoting investment in foreign branches as well as participating in milk export has improved the business efficiency of this enterprise. In the period 2020-2022, Vinamilk's revenue will always remain at approximately 60,000 billion VND.

Although Vinamilk still balances its revenue, the company's after-tax profit during this period is decreasing. In a situation where businesses are gradually losing market share to competitors, the need to innovate and expand brand identity has increased the costs of marketing activities. In addition, the increase in input raw material costs while product prices are not increased too much also affects the profits of this business. In 2022, Vinamilk's profit after tax will reach 8,577 billion, down 23.96% compared to the previous year.


International Dairy Joint Stock Company (IDP) was established in 2004, currently owns 2 factories processing dairy products in Chuong My and Ba Vi districts, Hanoi, these are 2 places with large sources of raw materials. our country. During nearly 20 years of operation, consumers have become extremely familiar with milk brands of IDP such as LiF, Kun, Bavi, and LOF.

After changing ownership in 2020, IDP's revenue after this time has grown extremely strongly compared to the previous period. In 2020, the net revenue of International Dairy Joint Stock Company has grown compared to the previous period, reaching 3,835 billion VND. In 2022, this number will be at 6,086 billion VND, a growth of 26% compared to 2021 and 58% compared to 2022.

Since IDP's shares were first listed on the market in 2021, the company's after-tax profit has skyrocketed to VND 823 billion, an increase of nearly 64% compared to 2020. However, Going into 2022, IDP's profit will decrease slightly by about 12 billion VND compared to 2021.


NESTLÉ Company Limited is a 100% foreign-invested company, part of Nestlé S.A. group. Established in 1995, the business currently operates 4 factories and 2 distribution centers. Nearly 30 years of operation in the Vietnamese market, Nestlé has adopted commitments and orientations in its sustainable development strategy to deploy many activities to improve consumer health and protect the blue planet. This business is also recognized as the top 1 most sustainable business in Vietnam.

Nestlé's revenue is growing at a stable rate in the period 2020-2022. Specifically, in 2022, this enterprise will reach a revenue of 17,298 billion VND, an increase of 8.6% compared to 2021 and 12.2% compared to 2020. Although in a difficult business period when many costs increase, Nestlé still always maintains its after-tax profit of more than 1,400 billion VND.

Moc Chau

Moc Chau Dairy Cow Breed Joint Stock Company was established in 1958, formerly known as Moc Chau Farm. The company has officially operated as a joint stock company since 2005. By 2020, Moc Chau officially became a member company of Vinamilk. In 2022, Moc Chau and Vinamilk officially started the project "Moc Chau Milk Paradise Complex". This project is a modern, closed agricultural ecosystem including a technological dairy farm combined with eco-tourism and a high-tech milk processing factory.

Moc Chau's business situation is considered quite good when both revenue and profit tend to grow in the period 2020-2022. Specifically, Moc Chau's revenue in 2022 will reach VND 3,133 billion, an increase of 7% compared to the previous year. Besides, this company's profit after tax also develops quite well, reaching 346 billion VND in 2022, an increase of more than 27 billion compared to 2021.

TH True Milk

TH True Milk was established in 2009 under the financial advice of Bac A Commercial Joint Stock Bank. Although it is a late-born business, TH True Milk has become one of Vietnam's leading brands. Currently, TH True Milk's dairy products include: pure sterilized fresh milk made from 100% fresh cow's milk, low-sugar sterilized fresh milk, sweetened sterilized fresh milk, strawberry-flavored sterilized fresh milk , chocolate flavored sterilized fresh milk, ect.

Despite facing challenges and risks caused by global fluctuations, TH True Milk still achieved impressive growth figures. Specifically, TH True Milk's revenue in 2020 recorded 8,689 billion VND. After 2 years of operation, this company's revenue in 2022 reached 13,952 billion VND, an increase of 60.6% compared to 2020.

Because TH is completely independent in the source of raw materials for cattle feed, the increase in imported raw material prices does not have too much impact on this business's costs. Accordingly, TH True Milk's profit growth rate increased extremely high. In 2022, this business will profit more than 311 billion VND, an increase of 77% compared to 2021.


Nutifood was founded in 2000 as Thanh Tam Food Joint Stock Company, and in 2011, it was officially renamed Nutifood Nutrition Food Joint Stock Company. In 2003, Nutifood Binh Duong Nutrition Food Joint Stock Company was established as a subsidiary of Nutrition Food Joint Stock Company.

In 2022, NutiFood received 4 continental awards: "Best Place to Work in Asia", "Excellent Enterprise in Asia", "Inspirational Brand in Asia" and "Outstanding Entrepreneur in Asia" for General Director Tran Thi Le.

In 2021 with a dramatic increase in revenue from 503 billion VND to 993 VND billion, the projected revenue for 2022 is only 637 billion VND. This is a significant decrease from the previous year. Additionally, while NutiFood's revenue was at its peak in 2021, the profit after tax dropped from 637 VND billion to only 68 billion VND. Although there is an expected increase in profits for 2022, it will not be enough to restore the company to its original level.

Dutch Lady

Dutch Lady is the milk brand of the FrieslandCampina group founded in 1871 by Dutch farming families. Up to now, FrieslandCampina is known as the largest dairy joint venture company in the world. In 1995 FrieslandCampina began developing the dairy industry in Vietnam, becoming one of the leading brands in the Vietnamese dairy market.

In the period of 2023-2022, the revenue of the company that owns the Dutch Lady milk brand has shown signs of decline. In 2022, FrieslandCampina recorded a revenue of 5,369 billion VND, which is a decrease of 19.2% compared to 2020. Additionally, FrieslandCampina's profit level has also significantly decreased during this period. In 2021, the business's profit after tax decreased by more than half compared to 2020, reaching only 422 VND billion. As we enter 2022, FrieslandCampina's profit continues to sharply decline, reaching only 114 billion VND.


Nutricare is a nutrition and healthcare company based in Vietnam, established in 2010 by a team of leading nutritional scientists. Recently, Nutricare has partnered with the US-based Nutricare Institute of Nutrition and Medicine to introduce a new line of nutritional products aimed at improving the health of the Vietnamese population.

Despite facing challenges, Nutricare has consistently experienced steady growth throughout its business and development journey. In fact, the company's revenue is projected to reach 955 billion VND in 2022, representing a significant increase of 45.8% from 2021. Additionally, Nutricare's profit for 2022 is expected to reach 17 billion VND, a substantial increase of nearly 6 billion VND from the previous year.


The Vietnam Professional Dairy Joint Stock Company was established in 2014. VPMilk operates in the field of nutritional research and milk production for young children, pregnant mothers, and those in need of health recovery. In 2017, VPMilk gained significant brand recognition by sponsoring 50 billion VND for the Hoang Anh Gia Lai football club. This sponsorship helped to increase VPMilk's visibility in the Vietnamese milk market.

VPMilk faced challenges during the recent epidemic, with revenue in 2020 and 2021 only reaching approximately 280 billion VND. During this period, VPMilk did not make any profit and even experienced a loss of 16 billion VND. Despite the difficult market conditions, VPMilk was able to recover in 2022, with revenue reaching 443 billion VND and the company becoming profitable once again.


Lothamilk's predecessor was Dong Nai Dairy Joint Venture Company, established in 1997. This is the first joint venture enterprise in Dong Nai province with cooperative capital from two countries: Vietnam and Taiwan. By 2015, this enterprise officially switched to operating with 100% domestic investment capital.

In 2022, Lothamilk's revenue will reach 368 billion VND, although it will increase slightly by 4.3% compared to 2021, but compared to 2020, it will decrease quite a lot, down to 27.3%. Due to the impact of market fluctuations, since 2021 Lothamilk has not made a profit, instead it has suffered losses of tens of billions of dong.

Difficulties in the current period may reduce milk consumption in the Vietnamese market, plus the increase in input material prices has created many challenges for dairy businesses in the Vietnamese market.

Source: Vietdata's milk market report in 2022

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