How Is Pudding Market Positioned In Vietnam?
Overview: The bakery market in Vietnam is one of the most robust in the Asia-Pacific region with compounded annual growth of 20-30% in recent years. The sector has embraced the latest technologies to remain abreast of global trends. Addition to the expansion of large chained outlets such as BreadTalk, Tour Les Jours and ABC, independent small grocers (such as small bakers shops) were also seeing healthy growth in urban and rural areas.
Market: The pudding market contributes ~% of the bakery market in Vietnam and witnessed a double digit growth of 10.8% CAGR during the year 2015 to 2020. The market is currently at growth stage and entry of international bakeries and food service joints along with increasing disposable income and westernized cultures boosted the sales of pudding.
The growing urban population with its changing lifestyle patterns is driving the market growth of puddings in Vietnam. Most of the pudding demands for urban consumers are met by local bakery shops due to ease of availability and affordable prices. However, the closure of foodservice outlets during lockdown along with the strict government restrictions on gatherings during COVID 19 has seriously affected the sales of puddings. Consumer footfall to bakery shops and retailing stores has also decreased significantly post COVID due to safety and health concerns. Because festivals are major sales drivers for cakes and puddings in Vietnam, the sales performances of bakeries in 2020 as a whole proved to be weaker than expected.
Vietnam Pudding Market Segmentation
By Distribution Channel: The standalone stores such as bakeries and confectioneries dominated the market with ~% revenue share in 2020 due to its ease of convenience and product offerings. Online food delivery apps such as Now, Grab and Goviet are gaining traction post COVID19 making it convenient for consumers and creating opportunities for many restaurants, small eateries and housewives to offer bakery products to consumers.
However, traditional outlets, such as street stores and bakeries will continue to remain familiar places to purchase pudding even as online channels gain popularity due to the ease of convenience and impulse buying.
By Tier 1 and Tier 2 Cities: Consumer preferences in terms of taste, flavor and price of pudding differ depending on the region in Vietnam. Consumers especially under Tier 1 cities prefer to consume pudding as a part of dessert under hotels and restaurants, where premium is quite higher and falls under the range of above VND 20,000. Sales through online channels are expected to remain highly concentrated under Tier-1 cities. However, consumers in Tier 2 cities prefer independent shops and street stalls as they charge a lower price premium on the pudding and hence serve under the price range of VND 10,000-15,000.
Independent bakery stores and HORECA’s are expected to expand across Vietnam, especially in Tier 2 urban cities. Increase in disposable incomes in cities such as Da Nang and Hai Phong in the next few years will boost the sales.
Competitive Scenario in Vietnam Pudding Market
The pudding industry in Vietnam is highly fragmented with ~ organized/semi-organized and ~ unorganized bakeries and ~ mn restaurants & food outlets. Organized bakeries are utilizing social media to provide targeted and cost-effective marketing. Lacking the large budgets of international chains, local bakery cafes are eschewing traditional marketing to rely on word-of-mouth recommendations and social media engagement. Tapping into the artisanal market, smaller bakeries are concentrating on quality over quantity, while larger chains such as Nyugen Son Bakeries, Starbucks and Coffee House rely on creating larger quantities but with strong branding and associated trust. Major companies providing puddings such as Nguyen Son Bakery, Fresh Garden Bakery, Paris Gateaux Bakery, The Coffee House and Gong Cha Tea compete on parameters including Product Pricing, Product Portfolio / Flavor Variants, Quality / Reliability, Online Presence, Clientele / End User Base and Geographical Location.
Vietnam Pudding Market Future Outlook and projections
The pudding market in Vietnam is expected to experience medium level growth in the coming years owing to increase in personal disposable income, changing consumer lifestyles and behaviors, advances in baking tech and offerings and strategic alliance with e-commerce platforms. Hotels and restaurants are establishing a balance between good fats, healthy carbs, better sweeteners, wholesome ingredients and satisfying flavor enhancements to help consumers maintain stability between health and indulgence. Market expected to gain momentum owing to population growth along with rising incomes, health consciousness and the thriving bakery industry. Demand from Tier 1 and Tier 2 cities such as HCM, Hanoi and Da Nang to dominate the market in the future. Technical innovation in bakery equipment is expected to result in efficient delivery of a variety of artisanal baked products at scale. New products such as fat free and sugar free pudding is expected to boost the market growth in the coming years.
Key Segments Covered in Vietnam Pudding Market:-
By Distribution Channel
Standalone Sops (Bakery/Confectionery)
Online
HORECA’s
By Tier 1 and Tier 2 Cities Sales
Tier 1 Cities
Tier 2 Cities
Key Target Audience:-
Pudding Manufacturers
Pudding Mix Manufacturers
Consultancy Companies
Bakeries/Confectioneries
Hotels and Restaurants
Time Period Captured in the Report:-
Historical Period: 2015-2020
Forecast Period: 2020–2025
For More Information on the research report, refer to below link:-
Related Reports:-
Global Puddings Market 2019 By Manufacturers, Regions, Type And Application, Forecast To 2024
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