Oils & Fats - Vietnam

Vietnam

Highlights

Revenue in the Oils & Fats market amounts to US$1.43bn in 2024. The market is expected to grow annually by 5.77% (CAGR 2024-2029).
In global comparison, most revenue is generated India (US$46bn in 2024).
In relation to total population figures, per person revenues of US$14.37 are generated in 2024.
In the Oils & Fats market, volume is expected to amount to 246.20m kg by 2029. The Oils & Fats market is expected to show a volume growth of 3.0% in 2025.0.
The average volume per person in the Oils & Fats market is expected to amount to 2.2kg in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Oils & Fats market in Vietnam is witnessing minimal growth, impacted by factors such as shifting consumer preferences towards healthier options, rising prices of raw materials, and increased competition from imported products, which challenge local producers.

Customer preferences: Consumers in Vietnam are increasingly prioritizing health and wellness, significantly impacting the Oils & Fats market. There is a growing preference for oils that are perceived as healthier, such as olive oil and coconut oil, which align with traditional dietary practices that emphasize natural ingredients. Additionally, as younger demographics become more health-conscious and informed, they actively seek products with functional benefits, such as omega-3 enrichment, driving local producers to innovate. This shift is further supported by a rising interest in plant-based diets and sustainability, influencing purchasing decisions and brand loyalty.

Trends in the market: In Vietnam, the Oils & Fats market is experiencing a notable shift towards healthier and more sustainable options, with consumers increasingly gravitating towards oils like olive and coconut oil that align with wellness trends. There is a heightened demand for oils enriched with omega-3 and other functional benefits, reflecting a more health-conscious younger demographic. This trend is further fueled by the growing interest in plant-based diets, prompting local producers to innovate and adapt their offerings. The implications for industry stakeholders include the need for enhanced product transparency, branding strategies focused on health benefits, and sustainable sourcing practices to meet evolving consumer expectations.

Local special circumstances: In Vietnam, the Oils & Fats market is shaped by unique geographical and cultural factors, including the country's rich agricultural diversity and traditional culinary practices. The tropical climate supports the cultivation of various oil-producing crops, such as coconut and palm oil, making them readily available. Additionally, the Vietnamese diet, which emphasizes fresh ingredients and healthful cooking methods, drives the demand for oils perceived as nutritious. Regulatory frameworks promoting food safety and quality also encourage local producers to innovate, aligning their products with consumer preferences for health and sustainability.

Underlying macroeconomic factors: The Oils & Fats market in Vietnam is influenced by macroeconomic factors such as rising income levels, urbanization, and changing consumer preferences. As the economy grows, increased purchasing power enables consumers to seek higher-quality, healthier oil options, driving demand for premium products. Additionally, global trends toward sustainable and organic food sources resonate with local producers, prompting innovation in oil production. Fluctuations in global oil prices and trade policies also impact local supply chains, while government initiatives aimed at boosting agricultural productivity and food safety standards further shape market dynamics. These factors collectively influence the market's growth trajectory and competitive landscape.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.