In Vietnam, some companies have been noticed violating the food safety laws in 2016, which in turn became a bad impression in the eyes of consumers. These companies have been highly fined and have to suffer various negative effects. NH RTD tea is a category in which these companies operate; therefore the category has suffered a much lower growth in 2016. Additionally, the consumers in Vietnam are becoming conscious about their food and beverages intake as the rate of surging cancer is increasing in the country. People have started avoiding the brands which are involved in such infringements.
According to the report, “Health and Wellness in Vietnam”, due to health and wellness awareness in multiple categories, the market has observed a positive growth. People have started buying additional products for their family as there also has been an increase in the disposable income. However, value growth has been also negatively affected because of decline in price of some categories due to production in localization strategies of some leading companies but most of the categories are performing well.
In 2016, growth in health and wellness competitive landscape has not been seen due to violation of rules by some companies but other companies have been successful in maintaining their positions in the market at the same time. In terms of distribution, marketing and expansion; the leading players have been able to well maintain their positions via possessing strong financial positions over smaller players in the market.
The growth and expansion has been noticed in modern retailing in health and wellness due to supermarkets, hypermarkets and convenience stores. These markets have managed to surge Vietnamese which further led to aggressive expansion in the market of health and wellness. Consumers have been shifted towards supermarkets, convenience stores and hypermarkets because of increase in disposable income of consumers, despite of traditional stores being the leading channels in Vietnam. Many young consumers have been observed to feel comfortable in shopping through modern channels without bargain.
Furthermore, a slow growth of health and wellness products is anticipated in future years. There will be a constant growth in the market as it is foreseen that the 2016 prices will remain constant in future years. Due to traditional leading channels, many manufacturers are shifting towards localization of product as well as production with low unit cost. This will affect the health and wellness market negatively in forecast period.
Consumers in Vietnam will become more health conscious due to increase in wellness trends. People are shifting towards more freshly made food and drinks rather than packaged food and with the passage of time they are expected to become more aware of their health. Therefore, there will be growth in health and wellness but at a very slow rate as compared to the review period.
To know more about the research report:
Ankur Gupta, Head Marketing & Communications