Businesses reported that organic sales have steadily increased over the years, with an average annual growth rate of 20-40%.
Organic food shopping trends
Changes in consumer food choices
Ms. Hoa, a resident of District 5, has given up shopping at traditional markets to switch to an organic store near her home. Although prices there are twice as high, Ms. Hoa feels organic produce not only stays fresh longer but also guarantees quality. “There are bunches of vegetables and scallions that just wilt after a whole week, not rotting quickly like produce from the market. This gives me greater peace of mind when using them,” she shared.
The story of Ms. Hong Hanh in Go Vap District is similar. Over the past year, she has switched to buying organic fresh milk for her young child, despite the price being twice as high as regular milk. For Ms. Hanh, the natural flavor and richness of organic milk are completely worth the cost.
According to a report by Euromonitor, the organic food market in Vietnam reached a value of 100 million USD in 2023, growing by 20% compared to 2020. This increase is demonstrated by the growing presence of organic products in major supermarkets such as Co.opmart, Winmart, Lotte Mart, and MM Mega Market.
Mr. Le Thanh Trung, Commercial Manager of the Fresh Food Value Chain at Central Retail Vietnam, said that organic vegetables produced by Churu ethnic women remain popular despite being 25-35% more expensive than conventional produce. “Many customers have to pre-order because the products are frequently sold out on the shelves,” Mr. Trung shared.
Mr. Nguyen Van Hiep, Director of Co.opmart Phu Tho, noted that green and organic food saw double-digit growth in the first six months of the year. Supermarkets have begun dedicating specific display areas for these products to meet growing consumer demand.
Interest in organic goods is not limited to food, but also extends to beverages and cosmetics.
Leading the sustainable development trend in Vietnam's dairy industry, a representative of Vinamilk said the company has launched the Organic and Green Farm milk lines. The 2023 revenue of these two lines increased by 40% compared to 2022, and continued to rise by 30% in the first quarter of this year.
Similarly, Mr. Phan Minh Thong, General Director of Phuc Sinh Corporation, stated that the company's organic coffee and pepper are not only popular abroad but are also experiencing strong growth in the domestic market.
“In the first 6 months of the year, the company's revenue reached USD 175 million, up 40% from the same period last year, with domestic revenue growing by 50%,” Mr. Thong shared.
Organic cosmetics are also "taking over" the beauty industry in Vietnam, favored by consumers despite their high prices. According to Ms. Vo Thi Lan, CEO of LCUK Company – the exclusive distributor of Protocol products from the UK, Vietnam leads the direct sales market, surpassing even France, Italy, and Dubai. Ms. Lan also revealed that within the next 4 months, the company will launch the premium organic cosmetic line Paoma from France, with pre-orders soaring right from its introduction. "We are even worried that we will run out of stock," Ms. Lan shared.
According to businesses, the growing demand for organic products is not merely a passing trend but has become part of a modern lifestyle. As consumers increasingly prioritize product quality and origin, the organic market in Vietnam promises to continue thriving in the future.
According to Mordor Intelligence, a prominent market research firm from India, the global organic food and beverage market is on a strong growth trajectory. Projected to surpass USD 174 billion in 2024, this figure is expected to surge past USD 233 billion by 2029, with a compound annual growth rate (CAGR) of 6.02%. In particular, the Asia-Pacific region is leading the growth trend, with the most impressive growth outlook during the forecast period.
While not yet growing as rapidly as the aforementioned regions, Vietnam is regarded as a booming destination for clean and organic goods. The Vietnamese government has actively encouraged businesses to develop sustainable organic agriculture over the past three years to stabilize the market and meet growing demand. At the same time, the EU-Vietnam Free Trade Agreement (EVFTA) has facilitated the entry of European organic products into the Vietnamese market at more competitive prices, offering consumers more affordable choices.
Thi Ha
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