Report Overview

The rising health consciousness among growing middle-class population and the government’s supportive initiatives are expected to drive Vietnam Dairy Products Market during the forecast period between 2025 and 2031.

Vietnam Dairy Products Market – Industry Trends & Forecast Report, 2031

Vietnam Dairy Products Market size was estimated at USD 6.65 billion in 2024. During the forecast period between 2025 and 2031, Vietnam Dairy Products Market size is projected to grow at a CAGR of 9.1% reaching a value of USD 12.23 billion by 2031. Prominent drivers of the market include growing health awareness, rising disposable incomes, and evolving dietary preferences favoring nutrient-rich foods. Government initiatives, foreign direct investments, and the development of modern retail infrastructure are further enhancing production capabilities, innovation, and market reach. Urban consumers, in particular, are becoming more conscious of the nutritional benefits of dairy, including calcium, protein, and probiotics. This has led to increased demand for fortified milk, yogurt, and other functional dairy products among children and the elderly. Additionally, the growing popularity of ready-to-consume dairy items aligns with the fast-paced lifestyles of the population. Vietnam’s per capita milk consumption is expected to reach 40 liters annually by 2030, growing at a CAGR of around 4%, indicating dairy's transition from a supplementary item to a dietary staple. Rising income levels and economic development are also contributing to this shift, with more households opting for premium and imported dairy options. The expansion of supermarkets and convenience stores has improved product availability, while urbanization continues to reshape consumer preferences towards convenient and packaged dairy offerings. As a result, dairy is now viewed as an essential part of the modern Vietnamese diet rather than a luxury.

Dairy Products – Overview

Dairy products are food items produced from the milk of mammals such as cows, goats, and buffaloes. Common dairy items include milk, cheese, yogurt, butter, cream, and ice cream. These products are rich sources of essential nutrients like calcium, protein, vitamin D, and potassium, which support bone health and overall well-being. Dairy can be consumed in its natural form or processed into various value-added forms to enhance flavor, shelf life, and convenience. With growing consumer demand for health and nutrition, dairy products have become an integral part of daily diets, available in both traditional and modern, fortified or plant-based alternatives.

Vietnam Dairy Products Market

Growth Drivers

Growing Middle Class Population

Vietnam Dairy Products Market is witnessing remarkable expansion, largely driven by the country’s growing middle-class population. As income levels rise and more families enter the middle-income bracket, consumption patterns are shifting significantly. Dairy, once considered a luxury, has become a daily necessity, with consumers increasingly opting for premium, imported, and value-added products such as flavored yogurts, organic milk, and cheese. This shift is further supported by the rise of modern retail formats like supermarkets and convenience stores, which enhance accessibility. Urbanization and fast-paced lifestyles are also fueling demand for ready-to-consume and packaged dairy options. In 2023, Vietnam produced approximately 1.86 billion liters of fresh milk, marking a 7.5% increase from the previous year. However, domestic production meets only 40% of demand, indicating a substantial reliance on imports and signaling significant market potential. Per capita milk consumption is projected to rise from 28 liters in 2021 to 40 liters by 2030, largely driven by middle-class growth. Industry leaders such as Vinamilk and TH Milk are investing in sustainable, high-tech dairy farming practices to meet evolving consumer expectations. For instance, Vinamilk’s “Pathways to Dairy Net Zero 2050,” its carbon-neutral certified facilities, and integration of solar energy showcase the company’s commitment to green production. Foreign investors are also recognizing the sector’s promise—Growtheum Capital Partners recently invested USD 100 million in Vietnam International Dairy Joint Stock Company (IDP), and Japan’s Morinaga Milk Industry has expanded through joint ventures and acquisitions. With rising health awareness, modern dietary preferences, and increased affordability, Vietnam’s expanding middle class continues to be a key driver of growth in the nation’s dynamic dairy industry.

Challenges

Dependence on Imported Raw Milk

Vietnam’s dairy industry faces a significant challenge due to its heavy dependence on imported raw milk. In 2021, domestic milk production met only 40% of the country’s demand, with the remaining 60% relying on imports. This reliance not only creates vulnerabilities in the supply chain but also exposes the market to price fluctuations and potential trade disruptions. The gap between local production and consumption demand limits the growth potential of the industry, as it hampers the ability to fully satisfy domestic consumption needs, impacting long-term market sustainability and development in the Vietnam Dairy Products Market.

Impact of Escalating Geopolitical Tensions on Vietnam Dairy Products Market

Escalating geopolitical tensions could significantly impact Vietnam Dairy Products Market by disrupting trade flows and increasing raw material costs. As the country relies heavily on imported raw milk, geopolitical instability in key supplier regions could lead to supply chain disruptions, delays, and higher prices. Additionally, tensions may affect foreign investments, which are crucial for the sector’s growth, by creating an uncertain business environment. Moreover, trade barriers, tariffs, or sanctions could limit access to essential dairy products and technologies, slowing down innovation and increasing production costs, ultimately limiting the market’s growth potential and hampering consumer affordability.

Vietnam Dairy Products Market

Segmental Coverage

Vietnam Dairy Products Market – By Product Type

Based on product type, Vietnam Dairy Products Market is divided into Milk, Yogurt, Cheese, Butter & Cream, Infant Formula, and other dairy products segments. The milk segment holds the highest share in Vietnam Dairy Products Market by product type. Over the past few decades, milk consumption in Vietnam has experienced rapid growth due to changing dietary habits and rising health awareness. Milk has become a vital component of Vietnamese diets, particularly among the younger population. The market now offers a diverse range of milk-based products, including fresh milk, powdered milk, condensed milk, yogurt, functional milk, lactose-free milk, organic milk, and plant-based milk. Vietnam’s milk market is expected to grow steadily, with consumption rising to 40 liters per person annually by 2030. This growth is driven by increased health awareness, improved income levels, and a shift towards higher-value dairy products. Notably, the demand for premium milk products such as functional and organic milk is increasing due to the growing middle class and changing consumer preferences. In addition, the entry of international brands like FrieslandCampina and Nestlé has further stimulated market development. The leading domestic players, such as Vinamilk and TH True Milk, have capitalized on this demand, driving innovation in milk production and processing. They continue to dominate the market alongside international brands. Government initiatives, including programs to boost local milk production and reduce reliance on imports, have also been pivotal in enhancing Vietnam’s dairy industry. With consumer demand for a variety of milk products steadily increasing, the milk segment remains the cornerstone of Vietnam Dairy Products Market.

Vietnam Dairy Products Market – By Source

Vietnam Dairy Products Market by source is bifurcated into Animal-based Dairy and Plant-based Dairy Alternatives segments.

Vietnam Dairy Products Market – By Distribution Channel

On the basis of distribution channel, Vietnam Dairy Products Market is segmented into Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online Retail, and other distribution channels. The supermarkets/hypermarkets segment holds the highest share in Vietnam Dairy Products Market by distribution channel. Supermarkets and hypermarkets are essential distribution channels for dairy products in Vietnam, offering a diverse range of both local and imported goods. With their well-organized layouts, promotions, and focus on quality assurance, these outlets cater primarily to middle- and upper-income consumers. They are particularly favored in urban areas for their convenience, allowing customers to purchase in bulk and complete their shopping in one visit.

Competitive Landscape

Major players operating in Vietnam Dairy Products Market include Vinamilk, TH True Milk, Nutifood, IDP, Moc Chau Milk, FrieslandCampina, Nestlé, Abbott, Mead Johnson, and Fonterra. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In April 2025 - Dutch Lady, a dairy brand under FrieslandCampina Vietnam, launched a new product in Ho Chi Minh City and Hanoi, aiming to address Vietnam’s national nutrition challenges, particularly "hidden hunger" among children. This initiative aligns with Vietnam’s National Nutrition Strategy, which aims to achieve optimal nutritional security by 2045. The new product is fortified with key nutrients, including vitamin C, alongside protein, calcium, and vitamin D, to enhance children's growth and immunity.

• In September 2024 - The a2 Milk Company, in partnership with Live Well Marketing and Distribution Joint Stock Company, launched the a2 Platinum 4 milk line in Vietnam. This premium milk, made from A2 protein, offers superior digestive benefits compared to regular milk. A2 protein, sourced from specially selected cows in New Zealand, supports children’s development and enhances physical and brain growth.

• In May 2024 - International Dairy Products JSC (IDP) launched a nutritious ready-to-drink milk for kids in Vietnam under its KUN brand, featuring jelly pieces in SIG XSlimBloc carton packs.

Scope of the Report

By Product Type

• Milk

• Yogurt

• Cheese

• Butter & Cream

• Infant Formula

• Other Dairy Products

By Source

• Animal-based Dairy

• Plant-based Dairy Alternatives

By Distribution Channel

• Supermarkets/Hypermarkets

• Convenience Stores

• Specialty Stores

• Online Retail

• Others