Growth in Consumer Preference towards Branded Food Products Anticipated to Drive Food Processing Industry: Ken Research
Vietnam country is one of the fastest emergent economies in Asia. The country is a leading producer & exporter of various agriculture products including coffee, cashews, rice and fish products. Food processing industry is the set of techniques and methods used to transform raw ingredients into food or to transform food into other forms for consumption by people and animals. It usually takes clean & harvested crops or butchered animal products and uses these to produce marketable, attractive and often long shelf-life products. The key benefits are included preservation, toxin removal, increased food consistency, easing marketing and distribution tasks.
In Vietnam, food processing industry has become highly attractive for local business community and foreign investors owing to increase in tax preferential policies for investors and tax exception for technologies to improvement the production chain.
According to study, “Food Processing Comprehensive Report Q4/2019” the key companies operating in the food processing comprehensive report are Acecook Vietnam JSC, Bien Dong Seafood, Co. Ltd, Vinh Hoan Joint Stock Company, VISSAN Limited Company, Vedan (Vietnam) Enterprise Corp., Ltd., Quang Ngai sugar JSC, Friesland Campina Vietnam Co. Ltd., Vietnam Dairy Products JSC (Vinamilk), Minh Phu Seafood Corp, Orion Vina Food Co., Ltd., International Development & Investment Corporation, Masan.
Based on category, Vietnam food processing market is segmented into semi-automated and fully automated. The fully automated segment is anticipated to exhibit higher growth rate owing to rise in investments by food processors in technologically advanced equipment during the forecast period. Based on equipment type, market is segmented into cleaning equipment, extrusion equipment, cutting equipment, sorting & grading equipment, peeling equipment, grinding equipment and others. Extrusion equipment segment is estimated to witness higher growth rate due to growth in demand for breakfast cereals, sweet & savory snacks during the forecast period. Based on usage type, market is segmented into organized food and unorganized food. Based on application, market is segmented into dairy products, meat, poultry & seafood products, bakery & confectionery, beverages, fruit & vegetables and others. Bakery & confectionery segment dominates the market caused by increase in demand for bakery & confectionery products for instance chocolate, cookies, cake and bread.
The Vietnam food processing market is driven by growth in adoption of advanced equipment for production efficiency, followed by rise in demand for processed & convenience food, increase in consumer preference towards branded food products, growth in awareness about food safety, rise in disposable income, and increase in inclination towards western food. However, lack of good manufacturing practice, food safety related issues and lack of raw materials may impact the market. Moreover, rise in foreign investments due to processing of beverages, seafood and agriculture products is a key opportunity for market.
The annual food consumption of Vietnam country has grown and it is projected to increase owing to increase in annual incomes and growth in demand for ready-to-eat foods. In upcoming years, it is predicted that future of the Vietnam food processing market will be optimistic as a result of encouraging business environment, growth in demand for ready-to-eat foods, rise in annual incomes and favorable tax policies during the forecast period.
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Ankur Gupta, Head Marketing & Communications