1. Vietnam edible oil market is expected to generate ~USD 1 Billion, with high-income consumers planning to purchase more premium products
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The edible oil industry in Vietnam is expected to witness an uptick, expanding with an annual CAGR of 7.7% (2021-26F), driven mostly by a rise in the total income levels & an increasing demand for high-quality oil. The main factor attributed to the growth is a busy lifestyle that has compelled individuals to consume instant food that is mainly processed.
In terms of categorisation, vegetable & plant-based oil continues to hold a significant portion of the market share as in 2021. Vegetable oil extracted from sunflower, soybean, rapeseed, palm, cottonseed & palm are used for their high quality, low-fat content, low calorific value & low cholesterol which is sold in the market via both offline and online modes.
2. Vietnam’s market for edible oil is dominated by offline sales, however, online sales are predicted to grow over time.
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Vietnam’s Edible oil market is still running on its traditional course of offline purchases. Physical trips to the grocery store are still preferred mode of buying supplies for a major chunk of urban population even when there is a whole lot of online applications available for them to make their purchases online instead to going offline. This is mainly due to a feeling to distrust amongst the population in e-tailors when it comes to choosing the best quality oil for the consumers. Moreover, buying online is seen as expensive. Depending on the store, there can be usage, delivery & additional fee & the consumer may still have to go to the grocery store for his/her weekly or bi-weekly grocery trip for shopping perishable items like milk. In addition to all this, offline shopping advantages from the opportunity to physically choose and inspect what an item or thing is like, would look like, and its attributes. This is why some people still prefer conventional buying over internet purchasing since, for one thing, it allows them to thoroughly inspect an item.
3. With technological improvements, new businesses are joining the market as consumer demand for healthy cooking oil increases.
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With new companies entering the market, innovative practices such as development of cooking oils that are healthy for every age group are being put into place to lure customers into buying their product & become a loyal customer over the course of time. This is mainly due to the fact that buyers are now becoming more cautious with what they are putting in their bodies, now more than ever. This has increased the pressure on the producers to offer the best cooking oil that too in a cost-effective way. The competitive rivalry among industry leaders is rather intense, These companies are launching their value-added services in the market and strengthening the footprint. Therefore, competitive rivalry in the market is high.