The functional food market in Vietnam is experiencing a period of strong development with an average growth rate of about 10-15% per year. The boom of this industry stems from increasing awareness of proactive health care, the aging population, along with people’s constantly improving living standards. However, this market is also facing many challenges that need to be overcome for sustainable development
Consumer interest
According to a report by the Vietnam Association of Functional Foods (VAFF), currently about 70% of the urban population uses functional foods at least once in their life, and about 50% of the population uses them regularly. The most popular products include vitamins and minerals, products to support weight loss, enhance immunity, beautify the skin, and products to protect heart and joint health. In particular, after the COVID-19 pandemic, people are paying more attention to strengthening their resistance and improving their overall health, leading to a strong increase in the demand for dietary supplements.
The development of the functional food market in Vietnam is driven by a number of key factors. First of all, the awareness that prevention is better than cure is increasingly spreading widely. Consumers not only look for products to support disease treatment but also want to protect and improve their health every day. Second, the participation of many large domestic and foreign enterprises has contributed to creating a healthy competitive market with diverse products and reasonable prices. Third, the open-door policy and support from the government in encouraging research and production of domestic functional food products is also an important driving force.
Opportunities and challenges
Opportunities always come with challenges for any market. Vietnam’s functional food market also faces many challenges. The problem of fake, counterfeit and poor quality goods is still a serious problem that causes loss of consumer trust. The lack of transparency in product information and false advertising and exaggerated uses also make the market chaotic. In addition, the fierce competition between domestic and foreign brands also poses a difficult problem for domestic businesses in terms of building trust and affirming product quality.
Another challenge is that the legal corridor for dietary supplements in Vietnam still has many shortcomings. Although there are regulations on the production, import and promotion of dietary supplements, enforcement and supervision remain lax. Many unqualified small production facilities still exist, causing an imbalance in the market. The lack of specific standards and strict quality testing procedures also makes it difficult for consumers to distinguish between trustworthy products.
However, the development potential of Vietnam’s functional food market is still very large. With a population of more than 100 million people, including a growing middle class, the functional food market will certainly expand further. For sustainable development, businesses need to focus on researching and developing high-quality products with clear origins, while raising consumer awareness through transparent and accurate communication campaigns.
Besides, the combination of traditional medicine and modern technology in functional food production is also a potential direction. Products from Vietnamese natural herbs such as ginseng, lingzhi mushroom, turmeric, and cordyceps have proven effective and received great attention from both domestic and international markets.
Conclude
In short, the Vietnamese functional food market is facing both opportunities and challenges. For sustainable development, synergy is needed between businesses, state management agencies and consumers in building a transparent, fair and safe business environment for public health. This is not only a potential economic market but also a key element in the strategy to improve the comprehensive health of Vietnamese people in the future.
