Consumer Goods in Vietnam: Industry Overview 2025

Vietnam’s consumer goods market has experienced rapid growth in recent years, driven by a burgeoning middle class, increasing disposable income, and shifting consumer preferences. The country’s young and dynamic population, with a significant portion aged between 25 and 54, presents a lucrative market for a wide range of products.

The rapid urbanisation and modernization of Vietnam have led to a surge in demand for consumer goods. This has resulted in the expansion of modern retail channels, such as supermarkets, hypermarkets, and convenience stores, making products more accessible to consumers across the country. While urban areas have traditionally led consumer spending, the gap between urban and rural consumption is narrowing, indicating a growing market opportunity in rural regions.

Vietnam’s integration into the global economy has also contributed to the growth of its consumer goods market. Foreign direct investment has brought in new brands, technologies, and distribution channels, enhancing consumer choices and driving competition. As the country continues to develop, the consumer goods market is expected to remain a key growth driver for the Vietnamese economy.

Vietnam’s consumer goods market in numbers

The consumer goods market is anticipated to generate a value added of US$54.5 billion in 2024. This sector is poised for steady growth, with a projected compound annual growth rate of 3.32 percent from 2024 to 2029. On a per capita basis, the value added is estimated at US$548.1 in 2024.

The market is expected to experience a significant increase in the number of enterprises, reaching 52,850 by 2024, with a projected growth rate of 3.13 percent annually. Correspondingly, employment in the sector is anticipated to rise to 5.09 million by 2024, growing at a rate of 3.32 percent per year, according to data from Statista.

Key Segments within Consumer Goods

The consumer goods market in Vietnam is diverse, encompassing a wide range of product categories. Each segment reflects unique consumer needs, preferences, and trends, and contributes differently to the overall market growth. The key segments within Vietnam’s consumer goods industry include food and beverages, personal care, home appliances, fashion, and others.

Food and beverages

Food and beverages are among the largest and fastest-growing sectors in the consumer goods market in Vietnam. This segment has seen increased demand for both local and international products, with an emphasis on convenience, health, and innovation. There is a growing interest in organic and nutritious food options, as well as ready-to-eat meals and snacks. Beverage consumption, particularly soft drinks, tea, and coffee, remains popular, with Vietnamese consumers increasingly opting for healthier alternatives such as low-sugar and natural products.

See also: Food and Beverage Industry in Vietnam

Personal care

The personal care segment, which includes products such as skincare, haircare, cosmetics, and hygiene items, is experiencing steady growth in Vietnam. Consumers are becoming more brand-conscious and willing to invest in premium or international brands. There is a rising demand for natural and organic beauty products, as well as those that cater to specific skin types or concerns. As the middle class grows, personal care spending has increased, with an emphasis on self-care, beauty, and wellness.

See also: Cosmetics Industry in Vietnam

Home appliances

The home appliances segment is a key area of growth in Vietnam, driven by urbanisation, increasing disposable incomes, and a growing preference for convenience. Popular products in this category include refrigerators, washing machines, air conditioners, and kitchen appliances. The demand for energy-efficient, smart home devices is also rising, as consumers seek products that offer convenience, sustainability, and connectivity. Online shopping platforms have become increasingly important in this segment, as more consumers opt to purchase home appliances through digital channels.

Fashion

The fashion industry in Vietnam has seen significant expansion, with a growing appetite for both domestic and international brands. As the country becomes more urbanised and the middle class grows, demand for clothing, footwear, and accessories has risen. The rise of e-commerce platforms has made fashion more accessible, particularly to younger consumers who value style, quality, and affordability. There is also an increasing trend towards sustainable and ethical fashion, with consumers seeking eco-friendly materials and socially responsible brands.

See also: Garment Manufacturing in Vietnam

Health and wellness

The health and wellness segment has seen increased growth, spurred by greater consumer awareness about fitness and well-being. This includes a wide range of products such as fitness equipment, dietary supplements, organic food, and personal care items focused on health. With a growing middle class and more consumers adopting healthy lifestyles, this sector continues to expand, with a particular focus on functional food and natural ingredients.

See also: Supplements Market in Vietnam

Consumer electronics

Vietnam’s consumer electronics market is growing rapidly, driven by increasing disposable incomes and the popularity of smartphones, laptops, televisions, and wearable devices. Technology-savvy consumers are keen to adopt the latest gadgets, with demand for smart devices, internet of things (IoT)-enabled products, and other tech innovations on the rise. E-commerce plays a key role in this segment, as many consumers prefer purchasing electronics online for convenience and competitive pricing.

See also: Electronics Manufacturing in Vietnam

Vietnam’s Consumer Goods Businesses: Key Players

Vietnam’s consumer goods sector is a dynamic landscape shaped by both domestic and international players. Local conglomerates and emerging brands have successfully established strong market positions, while multinational corporations continue to invest in the country’s growth potential.

Masan Group

This conglomerate dominates the consumer goods market with a diverse portfolio encompassing food, beverage, retail, and distribution. Its flagship brands, such as Vinamilk and WinMart, have solidified their positions as household names in Vietnam, capturing a significant market share.

Vinamilk

As Vietnam’s leading dairy producer, Vinamilk has built a strong brand reputation and extensive distribution network, catering to the growing demand for dairy products among Vietnamese consumers.

MHB

A prominent player in the food processing industry, MHB offers a wide range of products, including instant noodles, biscuits, and confectionery, catering to various consumer segments.

Acecook Vietnam

A subsidiary of the Japanese Acecook Group, this company has established a strong presence in the instant noodle market, leveraging its parent company’s expertise.

Unilever

A global consumer goods giant, Unilever offers a diverse product portfolio, including personal care, home care, and food, catering to various consumer segments and income levels.

Nestle

As a leader in the infant nutrition and dairy market, Nestle has successfully captured a significant share of the Vietnamese market through its range of products.

P&G

Focusing on personal care and household products, P&G has established a strong brand presence through its innovative products and effective marketing strategies.

Coca-Cola and PepsiCo

These global beverage giants have dominated the carbonated drinks market in Vietnam, offering a wide range of products to cater to different consumer preferences.

These companies, among others, have contributed significantly to the growth and development of Vietnam’s consumer goods sector. Their competition has driven innovation, improved product quality, and expanded consumer choices, benefiting the Vietnamese market as a whole.

Consumer Goods Distribution in Vietnam

Vietnam’s distribution landscape is undergoing rapid transformation, influenced by factors such as urbanisation, rising incomes, and changing consumer behaviour. Traditional channels, while still prevalent, are gradually giving way to modern retail formats.

Wet markets

These remain essential for fresh produce and daily essentials, particularly in rural areas, but are facing increasing competition from modern retailers.

Small grocery stores

Widespread across the country, these stores offer convenience for local communities but often lack product variety and modern amenities.

General trade

This channel, encompassing wholesalers and distributors, plays a crucial role in connecting manufacturers with retailers, though its importance is evolving with the rise of organised retail.

Supermarkets and hypermarkets

Growing rapidly in urban areas, these modern retail formats offer a wide range of products, standardised shopping experiences, and private label brands.

See also: Vietnam Supermarkets

Convenience stores

Catering to on-the-go consumers, convenience stores are expanding their presence, especially in urban areas, offering a limited but carefully curated assortment of products.

E-commerce

Rapidly gaining traction, e-commerce platforms are disrupting traditional retail by offering convenience, product variety, and competitive pricing.

Understanding the distribution landscape is crucial for businesses to effectively reach their target consumers and optimise their supply chain operations.

See also: Vietnam Online Shopping: Industry Overview

Consumer Trends and Preferences

Vietnam’s consumer goods market is undergoing significant transformations driven by evolving consumer preferences, shifting demographics, and the rise of digital technologies. These trends reflect changes in how consumers make purchasing decisions, what they value in products, and how they engage with brands.

Shifts in consumer behaviour

Vietnamese consumers are increasingly prioritising convenience and quality in their purchases. There is a growing preference for premium products, especially among the expanding middle class and younger, urban consumers who are willing to pay more for quality and brand reputation. This shift towards higher-value goods is seen across various sectors, including food, beverages, fashion, and personal care.

Online shopping has surged, accelerated by the COVID-19 pandemic and supported by improved internet access and mobile penetration. E-commerce platforms are now a major channel for consumer goods sales, with many consumers opting for online convenience over traditional retail. Social media platforms, particularly Facebook and Instagram, are also influential in shaping purchasing decisions, with social commerce becoming an increasingly important trend.

Demographic trends

Vietnam’s demographic profile is shifting in ways that significantly influence consumption patterns. The country has a young population, with a large percentage under the age of 35, which drives demand for technology, fashion, and entertainment products. The rising urbanisation and the growing middle class are expanding the consumer base for higher-end goods. Additionally, women are playing a more prominent role in household decision-making, with their purchasing power increasing across various product categories.

Impact of the middle class and urbanisation

The expanding middle class is the key driver of increased demand for consumer goods, particularly in urban areas. As disposable incomes rise, there is a noticeable shift towards more diverse and premium product choices. Urbanisation also fosters demand for modern retail outlets, including supermarkets, convenience stores, and online shopping, reflecting the desire for a more varied and convenient shopping experience.

Health and sustainability consciousness

Vietnamese consumers are becoming more health-conscious, with an increasing interest in organic, natural, and healthy food options. This trend is driving growth in the health and wellness sector, including products such as organic food, fitness equipment, and dietary supplements. There is also a rising awareness of sustainability, with a growing preference for eco-friendly products and brands that emphasise environmental responsibility, such as sustainable packaging or fair-trade sourcing.

Influence of technology

The influence of technology on consumer preferences is also significant. The use of smartphones and the internet for shopping, researching products, and making payments is becoming the norm. Consumers are increasingly looking for products that integrate with digital solutions, such as smart home devices, wearables, and online services. The rise of fintech and digital wallets has further enabled seamless and secure transactions, fostering growth in the e-commerce and digital services sectors.

In conclusion, consumer trends in Vietnam are evolving rapidly. There is a clear shift towards higher-value products, e-commerce, and a growing focus on health, sustainability, and technology. Understanding these preferences is crucial for businesses to align their offerings with the expectations of the modern Vietnamese consumer.

What’s next?

Vietnam’s consumer goods market is experiencing robust growth, fueled by a burgeoning middle class, rising disposable incomes, and rapid urbanisation. The market is characterised by a dynamic interplay of local and international players, with both domestic and foreign companies vying for market share.

While the market offers significant opportunities, businesses must navigate challenges such as intense competition, evolving consumer preferences, and infrastructure limitations. To succeed, companies must prioritise innovation, invest in technology, and develop a deep understanding of the Vietnamese consumer. By adapting to the changing landscape and capitalising on emerging trends, businesses can position themselves for long-term success in this promising market.

With this in mind, to keep abreast of what’s happening in Vietnam’s consumer goods industry, foreign consumer goods producing professionals should make sure to subscribe to the-shiv.

First published August 15, 2024. Last updated January 15, 2025.