Vietnam vegetable juice market is projected to grow at a CAGR of 6.47% during the forecast period. The nation has reportedly been one of the rapidly growing nations of Asia which registered a GDP growth of 7 % in 2019. The small size traditional retailers are reported to occupy a significant share of the Vietnamese food retail sector. Nevertheless, the modern retail sector is expected to witness a substantial expansion as a response to the growing consumer demand. During 2019 the total retail sales of goods and services of the nation were in the order of $213 billion which was a reported increase by 11.8% in comparison to the figure registered in 2018. This sector is poised to see q healthy growth which is indirectly expected to positively influence the Vietnam vegetable juice market. The key determinants are, inclusive of but not limited to, strong economic growth, rapid urbanization, increasing foreign investment, heightened concerns about hygiene, food safety, benefits from free trade agreements (FTAs), and a growing middle class with higher disposable income, among others. Moreover, nonalcoholic beverages have been one of the top 10 growth products in Vietnam [Source: USDA]. Further, consumers in Vietnam are gradually accommodating the options for supplementing their diets with healthy beverages. Therefore, the aforesaid positive market outlook and the growing consumer trends are facilitating investments from a variety of market players that is, among others expected to be conducive for the growth of the vegetable juice market of the nation.
FIGURE: VIETNAM VEgETABLE JUICE MARKET SHARE, BY type, 2019
Source: Knowledge Sourcing Intelligence Analysis, Sample Figure
Further, a recent policy that has been adopted by the Ministry of Agriculture and Rural Development of Vietnam is expected to increase the share of the organic vegetable juice segment in the market. The Decree 109/2018/ND-CP on organic agriculture was reportedly issued by the government of Vietnam that is inclusive of but not limited to policies which that would reportedly support cooperatives, farms, households, and household groups as well as small businesses who are engaged in producing organic products. It has also been mentioned that the funding from the government for regions and areas that would be suitable for organic production, would be in the order of 100%. Moreover, the one-off cost for certification of products consistent with Vietnamese standards on organic agriculture would be reportedly borne by the government. The Vietnamese standards would be reportedly issued by the certification organization. The organization would also provide support and training on organic production. Also, in line with the standards of the government, the development and replication of organic production models would be supported by the government. Assistance from the government would also be provided in areas such as biological plant protection drugs for cultivation models; expense for breeding, organic feeds and veterinary drugs permissible in husbandry models; organic fertilizers; and pest-resistant varieties. Further, reportedly on June 2020, Organic Agriculture Development Project for 2020-2030 was reportedly approved. The organic agricultural land is reportedly expected to reach approximately 1.5 - 2% of the total agricultural land.