The Rise of Affordable Mooncakes

The Mid-Autumn Festival season has started slowly this year, despite an early launch of products by brands in both online and offline markets.

Focus on Traditional Mooncake Varieties

A new mooncake brand, Tho Phat, has entered the 2024 Mid-Autumn market. Owned by KIDO Group, a company specializing in steamed buns, Tho Phat mooncakes are now available through traditional and modern distribution channels, as well as e-commerce platforms. Priced from 50,000 to 72,000 VND per 150g mooncake with two egg yolks, their mooncakes feature traditional fillings such as mung bean, taro, coconut milk, lotus seed, and assorted fillings.

Orion, a South Korean brand that entered the mooncake market last year, is also focusing on the mass market. Given the challenging economic conditions, Orion has maintained last year’s prices, ranging from 60,000 to 77,000 VND per 150g mooncake, offering 10 traditional fillings, including assorted, lotus seed, and mung bean, in both baked and chewy varieties.

Hoang Ngoc Thanh, Sales Director of Thanh Long, one of the oldest mooncake manufacturers in Ho Chi Minh City, said that this year, they are offering over eight new mooncake box designs to cater to diverse customer segments. The gift boxes are priced from 150,000 to 850,000 VND, depending on the number of mooncakes, ranging from two to four per box.

What sets Thanh Long mooncakes apart is their use of self-produced ingredients and traditional family recipes, resulting in unique and authentic flavors.

In addition to specialized bakeries, retail systems are also actively promoting mooncakes, including those from third-party suppliers and private labels. For instance, Central Retail in Vietnam (which owns GO!, Big C, etc.) is offering “Full Moon Party” promotions with 19 mooncake varieties priced from 29,000 to 99,000 VND per piece, equivalent to 240,000 to 500,000 VND per box. They are also offering discounts on their GO! fresh mooncake line, priced at 55,000 and 65,000 VND.

Nguyen Thi Bich Van, Communications Director of Central Retail in Vietnam, shared that their mooncakes stand out by offering reduced sugar content—30% less than last year—minimizing preservatives, and encouraging consumers to opt for fresh mooncakes produced daily.

Saigon Co.op has introduced its line of fresh mooncakes under its private label with a 10-day shelf life, currently available at select Co.opmart and Co.opXtra supermarkets. Similarly, MM Mega Market, LOTTE Mart, and others are offering fresh mooncakes with diverse flavors such as mung bean and durian, green tea and red bean, lotus seed and egg, taro and egg, and coconut milk.

Struggling to Maintain Prices

Nguyen Van Thang, owner of the well-known mooncake brand Thanh Do and a distributor for several major mooncake brands, noted that sales have been slow due to the weak economy. Only a few customers have purchased mooncakes for sampling, corporate gifts, or employee gifts. However, he remains optimistic that sales will pick up in the coming weeks as the festival draws near. “These two weeks are crucial for the mooncake market,” he emphasized.

Mr. Thang also shared that prices have remained stable this year, with only a slight increase of about 1%. Brands are cautious about introducing new products due to the market’s weakness. While some ingredients like pork and cashews have become more expensive, the decrease in salted duck egg prices has kept overall costs stable. With durian in season, some customers are opting for durian-flavored mooncakes for a unique twist.

The representative of Givral, a renowned mooncake brand, shared that although the challenging economic conditions have led to a decrease in overall demand, their sales have remained stable due to various factors, including their decision to maintain prices. Additionally, Givral has launched a new baked mooncake flavor, “coconut durian,” with a 10% durian content in the filling, offering a novel taste experience. “By keeping our prices reasonable, we ensure that families can enjoy delicious mooncakes without worrying about the cost,” the representative explained.

Meanwhile, Ngo Bich Quyen, Executive Director of Van Son Thinh Phat Joint Stock Company (which owns the Organicfood chain of stores), expressed optimism about the market for organic mooncakes and believes that sales will surpass last year’s figures. Ms. Quyen attributed this to the competitive pricing of Organicfood’s mooncakes, which are made with organic ingredients but only slightly more expensive than premium mooncakes available in the market. This has attracted many customers.

Ms. Quyen highlighted the high risks associated with the mooncake market, especially for brands that do not use preservatives. If sales are slow and the mooncakes remain on the shelves for an extended period, the spoilage rate can be very high. “Vietnamese consumers tend to buy readily available mooncakes instead of pre-ordering, making it challenging for businesses to plan their production. We are actively encouraging customers to place advance orders with discounts to incentivize early planning,” she added.