The organic food market in Vietnam reached a value of US$100 million in 2023, according to a report by Euromonitor, reflecting a 20% growth rate since 2020. This increase is evident in the growing presence of organic products in major supermarkets such as Co.opmart, Winmart, Lotte Mart, and MM Mega Market…
Le Thanh Trung, Commercial Manager of Fresh Food Value Chain at Central Retail Vietnam, shared that organic vegetables, despite being 25-35% more expensive than conventional produce, are highly sought-after. “Many customers have to pre-order as the products often sell out,” said Mr. Trung. Mr. Nguyen Van Hiep, Director of Co.opmart Phu Tho, also noted a double-digit growth in the sales of green and organic food in the first half of the year.
The interest in organic products extends beyond food to beverages as well. A representative from Vinamilk revealed that the revenue of their Organic and Green Farm milk lines increased by 40% in 2023 compared to 2022, with a further 30% growth in the first quarter of this year. Similarly, Phan Minh Thong, CEO of Phuc Sinh Joint Stock Company, shared that their organic coffee is not only popular abroad but is also experiencing strong growth in the domestic market. “In the first six months, our domestic revenue grew by 50%,” said Mr. Thong.
The preference of consumers is encouraging many small and medium-sized enterprises to enter this field. Dr. Nguyen Duc Chinh, founder of GenXanh Farm, shared that the organic vegetable products from his 2.5-hectare farm in Hiep Thuan, Phuc Tho, Hanoi, are produced according to the “seasonal vegetables” model. They are then transported directly from the farm to consumers and also sold in some linked stores in the inner city of Hanoi.
As organic produce cannot be mass-produced, his farm only supplies about 4-5 tons of green vegetables and herbs to the Hanoi market each week. So far, he has established two additional bases in Sa Pa, Lao Cai, and Hoa Binh. Similarly, in Lam Dong, Ma Diem, an ethnic Churu and head of the business group for the IEM Gõh Churu organic vegetable cooperative, shared that thanks to organic vegetable farming, the cooperative’s members have enjoyed additional income and improved their difficult lives.
“With an average selling price of 20,000-35,000 VND per kg of vegetables, the income of the households in the cooperative fluctuates from 3-5 million VND per month, with some households earning even higher. Currently, the cooperative has 11 participating households in cultivation and 4 households in soil improvement for vegetable planting in 2024,” said Ma Diem. “Vegetable output this year increased by about 10-15% compared to last year, so the cooperative’s revenue is expected to be over 400 million VND, the highest ever,” she added.
According to businesses, the increase in demand for organic products is not just a temporary trend but a permanent part of modern lifestyles. As consumers pay more attention to the quality and origin of products, the organic market in Vietnam is expected to continue thriving.
Notably, Vietnam’s middle class is projected to reach 25 million by 2025 (25% of the population). This consumer group can understand and feel the importance of consuming organic products daily and is willing to pay a premium for them, even choosing to shop at specialized organic stores.
AC Nielsen’s survey data shows that in Vietnam, 24% of respondents currently consume organic food daily, while 16% and 21% consume organic food 4-5 times/week and 2-3 times/week, respectively. About 90% of respondents agreed that organic food is expensive compared to other similar products. However, the majority of consumers are willing to pay a premium for organic food.
Additionally, while consumers agree that society encourages and supports the consumption of organic products, they do not highly appreciate the effectiveness of legal documents. In other words, Vietnamese consumers need a basis to ensure that they are indeed buying organic products and getting what they pay a premium for.
According to Mordor Intelligence, the global organic food and beverage market is experiencing robust growth. The market size is predicted to exceed $174 billion in 2024 and is expected to soar to over $233 billion in 2029, with a compound annual growth rate (CAGR) of 6.02%. Notably, the Asia-Pacific region is leading this growth trend, with the most impressive prospects during the forecast period.
While not developing as rapidly as other regions, Vietnam is considered an emerging hub for clean and organic products. The Vietnamese government has actively promoted the development of sustainable organic agriculture among businesses over the past three years to stabilize the market and meet the increasing demand. Additionally, the EVFTA agreement has facilitated the entry of organic products from Europe into the Vietnamese market at more competitive prices, offering more affordable options for consumers.
Mr. Dao Thanh Van, Vice President of the Vietnam Organic Agriculture Association, shared that there are currently 191 countries developing organic agricultural products globally. In Vietnam, farmers have traditionally practiced organic farming for a long time. However, the area of organic agricultural production in Vietnam is still modest.
As of the end of 2023, the country had 495,000 hectares of organic agricultural production, accounting for 4.3% of Vietnam’s total agricultural production area. Although the area of organic agricultural production in Vietnam is small, there are still many effective production models that help enhance the value of Vietnamese agricultural products.
For example, Lam Dong currently has over 1,500 hectares of certified organic land, of which 1,308 hectares are certified to international standards and 270 hectares to Vietnamese standards, according to the Department of Agriculture and Rural Development. By the end of 2023, Lam Dong had supported the development of 10 chains of production and consumption of organic products, bringing higher profits to the people.
Similarly, Binh Duong province currently has 600 hectares of cultivated area applying organic standards to various crops. Mr. Pham Van Bong, Director of the Department of Agriculture and Rural Development of Binh Duong province, shared that the Provincial People’s Committee has approved the plan to implement the organic agriculture development project for the 2020-2030 period. The goal is to maintain the area of cultivated crops that have been granted certification by 2025.
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The organic food market in Vietnam is thriving, as evidenced by Euromonitor’s report, which revealed a market value of US$100 million in 2023. This thriving sector has experienced impressive growth, with a 20% increase from 2020.
