The report titled “ Pudding Market Outlook to 2025F – Driven by Robust Population of Millennial Consumers along with Proliferation of Food Tech Apps” provides a comprehensive analysis of the pudding industry of Vietnam. The report covers various aspects including the current bakery and pudding sales in Vietnam and current scenario in terms of value and volume, its segmentations viz, Distrubtion Channels (Bakery/Confectionery Stores, HORECA’s and Online) and By Type of Cities (Tier 1and Tier 2 Cities), Consumer Preferences and Trends Analysis, Pricing Analysis, Major trends and development, issues and challenges and competition benchmarking. The report concludes with market projections for future of the industry including forecasted industry size by revenue.
Vietnam Pudding Market
The pudding market in Vietnam witnessed a double digit growth of 10.8% CAGR during the year 2015 to 2020. The market is currently at growth stage and entry of international bakeries and food service joints along with increasing disposable income and westernized cultures boosted the sales of pudding. Most of the pudding demand for urban consumers are met by local bakery shops due to ease of availability and affordable prices. However, the closure of foodservice outlets during lockdown along with the strict government restrictions on gatherings during COVID 19 has seriously affected the sales of puddings. Consumer footfall to bakery shops and retailing stores has also decreased significantly post COVID due to safety and health concerns. Because festivals are major sales drivers for cakes and puddings in Vietnam, the sales performances of bakeries in 2020 as a whole proved to be weaker than expected.
Vietnam Pudding Market Segmentation
By Distribution Channel: The standalone stores such as bakeries and confectioneries dominated the market due to its ease of convenience and product offerings. However, online channels are gaining traction post COVID19 making it convenient for consumers and creating opportunities for many restaurants, small eateries and housewives to offer bakery products to consumers.
By Tier 1 and Tier 2 Cities: Consumer preferences in terms of taste, flavor and price of pudding differ depending on the region in Vietnam. Consumers especially under Tier 1 cities prefer to consume Pudding as a part of dessert under Hotels and Restaurants, where premium is quite higher and falls under the range of above VND 20,000. However, consumers in Tier 2 cities prefer independent shops and street stalls as they charge a lower price premium on the pudding and hence serves under the price range of VND 10,000-15,000.
Comparative Landscape in Vietnam Pudding Market
Competition was observed to be highly fragmented with presence of more than 1,000 organized/semi-organized and ~30,000+ unorganized bakeries and broad gamut of modern trade channels. Organized bakeries are utilizing social media to provide targeted and cost-effective marketing. Lacking the large budgets of international chains, local bakery cafes are eschewing traditional marketing to rely on word-of-mouth recommendations and social media engagement. Tapping into the artisanal market, smaller bakeries are concentrating on quality over quantity, while larger chains such as Nyugen Son Bakeries and Coffee House rely on creating larger quantities but with strong branding and associated trust.
Vietnam Pudding Market Future Outlook and Projections
The pudding market in Vietnam is expected to experience medium level of growth owing to population growth along with rising incomes, health consciousness and the thriving bakery industry. Market expected to gain momentum with rise in disposable income per capita and increase in target population. Demand from Tier 1 and Tier 2 cities such as HCM, Hanoi and Da Nang to dominate the market in the future. Technical innovation in bakery equipment to result in efficient delivery of a variety of artisanal baked products at scale. New products such as fat free and sugar free pudding is expected to boost the market growth in the coming years.