Kido holds 40pct of market share in ice cream industry

21-Sep-2017 Intellasia | Bao Dau Tu | 6:00 AM Print This Post

Retail output and value of cream and dairy products in Vietnam in 2017 reached seven percent and 15 percent respectively, equal to 26,600 tonnes and over 3.032 trillion dong respectively, according to a report by Euromonitor. KIDO continues to lead the industry with the market share of 40 percent instead of 38 percent in 2016.

As per Euromonitor, many new cream products such as Kit Kat, Milo and Twin Cows have been introduced in 2016-2017, helping to diversify products and boost customers’ demand. However, the distribution system for this product is still quite limited in 2017, most are available in HCM City only.

In the period of 2015-2017, green tea flavor gradually became popular in the ice cream industry in Vietnam under the influence of Japanese food and culture. Many consumers have started to favour this flavor because the products from green tea are bitter sweet.

Many companies have launched cream product with green tea flavor to catch up with customers’ demand like Nestle with Kit Kat Green Tea or Twin Cows of Vietnam Dairy Products (Vinamilk).

Domestic players continue to lead the ice cream and frozen foods sector in 2017, according to Euromintor. However, the competition from foreign ice cream brands such as Cornetto, Paddle Pop, Haagen-Dazs and New Zealand Natural has begun to increase significantly, especially in big cities such as HCM City, where consumers prefer products in the high-end segment.

By the end of 2015, two new cream products were churned out i.e. Milo and Kit Kat of Nestle, which had certain impact in the industry. These products are imported from Thailand, thereby gaining rapid access from customers. However, comparing with the current leading companies, the revenue of this product is not significant.

Besides, in 2016, Vietnam Dairy Products (Vinamilk) introduced Twin Cows in the field of dairycream products, targeting at the upper class with eye-catching premium packaging and good taste. Same for Milo and Kit Kat whose brand also has certain impacts in the industry.

It is forecasted that the ice-cream and made-from-dairy dessert food sectors with premium products and green tea flavors will continue to affect consumer demand in Vietnam.

Modern distribution channels such as convenience stores, supermarkets and hypermarkets of the ice cream industry will develop more positively. In 2017, the online retail channel began to grow better even though sales were not significant. It is forecasted that online retail channel is becoming more and more familiar to Vietnamese consumers in the future.

New products from Nestle and Vietnam Dairy Products (Vinamilk) will have greater impact in the industry as well as have changes in brand status as both companies own good brands and nation-wide distribution network.

 

Category: Business

Print This Post

Comments are closed.