Businesses say organic sales have been growing steadily over the years, with an average growth rate of 20-40% per year.
Ms. Hoa, a resident of District 5, has given up the habit of shopping at traditional markets and switched to an organic store near her home. Although the prices here are twice as high, Ms. Hoa feels that organic products not only stay fresh longer but also ensure quality. "There are bunches of vegetables and green onions that can be left for a whole week without wilting, not rotting as quickly as the ones sold in the market. This makes me feel more secure when using them," she shared.
The story of Ms. Hong Hanh in Go Vap District is similar. Over the past year, she has switched to buying organic fresh milk for her baby, even though the price is twice as high as regular milk. For Ms. Hanh, the natural flavor and richness of organic milk are completely worth the cost.
According to Euromonitor, the organic food market in Vietnam is expected to reach a value of 100 million USD by 2023, with a growth rate of 20% compared to 2020. This increase is evidenced by the increasing presence of organic products in major supermarkets such as Co.opmart, Winmart, Lotte Mart and MM Mega Market.
Mr. Le Thanh Trung, Commercial Manager of Fresh Food Value Chain at Central Retail Vietnam, said that organic vegetables from Churu ethnic women, although 25-35% more expensive than conventional products, are still popular. "Many customers have to order in advance because the products are often sold out on the shelves," Mr. Trung shared.
Mr. Nguyen Van Hiep, Director of Co.opmart Phu Tho, said that green and organic foods have seen double-digit growth in the first 6 months of the year. Supermarkets have begun to dedicate areas to display these products, meeting the increasing demand from consumers.
Interest in organic goods extends beyond food to beverages and cosmetics.
Leading the sustainable development trend in the dairy industry in Vietnam, Vinamilk representative said that it has launched Organic and Green Farm milk lines. Revenue of these two lines in 2023 increased by 40% compared to 2022, and continued to increase by 30% in the first quarter of this year.
Similarly, Mr. Phan Minh Thong, General Director of Phuc Sinh Joint Stock Company, said that the company's organic coffee and pepper are not only popular abroad but are also growing strongly in the domestic market.
"In the first 6 months of the year, the company's revenue reached 175 million USD, an increase of 40% over the same period last year, of which domestic revenue grew by 50%," Mr. Thong shared.
Organic cosmetics are also "dominating" the beauty industry in Vietnam, despite their high prices, they are still favored by consumers. According to Ms. Vo Thi Lan, CEO of LCUK Company - the exclusive distributor of Protocol products from the UK, Vietnam is leading the direct sales market, surpassing France, Italy and Dubai. Ms. Lan also revealed that in the next 4 months, the company will launch the high-end organic cosmetics line Paoma from France, with pre-orders skyrocketing since its introduction. "We are even worried that we will run out of stock," Ms. Lan shared.
According to businesses, the increase in demand for organic products is not just a passing trend but has become part of the modern lifestyle. As consumers increasingly pay attention to the quality and origin of products, the organic market in Vietnam promises to continue to grow strongly in the future.
According to Mordor Intelligence, a prominent market research organization from India, the global organic food and beverage market is on a strong growth trajectory. The market size is predicted to reach over US$174 billion by 2024, and is expected to jump to over US$233 billion by 2029, at a compound annual growth rate (CAGR) of 6.02%. Notably, the Asia-Pacific region is leading the growth trend, with the most impressive growth prospects during the forecast period.
Although not as developed as the above regions, Vietnam is considered a booming destination for clean, organic goods. The Vietnamese government has actively promoted businesses to develop sustainable organic agriculture over the past three years, aiming to stabilize the market and meet increasing demand. At the same time, the Vietnam-EU Free Trade Agreement (EVFTA) has created favorable conditions for organic products from Europe to enter the Vietnamese market at more competitive prices, providing more affordable options for consumers.
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