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    Forecast Demand For Vinamilk Fresh Milk Products

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    Barbielat
    1) Vinamilk holds the largest market share of Vietnam's fresh milk market but it has declined recently as new competitors enter. Children and parents aged 20-59 make up the main customers while urban residents prefer imported milk over Vinamilk's mid-range products. 2) Fresh milk accounted for 47.6% of Vietnam's dairy market revenue in 2020 and demand increased as people consumed more fresh milk and yogurt for immunity during COVID-19. 3) Vinamilk's fresh milk demand is expected to increase modestly in the short term in 2021 and significantly in the long term as economic development improves consumer incomes and purchasing power.

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    Forecast Demand For Vinamilk Fresh Milk Products

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    Barbielat
    453 views3 pages
    1) Vinamilk holds the largest market share of Vietnam's fresh milk market but it has declined recently as new competitors enter. Children and parents aged 20-59 make up the main customers while urban residents prefer imported milk over Vinamilk's mid-range products. 2) Fresh milk accounted for 47.6% of Vietnam's dairy market revenue in 2020 and demand increased as people consumed more fresh milk and yogurt for immunity during COVID-19. 3) Vinamilk's fresh milk demand is expected to increase modestly in the short term in 2021 and significantly in the long term as economic development improves consumer incomes and purchasing power.

    Original Title

    FORECAST-DEMAND-FOR-VINAMILK-FRESH-MILK-PRODUCTS

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    1) Vinamilk holds the largest market share of Vietnam's fresh milk market but it has declined recently as new competitors enter. Children and parents aged 20-59 make up the main customers while urban residents prefer imported milk over Vinamilk's mid-range products. 2) Fresh milk accounted for 47.6% of Vietnam's dairy market revenue in 2020 and demand increased as people consumed more fresh milk and yogurt for immunity during COVID-19. 3) Vinamilk's fresh milk demand is expected to increase modestly in the short term in 2021 and significantly in the long term as economic development improves consumer incomes and purchasing power.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    453 views3 pages

    Forecast Demand For Vinamilk Fresh Milk Products

    Uploaded by

    Barbielat
    1) Vinamilk holds the largest market share of Vietnam's fresh milk market but it has declined recently as new competitors enter. Children and parents aged 20-59 make up the main customers while urban residents prefer imported milk over Vinamilk's mid-range products. 2) Fresh milk accounted for 47.6% of Vietnam's dairy market revenue in 2020 and demand increased as people consumed more fresh milk and yogurt for immunity during COVID-19. 3) Vinamilk's fresh milk demand is expected to increase modestly in the short term in 2021 and significantly in the long term as economic development improves consumer incomes and purchasing power.

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    FORECAST DEMAND FOR VINAMILK FRESH MILK

    PRODUCTS
    1. Customer characteristics of the fresh milk products
     By age:
    Children make up 25% of the population and are the main customers of water milk use and tend
    to be interested in the taste and design outside the milk carton. However, parents (20–59 years-
    old) make up 66% of the population and are the subject of income and spending decisions, so
    they are the one who decides to buy and often cares about the quality and brand of the product.

     By region:
    Urban residents make up a third of the population and have a higher demand for nutritional
    supplements such as fresh milk than in rural areas. However, urban people tend to buy imported
    fresh milk rather than mid-range products of Vinamilk and in the countryside, Vinamilk is the
    main supplier of fresh milk to the population.

    2. Vinamilk’s fresh milk market


    2.1. Market overview

    Figure 1 Vietnam's dairy market revenue structure in 2020


    Not only that, in 2020, fresh milk accounts for the majority of the structure of Vietnam's dairy
    industry (47.6%) according to SSI research. This is a change in the consumer trend of Vietnamese people
    when 3 years earlier, the market size of fresh milk was only 71% compared to powdered milk. Statistics
    in 2020 have shown the development potential of the fresh milk market along with an increase in
    consumer demand.

    2.2. Vinamilk’s market share


    Vinamilk has always been the first choice of customers who need fresh milk. Therefore, they own
    the largest market share in the industry. However, according to figures collected by Nielsen, Vinamik's
    market share has decreased quite a bit (from 48.7% in 2013 to 42% in 2019). This is the issue that
    Vinamilk should note when in the fresh milk market there are many new competitors, when most
    recently Masan and Coca-cola announced to enter the fresh milk market, if they don’t want to lose the
    market share to competitors.

    3. Development
    In February 2021, SSI Research issued a dairy outlook report. According to SSI Research, domestic
    demand for dairy products is less affected by Covid-19 in 2020. Residents increased the use of fresh milk
    and yogurt to increase immunity during the epidemic while demand affected by schools across the
    country had to close and this trend will continue in 2021.

    Fresh milk is considered an essential item, the consumption trend in 2021 may follow the "K-
    model". Accordingly, demand from low-income consumers may still be affected by the Covid-19
    outbreak that has damaged the group's income, or for price-sensitive consumers.

    One of the important factors affecting the demand for purchases in general and the demand for
    fresh milk in particular is income. The increase in Vietnamese income will increase the demand for
    nutritious products such as fresh milk. With the current positive economic development situation, the
    demand for fresh milk will increase significantly in the future.
    4. Conclusion
    In general, Vinamilk's fresh milk demand will have certain developments in the future. In short
    term, in 2021, despite of the disease, fresh milk will increase, because it’s no substitute good. However,
    the development will be at a modest rate. In long term, economic development leads to an
    improvement in income, which causes the purchasing power of consumers to increase significantly.
    Therefore, Vinamilk will have the opportunity to increase revenue from the great needs of the people.

    Reference:

    https://cafef.vn/quy-mo-nganh-sua-dat-135000-ty-dong-trong-nam-2020-vinamilk-dang-gianh-
    them-thi-phan-20210113175840899.chn

    https://vneconomy.vn/nganh-sua-nam-2021-se-tang-truong-theo-kich-ban-nao.htm

    https://www.dairyvietnam.com/vn/TT-Sua-Viet-nam/Thi-truong-sua-nuoc-Cuoc-chien-thi-phan-
    ngay-cang-nong.html

    https://file.aladin.finance/publicresource/1bd46f4d497caeb4d4f72a93fa87dc27.pdf

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