Vietnam's confectionery market is considered to have a slow growth in the period 2015 - 2020 at 5% - 8%. Although growth is slow, the revenue scale of the industry is still increasing rapidly and is about 40 trillion dong in 2020. Currently, the average confectionery consumption of Vietnamese people is about 2kg/person per year, still quite low compared However, because Vietnam's population is young, consumption is also expected to increase in the near future. In the confectionery market, there are names with large market shares such as Bibica, Biscafun, Kinh Do.. In addition, foreign brands have also created a buzz in the Vietnamese market such as Orion, Liwayway... Competition pressure has be raising due to the effect of Free Trade Agreements causing more and more products to be imported into Vietnam and directly competing with domestic products due to having more competitive advantages.
Quang Ngai Sugar
Quang Ngai Sugar Joint Stock Company came into operation from 2006 to 2007, the company's main products are soy milk, sugar, confectionery, beer. The most widely known confectionery brand of the company is Biscafun, although it does not account for the majority of the company's production and business structure, Biscafun is always loved by Vietnamese consumers.
Quang Ngai Sugar's revenue is also largely contributed from soy milk with Fami and Vinasoy, in 2020 the high soybean price will cause revenue from soy milk to decrease, and the confectionery segment will also reduce output, although the price of soybeans will decrease. Sugar recovered and the company also benefited from the sugar business, the company's total revenue in 2020 decreased by 16% compared to 2019, decreased to VND 6,214 billion, the company's profit after tax also decreased by 18%.
Orion Vina
Orion Vina Food Co., Ltd is a company of Orion Group of Korea. Orion Group has invested in building a production plant in Vietnam since 2005 and currently has two factories in Ho Chi Minh City and Bac Ninh. Orion with key products such as Chocopie, Custas, Freshpie, Goute. Snack Ostar; Orion has invested in building O'star Farm in Vietnam, specializing in supplying fresh potato ingredients to produce O'star potato snacks. Orion Vina's net revenue in 2020 is VND 2,852 billion, up 15% compared to 2019, profit after tax increased 29% to VND 1,128 billion.
Kinh Do
Kinh Do Confectionery is a long-standing brand formerly owned by Kinh Do Group, but up to now, Kinh Do Group's confectionery business has been acquired by Mondelez Group (USA) and established a Joint Stock Company. Mondelez Kinh Do since 2015, this is considered the largest M&A deal in the confectionery industry in the domestic market. Despite changing owners, Kinh Do still maintains the same product quality and is always trusted by users.
Kinh Do confectionery focuses on the middle and high-end segments with brands such as Kinh Do, Cozy, Solite, AFC, LU, Ore … Besides the Vietnamese market, Kinh Do confectionery is also very developed in the world. The enterprise's net revenue in 2020 is VND 4,015 billion, an increase of 8% compared to 2019, total assets of VND 2,747 billion.
Bibica
Bibica Joint Stock Company was developed from the confectionery workshop of Bien Hoa Sugar Factory, so far Bibica is one of the five largest confectionery companies in our country with about 7.2% market share in the confectionery market. With its non-stop development, Bibica is now present in about 21 countries with key products such as moon cakes, Hura cakes, Goody, hard candies, soft candies… In 2020, net revenue of the business is 946 billion VND, down 28% compared to 2019, profit after tax down 30% compared to 2019.
Liwayway Saigon
Liwayway Saigon Food Industry Co., Ltd. with the famous brand Oshi from the Philippines, Oshi is one of the first multinational brands to enter the Vietnamese market and has the first factory in Binh Duong. Up to now, besides popular snacks, Oshi has also developed cookies, candy, and soft drinks. Net revenue of Liwayway Saigon in 2020 is VND 2,067 billion, down 3.4%, loss after tax is VND 4.35 billion.
Hai Ha
Hai Ha Confectionery Joint Stock Company was established in 1960 and has grown to become one of the major brands from Vietnam in the confectionery industry. The company's main products are candy, followed by cakes of all kinds, Hai Ha targets the popular customer segment, always accompanied by quality and competitive prices. With equity of 468 billion dong, net revenue in 2020 of Hai Ha is 1,409 billion dong, profit after tax is 39 billion dong.
Lotte
Lotte is a large multinational business group of Korea. Lotte established Lotteria Vietnam Co., Ltd. since 1996. Lotte Vietnam mainly develops confectionery brands such as Toppo, Xylitol, Koala's March; Besides quality, Lotte impresses customers by its goal of always focusing on customers, listening and innovating to match the opinions of consumers.
Hai Chau
Hai Chau Confectionery Joint Stock Company is a state-owned enterprise belonging to one of the leading brands in the Vietnamese confectionery market. With more than 50 years of confectionery production, Hai Chau constantly improves quality to meet market demand. In addition to confectionery, a key export product of Hai Chau is seasoning soup powder, dry food, sponge cake... Hai Chau's net revenue in 2020 is VND 612 billion, down 27% compared to 2019, profit after tax also plummeted 45%.
Pan FM
Pan Food Processing Joint Stock Company (Pan FM), a subsidiary of Pan Group, is the first confectionery manufacturer in Vietnam to achieve FSSC 22000 certification on food safety and Pan FM still follows. pursue the FSSC 22000 target in its future construction factories. Recently, Bibica announced that it had successfully acquired 100% of the shares of Pan FM, before that in 2017 Pan Food Joint Stock Company (Pan Food) also acquired 50.7% shares of Bibica and took control of Bibica. . Pan FM's net revenue in 2020 is VND 166 billion, up 3.3%, loss after tax is VND 15 billion.
Thien Ha Kameda
Thien Ha Kameda Joint Stock Company is a joint venture between Thien Ha Corp Joint Stock Company and Kameda Seika Co., Ltd, which is a famous Japanese rice cake manufacturer. Therefore, the main product of Thien Ha Kameda is widely known as Ichi rice cake. Currently, Thien Ha Kameda has 3 confectionery factories and makes Ichi brand one of the best-selling rice cake brands in Vietnam. The enterprise's net revenue in 2020 is VND 157 billion, down 24% compared to 2019, the enterprise's profit after tax is VND 50 billion.
The impact of the Covid-19 epidemic in 2020 is inevitable, but the food industry is usually the least affected in all conditions, especially for confectionery, potential customers are young people who rarely change their behavior. micro-consumption thus creating conditions for the confectionery industry to stabilize its business in difficult times. The era of technology helps consumers learn about products before buying, have the right to choose the best products, so even though the above brands have a certain position in the market, it is necessary to have appropriate strategy so as not to lose its position against competitors as well as imported products, especially at a time when imports have many advantages like today.
Source: Vietdata research
Comments