Health Supplements in Vietnam
The health supplements (also known as functional foods or dietary supplements) sector is one of the fastest growing food sectors over the past decade, with an average annual growth rate of 20%. In 2015 total market value was approximately $1.1 billion.
Foreign brands tend to be positioned in the premium segment to attract mid-high end consumers, while local brands generally concentrate on the mass market. In addition, foreign players are also more active in non-herbal/traditional dietary supplements, while local players are more prominent in herbal/traditional/curing products. Imported products account for 40% of the market share.
The most popular official retail channels are direct selling and pharmacies, healthcare & beauty care retail shops and foreign product specialty stores.
Herbal, traditional and curing supplement products account for more than 70% of the market (top selling product is gingseng). The main areas of health concern are skin heath/ skin care, anti-aging, mental health/ neuroleptic, eye health, digestive health, and heart health.
Health Supplements in Vietnam’s major distribution channels include: Direct selling / marketing (manufacturers’ own distribution network); pharmacies / chemists / drug stores; specialty stores / others (Medicare, Guardian, GNC). The specialty store chains are becoming increasing common and represent a new trend of distribution heath and personal care products.
The demand for health supplement products in Vietnam is increasing as a result of the following factors:
- Improvement of health awareness and living standards and increasing disposable income among Vietnamese consumers. Current GDP per capital is about $2,200, with a 5-year CAGR of 10%.
- Self-medication practice adopted by Vietnamese consumers. This practice is favored due to the lax management of over-the-counter medication, increasing costs of healthcare services and inadequate clinics / hospital system.
- Compelling demographic conditions of Vietnam. The country has a large and young population with an increasing rate of urbanization (total population of 90 million people, of which 60 per cent are under 35, and 32 percent live in urban areas).