Vietnam Food Additives Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.99 Billion |
| Market Size (2029) | USD 1.24 Billion |
| CAGR (2024 - 2029) | 4.70 % |
| Market Concentration | Low |
Major Players.webp){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
Vietnam Food Additives Market Analysis
The Vietnam Food Additives Market size is estimated at USD 0.99 billion in 2024, and is expected to reach USD 1.24 billion by 2029, at a CAGR of 4.70% during the forecast period (2024-2029).
Urbanization in Vietnam, combined with fast-paced consumer lifestyles, is driving the demand for convenience foods and ready-to-eat meals. These products often utilize food additives to enhance flavor, extend shelf life, and refine texture. The beverage sector, particularly non-alcoholic drinks such as tea, coffee, fruit juices, and functional beverages, has seen significant growth in recent years. As consumers crave varied flavors, beverage manufacturers are turning to flavor enhancers, sweeteners, acidity regulators, and coloring agents to satisfy this appetite. Moreover, in September 2023, Vietnam's Ministry of Health (MOH) unveiled Circular 17/2023, amending several food safety regulations. Key changes include updates to MOH’s Circular 24/2019 on food additives and revisions to Part 7 of MOH’s Decision 46/2007, which lists approved food processing aids. As the market adapts to these regulatory changes, a surge in demand for compliant, high-quality food additives is expected. To meet the rising demand for top-tier and safer food offerings, Vietnamese firms in the food additives domain are obtaining certifications such as ISO, Halal, Kosher, and FDA approval, enhancing their product credibility on both domestic and international fronts. These additives, spanning flavor enhancers, preservatives, and processing aids, align with increasing consumer inclination towards healthier, safer, and diverse food choices, propelling the growth of the food additives market. Furthermore, major players are broadening their reach within the ASEAN region and beyond, tapping into the burgeoning potential of the food additives market.
Vietnam Food Additives Market Trends
Sweeteners Lead as the Top Additive in Food Processing
In Vietnam, robust economic growth and shifting consumer preferences are driving a surge in spending on sweetened food items. The rising middle class, with its increasing disposable income, is fueling a demand for indulgent treats and processed foods. This trend is further amplified by the growing embrace of Western diets and lifestyles, which lean heavily on sugar-sweetened products. Modern retail channels are expanding, making these sweetened products more accessible and boosting consumption rates. The demand for sweeteners in food and beverage processing is on a pronounced upswing. This is highlighted by a projected jump in sugar consumption among 40 major enterprises, forecasting an increase from about 323.54 thousand tons in 2023 to an estimated 510.8 thousand tons by 2028, translating to a surge of over 50% in just five years, as reported by the Vietnam Agriculture Report. The report also notes that in 2023, sugar consumption saw a 60-thousand-ton rise from 2022, reaching 382.66 thousand tons. Refined sugars (RE) led the consumption chart, making up 77.5% (or 296.68 thousand tons) of the total in 2023. The beverage sector emerged as the dominant player, accounting for 70% (171.2 thousand tons) of the RE sugar demand. On the other hand, the food industry took the largest share of refined sugars (RS), consuming 65% or 59.2 thousand tons. Given the robust growth of the processing and beverage sectors, businesses anticipate a continued rise in industrial sweetener consumption in the years ahead.
Beverage Industry Leads in Food Additive Consumption
In Vietnam, the production and launch of diverse beverages are propelling the demand for various additives. As companies aim to craft distinctive and enticing flavors, there is a heightened reliance on specialized ingredients, including food colorants, flavor enhancers, and sugar substitutes. This trend not only aligns with consumer desires for innovative and healthier choices but also invigorates the market for beverage additives. This emphasis on additives could pave the way for intensified research and development endeavors, reshaping the market landscape. For instance, in October 2024, Coca-Cola, in partnership with the OREO brand, unveiled two exclusive offerings in Vietnam: the OREO Coca-Cola Sandwich Cookie and the Coca-Cola OREO Zero Sugar Limited Edition. The Coca-Cola OREO Zero Sugar drink was crafted using ingredients like phosphoric acid, food colorants, and the sugar substitute aspartame. Responding to a surging appetite for clean label products, Vietnamese beverage brands are increasingly gravitating towards natural colorants, flavors, and preservatives, distancing themselves from synthetic additives. This trend is especially pronounced in ready-to-drink tea and juice sectors, where there is a clear preference for natural color additives. In August 2024, TH true TEA, a leading Vietnamese brand, introduced two fresh ready-to-drink teas: Peach Tea and Lychee Tea. Upholding their "four no's" commitment, no preservatives, no artificial flavors, no artificial sweeteners, and no artificial colors, the brand proudly highlighted its use of 100% natural ingredients. This included a focus on natural flavors and sweeteners, such as stevia.
Vietnam Food Additives Industry Overview
The Vietnam Food Additives market is characterized by a high degree of competition, featuring a mix of both global and domestic players. Notable companies in this landscape include TTC AgriS, Quang Ngai Sugar Joint Stock Company, The KCP Limited, LASUCO, and Viet Huong Flavour & Fragrance JSC. To gain a competitive advantage, these companies are not only innovating but also employing diverse strategies, including expansions. By establishing new factories and making substantial investments, these players are broadening their footprint and expanding their customer base. Furthermore, many companies have set up local manufacturing facilities, enabling them to swiftly respond to demand and curtail import-related costs. By establishing creative centers and sales offices in key locations, they maintain proximity to the market, allowing for a dynamic response to local needs.
Vietnam Food Additives Market Leaders
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TTC AgriS
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The KCP Limited
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Viet Huong Flavour & Fragrance JSC
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LASUCO
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Quang Ngai Sugar Joint Stock Company
*Disclaimer: Major Players sorted in no particular order
Vietnam Food Additives Market News
- September 2024: Meyer Vietnam Co., Ltd. launched the Master 4.0 intelligent color sorting machine, developed by Meyer Optoelectronic, to the international market. This cutting-edge sorting solution is designed to enhance the capabilities of global food processing enterprises.
- July 2024: Quang Ngai Sugar Joint Stock Company approved an investment exceeding VND 2 trillion to strengthen its An Khe sugar processing and biomass power plants. Specifically, VND 1.169 trillion is allocated to boost the processing capacity of the An Khe plant in Gia Lai to 25,000 tons daily. This expansion is intended to bolster the sugarcane supply, support deep processing initiatives, and maintain the company's leadership in Vietnam’s sugar sector.
- June 2024: Morinaga Nutritional Foods Vietnam JSC, a subsidiary of Japan's Morinaga Milk Industry Co., Ltd, launched its newest product: the Morinaga Zero Fat Drink Yogurt. This yogurt variant is enhanced with several additives, including food gelatin, stabilizers (1422, 471), and preservatives (202).
Vietnam Food Additives Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Growing Processed Food Demand
4.1.2 Surge in Food and Beverage Exports Opens Doors for Food Additive Manufacturers
4.2 Market Restraints
4.2.1 Supply Chain Disruptions and Economic Fluctuations
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Preservatives
5.1.2 Sweeteners
5.1.3 Sugar Substitutes
5.1.4 Emulsifier
5.1.5 Anti-Caking Agents
5.1.6 Enzymes
5.1.7 Hydrocolloids
5.1.8 Food Flavors and Enhancers
5.1.9 Food Colorants
5.1.10 Acidulants
5.2 Application
5.2.1 Dairy & Frozen
5.2.2 Bakery
5.2.3 Meat & Seafood
5.2.4 Beverages
5.2.5 Confectionery
5.2.6 Other Applications
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Positioning Analysis
6.3 Company Profiles
6.3.1 The KCP Limited
6.3.2 Iwase Cosfa Co., Ltd
6.3.3 Viet Huong Flavour & Fragrance JSC
6.3.4 Hoang Anh Flavors and Food Ingredients Co., Ltd
6.3.5 Cargill, Incorporated
6.3.6 LASUCO
6.3.7 ROHA Group (Roha Dyechem Vietnam Ltd.)
6.3.8 Vitachem Ingredients Company Limited
6.3.9 Quang Ngai Sugar Joint Stock Company
6.3.10 Monova Food Ingredients Jsc
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vietnam Food Additives Industry Segmentation
Food additives are substances added to food during its processing/manufacturing to maintain or improve its safety, freshness, taste, texture, shelf life, or appearance.
The Vietnam food additives market is segmented by type into preservatives, sweeteners, sugar substitutes, emulsifier, anti-caking agents, enzymes, hydrocolloids, food flavors and enhancers, food colorants, and acidulants. By application, the market is segmented into dairy and frozen, bakery, meat and seafood, beverages, confectionery, and other applications.
Market sizing is presented in USD value terms for all segments mentioned above.
| Type | |
| Preservatives | |
| Sweeteners | |
| Sugar Substitutes | |
| Emulsifier | |
| Anti-Caking Agents | |
| Enzymes | |
| Hydrocolloids | |
| Food Flavors and Enhancers | |
| Food Colorants | |
| Acidulants |
| Application | |
| Dairy & Frozen | |
| Bakery | |
| Meat & Seafood | |
| Beverages | |
| Confectionery | |
| Other Applications |
Vietnam Food Additives Market Research Faqs
How big is the Vietnam Food Additives Market?
The Vietnam Food Additives Market size is expected to reach USD 0.99 billion in 2024 and grow at a CAGR of 4.70% to reach USD 1.24 billion by 2029.
What is the current Vietnam Food Additives Market size?
In 2024, the Vietnam Food Additives Market size is expected to reach USD 0.99 billion.
Who are the key players in Vietnam Food Additives Market?
TTC AgriS, The KCP Limited, Viet Huong Flavour & Fragrance JSC, LASUCO and Quang Ngai Sugar Joint Stock Company are the major companies operating in the Vietnam Food Additives Market.
What years does this Vietnam Food Additives Market cover, and what was the market size in 2023?
In 2023, the Vietnam Food Additives Market size was estimated at USD 0.94 billion. The report covers the Vietnam Food Additives Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Food Additives Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Food Additives Industry Report
Statistics for the 2024 Vietnam Food Additives market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vietnam Food Additives analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
