Vietnam edible oils market is projected to witness a CAGR of 3.04% during the forecast period 2024-2031, growing from USD 4.95 billion in 2023 to USD 6.29 billion in 2031. Factors such as increasing demand for easy-to-cook and ready-to-eat food options are driving the growth of edible oils in Vietnam. Moreover, the improvement of local production of some oilseeds and import of other types of oil from other countries have contributed to the ease in the availability of the edible oil, which is making the edible oils conveniently available for the consumers in the country.
Moreover, Vietnam is witnessing a robust growth in the edible oils market due to expansion of HoReCa due to rising tourism, which has contributed to the higher consumption of edible oils in the country.
The market has experienced significant growth in recent years due to a rise in culinary applications and is expected to maintain a strong pace of expansion in the coming years as it is a necessary ingredient in cooking. Since, Vietnamese cuisine is becoming more diverse, due to influence of western culture, the different types of edible oils are being used in the dishes, catering to a wider taste profile.
Vietnam has local production of palm oil, with substantial imports from major palm oil-producing countries such as Malaysia and Indonesia, hence assuring its stable supply and market availability. Well-established supply chain for palm oil in Vietnam sets its presence in both urban and rural markets, hence reaching a wide consumer base. For instance, Malaysian Ministry of Investment announced in July 2024 that 14 Vietnamese companies have been sourcing Malaysian products including palm oil. The imports from Malaysia of palm oil including various other products was estimated to be around USD 717 million.
Palm Oil to Drive the Market Growth
Compared with other edible oils, such as olive oil or avocado oil, palm oil is way cheaper than them which makes it a preferred option in the country. Since palm oil yield is high per hectare and its consumption is cheaper, palm oil is widely used in Vietnam.
Palm oil is a versatile cooking oil used for frying, baking, sauteing, and other food preparation methods. Its high smoke point allows deep-frying, which is used in various Vietnamese dishes. The neutral flavor of palm oil does not dominate the taste in dishes, making it suitable for use in a wide array of culinary applications, from savory to sweet preparations.
Palm oil is one of the essential ingredients in snack foods, instant noodles, baked goods, and other such processed foods. Demand is induced through the use of palm oil in these popular products. Due to its low cost and good cooking properties, the use of palm oil is high in the food service industry, particularly with restaurants and street food vendors.
In the year 2022-2023, Vietnam imported a total of 1.05 million tons of palm oil. This was a 6% rise on the previous year due to the recovery of the economy and tourism. Moreover, the two major suppliers to the country are Indonesia and Malaysia with 59.6% and 40.2% of total market share respectively.
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Rise in Tourism to Drive the Market Growth
The rise in the tourism in Vietnam is driving the demand for edible oil to fuel the market growth. Increase in country tourism has given rise to numerous hotels, restaurants, and street food stalls that demand edible oils for cooking and various other purposes.
Edible oils are consumed in huge quantities to prepare local Vietnamese and international cuisine. Increasing tourists enforce demand for edible oils in the food service industry. Restaurants and cafes require constant supplies of oils for frying, sauteing, and dressing purposes, hence increasing consumption.
Vietnam is a land of gastronomic delights, so it attracts many tourists who wish to try local dishes. With these signature local foods, such as pho, spring rolls, and bánh xèo (Vietnamese pancakes), a large quantity of edible oils is consumed in their preparation, driving growth of the edible oils market in Vietnam.
In response to heightened demand from locals and tourists, agricultural and food processing sectors have increased production of edible oils in Vietnam. Processed foods, snacks, and pre-packaged meals are widely consumed by tourists, and edible oils form a base of key ingredients in their creation. This rise in demand has driven supply chain improvements and guaranteed continuous edible oil supplies to the hospitality industry and food service outlets.
In May 2023, as per the estimates of General Statistics Office, Vietnam welcomes 916.3 thousand international visitors which exhibited an increase by 5.3 times over 2022. Moreover, the domestic food processing industry is growing with an annual growth of approx. 8% which will further boost the market growth.
Wide Culinary Applicability to be Preferred by the Consumers
Edible oils which have wide culinary applicability are preferred among the consumers due to their ability to be used for various purposes such as frying, sauteing, and cooking. For this, consumers prefer to use edible oils with high smoke points, such as canola oil, sunflower oil, or peanut oil. Nakydaco, a brand of Tan Binh Vegetable Oil Joint Stock Company developed Savory Sesame Oil which can be used widely for grilling, salad dressing, and stir frying. The oil is 100% pure sesame oil with no added preservatives and is cholesterol free.
Edible oils are used in various baked items. This includes the usage of vegetable oil or olive oil as they help in the addition of moisture and richness to cakes, muffins, and breads.
With an intense flavor, olive oil and sesame oil are highly demanded to elevate salads and marinades for the purpose of flavor enhancement in dishes. These oils are crucial in the preparation of dips such as hummus and sauces, such as pesto which is increasingly gaining popularity in the country, to cater to the international visitors in the country. Olive and avocado oils, are a rich source of healthy fats. This is the reason they are preferred by many health-conscious cooks in their everyday cooking in Vietnam.
Future Market Scenario (2024 – 2031F)
The edible oils market is expected to witness rapid expansion in the forecast period due to rise in the foreign travelers to the country. Vietnamese cuisine involves grilling and frying which requires high usage of edible oils. The influence of western cuisines has driven growth in demand for a wider variety of edible oils in the country rather than consumption of a single type of oil. Moreover, the growing popularity of cooking classes and food tours add to a higher edible oil consumption in the forecast period since many people in the country are involved in hands-on cooking sessions with tourists, to enhance their travelling experience and witness the Vietnamese culture.
Report Scope
“Vietnam Edible Oils Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Vietnam edible oils market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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