Fueling Vietnam's Imported Meat Market: Examining Growth Drivers and Regulatory Landscape

The imported meat market in Vietnam is growing due to economic development, increased purchasing power, and shifts in dietary preferences. This presents potential for international suppliers to offer a range of high-quality meat products.

We will explore the market segments that offer opportunities for meat exporters to Vietnam and the essential regulatory authorizations.

Rising Demand for Livestock Products in Vietnam

Over the last ten years, Vietnam has seen a significant rise in both income levels and population, leading to a sharp increase in the demand for livestock products. Meat consumption increased from 3.5 million tonnes in 2013 to 3.6 million tonnes in 2014. Projections suggest that Vietnam’s meat consumption is expected to reach 6.5 million tonnes by 2026.

This indicates a continued growth trend, with an anticipated 9.58 percent increase in meat consumption between 2024 and 2028. The market volume is forecasted to reach US$16.06 billion by 2028.

The surge in demand has highlighted a significant gap: Vietnam’s domestic meat industry struggles to meet local needs, especially in beef and chicken production. While pork production remains strong, shortages persist in beef and chicken supply due to factors such as geographical limitations, reliance on imported feeds, and complex farm structures and regulations.

This shortage in domestic production presents an opportunity for foreign meat producers to address the growing demand.

Vietnam’s Meat Market's Current Situation

Vietnam has undergone a significant shift in its dietary habits, with consumption of meat and animal products increasing drastically. This transformation can be attributed to several factors, including economic, social, and cultural drivers.

Economic growth and urbanization have played a significant role in this change. Over the past thirty years, the country's economic growth has led to a transition from a food-scarce nation to one with an abundance of food. With rising incomes and urbanization, Vietnamese consumers now have greater purchasing power and access to a more extensive range of food options, including meat and animal products.

Increasing affluence has also contributed to the shift, with meat consumption often seen as a symbol of prosperity and progress.

Globalization and trade agreements have facilitated the importation of meat from various countries, including the United States and India.

Vietnamese consumers' food practices have also evolved, with meat becoming an integral part of their diet in diverse ways. The proliferation of high-end steak houses and the popularity of Japanese and Korean-style BBQ joints reflect changing culinary preferences and a growing appetite for meat-centric dining experiences. Similarly, when dining outside, fast food chains, street kitchens, and restaurants offer convenient and meat-heavy options, catering to consumers' preferences for meat-centric meals.

The lack of domestic production presents an opening for international meat producers to meet the increasing need.

The Meat Import Situation in Vietnam

In 2023, Vietnam imported over 716,000 tonnes of meat and meat products, valued at US$1.43 billion. Although there was a slight decrease in overall import value compared to the previous year, the volume of imports notably increased, indicating a growing demand among Vietnamese consumers.

Vietnam now sources meat products from 37 different markets, showing a shift from relying on a few key suppliers. India has become an important player, contributing nearly 30 percent of total meat imports. Australia also remains a major supplier, highlighting the global nature of Vietnam’s meat procurement network.

In the beef import segment, both India and Australia are the top suppliers, with India alone accounting for 76 percent of imports. Both countries have seen their market shares grow due to factors such as post-pandemic demand recovery and tariff eliminations under trade agreements.

Recent import data shows that in January 2024, Vietnam experienced a significant surge in meat imports, with expenditures reaching US$127.52 million for nearly 62,440 tonnes of products. This marked a substantial increase of over 76 percent in volume and 72 percent in value compared to the same period in 2023. Imports from India saw a drastic uptick, with volumes soaring by 184.9 percent and values by 190.7 percent year-on-year.

Recent statistics show that Vietnam has risen to become one of the top 10 nations globally in pork consumption. Frozen pork products are mainly imported to Vietnam from five key sources: Russia, Brazil, Canada, the US, and Poland. It is expected that frozen pork items will continue to hold a significant portion of the market, with an anticipated growth from 5.5 percent to 6 percent CAGR over the next five years.

Vietnam sources beef and beef cattle from various origins, including the United States, Australia, Canada, Japan, New Zealand, Hong Kong, and India. Analysts note that Indian imports mainly consist of buffalo meat, while beef from Hong Kong is largely re-exported to various destinations.

Imported beef, despite being priced higher than local beef, is preferred by Vietnamese consumers for its tenderness, juiciness, quality preservation, and traceability. It is prominently sold in supermarket chains, restaurants, and hotels, in contrast to domestic beef, which is typically found in traditional markets and local eateries.

Trade Data Monitor, LLC reports a significant surge in beef imports into Vietnam, averaging a 24 percent increase since 2018, culminating in a 2022 figure of US$335 million—an impressive 24 percent rise from 2021. Throughout the years, Australia, Canada, the United States, and the European Union have remained major beef exporters to Vietnam.

Vietnam's meat import landscape has experienced significant shifts, with a noticeable increase in import volume and diversification of suppliers. The country now sources meat products from 37 different markets, with India and Australia emerging as top suppliers.

The Rise of Premium and Organic Products: Examining the Emerging Consumer Trends

Vietnam's middle class is rapidly expanding and is now one of the world's seventh fastest-growing segments. By 2030, around 36 million individuals are projected to join this group. As their incomes increase and dietary preferences evolve, this growing middle class becomes more selective in food choices.

With the rise in income and changes in dietary habits, there is a noticeable increase in consumer demand for products that offer higher quality, improved health benefits, and enhanced sustainability. Consumers are also displaying a growing interest in food from reliable and sustainable sources. The pandemic aftermath has amplified this trend, with consumers showing a heightened interest in natural and organic products.

Many consumers are now willing to prioritize spending on products that are perceived as healthy, natural, and fresh, even if it means sacrificing other expenses. This shift in consumer behavior has given rise to innovative product offerings, such as "banana-fed pigs" marketed under the brand Bapi HAG, "vegetarian pork" sold as BaF Meat, or "herbal pork" under the brand SagriFood.

Conclusion

Vietnam is a promising market for businesses that want to export meat products. The country's middle class is expanding rapidly, and people are increasingly interested in high-quality, healthy, and sustainable foods. However, it is important to pay attention to local regulations, comply with the list of permitted meat products for export, and ensure eligibility to export to Vietnam. Working with experienced import services can help make the process smoother and ensure compliance.

To streamline the entry process into Vietnam's meat sector, foreign exporters can consider models such as exporters to food processors or exporters to local importers/distributors. Partnering with local importers who have established distribution networks and understand local market nuances can help with market penetration and enhance competitiveness in Vietnam's increasingly competitive meat market.