Vietnam Probiotics Market Size, Share, Opportunities, And Trends By Application (Functional Food And Beverages, Dietary Supplements, Animal Feed), By End-User (Human, Animal), By Function (Regular, Preventative Healthcare, Therapeutic), By Type (Lactobacillus, Streptococcus, Bifidobacterium, Spore Formers, Others), And By Form (Liquid, Dry) - Forecasts From 2025 To 2030

Vietnam's probiotics market is projected to grow at a CAGR of 13.45%, from US$130.191 million in 2025 to US$244.646 million in 2030. 

Probiotics are necessary for gut health balance. The probiotics pharmaceutical industry in Vietnam has been growing steadily. A broad variety of probiotic strains, including Bacillus clausii, Bacillus Subtilis, and Bifidobacterium, are accessible in a variety of formats. Consumption of probiotics aids in the prevention of irritable bowel syndrome, gestational diabetes, allergies, and obesity. 

In addition, increased consumer knowledge of products has aided in the establishment of new and emerging brands in Vietnam. The nutritional supplement industry will benefit from the rise in the urban population in Vietnam since these individuals are more aware of health and wellness goods and have easier access to them. The rise in the number of gyms is expected to act as a significant catalyst for probiotics consumer spending. 

Furthermore, robust economic growth, increased foreign investment, the benefits of free trade agreements (FTAs), a growing middle class with more purchasing power, fast urbanization, and increasing concerns about cleanliness and food safety are all important drivers driving long-term growth. This has also cleared the door for the introduction of several probiotic-enhanced drinks to Vietnamese consumers. As a result, modern retail chains are also expanding to support the growing demand. Hence, the enhancement in the supply chain networks in the country is providing an opportunity for the development of the market.

The increasing investment in research and development in Vietnam in the probiotics market is further expected to augment the market growth. The Vietnamese government is actively participating in the development of health and wellness awareness in the region, with a focus on improving healthcare for children and students, reducing tobacco and alcohol dependence, ensuring environmental sanitation and food safety, and encouraging the early detection and management of a variety of non-communicable diseases, community-based healthcare provision, and promoting early detection and management of many non-communicable diseases. 

In addition, because most of Vietnam's raw materials are imported, the government has signed several free trade agreements to lower manufacturing costs. The Vietnam Probiotics market is segmented based on application, end-user, ingredients, function, and form.

What are the drivers of the Vietnam Probiotics Market?

• The growing e-commerce industry and major gut-related diseases are anticipated to fuel the Vietnam's probiotics market expansion. 

As per the International Trade Organization, in 2019, the Vietnamese e-commerce sector was valued at $5 million, up 81% from 2015, and is expected to reach $23 million by 2025. According to the International Trade Administration, the e-commerce market in Vietnam expanded at a 30% annual rate from 2021 to 2025. Progressive government policies, increasing middle income, a tech-savvy class, and a rapidly developing Internet economy are some of the major drivers of this robust growth. The Vietnamese government is aggressively promoting a cashless society, intending to become a non-cash payment society. The Vietnamese government has set a goal of increasing the cashless payment to over 50% by 2025. Furthermore, due to rapidly increasing internet and smartphone usage, the country’s online economy is expanding. 

Additionally, according to recent research by Google and Temasek, the internet economy in Vietnam reached $12 million in 2019, accounting for 5% of the country's GDP, and is expected to reach $43 million by 2025. The government adopted the national e-commerce development master plan for 2021-2025, aiming for a 25% annual sector growth rate by 2025, with more than half of the population buying online and average yearly spending of over US$600 per person. 

According to the September 2021 article uploaded by the National Library of Medicine (NLM), Vietnam is a high helicobacter pylori burden country with the highest age-standardized incidence rate of gastric cancer which is 16.3 per 100,000 for both sexes. In addition, according to the updated October 2022 release by UK Research and Innovation, over 70% of the population carries helicobacter pylori (HP) infection. The source further added that overuse and abuse of antibiotics in countries like Vietnam is one of the core reasons for the prevalence of helicobacter pylori disease. 

Furthermore, according to the July 2022 Retail Foods Report by the USDA, the sales of retail foods in Vietnam totaled approximately US$ 172 billion in 2021, which was 0.2% up from the previous year. Additionally, e-commerce sales in the country were approximately US$13 billion in 2021, which is a major 16% increase from 2020, making Vietnam one of the top 3 South Asian countries with the highest growth in online retail sales.

• The increasing demand for functional food and beverage products is anticipated to fuel Vietnam's probiotics market expansion. 

The functional food and beverages segment consists of products with added physiological benefits over and above their naturally occurring benefits. Probiotics are actively being considered as potential functional foods, as they offer health benefits much more than traditional nutritional foods. These products assist in improved gut functionality, immunity-boosting, etc. The functional food and beverages include flavored drinks, juices, chocolates, snacks, etc. The popularity of probiotic functional foods is growing rapidly owing to the increasing awareness amongst consumers regarding their eating habits which will be the key driver for the market growth.

In addition, the functional food and beverages segment is also being driven by the increasing demand for health-based products among consumers, especially the younger generation. According to the World Bank, the number of young Vietnamese people aged 15-64 was estimated at 67.365 million in 2021 accounting for 69% of the country's total population. The rise in the country’s younger population is further fueling the demand for functional food and beverages during the forecast period as they are the prominent users of these products.  

Also, many key players in the market have been venturing into the emerging probiotics market in Vietnam to capture a larger share of the untapped market potential. For instance, in November 2022, Morinaga Milk Industry launched two products in Vietnam, namely, Climeal nutritional drink and Morinaga low-fat yogurt. The Climeal nutritional drink contains 27 vitamins and minerals. The drink is appropriate for the middle age group for proper nutritional intake and to meet the deficiencies in this age bracket. The drink provides 10 billion LAC-Shield beneficial bacteria that contribute to improving health. In addition, the Morinaga low-fat yogurt box contains 10 billion LAC-Shield probiotics to help keep the digestive system healthy. The yogurt comes in two flavors, low-sugar, and low-sugar aloe vera. The competitive strategies being adopted by the market leader will further contribute to market growth during the forecast period.

Recent developments in the Vietnam probiotics market:

• September 2024- The Vietnamese start-up GenaTech introduced probiotic supplements with good digestive-specific beneficial bacteria, to restore gut health and help combat the side effects of antibiotics.

The Vietnam probiotics market is analyzed into the following segments:

• By Application
  • Functional Food and Beverages
  • Dietary Supplements
  • Animal Feed
• By End-users 
  • Humans 
  • Animals
• By Function 
  • Regular
  • Preventative Healthcare
  • Therapeutic
• By Type 
  • Lactobacillus
  • Streptococcus
  • Bifidobacterium
  • Spore Formers
  • Others
• By Form 
  • Liquid
  • Dry

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. VIETNAM PROBIOTICS MARKET BY APPLICATION

5.1. Introduction

5.2. Functional Food and Beverages

5.3. Dietary Supplements

5.4. Animal Feed

6. VIETNAM PROBIOTICS MARKET BY END-USERS

6.1. Introduction

6.2. Human

6.3. Animal

7. VIETNAM PROBIOTICS MARKET BY FUNCTION

7.1. Introduction

7.2. Regular

7.3. Preventative Healthcare

7.4. Therapeutic

8. VIETNAM PROBIOTICS MARKET BY TYPE

8.1. Introduction

8.2. Lactobacillus

8.3. Streptococcus

8.4. Bifidobacterium

8.5. Spore Formers

8.6. Others

9. VIETNAM PROBIOTICS MARKET BY FORM

9.1. Introduction

9.2. Liquid

9.3. Dry

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Yakult Honsha Co Ltd 

11.2. PAN Group 

11.3. BioGaia

11.4. Kirin Group

11.5. Morinaga Milk Industry

Yakult Honsha Co Ltd 

PAN Group 

BioGaia

Kirin Group

Morinaga Milk Industry