Vietnam’s health supplement industry is experiencing remarkable growth, driven by increasing consumer awareness and a booming market. As foreign businesses eye this lucrative sector, it is crucial to understand the opportunities and challenges present in the health supplement landscape. This article highlights the key opportunities that companies like Takeda can tap into the health supplement industry in Vietnam and introducing to our latest publication, “Doing Business in ASEAN 2024 – 2025.“
Current trends and opportunities in the health supplement industry
Growing market demand
The health supplement industry in Vietnam is valued at approximately USD 600 million as of 2022 and is expected to grow at a compound annual growth rate (CAGR) of 18% from 2024 to 2030. This growth can be attributed to rising health awareness, increased disposable incomes, and an expanding middle class. Notably, 58.5% of individuals over 18 are using health supplements, influenced by the internet and media.
Additionally, the Vietnam Association of Functional Foods (VAFF) collaborates with domestic agencies and international organizations like AAHSA and IADSA. These partnerships provide foreign businesses access to regional and global expertise, fostering an environment conducive to growth and innovation in the health supplement industry.
Vietnam Health Supplement Market 2024
Collaborative opportunities in the health supplement sector
Foreign manufacturers can enter Vietnam’s health supplement industry through local distributors and trading companies. Collaborating with a reliable local partner is essential for navigating the complexities of the health supplement market. This partnership not only aids in understanding consumer behavior but also helps in overcoming regulatory hurdles.
To establish a trading company, foreign businesses must obtain several certificates, including investment registration and a functional food license. Meeting these requirements and maintaining high product standards can significantly enhance a company’s market presence in the health supplement industry.
Emerging trends and growth areas in the health supplement market
Health consciousness and aging population
The COVID-19 pandemic has accelerated a trend of health consciousness among Vietnamese consumers. There is a growing demand for products that enhance immunity and overall well-being within the health supplement industry. Furthermore, an aging population is driving the market for supplements that address age-related health issues, such as joint health and cognitive function.
Innovations in health supplement offerings
Innovation plays a critical role in the health supplement sector’s growth. The rise of e-commerce and digital health platforms is enhancing consumer education and convenience. Additionally, product innovations, including personalized nutrition and supplements targeting specific health conditions, are expected to propel market expansion in the health supplement industry.
Moreover, herbal supplements, which make up over 70% of the market, are gaining traction. Products like ginseng are particularly valued for their health benefits and perceived safety. This trend indicates a robust opportunity for foreign businesses focusing on traditional and herbal products within the health supplement industry.
Takeda’s commitment to healthcare in Vietnam
In addition to the opportunities outlined, companies like Takeda are making significant strides in Vietnam’s healthcare landscape. For over a decade, Takeda has been a dedicated healthcare partner of Vietnam, delivering transformative treatments and contributing to public health. The recent approval of Takeda’s dengue vaccine further solidifies this commitment.
Mr. Dion Warren, Area Head of India & Southeast Asia (I-SEA) at Takeda, shares insights into the company’s journey in Vietnam, its impact on public health, and what lies ahead for the organization. At the end of September, Mr. Warren and Dr. Derek Wallace, President of the Global Vaccine Business Unit (VBU), will visit Vietnam to officially launch the dengue vaccine, following its approval by the Ministry of Health in May 2024. This visit marks a significant moment as Takeda continues its efforts to support Vietnam in its dengue prevention journey.
Source: Vietnam News
Takeda’s dengue vaccine manufacturing facility in Germany. — Photo Courtesy of Takeda. Source: Vietnam News
Challenges in the health supplement sector
Regulatory compliance
Despite the promising outlook of the health supplement industry, foreign businesses face significant challenges. Regulatory compliance is a primary concern, as government regulations often lag market developments. Partnering with local regulatory experts can help navigate this complex landscape and ensure compliance with local laws in the health supplement market.
Market competition and distribution challenges
The health supplement industry is highly competitive, with numerous local and international players. Companies must differentiate themselves through branding, quality assurance, and consumer education. Additionally, ensuring a robust distribution network, especially in rural areas, is essential. Developing partnerships with local distributors and leveraging e-commerce platforms can facilitate greater reach in the health supplement market.
Addressing illegal products and false advertising
The proliferation of illegal products and false advertising poses significant risks to the health supplement industry. Misleading claims on platforms such as Zalo, Facebook, and YouTube can deceive consumers. Companies must engage with authorities to enforce regulations and maintain transparent marketing practices. This proactive approach can help build trust with consumers and regulators alike.
Final Thoughts
Vietnam’s health supplement industry presents substantial opportunities for growth and innovation, especially for foreign businesses willing to navigate the challenges. With increasing health awareness, an aging population, and rising disposable incomes, the market is poised for expansion. Partnerships with local distributors and adherence to regulatory standards are vital for success in this dynamic environment.
Further Insight by our newest publication “Doing Business in ASEAN 2024 – 2025”
For a broader perspective on business opportunities in the ASEAN region, check out our latest publication, “Doing Business in ASEAN 2024 – 2025” This guide explores the evolving economic landscape, offering key trends and strategic insights for foreign investors. Whether you’re interested in regional dynamics or specific sectors like the health supplement industry, this resource equips you with essential knowledge to navigate the complexities of doing business in ASEAN. Seize the potential that awaits in this vibrant market!
