Dairy Culture and Market Demographics
Dairy products, especially milk, are an integral part of the American lifestyle. Historically, the American Dairy Association, doctors, and parents encouraged drinking four 8-ounce glasses of milk, and even today, the USDA Food Pyramid teaches primary students to consume three servings of dairy products daily . With Got Milk? campaigns, cooperatives, and schools supporting the industry, dairy products have become a part of American culture.
However, the popularity of milk is beginning to decline. According to the USDA, Americans drink 37% less milk on average today than they did in 1970 due to health concerns and the rise in substitutes. Alternative milk products such as almond, soy, and rice milk are lactose-free …show more content…
As a result, dairy consumption and its benefits were not widespread. However, as Vietnam’s GDP, income growth, and appetite for Western tastes increase, so does the demand for dairy. With that being said, there are still large inconsistencies in where Vietnamese consumers consume dairy, with 78% of dairy consumption concentrated in 10% of the population, Ho Chi Minh and Hanoi . Dairy consumption is also heavily segmented, with primary consumers being babies and the elderly due to dairy’s nutritional attributes. Unlike the U.S., Vietnam has not reached the stage of development where consumers have diverse access to health substitutes for dairy. Vietnam has a relatively young population, with 25% of the population ages 0-14 and a median age of 27 .
This new culture of dairy consumption has provided Vinamilk with a competitive advantage because it has the first-mover advantage in capitalizing on the dairy market. Vinamilk offers products that provide the nutritional attributes (i.e. soymilk, nutritional powder) desired by its young and old, and a large, youth Vietnamese population gives Vinamilk an opportune, steady, and growing market. Furthermore, Vinamilk has the advantage of marketing its nutritional benefits without the threat of other substitutes like green juices and pills - products that are rare and expensive for the majority of Vietnamese population
Dairy products, especially milk, are an integral part of the American lifestyle. Historically, the American Dairy Association, doctors, and parents encouraged drinking four 8-ounce glasses of milk, and even today, the USDA Food Pyramid teaches primary students to consume three servings of dairy products daily . With Got Milk? campaigns, cooperatives, and schools supporting the industry, dairy products have become a part of American culture.
However, the popularity of milk is beginning to decline. According to the USDA, Americans drink 37% less milk on average today than they did in 1970 due to health concerns and the rise in substitutes. Alternative milk products such as almond, soy, and rice milk are lactose-free …show more content…
As a result, dairy consumption and its benefits were not widespread. However, as Vietnam’s GDP, income growth, and appetite for Western tastes increase, so does the demand for dairy. With that being said, there are still large inconsistencies in where Vietnamese consumers consume dairy, with 78% of dairy consumption concentrated in 10% of the population, Ho Chi Minh and Hanoi . Dairy consumption is also heavily segmented, with primary consumers being babies and the elderly due to dairy’s nutritional attributes. Unlike the U.S., Vietnam has not reached the stage of development where consumers have diverse access to health substitutes for dairy. Vietnam has a relatively young population, with 25% of the population ages 0-14 and a median age of 27 .
This new culture of dairy consumption has provided Vinamilk with a competitive advantage because it has the first-mover advantage in capitalizing on the dairy market. Vinamilk offers products that provide the nutritional attributes (i.e. soymilk, nutritional powder) desired by its young and old, and a large, youth Vietnamese population gives Vinamilk an opportune, steady, and growing market. Furthermore, Vinamilk has the advantage of marketing its nutritional benefits without the threat of other substitutes like green juices and pills - products that are rare and expensive for the majority of Vietnamese population