InfoSAWIT, JAKARTA - Palm cooking oil use in Vietnam got escalated 0,5 percent per year. It was supported by the highly urbanization and life standards. But vegetable oil supplies in the country were dominated by imports that reached up to 70% and dominated by palm oil. The Government of Vietnam does not stay still. It develops palm oil plantations to solve the supply deficit.
Vegetable oil trade in Vietnam significantly showed its progress. The compound annual growth rate (CSGR) reached 7,29 percent between 2024 to 2028, according to data from Statista. This was encouraged by some key factors that showed the changes in demography structures and consumers’ behavior in the country.
The fast urbanization and the increasing life standard in the country delivered big changes in the society. The urbanization escalated not only demands on consumption products, but also escalated life standards. The urban tends to have higher buying capacity and the bigger awareness that healthy life is significant, including in choosing qualified cooking oil.
This encouraged the main factors of increasing vegetable oil demands in the country. The consumers get oil products that offer health advantages, such as, in low saturated fat, high unsaturated fatty acid, because the two would be good for heart.
Since 2017, palm cooking oil use has been increasing about 0,5 percent per year in Vietnam. The trend showed that the consumers in the country adopted vegetable oil in their daily diet. This was encouraged by the health education campaigns that informed the people to select better cooking oil.
In 2021, Vietnam was the 52nd biggest vegetable oil consumer in the world. This showed that even though the country was not in the highest level globally, Vietnam would have the big potential and would positively increase.
With the increasing projection progress, vegetable oil trade in the country would be a prospect. Many cooking oil companies should keep innovating to qualify the increasing demands both in the quality and diversification of vegetable oils.
As quoted from Vietnam Briefing, vegetable oil trade in the country would keep developing as the people’s life standard and style change, and consumers’ preference. The innovation in healthier cooking oil, and effective marketing, would be the keys to get bigger trade in the future. (T2)
