This period is considered as the “golden age” for Vietnam dairy industry to develop, which creates great opportunities for supporting businesses. Thanks to its exponential growth, the packaging industry is also making a substantial progress.
In many years, Vietnam dairy industry always witnesses a dramatic growth. According to the report of Vietnam Industry Research and Consultancy (VIRAC), the value of milk consumption in Vietnam reached the Compounded Annual Growth rate of 11.7% in the period of 2010-2016. In the first three months of 2017, it reached 18.7 billion VND, an increase of 13.9% compared with the same period in 2016. Therefore, now is the golden time for Vietnam dairy industry to rise; thereby, creating a large opportunity for supporting businesses including packaging industry.
Vietnam is appreciated as a potential market for dairy products. According to VIRAC’s Dairy industry report, dairy products still have more space to develop because of the rise in citizens’ income and demand for milk in both urban and rural areas. Furthermore, around one-third of the population is in 16-30 age group who tend to use various nutrition drinks. According to the prediction of VIRAC, the sales of dairy products will be over 2.5 million liters in 2020.
Furthermore, facts point out that, eye-catching packages are a decisive factor in the growth in milk sales and the choices of customers, which means packaging enterprises such as Tetra Pak have numerous opportunities to grow strongly.
Tetra Pak is one of the two largest suppliers of paper boxes for liquid products in Vietnam. In 2016, Tetra Pak sold nearly 7.5 billion boxes with the capacity of 1.4 billion liters in which boxes for dairy products made up the bulk. Besides, in the end of 2017, Tetra Pak will invest 110 million USD in constructing the first packaging factories for liquid products in Vietnam.
However, one of the biggest challenges for the domestic packaging industry is low technology which makes enterprises not really be involved in the value chain and creates sustainable profits. Therefore, the solution in the coming time is the change and application of new technology in production, the application of new materials and investment in advanced production lines to increase efficiency and ensure quality