PALMOILMAGAZINE, JAKARTA – Palm cooking oil consumption in Vietnam has increased by 0.5 percent annually, driven by high urbanization and rising living standards. However, the country relies heavily on imports for its vegetable oil supplies, with imports making up 70% of the market, primarily consisting of palm oil. In response to this supply gap, the Vietnamese government is developing domestic palm oil plantations.
The vegetable oil trade in Vietnam is showing significant growth, with a compound annual growth rate (CAGR) of 7.29% projected from 2024 to 2028, according to Statista. This growth is supported by demographic shifts and changing consumer behaviors.
Rapid urbanization and improved living standards are transforming Vietnamese society, increasing demand for consumption products and elevating living conditions. Urban residents typically have greater purchasing power and a heightened awareness of health, which influences their choices in high-quality cooking oil.
Also Read: The People’s Cooking Oil DMO Policy Proposed to be Improved
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. (P2)
