[The K-Food Captivating the World]③ Vietnam Pet Food Rapidly Growing After COVID-19... Korean Food Expanding Its Reach

'Human Grade' K-Pet Food... High Quality and Taste
Vietnam Export Value Up 32.1% in 2023
Vietnam, Where K-Food Is Popular... Advancing Export Strategies

"Along with the global expansion of the pet food market, the Vietnamese pet food market has also been rapidly growing since the COVID-19 pandemic. Korean products are evaluated by Vietnamese people as 'more expensive than low-priced products, but of good quality and safe enough for human consumption, and also tasty.' Based on this perception, the market share in Vietnam is increasing." (Nguyen Thi Hai Ha, CEO of Samyang Anipham)

On the 26th of last month, CEO Nguyen is explaining the pet food market in Vietnam at the Samyang Anipam office located in Hanoi, Vietnam.

The K-pet food craze is sweeping strongly in Vietnam. The popularity of K-food centered on strawberries is spreading to various products including pet food. According to the Korea Agro-Fisheries & Food Trade Corporation (aT), last year, K-pet food exports to Vietnam amounted to $15.28 million, a 32.1% increase from the previous year, and the cumulative export amount up to August this year reached $9.5 million.

On the 26th of last month, we visited an animal hospital and pet food store in Hanoi, Vietnam, operated by Samyang Anipham. Anipham operates a total of five animal hospitals in Vietnam and imports and sells Korean veterinary medicines and pet food in Vietnam. CEO Nguyen explained, "The pet cat and dog market in Vietnam has rapidly grown over the past two years since COVID-19. Unlike Korea, in Vietnam, 65% of pet ownership is cats, with the remainder being dogs, so the pet cat market is large."

Anipham only handles Korean products such as Samyang, Dongwon, and Sajo. The import value of K-pet food increased significantly from $80,000 to $2 million in 2023. The growth background was largely due to the perception that "K-pet food is safe." CEO Nguyen said, "Among Vietnamese households raising pet cats, young people with purchasing power are the main consumers, and they are more sensitive to quality than price. K-pet food is 100% 'human-grade' products that can be consumed by people, so Vietnamese people with higher income levels seek them out."

A pet food store operated by Samyang Anyfarm located in Hanoi, Vietnam, on the 26th of last month.

Reflecting this K-pet food boom, aT held the first "ASEAN K-Pet Food Fair" in Hanoi in May last year. The event achieved export consultation results worth $52.7 million. Through the annual "Planned Buyer Invitation Project," aT also invited Vietnamese distributors to the "Pet Expo" held in Korea last year.

CEO Nguyen forecasted, "Currently, cats account for a large share of pet food, but the share of dog food is expected to increase in the future. Although it is still early, as the pet food market expands, the demand for Korean products, which have established themselves as premium products in Vietnam, will increase."

Efforts to take K-food exports to the next level are also attracting attention. Vietnam is one of the major markets for K-food. According to the Ministry of Agriculture, Food and Rural Affairs, agricultural and fishery food exports from January to August this year reached $556.92 million. However, the growth rate compared to the previous year was only 1.4%. Accordingly, the government and aT have embarked on a strategy to sophisticate exports to Vietnam.

First, changes are being made to the B2B (business-to-business) export consultation meetings held during K-food fairs. On the 27th of last month, aT held the "K-Food B2B Distribution Consultation" linked with the "2024 Vietnam Korean Gourmet Week." Until now, B2B consultation meetings connected Korean K-food manufacturers and distributors with Vietnamese distributors, but this time, opportunities were provided for Vietnamese importers already importing K-food and Vietnamese distributors not yet handling K-food to meet. Kim Kyung-chul, head of aT's ASEAN Regional Headquarters, who hosted the event, said, "Vietnam already has a large demand for K-food and is a market with great popularity for Korean food. Reflecting this, we planned a B2B event connecting existing K-food importers with new distributors."

Through this K-food B2B business distribution consultation, 14 K-food export/import companies and 35 Vietnamese B2B food distribution companies, including wholesale and food service sectors, conducted one-on-one purchase consultations, achieving consultation results worth $3.27 million. The event was attended by Megamarket, a Vietnamese distributor importing frozen chicken from Korea. Nguyen Thien Duong, the purchasing manager of Megamarket, said, "Korean chicken is chewy and hygienic, so it is very popular among Vietnamese people. Through this fair, we held consultations with new vendors aiming to distribute Korean chicken in Vietnam and plan to increase import volumes in the future."

The scene of the 'K-Food B2B Distribution Consultation' held in connection with the '2024 Vietnam Korea Gourmet Week' in Hanoi, Vietnam, on the 27th of last month.

Solomon, a specialized importer and distributor of organic products, said they attended this B2B consultation to find Korean organic products. Ha Thuc Nhan Trang, CEO of Solomon, said, "We mainly import organic products from the UK and Europe and distribute them in Vietnam, and have handled Korean jujubes since 2018. As the preference for organic products is increasing in Vietnam, we plan to additionally import Korean organic products such as fruits." Tuan Fruits is also seeking additional imported products through this consultation. Do Thi Sang, Vice President of Tuan Fruits, said, "We currently import Korean Shine Muscat grapes, pears, strawberries, etc., and the import volume is continuously increasing. Korean fruits are perceived as healthy and delicious because fewer pesticides are used, so even if the price is high, the demand for K-fruits in Vietnam will increase."

aT is expanding promotional areas not only in major cities such as Hanoi and Ho Chi Minh but also to small and medium-sized cities to further expand K-food demand in Vietnam. In February, July, and October 2022, promotional events were held in Hai Phong and Ha Long, and until last year, K-food promotional events were also held in second-tier cities such as Vinh, Can Tho, Hoi An, Phu Tho, and Thai Binh. This year, a K-food promotional event was held in Can Tho, 160 km away from Ho Chi Minh City.

Head Kim emphasized, "Vietnam was the fourth largest country in K-food export last year and already has great popularity for K-food, so the expansion strategy is also changing. B2B events will connect not only existing Korean exporters and Vietnamese distributors but also local importers and distributors with new distributors, and we will strive to expand the K-food consumer market to various second-tier cities along with major cities such as Hanoi and Ho Chi Minh."