Demand soars, but few traders cash in on organic food wave
Demand soars, but few traders cash in on organic food wave
Even though customer demand for organic food is on the rise, the number of enterprises offering organic foodstuffs remains small, said a representative of a food association at a press conference on July 23.
Speaking at the press briefing to introduce international exhibitions on food and beverages (Vietfood & Beverage 2019) and processing and packaging (Propack 2019), Ly Kim Chi, chairwoman of the HCMC Food and Foodstuff Association (FFA), said that the organic food wave has emerged quickly and some firms are making the most of the trend in the market.
Compared with one or two years ago, organic food is being sold more widely, Chi said, adding that despite the high demand for organic food, few firms are offering organic products.
Chi said that a mere 20% of FFA members are engaged in this field. This is a modest figure, and it is far too low to satisfy the rising number of customers demanding organic food, she said.
The organic food market in HCMC is growing fast, with the opening of a slew of specialized store chains. A variety of organic products are available at several supermarkets such as Co.opmart, Co.opXtra, Big C, Lotte Mart, and Emart.
However, as the number of large-scale firms involved in manufacturing and processing organic food is low and others operate on a small scale, the prices of organic products remain higher than what most consumers can afford, Chi added.
Some experts have said that to cut prices of organic food, the production cost needs to be slashed, and the number of firms manufacturing organic products on a large scale needs to increase.
Discussing the local food market, the FFA representative said that the food sector is growing faster than other sectors. With over 95 million customers, the market is attracting many foreign investors and firms.
Chi said that foreign food processors have, of late, begun to dominate the market and grabbed a larger market share compared to domestic food processing firms. The trend is forecast to continue in the near future.
The city provides over 70% of the country’s total food volume manufactured by firms, Chi said, adding that most of the hi-tech food firms are located in HCMC.
Therefore, the annual Vietfood & Beverage and Propack events have been attracting more and more foreign firms and multinational groups over the past few years.
Vietfood & Beverage 2019 and Propack 2019, which are expected to start at the Saigon Exhibition and Convention Center in HCMC on August 7, are being jointly organized by the Vietnam National Trade Fair and Advertising Company, the Vietnam Association of Liquor, Beer, and Beverage, and the FFA.
The exhibitions will feature 650 booths of 550 domestic and international firms, with eight pavilions for groups of enterprises from China, India, Poland, South Korea, Thailand, Indonesia, Taiwan, and Vietnam.
The exhibitors will introduce products from major subsections of the food and beverage sector, including food, beverages, food materials and additives, and equipment and machinery for producing, packaging, and preserving food.
