Market Trends of Vietnam Paper Packaging Industry
Increasing Demand for Carton Paper from the E-commerce Sector to Drive the Market
- According to the Vietnam E-Commerce White Book 2022 published by the Vietnam E-commerce and Digital Economy Agency, this year's B2C retail e-commerce revenue in Vietnam is expected to reach USD 16.4 billion, making it the first year to surpass this milestone (Ministry of Industry and Trade).
- The country's electronics industry is one of Vietnam's fastest-growing and crucial industries. It is dominated by multinational organizations and has significantly boosted the country's trade volume and contributed to its GDP in the past decade.
- Electronic products include a wide range of fragile products and require extra care while shipping. Thus, the packaging of these goods requires a protective feature. Window cartons are generally used for packaging in the electronics industry. They have a transparent window that helps the customer get an idea of that product. Lamps, switches, and bulbs are some products that are usually packed in window cartons.
- Trends like K-beauty and multi-step cleansing to address skincare concerns, such as acne, large pores, and dark under eyes, are increasing in the Vietnamese beauty industry. Most skincare shoppers in Vietnam still prefer a one-step skincare routine, although it recently lost its appeal while two-step and three-step routines have gained popularity. Such a trend has increased the demand for carton packaging in the cosmetic sector.
- Vietnam is aiming for a double-digit annual growth rate in the turnover of e-commerce over the next five years. According to the Vietnam government's data on e-commerce development strategy, over half of Vietnam's 96 million people are set to shop online by 2025. Such projections would lead to higher demand for carton paper in the e-commerce sector.
Understand The Key Trends Shaping This Market
Download Sample
Food and Beverages Industry to Hold Significant Market Share
- The growth in the food packaging sector resulted in the increased demand for paper packaging in the country. It is also estimated that eco-friendly products made from paper have the potential for growth in the food packaging industry to replace disposable plastic products.
- According to Tetra Pak, a food processing and packaging solutions company, the liquid food market in Vietnam has been growing at a healthy 6% compound annual growth rate for the last three years. It is projected to grow at a similar rate during the next three years, compared to the 4% growth per annum in the Asia-Pacific region and 3% globally.
- With higher income and better awareness of nutrition, Vietnamese people have sustainably increased their purchase of dairy products. All the dairy supply chain stakeholders have been actively changing and innovating. Distribution channels have also been improved, especially with the thriving of e-commerce.
- Vĩnh Long Province built many programs to support the growth of children and invest in high-quality human resources for the locality in the future. For instance, the 'School milk for children in public preschools and primary schools during the period 2018-21' project aims to improve the nutritional status of preschool and primary students, helping them physically and mentally develop. Such programs contribute to the growth of liquid paper cartons for milk.
- Although Vietnam is a lucrative market for alcoholic beverages, especially beer, a dynamic shift occurred, showing a growing market for healthy soft drinks. Moreover, naturally healthy beverages, such as tea and fruit or vegetable juices, have been gaining popularity.
