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Tuesday, July 16, 2024

Food production boosted in preparation for shopping spree 

The Saigon Times

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HCMC – Food and beverage manufacturers are ramping up output in preparation for a demand surge at the end of the year.

According to an analysis of Mordor Intelligence Inc, a leading market research company, the Vietnam food service market is projected to register a compound annual growth rate of 8.65% from 2021 to 2026.

The forecast shows a positive outlook for the industry amid widespread economic distress caused by Covid-19 and input price upheavals. Still, there is considerable scope for growth in the sector.

Vinh Thanh Dat Food Corporation reported that it had produced a massive amount of egg products, enough to meet the market demand even if it surged by 50%. The company predicted that egg prices would not rise in the coming time.

Ly Kim Chi, chair of the Food and Foodstuff Association of HCMC (FFA), said most enterprises in the industry had stored goods for adequate supply until February 2023. However, they accumulated stocks for just three months instead of six as usual due to a lack of capital, she added.

In a recent report, FFA projected that the demand for food products would soar by 30% in late 2022.

Statistics from the General Statistics Office of Vietnam showed that the food service market accounted for nearly a fifth of the manufacturing and processing sector, the highest among other industries.

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