Source: stockbiz.vn
Cool meat is meat that is cooled to stabilize the temperature between 0 and 4 degrees Celsius, within 24 hours after slaughter. Photo: Masan MEATLife
In a recently updated report on the outlook for Vietnam’s chilled meat market, Rong Viet Securities (VDSC) said that the value of Vietnam’s meat market recorded a compound growth rate (CAGR) in the period 2018-2023 reaching 4. 4%/year, mainly led by beef, goat, and chicken. This is thanks to higher awareness of health and the tendency to exercise and limit foods high in fat and cholesterol.
For the period 2024-2028, the analyst believes that the beef and goat meat market will continue its leading role when per capita consumption is not high and tourism recovery with many tourists from countries with Culinary culture is more closely associated with these two types of meat. Meanwhile, pork or poultry has reached the saturation point in terms of per capita consumption when compared to countries in the region with similar culinary cultures such as China, Thailand, Philippines, Laos, Cambodia…
VDSC cited Euromonitor research as saying that meat market growth will decelerate with a low CAGR of 4.1% for the period 2024 – 2028, because the growth in consumption of new meats such as beef and goat is not enough to compensate. compensate for the saturation in consumption of pork and poultry – the main consumer products in Vietnam.
Despite the low growth potential of the market size as mentioned above, VDSC still sees a wave of entry/increased investment in the meat market from big players like Vissan (VSN), MeatDeli (Masan MEATLife, MML), Hoang Anh Gia Lai (HAG), Hoa Phat, CP, Vilico. This comes from the potential to shift consumption from hot meat to cool meat, packaged by reputable units in the long term.
More specifically, hot meat is mainly traded in markets, of unknown origin, while cool meat is packaged and produced by reputable units sold in supermarket chains. The growth of modern supermarket channels compared to markets will promote growth of the chilled meat industry. Besides, consumer awareness is increasing regarding cool meat, which is healthier and has a clearer origin than hot meat.
According to Euromonitor, the proportion of chilled meat consumption in Vietnam is at a low level – reaching approximately 9% by 2023, compared to developed countries such as China, reaching about 40% by 2017.
Proportion of chilled meat consumption in the total Vietnamese market
However, VDSC realized that the market still encountered bottlenecks that prevented great potential from being materialized.
The first is the habit of consuming hot meat associated with long-term markets. Many users (especially gen
Second is the selling price. Cool meat developers in Vietnam must maintain a cumbersome cost structure in operating the production plant, importing the cost of animal feed and breeding animals to the storage system, packaging and discounting in Vietnam. Modern retail locations. Therefore, the output selling price is often higher than the market to ensure profit.
In addition, fierce competition in the chilled meat market (CP, Hoa Phat, Vissan, MeatDeli, BaPi, HAG…) while the scale of the pie is not large enough, it also causes businesses to plunge into a spiral of low revenue and thin profits in recent years.
The analysis unit believes that the speed of development of modern supermarket channels coupled with the ability to spread the benefits of cool meat to the consumer consciousness of the entire population is the key to opening up the potential of this market in the long term, respectively. with investment opportunities for stocks in the industry.
Investors also need to pay attention to the market share development of supermarket systems related to these manufacturers such as Co.op Mart (Vissan), Bach Hoa Xanh, Go!, Lan Chi (CP, G), Winmart (MML) for investment decisions; Due to fierce competition, a meat brand is often only distributed in certain supermarket chains that they develop themselves.
VDSC further noted that pure meat businesses such as MML nice VSN often have higher gross profit margins than wholesale pig businesses such as BAF, DBC due to the cost structure of selling packaged chilled meat at supermarkets is higher than distributing to small businesses. For example, staff costs, sales support
Cool meat is meat that is cooled to stabilize the temperature between 0 and 4 degrees Celsius, within 24 hours after slaughter. Photo: Masan MEATLife
In a recently updated report on the outlook for Vietnam’s chilled meat market, Rong Viet Securities (VDSC) said that the value of Vietnam’s meat market recorded a compound growth rate (CAGR) in the period 2018-2023 reaching 4. 4%/year, mainly led by beef, goat, and chicken. This is due to higher awareness of health and the tendency to exercise and limit foods high in fat and cholesterol.
For the period 2024-2028, the analyst believes that the beef and goat meat market will continue its leading role when per capita consumption is not high and tourism recovery with many tourists from countries with Culinary culture is more closely associated with these two types of meat. Meanwhile, pork or poultry has reached the saturation point in terms of per capita consumption when compared to countries in the region with similar culinary cultures such as China, Thailand, Philippines, Laos, Cambodia…
VDSC cited Euromonitor research as saying that meat market growth will decelerate with a low CAGR of 4.1% for the period 2024 – 2028, because the growth in consumption of new meats such as beef and goat is not enough to compensate. compensate for the saturation in consumption of pork and poultry – the main consumer products in Vietnam.
Despite the low growth potential of the market size as mentioned above, VDSC still sees a wave of entry/increased investment in the meat market from giants such as Vissan (VSN), MeatDeli (Masan MEATLife, MML), Hoang Anh Gia Lai (HAG), Hoa Phat, CP, Vilico. This comes from the potential to shift consumption from hot meat to cool meat, packaged by reputable units in the long term.
More specifically, hot meat is mainly traded in markets, of unknown origin, while cool meat is packaged and produced by reputable units sold in supermarket chains. The growth of modern supermarket channels compared to markets will promote growth of the chilled meat industry. Besides, consumer awareness is increasing regarding cool meat, which is healthier and has a clearer origin than hot meat.
According to Euromonitor, the proportion of chilled meat consumption in Vietnam is at a low level – reaching approximately 9% by 2023, compared to developed countries such as China, reaching about 40% by 2017.
Proportion of chilled meat consumption in the total Vietnamese market (%). Source: VDSC
However, VDSC realized that the market still encountered bottlenecks that prevented great potential from being materialized.
The first is the habit of consuming hot meat associated with long-term markets. Many users (especially gen
Second is the selling price. Cool meat developers in Vietnam must maintain a cumbersome cost structure in operating the production plant, importing the cost of animal feed and breeding animals to the storage system, packaging and discounting in Vietnam. Modern retail locations. Therefore, the output selling price is often higher than the market to ensure profit.
In addition, the fierce competition in the chilled meat market (CP, Hoa Phat, Vissan, MeatDeli, BaPi, HAG…) while the scale of the pie is not large enough also causes businesses to plunge into a spiral of unprofitable revenue. high and thin profits in recent years.
The analysis unit believes that the speed of development of modern supermarket channels along with the ability to spread the benefits of cool meat to the consumer consciousness of the entire population is the key to opening up the potential of this market in the long term, respectively. with investment opportunities for stocks in the industry.
Investors also need to pay attention to the development of market share of supermarket systems related to these manufacturers such as Co.op Mart (Vissan), Bach Hoa Xanh, Go!, Lan Chi (CP, G), Winmart (MML) for investment decisions; Due to fierce competition, a meat brand is often only distributed in certain supermarket chains that they develop themselves.
VDSC further noted that pure chilled meat businesses such as MML or VSN often have higher gross profit margins than wholesale pork businesses such as BAF and DBC due to the cost structure of trading packaged chilled meat at supermarkets. higher than distribution to small business households. For example, staff costs, sales support
