Organic products grow in popularity despite high prices

Hoa of HCMC’s District 5 recently started shopping at a store specializing in organic foods near her home instead of traditional markets though prices are double.

She says organic products not only stay fresh longer but also have better quality.

"Organic vegetables and green onions only begin to wilt after a week when those from wet markets would have already rotted."

Hong Hanh of HCMC’s Go Vap District has similarly switched to buying organic milk for her young child.

She says the product is worth its high price due to its natural creaminess and flavor.

According to a report by British market research firm Euromonitor, Vietnam's organic food market had grown by 20% since 2020 to US$100 million last year.

Le Thanh Trung, commercial manager at retail giant Central Retail Vietnam, says organic vegetables grown by the Churu – an ethnic minority group in Vietnam – have high demand despite being 25-35% more expensive than regular produce.

"Many customers have to place orders in advance because these products often sell out quickly."

Nguyen Van Hiep, director of a Co.opmart supermarket in HCMC’s District 11, says green and organic foods experienced double-digit growth in the first half of this year.

A spokesperson for dairy giant Vinamilk says sales of two organic product lines jumped by 30% year-on-year in the first quarter.

Organic cosmetics are also selling well, with many consumers favoring them despite high prices.

Vo Thi Lan, CEO of LCUK, an authorized distributor of U.K. skincare brand Proto-col, says the brand’s sales are higher in Vietnam than in France, Italy or Dubai.

She adds that the number of pre-orders for the firm’s new organic product, set to launch later this year, is so high there might not be enough stock.

Businesses reckon the organic product market will grow even more in future as consumers focus more on the quality and origin of the goods they consume.

Market research company Mordor Intelligence expects the global organic products market to grow at a compounded rate of 6.02% until 2029 for to reach a size of $233 billion, with the Asia-Pacific region experiencing the fastest growth.

Over the last three years the Vietnamese government has been actively encouraging businesses to adopt organic farming to meet the increasing demand for agricultural products.

The EU–Vietnam Free Trade Agreement signed in 2019 has also facilitated the import of European organic products at competitive prices, providing more affordable options to consumers.