Clean, organic products are in high demand.

Businesses report that sales of organic products have been steadily increasing over the years, with an average growth rate of 20-40% annually.

Ms. Hoa, a resident of District 5, has abandoned her habit of shopping at traditional markets and switched to an organic store near her home. Although the prices there are twice as high, Ms. Hoa feels that organic products not only stay fresh longer but also guarantee quality. "Some bunches of vegetables and green onions last for a whole week without wilting, unlike those from the market. This makes me feel more secure using them," she shared.

The story of Ms. Hong Hanh in Go Vap district is similar. For the past year, she has switched to buying organic fresh milk for her young child, even though it costs twice as much as the regular kind. For Ms. Hanh, the natural flavor and rich creaminess of organic milk are completely worth the cost.

According to a Euromonitor report, the organic food market in Vietnam reached a value of US$100 million in 2023, representing a 20% increase compared to 2020. This growth is evidenced by the increasing presence of organic products in major supermarkets such as Co.opmart, Winmart, Lotte Mart, and MM Mega Market.

Mr. Le Thanh Trung, Value Chain Manager for Fresh Food at Central Retail Vietnam, said that organic vegetables from Churu ethnic women, although 25-35% more expensive than conventional produce, are still popular. "Many customers have to order in advance because the products are frequently sold out," Mr. Trung shared.

Mr. Nguyen Van Hiep, Director of Co.opmart Phu Tho , said that green and organic food has seen double-digit growth in the first six months of the year. Supermarkets have begun to dedicate areas to display these products, meeting the increasing demand from consumers.

Interest in organic goods extends beyond food to include beverages and cosmetics.

Leading the trend of sustainable development in Vietnam's dairy industry, Vinamilk representatives announced the launch of its Organic and Green Farm milk lines. Revenue from these two lines increased by 40% in 2023 compared to 2022, and continued to grow by 30% in the first quarter of this year.

Similarly, Mr. Phan Minh Thong, General Director of Phuc Sinh Joint Stock Company, said that the company's organic coffee and pepper are not only popular abroad but are also experiencing strong growth in the domestic market.

"In the first six months of the year, the company's revenue reached $175 million, a 40% increase compared to the same period last year, with domestic revenue growing by 50%," Mr. Thong shared.

Organic cosmetics are also "dominating" the beauty industry in Vietnam, and despite their high prices, they remain popular with consumers. According to Ms. Vo Thi Lan, CEO of LCUK, the exclusive distributor of Protocol products from the UK, Vietnam leads the direct sales market, surpassing France, Italy, and Dubai. Ms. Lan also revealed that in the next four months, the company will launch the high-end organic cosmetics line Paoma from France, with pre-orders soaring since its introduction. "We're even worried about running out of stock," Ms. Lan shared.

According to businesses, the increase in demand for organic products is not just a passing trend but has become part of the modern lifestyle. As consumers increasingly focus on the quality and origin of products, the organic market in Vietnam promises to continue to grow strongly in the future.

According to Mordor Intelligence, a leading market research firm from India, the global organic food and beverage market is on a strong growth trajectory. Projected to reach over $174 billion by 2024, this figure is expected to surge to over $233 billion by 2029, with a compound annual growth rate (CAGR) of 6.02%. Notably, the Asia- Pacific region is leading this growth trend, with the most impressive growth prospects during the forecast period.

While not developing as rapidly as other regions, Vietnam is being recognized as a booming destination for clean, organic goods. The Vietnamese government has actively promoted the development of sustainable organic agriculture by businesses over the past three years, aiming to stabilize the market and meet growing demand. Simultaneously, the Vietnam-EU Free Trade Agreement (EVFTA) has facilitated the entry of organic products from Europe into the Vietnamese market at more competitive prices, offering consumers more affordable choices.

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