Mooncake season picks up as bakeries ramp up production in Ho Chi Minh City

In Vietnam, mooncakes are a traditional pastry closely associated with the Mid-Autumn Festival, when families gather and the cakes are commonly shared or given as gifts.

The festival falls on the 15th day of the eighth lunar month and takes place on September 25 this year.

As the festival approaches, a survey by Tuoi Tre (Youth) newspaper found that corporate orders and demand for less-sweet mooncakes and new flavors remain strong in Ho Chi Minh City.

Some outlets have also continued to draw crowds despite higher prices, with customers lining up to buy mooncakes since the beginning of the seventh lunar month.

Mooncake makers prepare for peak production as demand builds

Phuong Trien Phong, director of Phuong Diem Thuan Food Technology Co., Ltd., said his bakery has ramped up production, with activity picking up from the middle of the sixth lunar month.

The bakery is currently selling around 500 mooncakes a day, below last year's peak output of 500-1,000 cakes a day.

Production is expected to rise to 1,000-2,000 cakes a day over the next 10 days as the market enters its peak period, including both wholesale and retail orders, Phong said.

Several producers have raised prices this year. At Phuong Diem Thuan, prices are up 8-10 percent, mainly due to higher input costs.

"Ingredients such as pumpkin seeds, melon seeds, Chinese sausage, fillings, and eggs were purchased and prepared in March and April, when prices were already higher than last year, so finished-product prices have also increased," Phong said.

Mooncakes at Phuong Diem Thuan start at around VND79,000 (US$3) each, while larger 800-gram to one-kilogram cakes can cost nearly VND900,000 ($34) apiece.

Retail demand remains below expectations

At several mooncake outlets on Nguyen Tri Phuong Street in An Dong Ward, few customers have been visiting each day despite the early start to the sales season.

A representative of one outlet said mooncakes have sold relatively slowly at such locations in recent years, leaving fewer businesses willing to open sales booths early.

Tran Thi My Duyen, manager of Cluster 1 at BreadTalk Vietnam, said demand this year is generally about 20 percent lower than usual.

However, customer traffic has started to pick up slightly in recent weeks, particularly as shoppers have begun buying more cakes per transaction.

"Previously, customers usually bought one or two cakes at a time, but recently some have been buying three or four boxes in one purchase," Duyen said.

BreadTalk has raised mooncake prices by about 10-15 percent from last year.

The increase has made new customers more price-sensitive, with many buying a small quantity first before placing larger orders. 

Regular customers, who are familiar with the products, have been more accepting of the higher prices.

Many shoppers are also comparing prices at different outlets before making a purchase, Duyen said, adding that competition has intensified as more brands enter the market.

Traditional mixed-nut, roast-chicken mixed-nut, stir-fried pineapple and durian flavors remain popular.

The bakery has also introduced Cappuccino and Tiramisu flavors to attract customers looking for new options, while developing vegetarian mooncakes for gift-giving and vegetarian customers, Duyen said.