Vietnam Food and Beverages Market

Vietnam Food and Beverages Market Overview

The market of food and beverage in Vietnam is predicted to rise in the coming years due to significant growth in disposable income and, a growing population, coupled with changing trends and product advancements. With the high demand for food and beverage in Vietnam, during 2022, the GDP of Vietnam achieved $388 billion, along with a high growth of 8.02%. Also, during the same year, according to the Vietnam Ministry of Industry and Trade, Vietnam’s food processing and manufacturing industry expanded by 8.8%. In the sector of food processing, there are more than 8,500 recorded companies and the annual demand for food ingredients surpasses 120 million tons. As the demand for food processing ingredients rises will further spur demand within the F&B Market in Vietnam. In 2022, milk powder, seafood, animal feed, and fresh milk present high growth. In addition, Vietnam’s status as a relatively youthful nation is predicted to shape its future growth potential, leading to the emergence of fresh cultural and lifestyle trends that balance regional tractions with international preferences.

To have an edge over the competition by knowing the market dynamics and current trends of “Vietnam Food and Beverages Market” request for Sample Report here

Generation Z is now entering adulthood, characterized by their openness to trends and a willingness to invest their resources in dining-out experiences, which is fostering the growth of the Food and beverages Market. As per the UN Population Fund report, 25% of Vietnam’s population in 2023, which is nearly 100 million people, falls within the age group of 16-30, while 22% are under the age of 14. This demographic presents Vietnam as an exceptionally youthful nation. In addition, this generation is particularly alert to the environmental impacts of their actions, making them significant drivers of food and beverage market trends in Vietnam during 2023-2030. These trends entail a highlight on ethical sourcing and an increasing demand for locally sourced products. The domestic food and beverage industry in Vietnam is witnessing the fastest growth in market value. This expansion can be coupled with the amalgamation of key factors, including population growth, growing household incomes, and moves in customer preferences and behaviors.

Major Vietnam Food and Beverages Industry Drivers

The growth and size of the Vietnam F&B Market is predicted to increase at the higher growth rate during the forecast period. This growth can be attributed to key factors such as increasing population, growing disposable income, and emerging customer preferences that foster product innovation. However, restrictions in government regulations and fluctuations in raw material prices hinder market growth. The growth in the number of restaurants, applications for food delivery, and fast-food chains like Caviar, Grub Hub, and many others has significantly developed customer availability to food choices, resulting in significant growth in the Food and Beverage Market in Vietnam. Furthermore, the growing customer preference for organic, fresh food products, and natural ingredients among customers owing to increased awareness of health awareness is the key factor projected to boost demand for the Food and Beverage market. As the middle class expands in Vietnam and coupled with effective growth in disposable income around various sectors of the population, higher spending power will further raise demand within the Vietnam food and beverage industry.

Do you want to know more about the Research process and detailed Methodology, Request Research Methodology of this report

Food and non-alcoholic beverages continue to hold the largest share in terms of essential spending within total household spending. Due to a shift in customer preference towards higher-value products, increasing household income the market is anticipated to grow in the forecast period. The consumers in Vietnam with different income levels, place a strong emphasis on product safety and superiority. Subsequently, they are becoming more inclined to pay higher prices, specifically for products from foreign brands. In addition, the consistent growth of the mass grocery retail industry in main towns as well as smaller cities is boosting food consumption by delivering competitive pricing choices to customers.

As the middle class expands in Vietnam, the population is becoming more engaged in global trends such as healthy eating and sustainability and healthier eating. Brands are taking advantage of this by aligning food culture in Vietnam with healthier market offerings, finding synergies between the two. Vietnamese cuisine, known for its usage of fresh vegetables and spices, naturally aligns with the presently healthy eating trends. Government-led campaigns are playing a significant role in raising awareness about food safety and cleaner supply chains. Subsequently, there is an increment in demand for organic food products, propelled by the desire for healthier diets in Vietnam.

Customers in Vietnam are focussing on organic foods, eco-friendly options, and imported products, even at a higher price point. This move in preference is propelling the emergence of dietary trends and leading the growth in the Vietnam F&B Market with strong demand for healthier choices such as gluten-free, keto meals, and eat-clean. Customers are becoming more conscious of how their environment can impact the quality of their food, and this heightened environmental awareness is pushing food and beverage establishments to be more sustainable. Moreover, the F&B Market in Vietnam is witnessing the impact of this on customers accepting cashless payment habits such as QR codes, mobile phone payments, and contactless cards for safer and contact-free transactions daily. In 2022, based on the Mastercard New Payment Index, clients in APAC rose their usage to 69% of at least one digital payment method, while 88% of end users managed at least one new mode of payment. This increase in percentage offers a huge opportunity for market players in the Vietnam Food and Beverage Market to expand their business by accepting digital payment methods.

In case, any of your pain points areas are not covered in the current scope of this report, Request for Free Customization here

The AmCham Food & Beverage Committee has a primary objective of developing networking and partnership opportunities to improve health and safety standards within the food and beverage market in Vietnam, with a wider aim to extend these innovations around the ASEAN region.

Key Developments

• • In 2023, Growtheum Capital Partners is set to invest nearly $100 million to gain a stake in Vietnam’s International Dairy Products JSC. This strategy reflects their interest in capitalizing on the expanding dairy market in the region.
  • In 2023, Suntory PepsiCo Vietnam Beverage Company has outlined plans to invest an additional $38.8 million in its Can Tho facility in South Vietnam. This investment focuses on establishing new production lines dedicated to purified water and tea manufacturing.
  • In 2023, the HCM Government established a Food and Beverage Association with the objective of exploring, enhancing, and preserving Vietnam cuisine. This association looks to encourage Vietnam cuisine traditions both within the country and international stage.
  • In 2022, Nestlé has extended its retail coffee offerings in East Asia by introducing Starbucks packaged coffee to the Vietnamese market primarily targeting hospitality locations and offices.
  • In 2022, Heineken Vietnam officially discovered its largest brewery located in Ba Ria Vung Tau, over the past five years it now stands as the region’s largest following multiple expansions to introduce new products to the Vietnam Market.

Competitive Insights

The topmost F&B brands in the Vietnamese market include Orion, Nestle, Masan Consumer Corporation, Vietnam Dairy Products JSC (Vinamilk), and many others, while Heineken, and Pepsico Vietnam Beverage Co., Ltd. are among the key market players in the Vietnam beverage industry.

Segments covered in the Report:

The Vietnam Food and Beverages Market has been segmented on the basis of Product Type and Distribution Channel. Based on the Product Type, the market is segmented into Beverage and Food. Based on the Distribution Channel, the market is segmented into Supermarkets/Hypermarkets, Convenience Stores, Online, Others. The Beverage segment is further segmented into Alcoholic Beverages, Non-Alcoholic Beverages. The Food segment is further segmented into Grain Products, Bakery and Confectionery, Frozen Food, Dairy Food, Meat, Poultry and Seafood, Animal and Pet Food, Others.

For detailed scope of the “Vietnam Food and Beverages Market” report request a Sample Copy of the report

Market Segmentation

Vietnam Food and Beverages Market by Product Type

• • By Beverage
    • Alcoholic Beverages
    • Non Alcoholic-Beverages
  • By Food
    • Grain Products
    • Bakery and Confectionery
    • Frozen Food
    • Dairy Food
    • Meat, Poultry and Seafood
    • Animal and Pet Food
    • Others

Vietnam Food and Beverages Market by Distribution Channel

• • Supermarkets/Hypermarkets
  • Convenience Stores
  • Online
  • Others

Major Players Operating in the Vietnam Food and Beverages (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Orion
  • Nestle
  • Masan Consumer Corporation
  • Vietnam Dairy Products JSC (Vinamilk)
  • Heineken
  • Pepsico Vietnam Beverage Co.