iPOS.vn and Nestlé Professional today announced the release of the 2024 Vietnam Food and Beverage Market Report, an annual in-depth research project, in Ho Chi Minh City.
The Vietnam Food and Beverage Market Report projects that by the end of 2024, the number of F&B establishments in Vietnam will reach 323,010, representing a 1.8 percent increase year-over-year. Despite prevailing consumption challenges, the F&B industry's revenue in Vietnam for 2024 is forecasted to reach approximately VND688,800 billion, marking a 16.6 percent growth compared to 2023.
While the F&B industry in Vietnam has demonstrated overall revenue growth, a comprehensive survey of 4,005 F&B establishments nationwide reveals a nuanced picture of business performance. The survey found that only 25.5 percent of businesses reported stable revenue compared to the same period in 2023, while 14.7 percent experienced growth. The primary driver for planned price increases in 2025, with 49.2 percent of businesses intending to adjust their pricing structures, is the escalating cost of raw materials. This data underscores the challenges faced by F&B businesses in balancing revenue growth with rising operational costs.
Based on research conducted with nearly 4,500 diners, the report indicates that consumer spending has not declined; however, individuals are increasingly prioritizing high-quality options at reasonable prices. Consequently, dining out on weekends has become a prevalent trend, particularly among occasional and regular groups, which collectively account for nearly 70 percent of respondents. In contrast to consumer behavior observed in the two years following the pandemic, 52.3 percent of Vietnamese consumers now prefer to limit their expenditure to no more than VND35,000 per beverage, reflecting a growing tendency toward budget optimization in purchasing decisions.
Compared to 2023, the habit of consuming drinks outside saw a significant surge in 2024, with the rate of regular drinkers (3-4 times per week) nearly doubling from 17.4 percent to 32.8 percent.
Following a dynamic 2023 marked by a surge of culinary trends, the F&B market in 2024 experienced a noticeable slowdown. A significant 52.8 percent of businesses reported not following any culinary trends indicating a more cautious approach to investing in new market movements. However, certain trends continue to stand out, with Matcha beverages emerging as the most prominent. Chosen by 29.6 percent of businesses, Matcha has become a notable trend in Vietnam's F&B industry.
The strong-flavored tea trend that dominated 2023 appears to be reaching a saturation point, with the selection rate dropping to 21.4 percent. Previously, many businesses had heavily invested in specialty oolong, Snowshan, and other strongly-flavored traditional tea types, emphasizing the premium tea experience. However, the data suggests this niche market may be becoming oversaturated.
The government has established an economic growth target of 8 percent for 2025, emphasizing key economic drivers such as exports, foreign direct investment (FDI), and industrial development. The ongoing shift in global supply chains presents significant opportunities for Vietnam to attract foreign investment, particularly in the processing, manufacturing, and high-tech industries. Despite various challenges, the F&B industry in Vietnam is projected to grow by 9.6 percent in 2025, aligning with overall market trends but at a slower pace compared to 2024.
