The Bright Spots of Vietnam's F&B Market in 2024 and Its Projected Growth in 2025
Vietnam’s food and beverage (F&B) sector is undergoing an exciting transformation. By the end of 2024, the number of F&B establishments in Vietnam is estimated to reach 323,010, marking a 1.8% increase compared to the previous year. Revenue for 2024 is expected to hit approximately 688.8 trillion VND, a significant 16.6% rise from 2023. These numbers reflect the robust growth of the sector, but they also point to a deeper shift in consumer behavior and market dynamics that are likely to continue into 2025.
Analyzing the Key Trends and Insights of the F&B Industry in 2024
The Vietnamese F&B market has seen several notable trends that are shaping the future of the industry. According to a survey of nearly 4,500 consumers, the spending habits of the Vietnamese population have not decreased, but there is a clear shift toward prioritizing high-quality options at affordable prices. This is indicative of a growing awareness among consumers about the value they receive for their money, signaling a more discerning market.
One of the most remarkable trends is the increasing popularity of dining out on weekends. In fact, nearly 70% of respondents, particularly occasional and regular diners, are choosing to enjoy meals outside their homes. This trend reflects a lifestyle change, where dining out has become a social activity, especially among younger demographics looking for unique experiences.
Shifting Consumer Behavior Post-Pandemic
The post-pandemic period has also brought noticeable changes in consumer habits. More specifically, 52.3% of Vietnamese consumers now prefer spending under 35,000 VND on each beverage, indicating a growing trend toward budget-conscious spending. However, despite this shift toward cost optimization, the consumption of beverages outside the home has grown considerably. In fact, the frequency of beverage consumption has surged, with the percentage of individuals drinking outside their homes 3 to 4 times a week increasing dramatically from 17.4% in 2023 to 32.8% in 2024.
This increase reflects the changing nature of beverage consumption in Vietnam. Consumers are seeking quality drinks at reasonable prices, with an emphasis on new and innovative offerings, which has driven growth in the sector.
The Rise of Matcha and Other Popular Beverage Trends
In 2024, one particular beverage has emerged as a top choice among young customers: matcha. It has quickly become a trend, with 29.6% of businesses choosing to incorporate matcha into their offerings. This rising popularity of matcha is more than just a passing fad; it has solidified its place at the forefront of Vietnam’s F&B market.
The use of matcha in both food and beverage products has exploded, and it is now at the peak of consumer interest. Whether in traditional forms or as part of creative variations, matcha continues to captivate the market, particularly among young people who are eager to try new flavors and experiences. In addition to matcha, beverages like MILO also maintain their strong appeal, thriving in traditional forms while also being reinvented in new and exciting ways.
Projected Growth of Vietnam's F&B Sector in 2025
Looking ahead, Vietnam’s F&B sector is expected to continue its upward trajectory, with a projected growth rate of 9.6% in 2025. This forecast suggests a continuation of the trends observed in 2024, including the rise of new and unique beverage options, an increase in dining out, and an ongoing shift toward high-quality products at accessible prices.
The combination of expanding consumer demand, innovative product offerings, and an increasingly competitive market will likely drive continued growth in the sector. Moreover, Vietnam’s economic development, particularly in its growing middle class, will play a significant role in fostering this growth. As disposable incomes rise, consumers are becoming more willing to spend on premium dining experiences, further bolstering the sector’s expansion.
Driving Factors Behind the F&B Growth
Several factors are fueling the impressive growth of Vietnam’s F&B sector, and these are expected to continue influencing the market in 2025. First, consumer behavior is shifting toward more mindful consumption, where quality and value for money are paramount. The rise of social dining experiences, coupled with the increased popularity of online food delivery services, points to an industry that is evolving to meet the demands of modern consumers.
Urbanization, along with the influx of younger, more affluent consumers, is also playing a significant role in the F&B sector’s growth. As more people move to urban centers for work and lifestyle opportunities, demand for diverse food and beverage options, particularly those that cater to convenience and innovation, is rising.
The Role of Technology in Shaping the Future
In addition to changing consumer preferences, the integration of technology in the F&B sector is further driving growth. The use of digital platforms for food delivery and restaurant bookings has streamlined consumer access to food services, particularly among younger, tech-savvy populations. Innovations in food production, such as automated kitchens and AI-based inventory management, have optimized operations, making businesses more efficient and responsive to market demand.
Technology is also enhancing customer engagement, with brands leveraging social media and mobile apps to offer personalized experiences and promotions. As the digital landscape continues to evolve, these tools will become increasingly integral to the success of F&B businesses in Vietnam.
Sustainability and Health Trends
Sustainability is another key factor in the continued growth of Vietnam’s F&B sector. As consumers become more environmentally conscious, demand for sustainable practices in food production and packaging is on the rise. A significant trend in the F&B sector is the adoption of eco-friendly packaging and the sustainable sourcing of ingredients..
Health-conscious trends are also gaining momentum. As Vietnamese consumers become more aware of the nutritional value of the food and drinks they consume, demand for healthy, organic, and plant-based options has soared. This trend is particularly prevalent among younger consumers who are seeking healthier alternatives to traditional fast food options.
Government Support and Economic Factors
The Vietnamese government has also played a crucial role in supporting the growth of the F&B sector. Policies aimed at improving infrastructure, such as transportation and e-commerce networks, have facilitated smoother operations for businesses. Furthermore, the government’s initiatives to boost domestic food production and ensure food safety have helped maintain the industry’s long-term sustainability.
Benefiting from Vietnam’s economic expansion, the F&B industry is poised for continued growth. The expanding middle class and increasing disposable income are driving greater demand for high-quality food and beverages. As consumer purchasing power grows, businesses in the F&B sector are well-positioned to capitalize on this demand.
Conclusion: The Future of Vietnam's F&B Sector
With a projected growth rate of 9.6% in 2025, Vietnam’s F&B sector is poised to continue its remarkable expansion. The key drivers behind this growth, including evolving consumer preferences, technological advancements, and a growing focus on sustainability, will shape the market for years to come. As the industry adapts to new trends and consumer demands, it will remain one of the most dynamic and exciting sectors in Vietnam’s economy.
The continued rise of innovative beverage options like matcha, the growing demand for dining out experiences, and the ever-evolving landscape of consumer behavior are just a few of the factors that will sustain this growth. The future of Vietnam’s F&B market is bright, with immense opportunities for both local and international businesses to flourish.