In Southeast Asia, Vietnam stands as one of the leading countries who is rich with cuisine heritage. That is why its food industry keeps growing and expanding each year. Its delicacy is not only famous domestically but also globally to various other countries. From seafood, fresh herbs, to vegetables and fruits, Vietnamese cuisine is loved by many.
Therefore, there has been a robust growth in Vietnam food and beverage market. According to a leading market research firm, GMI Research, there would be a significant growth in Vietnam food and beverage market trends in the years ahead. This rapid development is owing to the growing willingness to pay for dining-out experiences, the growing population, rising incomes, and the expansion of preferences among customers.
What Drives Its Growth?
The expansion of this market is attributed to a number of factors.
- Rising incomes
There has been rising incomes among the population in Vietnam. Despite the effect of the pandemics, there is still expectation of rising incomes in the country. As there is a growing income among the households, there is more budget for utilities, accommodation and food. Consequently, eating out has become a new habit in the country. It also becomes an integral part in Vietnam’s modern life.
- The impact of social media
With the shifting sociocultural norms and new lifestyles, the younger generation in the country tends to prefer eating out. This way, they can share their experiences and stories on their social media as well as to the world. Based on a survey, Facebook has become the most famous platform of social media across all generations. Meanwhile, in comparison to gen Y and X, gen Z tends to use more international platforms like TikTok, Pinterest, and Instagram.
With the feature of photo communities in social media like Pinterest, Instagram, or Facebook, it provides countless opportunities for F&B businesses to enhance their market presence. In addition, these platforms offer businesses opportunities to develop promotional content, engage with food enthusiasts, and convert social media interactions into customer acquisition.
- Rapid urbanization
Urbanization patterns and the rising formalization within the country’s F&B sector are boosting the market’s growth. There is an estimation that by 2025, forty percent of people in Vietnam will live in urban and city areas. This marks an uptick from about twenty percent back in 1990. Residents of urban areas are more inclined to dine out more often and usually have higher incomes, leading to increased spending on beverages and food.
- The shifting preference in alcohol consumption
The country has become the leading consumer for beer in Asia. However, there is a slowing pace of growth. A noticeable trend is the growing popularity of non- and low alcoholic beers, such as Heineken 0.0 and Sagota by Sabeco, which was Vietnamese pioneering brewery to offer non-alcoholic options. Craft beers like Belgo and BiaCraft Artisan Ales are also becoming increasingly favored.
- The growing trend of healthy eating
With the rapid growth of the middle class, there has been a rising engagement between the population and the global trends including healthy eating habits and sustainability. It can further drive the development of Vietnam food and beverage market.
