Market overview of Vietnam Food and Beverage IndustryVietnam has become one of the most attractive and dynamic food and beverage (F&B) markets globally in 2019, ranking top 10 in Asia (IBM, 2019). Total retail sales of consumer goods and services will always grow steadily until 2019. The growth rate in 2020 and 2021 will be slowed down due to the complicated situation of the COVID-19 epidemic. In 2020, despite the ravage of the pandemic, the total revenue of F&B products landed at 975,867 billion VND, increasing by 3.8% YoY, with 15,8% contribution to the GDP. Food and beverage spending currently accounts for the highest proportion in the monthly expenditure structure of consumers (about 35% of spending).
Source: Vietnam General Statistical Office
With the reopening of the economy, the total retail sales of consumer goods and services will grow again in 2022. This is the basis for the recovery of the beverage industry.According to Mordor Intelligence, the F&B industry in Vietnam would expand at 8.65% annually in 2021-2026. The compound annual growth rate from 2021 to 2025 is projected at 4.98%. Experts anticipated that the market size will reach 678 million USD, with the predicted number of consumers being 17.1 million by 2025. According to the World Bank, people’s income is improving with a forecast that Vietnam’s GDP in 2022 will increase by 5.5% compared to 2.58% in 2021, which is a favorable condition to help boost consumer demand. According to F&B industry statistics via Payoo payment platform, by the end of Q1/2022, this industry’s revenue has increased by one and a half times, the total number of transactions increased by 24% compared to Q4/2021. Ordering application GoFood said that in the first quarter of 2022, the number of F&B orders doubled compared to the same period in 2021. According to Vietnam report, F&B holds the highest proportion in Vietnamese spending expenditure, accounting for 35% of monthly spending and 15% of country GDP, this number is still expected to grow in the upcoming years Moreover, It is estimated that there will be about 17 million middle-class households in Vietnam by 2030. Vietnam is expected to become the third-largest urban market in terms of consumer numbers and the fifth largest in terms of total spending in Southeast Asia by 2030.
Source: Phu Hung Security