Non-alcoholic beverage market takes off
Non-alcoholic beverage market takes off
The Vietnamese non-alcoholic beverage industry was once described as a sleeping princess who would awaken soon, and that finally has come true.
In 2006, “Tra Xanh Khong Do” (Green Tea) was the only product of this kind available in the market, which brought Tan Hiep Phat, the brand’s owner, big profits.
However, just several years later, the green tea market witnessed a boom with the appearance big brands such as Real Leaf (Coca Cola), Vfresh (Vinamilk), Lipton Pure Green (Pepsi), C2 (URC) and Thien Tra Vedan (Vedan).
The presence of the big names in the market is seen as evidence of the attractiveness of the market.
A report from Vinaresearch, a market survey firm, showed that 86 percent of polled consumers said they used nutritious drinks for additional vitamins and other nutrients.
Euromonitor, also a market survey firm, pointed out that a Pepsi or Coca Cola carbonated drink can is priced at VND5,000, while a green tea or fruit juice can is sold at VND7,000. This showed that Vietnamese consumers are willing to pay more money for the products that are good for their health.
The fast growing market, plus the high margin of profit, have prompted many investors, who were never interested in the beverage industry before, to jump on the bandwagon.
T&T Group, for example, inaugurated a factory making collagen for skin care in late 2013.
The increasingly high demand in the market has helped manufacturers get rich overnight. The Quang Hanh Natural Mineral Plant, for example, earns revenue of VND30 billion a month from its salted lemon juice – Faith – in Hanoi.
A senior executive of the company said that Quang Hanh has more than 1,000 agents and distributors in the north, only after four years of market development, and that it doesn’t need to look for more agents in Hanoi.
Tran Minh Khoa, a distributor of the C2 brand green tea in the districts of Binh Tan and Binh Chanh in HCM City, has revealed that he sold VND12 billion worth of products in the last spell of hot weather.
The beverage market growth in Vietnam has been backed by the growing tendency of fast food consumption.
Euromonitor reported that the fast food market’s growth rate was 17 percent in 2013, or 15 percent higher than 2012. A 7 percent growth rate is expected to be maintained in the next five years.
Meanwhile, Vietinbank Securities Company analysts estimate that the total revenue of the non-alcoholic beverage market reached VND11.87 trillion in 2013 with 2,083 million liters of products sold.
The market growth is expected to slow down from 2014-2018 to 14.2 percent from 19.35 percent in the 2009-2013 period. There are 135 beverage manufacturers, domestic and foreign, in Vietnam.
vietnamnet
