Vietnam's F&B market undergoes transformation

Vietnam's F&B market undergoes transformation

Vietnam's food and beverage (F&B) market has been forecast to grow by 9.6 per cent in 2025, according to the latest report by iPOS.vn.

On March 18, iPOS.vn, in collaboration with Nestlé Professional, released the Vietnam Food & Beverage market report 2024, surveying 4,005 restaurants and coffee shops alongside 4,453 diners nationwide.

At the end of 2024, the number of F&B establishments was estimated at 323,010, up 1.8 per cent from the previous year. Despite consumption challenges, Vietnam's F&B industry generated a revenue of VND688.8 trillion ($26.98 billion), marking a rise of 16.6 per cent against 2023.

However, only 25.5 per cent of surveyed F&B establishments reported stable revenue against 2023 and only 14.7 per cent of them posted growth.

Due to rising raw material prices, 49.2 per cent of F&B enterprises plan to increase prices in 2025 to ease expense pressures.

"2024 witnessed the natural purification when many inefficient independent establishments were forced to close amidst the operating expense pressure and shrinking demand. Meanwhile, F&B chains are better adapting by optimising their operating strategies and finance management," the report noted.

The report also pointed out that people have not slashed their spending but instead give priority to options with good quality at reasonable prices. More people dine out on weekends, with nearly 70 per cent of surveyed customers saying "sometimes" and "usually".

52.3 per cent of Vietnamese prioritise spending under VND35,000 ($1.37) for each beverage, signifying the trend of optimising budgets. The proportion of people going out for a drink three to four times per week has also risen sharply from 17.4 per cent in 2023 to 32.8 per cent in 2024.

VIR