VietnamCredit About Us Cafe€redit Contact Us
Go to cart
Overview of Vietnam’s beverage industry

Overview of Vietnam’s beverage industry

Thursday 23, 12 2021
Vietnam’s beverage market is one of the most attractive markets in the world, ranked 10th in Asia in 2019. Total sales of food and beverage reached 975,867 billion VND (+3.8% YoY) ) in 2020.

A glance at Vietnam’s beverage industry

According to BMI, Vietnam food and beverage market was one of the most attractive markets globally (ranked 10th in Asia) in 2019. Total sales of food and beverage reached 975,867 billion VND (+ 3.8% YoY) in 2020. The contribution of the food and beverage industry to GDP is about 15.8%.


Spending on food and beverages accounts for the highest proportion in the monthly spending structure of Vietnamese consumers (about 35% of total consumption expenditure). 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 market in terms of the number of consumers and the fifth largest in terms of total spending on this item in Southeast Asia by 2030.

In Vietnam, beverage products are categorized as followed: carbonated and non-carbonated mineral water, purified water, soft drinks, energy drinks, instant tea and fruit juices of all kinds.

According to statistics on Vietnam beverage market in 2020:

• 85% of annual production and consumption of Vietnam's beverage market is soft drinks, instant teas, fruit juices of all kinds, and energy drinks. The remaining 15% is contributed by mineral water.

• On average, a Vietnamese consumes over 23 liters of beverage per year.

• It is estimated that in 2021, Vietnam's beverage production of all kinds will reach from 8.3 to 9.2 billion liters.

The value of non-alcoholic beverages in Vietnam grew by 7% in 2018 compared to the previous year. According to GSO, in 2015 onwards, the domestic alcoholic and non-alcoholic beverage industry accounted for 4.5% of the service business and manufacturing sectors, contributing nearly 20 billion VND to the state budget.


The beverage industry in Vietnam has always attracted several investors. The reason is that the domestic growth has always maintained the rate of 7% per year compared to 2% for France and Japan.

However, the beverage industry is not left untouched by the Covid-19 pandemic. Since 2019 Vietnam’s beverage market has stagnated and decreased significantly. Because it has become an essential consumer demand, Vietnam's beverage market still promises to boom in the future.

Vietnam beverage market: Opportunities and challenges

Currently, according to the VBA, there are about 1800 beverage production establishments.  Data data from indicates that carbonated soft drinks account for 23.74% of Vietnam's beverage market share. However, this does not seem to be the dominant product as tea is the most popular product with 36.97% of the market share. Energy drinks takes the next position with 18.28%, fruit juices with 10.91% and mineral water with 5.45%.


It can be seen that with a beverage market of nearly 2,000 beverage production facilities, along with an impressive y-o-y growth, businesses have a lot of opportunities to develop.

However, they also face a lot of challenges. It only takes a small slip to destroy the brand reputation that has taken many years to build. For example, it was not until 2018 that Tan Hiep Phat was able to regain its previous reputation and resolve the crisis satisfactorily.

With today's modern lifestyle, consumers are very concerned about their health, so they always want to find products that are more beneficial to themselves. Therefore, in the future, beverage enterprises should aim to offer products of natural origin, which are healthy.

Vietnam’s beverage industry is expected to grow strongly in the following years, once the Covid-19 pandemic is over. Companies are making plans to attract customers. Therefore, studying the weaknesses and strengths of the market is essential to be able to create an effective campaign. The year-end market of Vietnam's beverage industry has never ceased to be hot, which is an opportunity as well as a challenge for those who intend to step into this industry.

Source: VBA, Vietstock

Compiled by VietnamCredit

You may also like

The first 9 months of 2019: The highest economic growth rate of Vietnam over the past 9 years
Thursday 06, 02 2020

The first 9 months of 2019: The highest economic growth rate of Vietnam over the past 9 years

In the overall growth of the economy, the agriculture, forestry and fishery...
Monday 02, 12 2019


Industry information is a description of a certain industry. It is an important...
+84 981861066