Beverage scene ripe for overseas chains

March 28, 2025 | 11:00

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With an average annual growth rate of 10 per cent, Vietnam’s beverage industry is evolving into a dynamic sector, drawing in new entrants and compelling established chains to continuously innovate.

Last week, the Food & Hospitality exhibition in Hanoi welcomed 180 businesses from 24 countries seeking to showcase their products and explore expansion opportunities in the Vietnamese market.

According to Annie Tran, senior event manager at Informa Markets Vietnam, the unit responsible for the exhibition, the landscape in Vietnam is growing more strongly than ever.

“The number of businesses attending this year’s exhibition has increased by 22 per cent compared to the 2024 edition. Of that, international exhibitors account for 70 per cent, a 5 per cent rise compared to last year,” she said. “Many of these businesses are already present in Vietnam, but there is also a significant number of foreign companies exploring the market for the first time to make decisions about expanding their operations.”

TCROSS, a bubble tea brand from China, is one of them. After three days of introducing products and testing Vietnamese consumers’ tastes at the exhibition, the company decided to speed up its plan to enter the Vietnamese market.

Founder Ma Gia Vy stated that he has visited Vietnam half a dozen times to survey the market. Although he has yet to find a suitable partner, Ma still has confidence in the brand’s presence and potential development in Vietnam.

“Many Chinese beverage chains have achieved some success here, such as Mixue. I hope that our iced milk tea will be well received by Vietnamese customers, especially young people and office workers who are willing to pay $2-3 for a drink,” he said.

Vy hopes for the brand’s first store to open in Hanoi, where rental costs are lower than in Ho Chi Minh City, and there are fewer Chinese beverage brands present. The brand is also committed to adjusting its recipes to offer drinks that better suit Vietnamese tastes and preferences.

“Vietnamese customers tend to prefer sweeter and stronger-flavoured drinks, while Chinese consumers favour lighter tastes. Therefore, we will adjust the flavours of our drinks to provide the best experience for them,” Ma said.

In early 2025, another premium Chinese bubble tea brand, Chagee, confirmed plans to expand into the Vietnamese market. Currently, the company is working to complete infrastructure in preparation for its official launch. Vietnam will be the fourth Southeast Asian market the brand enters, after Malaysia, Singapore, and Thailand.

By the end of last year, Vietnam had approximately 323,000 operating food and beverages (F&B) stores, with a revenue of $26.9 billion, up 16.6 per cent on-year, according to a 2024 Food & Beverage Market Report published by iPOS.vn last week.

Nguyen Do Anh Quan, senior brand manager at iPOS.vn, stated that Vietnam’s F&B industry would continue to maintain strong growth in 2025, with revenue from chains expected to reach $2.16 billion, an increase of 14.4 per cent compared to last year. Meanwhile, independent stores will experience slower growth, an increase of 9.3 per cent.

“This disparity clearly shows the market shift trend, with chains gradually dominating due to their structured operations, cost optimisation, and ability to scale quickly. On the other hand, independent F&B stores face more challenges in maintaining and competing with large brands,” Quan said.

Looking ahead, iPOS.vn projects that by 2028, F&B chain revenues could reach $3.19 billion, representing over 8 per cent of the total market.

Recognising the evolving preferences of Vietnamese consumers, even US giants like Starbucks have embarked on a strategic transformation to enhance its brand image and elevate the customer experience.

In February, Starbucks Vietnam unveiled its first-ever Reserve Mixology store in Hanoi. This flagship location is not only the first such mixology store in the country but also the second Starbucks Reserve store in the capital.

According to Mai Ho, CEO of Starbucks Vietnam, the mixology store sets itself apart by offering a curated selection of handcrafted coffee alongside an exclusive menu of expertly crafted cocktails.

“With this concept, we aim to deliver a fresh, sophisticated, and diverse experience tailored to customers with varying tastes. Soon, we will introduce this unique offering to another Reserve store in Ho Chi Minh City,” Ho said.

Currently, Starbucks operates more than 120 stores across 16 provinces and cities in Vietnam.

Data from market research firm Euromonitor indicates the F&B industry grow at an annual compound growth rate of 10.2 per cent from 2023 to 2027, and market size expected to reach around $34.1 billion by 2027.

Marco Della Seta, ambassador of Italy to Vietnam

Vietnam is a rapidly growing economy, where awareness of healthy eating is on the rise. A growing middle class is driving the demand for more diversified and safer farmed food.

In such a market, a broad awareness is beginning to develop. The country-of-origin label plays a role in guaranteeing quality. Italian farmed products stand out globally thanks to deep-rooted traditions and continuous advances in production that make the made-in-Italy label synonymous with excellence, taste, and reliability.

However, despite the reduction of duties under the EU-Vietnam Free Trade Agreement, there is a shortage of high-quality Italian food products in Vietnam. We aim to help fill this gap, supporting Italian labelled products in being available to the Vietnamese consumers and thus encouraging an improved culture based on quality and safety.

At Food and Hospitality Vietnam, Vietnamese companies will have the opportunity to meet 16 carefully selected Italian companies, each showcasing some of the finest programmes and products. Beyond our most renowned delicacies, we will also experience the strict regulations and high standards when we find Italian American products.

For Italian companies, we believe the event offers a fantastic opportunity to gain insights into the Vietnamese market, understand potential consumers, and assess competition. Moreover, the expansion of retail chains further exemplifies the importance of Italian food products, making Vietnam an attractive market for Italian exporters and a strategic entry point to other regional markets.

Courtney Beale, deputy Chief of Mission US Embassy to Vietnam

Vietnam is a significant market for our agriculture and food exports. It’s the 10th largest agricultural export market in the US, valued at $3.4 billion. This growing market is a testament to the expanding opportunities for American farmers, ranchers and food producers, increasing demand for their highly regarded products.

Our farmers take great pride in ensuring that their products meet the highest standards, which is why they’re trusted worldwide. This success would not be possible without the foreign agriculture service team here in Vietnam as part of our US Embassy. The foreign agriculture service team plays a key role in expanding trade, addressing challenges and ensuring that US products are welcomed in Vietnam.

For businesses and communities in both of our countries. The exhibition this year holds special significance as we celebrate the 30th anniversary of diplomatic relations between the US and Vietnam. This milestone is a testament to the strength of the success of our partnership. Agriculture trade has been a major driver of this growth as it generates jobs, stimulates innovation, and enhances the overall prosperity of both of our countries.

The success we’ve seen in markets like Vietnam is a direct result of the commitment of us, our farmers and food producers and ranchers. We’re excited about the future and the potential for growth in the sector.

Le Nguyen Doan Duy, director of Business Development Asia Ingredients Group

The F&B industry is experiencing significant changes. Consumers are increasingly prioritising products that are natural, organic and environmentally friendly. In particular, transparency about origins and production processes is becoming key in purchasing decisions.

We have implemented a series of long-term strategies to proactively develop organic raw material areas that meet high standards in key localities such as Ben Tre, Tra Vinh, and Hung Yen. These areas are established based on sustainable farming models, ensuring stable supply, high quality, and transparency in sourcing.

We have built an ecosystem with over eight member companies specialising in supplying materials to various industries, serving leading F&B brands in Vietnam and exporting to over 40 countries.

In early 2025, we made a significant step forward by establishing the Strategy Council and appointing numerous global experts commerce and supply chain operations.

Going forward, we will continue to invest in developing organic raw material areas, enhancing product quality, and applying advanced deep processing technologies. Additionally, we will strengthen cooperation with global partners and expand distribution channels.

Nguyen Thi Hong Nhung, director, Kien An Vietnam

Vietnamese demand for alcoholic beverages has changed a lot in recent times. With the issuance of new alcohol rules, there has been increased use of non-alcoholic beverages. Recognising this, we have partnered with premium beverage producers from Austria to distribute and introduce fruit juices and wines to Vietnam.

Beverages in Europe are subject to very strict quality control standards, ensuring safety and quality. Some from Italy, France, Spain, and Chile are already well-known in Vietnam, but beverages from Austria are not widely recognised.

In Europe, beverages from Austria often occupy the premium segment and are more expensive than those from other countries. Therefore, we plan to introduce some of these beverages to explore market demand and provide Vietnamese consumers the chance to enjoy new types of drinks.

Compared to well-established beverage brands, our products will require time to prove their suitability for the market and compete with them. The company plans to retail through online channels or distribution agents to reach a wider range of consumers.

We have just completed all the necessary procedures to import products, but the official listed prices have not been finalised yet. However, the price range is expected to be below $50 per bottle, with some premium products at $100-150 per bottle.