Healthy drinks in Vietnam: current situation and growth potential

In recent years, the beverage industry in Vietnam has witnessed a transformative shift, with increasing interest in health-conscious products reshaping the market. As consumers prioritize well-being and lifestyle improvements, the demand for healthy products, especially healthy drinks such as functional beverages, organic teas, and cold-pressed juices, fruit smoothies and plant-based milk has surged. This trend reflects broader global movements toward wellness and preventive health, with Vietnam quickly catching up as both local and international brands work to cater to these growing healthy drinks market segment.

Vietnam beverage market in recent years

In 2023, Vietnam’s beverage market reached a total revenue of $756 million, a slight increase of 5% compared to 2022, and is projected to grow even further in 2024, with $873 million. In 2023, non-alcoholic drinks (such as bottled water, juices, ready-to-drink coffee & tea, and soft drinks) accounted for 61% of total revenue, followed by 25% for hot drinks (like coffee, cocoa, tea) and the remaining 14% from alcoholic drinks (namely beer, cider, perry, rice wine, spirits, hard seltzer, wine).

Overall, the Vietnamese beverage market has shown a clear shift, with a consistent decline in revenue from alcoholic drinks over recent years. One of the reasons is due to the Vietnamese government has taken decisive steps to increase penalties for traffic violations involving alcohol by ten folded, from 24 USD to 315 USDas set forth in Decree No. 100/2019/NĐ-CP.

Predicted beverage market in Vietnam by revenue

However, foreign companies should also be prepared for certain challenges, particularly the intense competition from established domestic brands. In the plant-based milk sector, for example, well-known Vietnamese companies like TH and Vinamilk already have a strong presence. Similarly, the electrolyte beverage market is dominated by brands from Pocari Sweat and Revive. To succeed, foreign companies will need to adopt a long-term development strategy and carefully select products that can stand out in a competitive landscape. Tailoring offerings to meet local preferences and focusing on niche or premium health benefits can be effective strategies for gaining a foothold in this dynamic market.

Link: https://b-company.jp/healthy-drinks-in-vietnam-current-situation-and-growth-potential/