Vietnam’s F&B Sector — A Market on the Rise

Vietnam’s food and beverage (F&B) industry is gaining increasing attention from foreign investors as macroeconomic momentum, a youthful consumer base, and evolving lifestyle trends converge to create a fertile ground for growth. In Q1/2025, the country recorded a GDP growth rate of 6.93% - the highest Q1 figure in five years -einforcing Vietnam's economic resilience and enhancing consumer purchasing power.

At the heart of this growth is a dynamic F&B sector, which contributed approximately US$26.98 billion in revenue in 2024, marking a 16.6% YoY increase. However, beyond the headline growth, structural shifts are underway. Changing consumer habits, rising costs, and strategic consolidation are shaping the market's next chapter.

1. Market Size & Growth Dynamics

Vietnam’s F&B market is firmly on an upward trajectory:

• 2023 Market Size: US$23.6 billion (+11.5% YoY)

• 2024 Forecast: US$27.3 billion (+10.9% YoY)

• Foodservice Segment (Dining): US$21.6 billion in 2023

• Projected to Reach: US$36.86 billion by 2027 (CAGR 9.7%)

The country hosted 323,010 F&B establishments in 2024, a 1.8% increase from 2023. Despite seasonal fluctuations such as a post-Tết slowdown (-15.4% QoQ in domestic sales), the medium-term outlook remains upbeat, underpinned by tourism recovery and urban lifestyle shifts.

2. Key Segments within F&B

2.1. Packaged Food & FMCG

Vietnamese households are allocating 20–48% of their disposable income to F&B, a strong signal of deep-rooted consumption culture. With household disposable income projected to rise from US$16,070 in 2023 to US$25,220 by 2028, packaged food brands stand to gain as consumers seek convenience, health, and sustainability.

2.2. Beverages

The beverage segment continues to thrive, particularly among cost-conscious urban consumers. Notably:

• 52.3% of consumers prefer beverages under VND 35,000 (~US$1.37)

• 32.8% go out for drinks 3–4 times weekly, up from 17.4% in 2023

Non-alcoholic trends such as Heineken 0.0 and Sabeco's Sagota point to health-conscious consumption.

2.3 Foodservice & Dining

Although only 14.7% of surveyed establishments reported growth in 2024, F&B chains are outperforming independents. Brands like Highlands Coffee, Trung Nguyên Legend, and Jollibee are leveraging digital platforms, real estate efficiency, and brand loyalty to scale sustainably.

“2024 witnessed a natural purification, where weaker players exited the market, paving the way for well-managed chains to dominate,”notes Do Thanh Huyen, Senior Associate at Dezan Shira & Associates.

F&B chains such as Highlands Coffee and Jollibee are expanding nationwide — thanks to digital transformation and brand loyalty. Photo source: Znews

3. Consumer Trends Shaping the Sector

Vietnam’s 71% social media penetration (70 million accounts) amplifies brand visibility and word-of-mouth. “Going to cafes” has become an entrenched cultural habit, serving as a social, study, and leisure activity. Meanwhile, demand for:

• Organic and safe food products

• Craft and non-alcoholic beer

• Food delivery and fast-casual formats

...are steadily redefining business models across the sector.

With 85 million social media accounts, Vietnam’s digital-savvy consumers are reshaping F&B demand.

4. Competitive Landscape

According to Decision Lab (2024), leading F&B brands by consumer perception include:

Rank	Brand	Score 2024	Change
1	KFC	27.5	-1.3
2	Highlands Coffee	25.2	+1.5
3	Trung Nguyên Legend	21.8	+3.9
4	Phúc Long	17.9	+0.8
5	Lotteria	17.7	-0.6

These rankings reflect the deep brand loyalty and cultural relevance of key players. Strategies include:

• KFC: >200 outlets, seasonal menus, self-service kiosks

• Jollibee: ~170 outlets, double-digit revenue growth

• Starbucks: 107 stores, now led by a Vietnamese CEO

• Phúc Long: Refocusing from kiosks to flagship stores

  
  

5. Opportunities for Foreign Investors & Brands

Vietnam’s F&B sector offers:

• Growing export potential in processed foods and seafood

• Underserved regional markets with urbanization momentum

• Strategic partnerships with local chains seeking capital and tech

• Appetite for foreign brands among Gen Z and Millennials

Investors who prioritize local adaptation, operational efficiency, and digital marketing will be best positioned to grow.

6. Challenges & Risks

Despite its promise, Vietnam’s F&B industry faces:

• Profit margin pressure from raw material and logistics costs

• Rising competition from both local and global brands

• Regulatory shifts, including new U.S. tariffs impacting exports

• Changing consumer spending, with high sensitivity to pricing

The closure of inefficient establishments in 2024 indicates a maturing sector where only strategically agile businesses will survive.

7. Outlook

Vietnam’s F&B sector is on a strong upward path, buoyed by macroeconomic growth, demographic tailwinds, and digital-savvy consumption. Yet, success will hinge on strategic alignment with evolving consumer behavior, cost discipline, and continuous innovation.

For foreign investors, the message is clear: Vietnam is open for F&B business but only for those prepared to adapt, localize and lead with value.