The Food & Beverage (F&B) industry in Vietnam is expected to see impressive growth, with the Ministry of Industry and Trade (MoIT) projecting a 10.92% increase in revenue in 2024, amounting to over VND720 trillion (approximately $29.8 billion). A survey by Vietnam Report conducted between July and August 2024 shows that 62.5% of businesses expect the industry to grow by 5-10% this year, reflecting increased optimism.
This rise in confidence has been noted, with business optimism about the F&B market’s growth prospects jumping from 61.6% to 87.6%. One of the primary drivers behind this positive outlook is the improving financial conditions of consumers. According to the survey, 52.7% of consumers believe their incomes will improve slightly, while 21.8% expect a significant increase in the coming year.
However, F&B businesses face challenges, particularly with changing consumer behavior. The percentage of businesses citing consumer behavior shifts as a significant difficulty surged from 37.5% in 2022 to 72.2% this year. Modern consumers are increasingly prioritizing sustainability, health safety, and corporate social responsibility, favoring green and organic products with clear origins.
The rise of e-commerce and online shopping trends has also transformed how products are accessed, pushing businesses to invest in digital sales channels to maintain competitiveness. Additionally, 44.4% of enterprises reported facing difficulties due to large inventories.
Despite these challenges, businesses see potential growth drivers in the strong recovery of tourism and the expanding e-commerce sector. Approximately 50% of F&B businesses believe that tourism will be a key contributor to their growth this year.
