Vietnam Food and Beverage industry is on the rise. More and more people, especially the young generation, are interested and willing to spend money on the industry. The Ministry of Industry and Trade estimated Vietnam’s annual consumption of food and drink products accounts for about 15 percent of GDP and this rate will rise in the future. People living in big cities have a greater and more diverse demand for food and drink products, from healthy and natural products to fast foods, making the F&B sector more appealing to both domestic and foreign investors.
Vietnam Food and Beverage Industry Trend
F&B manufacturing market is dominated by small companies (less than 50 employees) with 84%. Food processing has been growing steadily at 7% over the last 5 years. However, small traditional retailers (traditional wet markets and small independent stores) are dominant Vietnam’s food retail sector but modern retail channels are robustly expanding in response to growing consumer demand.
Recently, many Vietnamese become more conscious about health. They are trying to switch to safe, environment-friendly and even organic products. For example, key players like Vinamilk, TH milk and recently Friesland Campina, are launching organic milk brands as increased demand for healthy products.
F&B Products
The food industry in Vietnam is still dominated by the meat and fisheries industry. Pork accounts for the largest portion of 2.64 million tons; followed by poultry (1 million tons); beef and veal (321 thousand tons); lamb and goat (25 thousand tons). For fisheries, the import in 2018 was 1.72 billion USD (20% increase compared with 2017). Fisheries import are mainly served as raw materials for processing with shrimp and tuna accounting for the majority (34% for shrimp and 20% for tuna). India is the biggest exporter of fisheries products in Vietnam. FAO statistics show that fisheries products consumption is Vietnam is 31-32kg/capita/ year and is expected to be 44kg/capita/year by 2020.
For beverages, With a forecasted annual growth rate of 6% to 2020, the beverage industry in Vietnam is amongst the highest growth fast-moving consumer goods industries. Alcohol sector, especially beer, in Vietnam is considered to have immense opportunities for investment as the country’s consumption is in the top 10 of the Asian region, expected to be 42 liters/capita in 2020.
Important F&B Expo in Vietnam
Some important annual trade shows for consideration are Foodexpo, Food and Hotel, Food Ingredients:
Foodexpo (https://foodexpo.vn/): annually
Food and Hotel Vietnam (https://foodnhotelvietnam.com/) every two years (odd year) in HCMC
Food and Hotel Hanoi (https://foodnhotelhanoi.com) every two years (even year) in Hanoi
Vietfood & Beverage; Propack Vietnam (http://www.foodexvietnam.com/) both in Hanoi and HCMC
Food Ingredients (https://www.figlobal.com/vietnam/)
Are you interested in Vietnamese F&B industry? Let’s talk! info@viettonkin.com.vn
