Hot Drinks in Vietnam (Full Market Report)

Hot Drinks in Vietnam
Euromonitor International
December 2023
HOT DRINKS IN VIETNAM Passport i
LIST OF CONTENTS AND TABLES

Hot Drinks in Vietnam - Industry Overview ................................................................................... 1
EXECUTIVE SUMMARY .............................................................................................................. 1
Hot drinks in 2023: The big picture ........................................................................................... 1
2023 key trends ........................................................................................................................ 1
Competitive landscape ............................................................................................................. 2
Retailing developments ............................................................................................................ 2
Foodservice vs retail split ......................................................................................................... 2
What next for hot drinks? .......................................................................................................... 3
MARKET DATA ............................................................................................................................ 3
Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown
2018-2023 .................................................................................................... 3
Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth
2018-2023 .................................................................................................... 3
Table 3 Retail Sales of Hot Drinks by Category: Volume 2018-2023 ........................ 3
Table 4 Retail Sales of Hot Drinks by Category: Value 2018-2023 ........................... 4
Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2018-2023 ....... 4
Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2018-2023 .......... 4
Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2018-2023 .............. 4
Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth
2018-2023 .................................................................................................... 5
Table 9 Total Sales of Hot Drinks by Category: Total Volume 2018-2023 ................ 5
Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2018-
2023 ............................................................................................................. 5
Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2019-2023................ 5
Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2020-2023 ...................... 6
Table 13 Retail Distribution of Hot Drinks by Format: % Volume 2018-2023 .............. 7
Table 14 Retail Distribution of Hot Drinks by Format and Category: % Volume
2023 ............................................................................................................. 7
Table 15 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume
Breakdown 2023-2028 ................................................................................. 8
Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume
Growth 2023-2028 ....................................................................................... 8
Table 17 Forecast Retail Sales of Hot Drinks by Category: Volume 2023-2028 ......... 8
Table 18 Forecast Retail Sales of Hot Drinks by Category: Value 2023-2028 ............ 9
Table 19 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth
2023-2028 .................................................................................................... 9
Table 20 Forecast Retail Sales of Hot Drinks by Category: % Value Growth
2023-2028 .................................................................................................... 9
Table 21 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2023-
2028 ............................................................................................................. 9
Table 22 Forecast Foodservice Sales of Hot Drinks by Category: % Volume
Growth 2023-2028 ..................................................................................... 10
Table 23 Forecast Total Sales of Hot Drinks by Category: Total Volume 2023-
2028 ........................................................................................................... 10
Table 24 Forecast Total Sales of Hot Drinks by Category: % Total Volume
Growth 2023-2028 ..................................................................................... 10
DISCLAIMER ............................................................................................................................. 10
© Euromonitor International
HOT DRINKS IN VIETNAM Passport ii
SOURCES.................................................................................................................................. 11
Summary 1 Research Sources ...................................................................................... 11
Coffee in Vietnam - Category Analysis ....................................................................................... 14
KEY DATA FINDINGS................................................................................................................ 14
2023 DEVELOPMENTS ............................................................................................................. 14
Demand for coffee impacted by a slowdown in the economy and elevated inflation .............. 14
Production shortfall leads to a sharp rise in the price of coffee beans .................................... 14
Coffee continues to benefit from new product innovation ....................................................... 15
PROSPECTS AND OPPORTUNITIES....................................................................................... 15
Coffee is expected to see the better performance over the forecast period ............................ 15
Consumers expected to show higher interest in fresh coffee ................................................. 15
Limited opportunities expected for pods, but local players and foodservice operators could
carve out more share in the market ........................................................................................ 16
CATEGORY DATA ..................................................................................................................... 16
Table 25 Retail Sales of Coffee by Category: Volume 2018-2023 ............................ 16
Table 26 Retail Sales of Coffee by Category: Value 2018-2023 ............................... 17
Table 27 Retail Sales of Coffee by Category: % Volume Growth 2018-2023 ........... 17
Table 28 Retail Sales of Coffee by Category: % Value Growth 2018-2023 .............. 17
Table 29 NBO Company Shares of Coffee: % Retail Value 2019-2023 .................... 18
Table 30 LBN Brand Shares of Coffee: % Retail Value 2020-2023 .......................... 18
Table 31 Forecast Retail Sales of Coffee by Category: Volume 2023-2028 ............. 18
Table 32 Forecast Retail Sales of Coffee by Category: Value 2023-2028 ................ 19
Table 33 Forecast Retail Sales of Coffee by Category: % Volume Growth 2023-
2028 ........................................................................................................... 19
Table 34 Forecast Retail Sales of Coffee by Category: % Value Growth 2023-
2028 ........................................................................................................... 19
Tea in Vietnam - Category Analysis ........................................................................................... 21
2023 DEVELOPMENTS ............................................................................................................. 21
Tea continues to record positive retail value growth in 2023 .................................................. 21
Fruit/herbal tea is the most dynamic tea category in 2023 as focus on health and wellness
continues to grow .................................................................................................................... 21
Instant tea benefits from product innovation with a focus on reduced sugar options .............. 22
Tea sales expected to see strong growth thanks to the various health claims of these products
and an improving economy ..................................................................................................... 22
Health and wellness will remain a key influence on sales of tea ............................................. 22
Retail e-commerce will continue to expand its share in distribution channels. ........................ 23
CATEGORY DATA ..................................................................................................................... 23
Table 35 Retail Sales of Tea by Category: Volume 2018-2023................................. 23
Table 36 Retail Sales of Tea by Category: Value 2018-2023 ................................... 24
Table 37 Retail Sales of Tea by Category: % Volume Growth 2018-2023 ................ 24
Table 38 Retail Sales of Tea by Category: % Value Growth 2018-2023 ................... 24
Table 39 NBO Company Shares of Tea: % Retail Value 2019-2023 ........................ 24
Table 40 LBN Brand Shares of Tea: % Retail Value 2020-2023 ............................... 25
Table 41 Forecast Retail Sales of Tea by Category: Volume 2023-2028.................. 26
Table 42 Forecast Retail Sales of Tea by Category: Value 2023-2028..................... 26
HOT DRINKS IN VIETNAM Passport iii
Table 43 Forecast Retail Sales of Tea by Category: % Volume Growth 2023-

2028 ........................................................................................................... 26
Table 44 Forecast Retail Sales of Tea by Category: % Value Growth 2023-
2028 ........................................................................................................... 26
Other Hot Drinks in Vietnam - Category Analysis ....................................................................... 28
2023 DEVELOPMENTS ............................................................................................................. 28
Other hot drinks continues to decline in retail volume terms ................................................... 28
Foodservice sales thriving in 2023 while milo cements its leading position in the category .... 28
Retail e-commerce is getting popularity in other hot drinks’ distribution ................................. 29
Other hot drinks set to face strong competition from various other products .......................... 29
Vietnam’s developing health and wellness trend likely to inform new product development and
innovation ............................................................................................................................... 29
Chocolate-based flavoured powder drinks likely to remain a niche, but other plant-based hot
drinks should benefit from healthy image................................................................................ 30
CATEGORY DATA ..................................................................................................................... 30
Table 45 Retail Sales of Other Hot Drinks by Category: Volume 2018-2023 ............ 30
Table 46 Retail Sales of Other Hot Drinks by Category: Value 2018-2023 ............... 30
Table 47 Retail Sales of Other Hot Drinks by Category: % Volume Growth
2018-2023 .................................................................................................. 31
Table 48 Retail Sales of Other Hot Drinks by Category: % Value Growth 2018-
2023 ........................................................................................................... 31
Table 49 NBO Company Shares of Other Hot Drinks: % Retail Value 2019-
2023 ........................................................................................................... 31
Table 50 LBN Brand Shares of Other Hot Drinks: % Retail Value 2020-2023 .......... 32
Table 51 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2023-
2028 ........................................................................................................... 32
Table 52 Forecast Retail Sales of Other Hot Drinks by Category: Value 2023-
2028 ........................................................................................................... 32
Table 53 Forecast Retail Sales of Other Hot Drinks by Category: % Volume
Growth 2023-2028 ..................................................................................... 33
Table 54 Forecast Retail Sales of Other Hot Drinks by Category: % Value
Growth 2023-2028 ..................................................................................... 33
HOT DRINKS IN VIETNAM Passport 1
HOT DRINKS IN VIETNAM - INDUSTRY

OVERVIEW
EXECUTIVE SUMMARY
Hot drinks in 2023: The big picture

Vietnam is predicted to see GDP growth of 4.5% by the end of 2023, compared to the initial
forecast of 6.5% at the beginning of the year, as per the General Statistical Office study. Soft
labour markets and concerns about an impending global recession have led to a more
conservative consumer behaviour in 2023, with increased savings and decreased spending on
non-essential items such as hot drinks. The government looked to support companies and
consumers by reducing the VAT rate from 10% to 8% starting in July 2023 until the end of the
year. This has helped to support sales of hot drinks in 2023. Foodservice sales have also
benefited from an increase in outdoor activities and travel compared to the pandemic period.
Consumers are spending more time outside the home for work, education and leisure which is
helping to boost demand for a wide range of products, including hot drinks.
The performances of the different categories have varied in 2023. Prior to the pandemic sales
of coffee were higher through the foodservice channel than the retail channel in volume terms.
Therefore, as the pandemic has come to an end and life has returned to relative normality in
Vietnam sales have once again shifted back to the foodservice channel, with coffee seeing
strong growth in foodservice volume terms in 2023, but a small decline in retail volume terms.
Meanwhile, tea sales have benefited from a growing focus on health and wellness with
fruit/herbal tea seeing particularly strong growth in retail volume terms in retail volume terms. In
contrast, sales of other hot drinks have decline in retail volume terms in 2023 in part due to
children returning to school and spending less time at home.
2023 key trends

One continuing trend in 2023 has been a stronger focus on health and wellness among the
Vietnamese population. This trend came to the fore during the COVID-19 pandemic when
consumers became more interested in preventative health behaviours, but it has remained a
key influence on purchasing behaviour even though the pandemic is now over. Within hot
drinks, sugary beverages have come under examination with such drinks having been linked to
a variety of lifestyle diseases, notably type II diabetes, heart disease and metabolic syndrome.
By contrast, healthier options have seen a surge in popularity with reduced sugar and no-sugar
variants seeing stronger growth, as well as a variety of fruit/herbal tea and green tea products.
In 2023, in response to the rising health and wellness trend in Vietnam, players started to
introduce reduced sugar products. For example, in March 2023, Ajinomoto Vietnam introduced
its new Blendy brand of instant tea in three flavours namely, Matcha Milk, Matcha Brown Rice,
and Royal with less sugar.
Moreover, players have also started to place more focus on product innovation as they look to
stimulate consumer demand. For example, in July 2023, The Coffee Factory, a chain of
specialist coffee shops, launched its new mint flavoured range of instant coffee mixes.
Meanwhile, in April 2023, Fes Vietnam Co Ltd added fresh roasted ground coffee to its
MacCoffee Gold range to provide a stronger coffee taste. Another new launch under the
MacCoffee brand in standard fresh ground coffee in 2023 was MacCoffee Cà Phê Ph? Rang
Xay (street roasted coffee). Currently, fresh ground coffee is usually sold in 200g or 500g pack
sizes but this new product is being sold in single-portion sachets that are designed to be more
affordable and convenient for consumers.
Competitive landscape
Nestlé Vietnam Co Ltd maintained its overall leadership of hot drinks in 2023, underpinned by
its strength in instant coffee and other hot drinks. The player is highly active in terms of
marketing and advertising activity and also leads in product innovation, with recent introductions
including Nescafé Viet, which contains a blend of premium Arabica beans from Lam Dong,
together with traditional Robusta beans from the Central Highlands. Products such as this and
similar products from other players is tapping into the growing consumer demand for more
premium, higher-quality varieties amongst middle and high-income consumers.
Lipton Teas & Infusions continues to lead tea in Vietnam in 2023 which is largely down to its
dominant position in black tea, with it offering a wide range of pack sizes to suit different
budgets as well as being available from most retail channels. Meanwhile, domestic players such
as Vinh Tien Co Ltd and Vietnam National Tea JSC continued to hold leading positions in the
more dynamic areas of fruit/herbal tea and green tea. During the pandemic, small local players
in Vietnam focused on developing a stronger presence in fruit/herbal tea, thereby creating a
niche within which to avoid direct competition from global giants such as Unilever with its Lipton
brand.
Retailing developments
Hot drinks players have continued to focus on cooperating more closely with popular retail e-
commerce platforms such as tiki.vn, Lazada.vn and shopee.vn in 2023. This is in line with the
fast development of retail e-commerce in Vietnam with consumers having become increasingly
used to online shopping during and after the COVID-19 pandemic. In 2023, both hot drinks
players and retail e-commerce players have focused on launching regular discount double days
(1.1,2.2, 3.3 etc) of up to 15% or even 20% with free shipping vouchers as a way to attract
people to shop online. Retail e-commerce is helping players to increase sales to their existing
customer base but it is also helping some players to reach untapped areas of the market such
as rural areas of the country where often only a limited range of products and brands are
available.
In term of store-based distribution, modern channels such as convenience stores,
supermarkets and hypermarkets are seeing strong growth in line with urbanisation, the
expansion in the number of these stores and increasingly modern lifestyle in Vietnam. However,
small local grocers remains by far the largest distribution channel for hot drinks in 2023 with
these stores often being the nearest and most convenient option, especially in rural areas.
Foodservice vs retail split

Foodservice sales have continued to show a strong recovery from the decline seen in 2020
and 2021. However, the pace of recovery has slowed compared to 2022, which is likely due to
the financial pressures being created by the economic downturn and elevated inflation being
seen in Vietnam. Although the government and hot drinks manufacturers have tried their best to
contain price increases, such as by reducing the VAT rate from 10% to 8% for the second half of
2023 inflation has still had a negative impact on disposable income. As a result, many people
have had to exercise caution with their discretionary spending, which in some instances has
included visiting foodservice outlets less frequently. Despite these challenges foodservice sales
have continued to record stronger growth in volume terms than retail sales in 2023 with
consumers returning to busier and more active lives away from the home and thus are
purchasing more hot drinks from foodservice outlets.
What next for hot drinks?

Over the forecast period, sales of hot drinks are projected to post positive growth in retail
volume terms, but especially in foodservice volume terms. With Vietnam’s economy expected to
recover it is likely that Vietnamese consumers will become more willing to spend on hot drinks
products, including more premium options. Key players in hot drinks will likely continue to focus
on product innovation in terms of flavours, ingredients and packaging as they look to generate
stronger interest as well to boost sales and increase margins.
Given the growing competition it will be increasingly important for players to ensure a robust
approach to marketing and advertising, in order to reach their desired consumer audiences in
both off-trade and on-trade channels. These leading names will likely look to take advantage of
the strong growth opportunities which should emerge during the post-pandemic period, as the
Vietnamese economy rebounds and consumers look to make up for lost time by socialising
more often with friends and family.
The forecast period is also set to see the leading players catering to the strongly emerging
demand for premium products. A wider range of more sophisticated offerings is expected to be
seen on retail shelves, as the consumer audience for these types of products continues to
widen. In particular, affluent urban professionals are more likely to be interested in
sophisticated, high-quality products, with manufacturers likely to favour them too, as they are
generally more profitable than standard variants. Additionally, healthier options are also likely to
find more favour, such as fruit/herbal tea, green tea and other hot drinks that are fortified with
vitamins and minerals.
MARKET DATA
Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2018-2023
% volume analysis
2018 2019 2020 2021 2022 2023
Retail 61.7 61.5 66.6 69.9 66.4 64.1

Foodservice 38.3 38.5 33.4 30.1 33.6 35.9
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2018-2023
% volume growth
2022/23 2018-23 CAGR 2018/23 Total
Retail -1.1 1.1 5.8

Foodservice 9.1 -0.9 -4.5
Total 2.3 0.4 1.8
Table 3 Retail Sales of Hot Drinks by Category: Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
Coffee 50,808.6 52,210.5 53,130.8 53,453.1 52,986.3 52,818.9

Tea 18,999.3 20,457.3 21,732.1 20,947.4 21,244.9 21,405.4
Other Hot Drinks 32,685.3 33,870.7 35,351.6 36,498.0 35,418.1 34,191.3
Hot Drinks 102,493.2 106,538.5 110,214.5 110,898.5 109,649.4 108,415.6
Table 4 Retail Sales of Hot Drinks by Category: Value 2018-2023
VND billion
2018 2019 2020 2021 2022 2023
Coffee 8,497.8 9,017.1 9,704.3 10,161.6 10,680.1 11,343.1

Tea 6,541.5 7,201.6 7,714.8 7,622.9 8,050.4 8,426.7
Other Hot Drinks 4,314.6 4,576.2 4,858.1 5,161.7 5,220.4 5,265.0
Hot Drinks 19,353.9 20,794.9 22,277.2 22,946.1 23,950.9 25,034.7
Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2018-2023
% volume growth
2022/23 2018-23 CAGR 2018/23 Total
Coffee -0.3 0.8 4.0

Tea 0.8 2.4 12.7
Other Hot Drinks -3.5 0.9 4.6
Hot Drinks -1.1 1.1 5.8
Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2018-2023
% current value growth

2022/23 2018-23 CAGR 2018/23 Total
Coffee 6.2 5.9 33.5

Tea 4.7 5.2 28.8
Other Hot Drinks 0.9 4.1 22.0
Hot Drinks 4.5 5.3 29.4
Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
Coffee 56,369.1 59,301.7 49,161.1 42,524.4 49,540.9 53,868.0

Tea 5,546.0 5,771.8 4,784.8 4,067.1 4,738.1 5,306.7
Other Hot Drinks 1,575.7 1,660.2 1,413.5 1,243.8 1,309.5 1,450.2
Hot Drinks 63,490.9 66,733.6 55,359.3 47,835.3 55,588.5 60,625.0

Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2018-2023
% volume growth
2022/23 2018-23 CAGR 2018/23 Total
Coffee 8.7 -0.9 -4.4

Tea 12.0 -0.9 -4.3
Other Hot Drinks 10.7 -1.6 -8.0
Hot Drinks 9.1 -0.9 -4.5
Table 9 Total Sales of Hot Drinks by Category: Total Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
Coffee 107,177.7 111,512.2 102,291.9 95,977.4 102,527.2 106,686.9

Tea 24,545.3 26,229.0 26,516.9 25,014.5 25,983.1 26,712.2
Other Hot Drinks 34,261.0 35,530.9 36,765.0 37,741.8 36,727.7 35,641.5
Hot Drinks 165,984.0 173,272.1 165,573.9 158,733.7 165,237.9 169,040.6
Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2018-2023
% total volume growth

2022/23 2018-23 CAGR 2018/23 Total
Coffee 4.1 -0.1 -0.5

Tea 2.8 1.7 8.8
Hot Drinks 2.3 0.4 1.8
Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2019-2023
% retail value rsp

Company 2019 2020 2021 2022 2023
Nestlé Vietnam Co Ltd 26.9 26.7 27.5 27.5 27.8

Masan Group Corp 11.7 10.9 10.1 9.5 9.4
Trung Nguyen Corp 8.3 8.0 7.7 8.0 8.2
Lipton Teas & Infusions - - - - 5.6
Ecological Product JSC 2.7 2.8 2.6 2.8 2.9
Fes Vietnam Co Ltd 1.5 1.5 1.5 1.6 1.7
Vietnam National Tea JSC 1.9 1.5 1.4 1.6 1.6
Vinh Tien Co Ltd 1.3 1.3 1.4 1.5 1.5
Hoang Long Tea Co Ltd 1.1 1.1 1.0 1.0 1.1

Cau Tre Export Goods 0.8 0.9 0.9 1.0 1.0
Processing JSC
FrieslandCampina Vietnam 1.0 1.0 1.0 0.9 0.8
Co Ltd
Gold Roast Vietnam Co Ltd 0.6 0.6 0.6 0.6 0.6
Viet Thai International JSC 0.5 0.5 0.4 0.5 0.5
Phuc Long Coffee & Tea Co 0.2 0.2 0.2 0.3 0.5
Ltd
MJF Group 0.3 0.3 0.3 0.3 0.4
Tam Chau Tea & Coffee Co 0.2 0.2 0.2 0.2 0.2
Ltd
Dai Gia Trade & Service 0.1 0.1 0.1 0.1 0.1
Co Ltd
Ekaterra - - - 5.7 -
Unilever Vietnam 5.6 5.6 5.7 - -
International Co Ltd
Qualitea Ceylon (PVT) Ltd 0.3 0.2 - - -
Others 35.1 36.7 37.3 36.9 36.1
Total 100.0 100.0 100.0 100.0 100.0
Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2020-2023
% retail value rsp

Brand (GBO) Company (NBO) 2020 2021 2022 2023
Nescafé (Nestlé SA) Nestlé Vietnam Co Ltd 15.4 15.9 16.4 17.1
Milo (Nestlé SA) Nestlé Vietnam Co Ltd 10.8 10.9 10.6 10.3
Vinacafé Masan Group Corp 8.7 8.4 7.8 7.8
Trung Nguyen Trung Nguyen Corp 5.1 4.7 4.8 4.9
Lipton Yellow Label Lipton Teas & Infusions - - - 4.5
G7 Instant Coffee Trung Nguyen Corp 2.9 3.0 3.2 3.3
Cozy Ecological Product JSC 2.8 2.6 2.8 2.9
MacCoffee (Food Fes Vietnam Co Ltd 1.5 1.5 1.6 1.7
Empire Holdings Ltd)
Vinacafé Instant Masan Group Corp 2.2 1.7 1.7 1.6
Nutritious Cereal
Vinh Tien Vinh Tien Co Ltd 1.3 1.4 1.5 1.5
Vinatea Vietnam National Tea JSC 1.3 1.2 1.4 1.4
Hoang Long Hoang Long Tea Co Ltd 1.1 1.0 1.0 1.1
Lipton Lipton Teas & Infusions - - - 1.0
Ovaltine (Associated FrieslandCampina Vietnam 1.0 1.0 0.9 0.8
British Foods Plc) Co Ltd
Cau Tre Cau Tre Export Goods 0.7 0.7 0.8 0.8
Processing JSC
Calsome (Viz Branz Ltd) Gold Roast Vietnam Co Ltd 0.5 0.6 0.6 0.6
Highlands Viet Thai International JSC 0.5 0.4 0.5 0.5
Phuc Long Phuc Long Coffee & Tea Co 0.2 0.2 0.3 0.5
Ltd
Nestea (Nestlé SA) Nestlé Vietnam Co Ltd 0.6 0.6 0.5 0.5
Dilmah MJF Group 0.3 0.3 0.3 0.4
Vinatea O Long Tea Vietnam National Tea JSC 0.2 0.2 0.2 0.2
Tam Chau O Long Tea Tam Chau Tea & Coffee Co Ltd 0.2 0.2 0.2 0.2
Cau Tre O Long Tea Cau Tre Export Goods 0.2 0.2 0.2 0.2
Processing JSC
Tra Dai Gia O Long Tea Dai Gia Trade & Service 0.1 0.1 0.1 0.1
Co Ltd
Lipton Yellow Label Ekaterra - - 4.6 -

Lipton Ekaterra - - 1.0 -
Lipton Yellow Label Unilever Vietnam 4.4 4.5 - -
(Unilever Group) International Co Ltd
Lipton (Unilever Group) Unilever Vietnam 1.2 1.1 - -
Qualitea Qualitea Ceylon (PVT) Ltd 0.2 - - -
Others Others 36.9 37.4 37.0 36.3
Total Total 100.0 100.0 100.0 100.0
Table 13 Retail Distribution of Hot Drinks by Format: % Volume 2018-2023
% retail volume
2018 2019 2020 2021 2022 2023
Retail Channels 100.0 100.0 100.0 100.0 100.0 100.0

- Retail Offline 99.2 98.5 95.9 94.2 93.0 92.3
-- Grocery Retailers 99.2 98.5 95.9 94.2 93.0 92.3
--- Convenience Retail 1.5 1.6 1.9 2.1 2.2 2.3
---- Convenience Stores 1.5 1.6 1.9 2.1 2.2 2.3
---- Forecourt Retailers - - - - - -
--- Supermarkets 15.6 15.9 16.9 18.9 19.6 19.9
--- Hypermarkets 3.5 3.7 4.7 6.9 8.2 9.1
--- Discounters - - - - - -
--- Warehouse Clubs - - - - - -
--- Food/drink/tobacco 19.0 19.0 18.6 18.7 18.4 18.2
specialists
--- Small Local Grocers 59.6 58.3 53.7 47.7 44.5 42.8
-- Non-Grocery Retailers 0.0 - - - - -
--- General Merchandise - - - - - -
Stores
--- Apparel and - - - - - -
Footwear Specialists
--- Appliances and - - - - - -
Electronics Specialists
--- Home Products - - - - - -
Specialists
--- Health and Beauty - - - - - -
Specialists
--- Leisure and - - - - - -
Personal Goods
Specialists
--- Other Non-Grocery 0.0 - - - - -
Retailers
-- Vending - - - - - -
-- Direct Selling - - - - - -
- Retail E-Commerce 0.8 1.5 4.1 5.8 7.0 7.7
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 14 Retail Distribution of Hot Drinks by Format and Category: % Volume 2023
% retail volume
Coffee Tea Other Hot Drinks
Retail Channels 100.0 100.0 100.0

- Retail Offline 92.8 92.5 91.3
-- Grocery Retailers 92.8 92.5 91.3
--- Convenience Retail 2.4 2.4 2.3
---- Convenience Stores 2.4 2.4 2.3
---- Forecourt Retailers 0.0 0.0 0.0
--- Supermarkets 18.6 14.8 25.0
--- Hypermarkets 8.5 10.0 9.5
--- Discounters 0.0 0.0 0.0
--- Warehouse Clubs 0.0 0.0 0.0
--- Food/drink/tobacco specialists 19.9 20.0 14.4
--- Small Local Grocers 43.4 45.3 40.2
-- Non-Grocery Retailers 0.0 0.0 0.0
--- General Merchandise Stores 0.0 0.0 0.0
--- Apparel and Footwear Specialists 0.0 0.0 0.0
--- Appliances and Electronics Specialists 0.0 0.0 0.0
--- Home Products Specialists 0.0 0.0 0.0
--- Health and Beauty Specialists 0.0 0.0 0.0
--- Leisure and Personal Goods Specialists 0.0 0.0 0.0
--- Other Non-Grocery Retailers 0.0 0.0 0.0
-- Vending 0.0 0.0 0.0
-- Direct Selling 0.0 0.0 0.0
- Retail E-Commerce 7.2 7.5 8.7
Total 100.0 100.0 100.0
Key: C = coffee; T= tea; OHD = other hot drinks
Table 15 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown

2023-2028
% volume analysis
2023 2024 2025 2026 2027 2028
Retail 64.1 62.4 60.9 59.5 58.2 57.1

Foodservice 35.9 37.6 39.1 40.5 41.8 42.9
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2023-
2028
% volume growth
2023/24 2023-28 CAGR 2023/28 Total
Retail 0.8 1.6 8.5

Foodservice 8.4 7.8 45.8
Total 3.5 4.0 21.9
trade sources
Table 17 Forecast Retail Sales of Hot Drinks by Category: Volume 2023-2028
Tonnes
2023 2024 2025 2026 2027 2028
Coffee 52,818.9 53,475.6 54,560.3 55,831.5 57,526.6 59,552.1

Tea 21,405.4 21,881.4 22,432.5 23,037.1 23,671.5 24,371.7
Other Hot Drinks 34,191.3 33,872.7 33,683.8 33,602.8 33,617.6 33,705.6
Hot Drinks 108,415.6 109,229.7 110,676.6 112,471.4 114,815.6 117,629.4
trade sources
Table 18 Forecast Retail Sales of Hot Drinks by Category: Value 2023-2028
VND billion
2023 2024 2025 2026 2027 2028
Coffee 11,343.1 11,542.5 11,846.3 12,197.9 12,647.7 13,180.7

Tea 8,426.7 8,678.3 8,969.1 9,295.4 9,651.9 10,046.5
Other Hot Drinks 5,265.0 5,222.2 5,200.0 5,199.1 5,213.1 5,238.0
Hot Drinks 25,034.7 25,443.0 26,015.3 26,692.4 27,512.8 28,465.2
trade sources
Table 19 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2023-2028
% volume growth
2023/24 2023-28 CAGR 2023/28 Total
Coffee 1.2 2.4 12.7

Tea 2.2 2.6 13.9
Other Hot Drinks -0.9 -0.3 -1.4
Hot Drinks 0.8 1.6 8.5
trade sources
Table 20 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2023-2028
% constant value growth

2023/2024 2023-28 CAGR 2023/28 Total
Coffee 1.8 3.0 16.2

Tea 3.0 3.6 19.2
Hot Drinks 1.6 2.6 13.7
trade sources
Table 21 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2023-2028
Tonnes
2023 2024 2025 2026 2027 2028
Coffee 53,868.0 58,299.2 62,976.2 67,965.7 73,221.9 78,546.2

Tea 5,306.7 5,837.4 6,317.8 6,823.2 7,348.6 7,914.4
Other Hot Drinks 1,450.2 1,556.6 1,657.8 1,756.8 1,853.4 1,955.4

Hot Drinks 60,625.0 65,693.2 70,951.7 76,545.7 82,423.9 88,416.0
trade sources
Table 22 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth

2023-2028
% volume growth
2023/24 2023-28 CAGR 2023/28 Total
Coffee 8.2 7.8 45.8

Tea 10.0 8.3 49.1
Hot Drinks 8.4 7.8 45.8
trade sources
Table 23 Forecast Total Sales of Hot Drinks by Category: Total Volume 2023-2028
Tonnes
2023 2024 2025 2026 2027 2028
Coffee 106,686.9 111,774.8 117,536.5 123,797.3 130,748.4 138,098.3

Tea 26,712.2 27,718.8 28,750.2 29,860.2 31,020.0 32,286.1
Other Hot Drinks 35,641.5 35,429.3 35,341.7 35,359.6 35,471.0 35,661.0
Hot Drinks 169,040.6 174,922.9 181,628.4 189,017.1 197,239.5 206,045.4
trade sources
Table 24 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2023-
2028
% total volume growth

2023/24 2023-28 CAGR 2023/28 Total
Coffee 4.8 5.3 29.4

Tea 3.8 3.9 20.9
Hot Drinks 3.5 4.0 21.9
trade sources
DISCLAIMER
Forecast closing date: 30 October 2023
Report closing date: 5 December 2023
Analysis and data in this report give full consideration to consumer behaviour and market
performance in 2023 and beyond as of the dates above. For the very latest insight on this
industry and consumer behaviour, at both global and national level, readers can access
strategic analysis and updates on www.euromonitor.com and via the Passport system, where
new content is being added on a systematic basis.
SOURCES
Sources used during the research included the following:
Summary 1 Research Sources

Official Sources FPT Securities Co
General Statistics Office
Information Center of Industry & Trade -

Ministry of Industry & Trade (VITIC)
Ministry of Finance
Ministry of Planning & Investment
Ministry of Science & Technology for

Agriculture & Rural Development
State Bank of Vietnam
US Vietnam Trade Council
Vietnam Chamber of Commerce & Industry
Vinanet
Trade Associations Asian Bottled Water Association (ABWA)
Association of European Producers of Steel

for Packaging, The
Australian Bottled Water Institute Inc
Brazil Specialty Coffee Association
Canadian Bottled Water Association
European Bottled Watercooler Association

(EBWA)
Food & Foodstuff Association
International Coffee Organisation
International Council of Bottled Water

Associations (ICBWA)
International Federation of Fruit Juice

Producers
UNESDA & CISDA
Vietnam Beverage Association
Vietnam Tea Association
Vietnam Trade Promotion Agency
Vietnamese Coffee & Cocoa Association
Trade Press Asahi Shimbun
Asian News & Media
Beverage Digest
Beverage Net
Beverage World
Brands Vietnam
Business Forum
Business News for the Food Industry
Coffee Review
Cong An Newspaper
Dan Tri
Dau Tu Chung Khoan
Dien Dan Doanh Nghiep
Doanh Nhan Saigon Online
Economy & Forecast
Enter News
Hanoi Moi
Industry Magazine
Khanh Hoa Newspaper
Market 24hrs
Ngoisao.net
Phap Luat Viet Nam
Saga Tai Chinh
Saigon Liberation
Saigon News
Saigon Tiep Thi
Saigon Times
Soft Drinks International
Tan Viet Securities
Tea & Coffee Asia
Thanh Nien Online
The Laborer
Tien Phong Mobile
Tin 247
Tin moi
Tin Tuc Vietnam
Tinkinhte
Tuoi Tre News
Vietnam Business News
Vietnam Economy
Vietnam Investment Review
Vietnam News
Vietnamnet
Vina Corp
Vinh Phuc Service of Trade
VnExpress
VnMedia
VTC News
Source: Euromonitor International
COFFEE IN VIETNAM - CATEGORY

ANALYSIS
KEY DATA FINDINGS
▪ Retail value sales grow by 6% in current terms in 2023 to VND11.3 trillion

▪ Instant standard coffee is the best performing category in 2023, with retail value sales rising
by 7% in current terms to VND2.9 trillion
▪ Nestlé Vietnam Co Ltd is the leading player in 2023, with a retail value share of 38%
▪ Retail sales are set to increase at a current value CAGR of 7% (2023 constant value CAGR of
3%) over the forecast period to VND15.8 trillion
2023 DEVELOPMENTS
Demand for coffee impacted by a slowdown in the economy and

elevated inflation
Sales of coffee in Vietnam have seen a small decline in retail volume terms in 2023 with the
economic downturn and elevated inflation forcing consumers to show greater caution in their
spending. Vietnam's economy started to struggle in 2023 with lower demand in key export
markets weighing on its manufacturing industry, while there was an intense desire to keep the
Vietnamese Dong stable at the expense of business borrowing. Thus, Vietnam's GDP growth is
projected to be lower than that seen in 2022. As such, Vietnamese consumers started to tighten
their budgets with many people reducing their spending on non-essential products such as
coffee.
Though consumers have continued to drink coffee some people have been drinking less as a
way to save money. In response to the lower demand, key players in coffee such as Masan
Group Corp and Nestlé Vietnam Ltd have been constantly deploying discounting activities at
modern channels such as supermarkets and hypermarkets and online as a way to simulate
consumer demand.
When it comes to coffee in Vietnam sales are relatively evenly split between the retail channel
and the foodservice channel. During the pandemic sales swung towards the retail channel as
consumers were unwilling or unable to venture outside their home for long periods. However,
now that the pandemic is over sales have been shifting back towards the foodservice channel.
Nonetheless, after seeing double-digit growth in volume terms in 2022, the recovery of
foodservice sales has slowed in 2023. Like retail sales, this is in part due to the slowdown in the
economy and rising prices. However, foodservice sales have benefited from more consumers
returning to the workplace, an increase in social engagements and a recovery in Vietnam’s
tourism industry.
Production shortfall leads to a sharp rise in the price of coffee beans

Coffee production in Vietnam was negatively impacted in 2023 by high temperatures and
drought which are linked to the impact of climate change. This is not just a local problem with
there being a global shortage of coffee beans in 2023 due to poor yields in key regions such as
India and Brazil. As such, this led to a sharp increase in the price of fresh coffee beans but
which also put significant pressure on the production cost of fresh ground coffee and instant
coffee. With manufacturers also facing an increase in other production costs this came at a
challenging time, with there being pressure to contain price rises with locals already facing a
sharp rise in the cost of living.
The Vietnamese government has reduced the rate of VAT from 10% to 8% from 1 July to 31
December 31, 2023, as part of efforts to support businesses and companies and to ease the
pressure on consumers. However, this has not been enough to prevent a significant increase in
the price of coffee in 2023. As Vietnamese consumers are quite price-sensitive these price rises
have negatively impacted demand in 2023 and therefore players are expected to look to avoid
any further significant price increases in coffee, at least in the short term.
Coffee continues to benefit from new product innovation

Despite the challenges that have faced coffee producers in 2022 and 2023 the market has
continued to see various product innovations, with these mostly focusing on flavour. For
example, in July 2023, The Coffee Factory, a chain of specialist coffee shops in Vietnam,
launched its new mint flavoured range of instant coffee mixes. This new product can be served
hot or cold and adds the chain’s existing product lineup in instant coffee mixes which also
includes hazelnut and cappuccino options. To help promote its range of instant coffee mixes
The Coffee Factory ran various promotions during 2023 including an offer to buy two boxes of
its mint and cappuccino instant coffee mixes as a bundle offer for VND99,000.
In April 2023, Fes Vietnam Co Ltd added a new fresh ground coffee flavour to its MacCoffee
Gold range to provide a stronger coffee taste. Another new launch under the MacCoffee brand
in standard fresh ground coffee in 2023 was MacCoffee Cà Phê Ph? Rang Xay (street roasted
coffee). Fresh ground coffee is usually sold in 200g or 500g pack sizes in Vietnam but this new
product is being sold in single-portion sachets that are designed to be more affordable and
convenient for consumers, which has helped to make its coffee more accessible to a wider
audience.
PROSPECTS AND OPPORTUNITIES
Coffee is expected to see the better performance over the forecast

period
Coffee is expected to see a return to growth in retail volume terms over the forecast period
while foodservice sales are projected to see a full recovery. Demand is likely to pick up as
Vietnam’s economy rebounds and as consumer confidence is restored. Furthermore, sales
should also benefit from the recovery of the country’s tourism industry as well as locals returning
to more active lives away from the home both for work and leisure. The Vietnamese government
is also expected to continue deploying initiatives to boost the economy and to encourage
consumers to start spending again. For example, in October 2023 the Ministry of Finance
consulted the authorities on making further cuts to VAT for the first six months of 2024, having
previously reduced VAT from 10% to 8% for the second half of 2023.
Consumers expected to show higher interest in fresh coffee

Over the forecast, Vietnamese consumers are expected to show higher interest in fresh
coffee including fresh coffee beans and standard fresh ground coffee. More and more fully
automated coffee machines are being promoted and sold in electronics and appliance stores
and through retail e-commerce platforms such as tiki.vn, Lazada.vn, and shopee.vn. These
small appliances are becoming increasingly affordable, with many consumers purchasing these
products during special sales events which have become increasingly common in Vietnam.
The rising availability of coffee machines has led to a rising demand for the café experience at
home, which in turn is boosting sales of fresh coffee. Nonetheless, fresh coffee beans are
typically only available in specialist coffee shops, while the presence of these products in the
retail channel is limited due to the fact consumers need to grind the beans in small batches for
immediate use, which is seen as inconvenient and time consuming. Instead, when it comes to
fresh coffee Vietnamese consumers usually purchase standard fresh ground coffee when
shopping in the retail channel. As the economy improves consumers are likely to be keen to
invest in a higher quality cup of coffee whether at home or in the foodservice channel and thus
sales of fresh ground coffee are projected to see strong growth in total volume terms.
Limited opportunities expected for pods, but local players and

foodservice operators could carve out more share in the market
Over the forecast period, the presence of fresh ground coffee pods will likely remain negligible
in Vietnam due to the well-established culture and preference for drip coffee. Therefore, there is
likely to be a reluctance to embrace more modern approaches such as coffee pods. In addition,
when considering the cost per cup, coffee pods tend to be pricier than purchasing fresh coffee
beans or standard fresh ground coffee. Moreover, with the widespread availability of specialist
coffee shops and a strong coffee culture in Vietnam, consumers can easily purchase fresh
coffee drinks in various options from expresso, cappuccino, and latte to drip coffee, all at a
cheaper price than purchasing fresh ground coffee pods. The higher cost of these products
compared to other coffee options is therefore likely to remain a major deterrent to price-
conscious consumers.
As Vietnam is able to grow and produce its own raw coffee beans, the forecast period is,
however, likely to see the entry of more small domestic players into the market, as exemplified
by newcomers such as Mr Viet, Shin Café, and Gunam. These local brands typically focus on
distribution within a certain region or a niche segment, in order to differentiate themselves from
their larger rivals. Indeed, an increasing demand for speciality coffee, as well as a growing
consumer interest in where coffee is grown, should pay dividends for these smaller players.
Foodservice operators, such as Phuc Long Coffee & Tea Co Ltd and Viet Thai International JSC
(with its Highland brand) are also expected to focus on developing their offerings within their
coffee shop outlets, as well as looking to take advantage of their strong brand names to expand
further.
CATEGORY DATA
Table 25 Retail Sales of Coffee by Category: Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
Fresh Coffee 13,976.2 14,505.8 14,766.9 14,977.6 14,789.2 14,135.0

- Fresh Coffee Beans - - - - - -
- Fresh Ground Coffee 13,976.2 14,505.8 14,766.9 14,977.6 14,789.2 14,135.0
-- Fresh Ground Coffee - - - - - -
Pods
-- Standard Fresh 13,976.2 14,505.8 14,766.9 14,977.6 14,789.2 14,135.0
Ground Coffee
Instant Coffee 36,832.5 37,704.8 38,364.0 38,475.5 38,197.1 38,683.9
- Instant Standard Coffee 9,044.7 9,361.2 9,595.3 9,184.1 8,944.1 8,966.9
Coffee 50,808.6 52,210.5 53,130.8 53,453.1 52,986.3 52,818.9
- Instant Coffee Mixes 27,787.8 28,343.5 28,768.7 29,291.5 29,253.0 29,716.9
Table 26 Retail Sales of Coffee by Category: Value 2018-2023
VND billion
2018 2019 2020 2021 2022 2023
Fresh Coffee 2,053.2 2,190.9 2,342.9 2,507.0 2,660.6 2,765.4

Pods
-- Standard Fresh 2,053.2 2,190.9 2,342.9 2,507.0 2,660.6 2,765.4
Ground Coffee
Instant Coffee 6,444.6 6,826.3 7,361.4 7,654.5 8,019.6 8,577.7
Coffee 8,497.8 9,017.1 9,704.3 10,161.6 10,680.1 11,343.1
Table 27 Retail Sales of Coffee by Category: % Volume Growth 2018-2023
% volume growth
2022/23 2018-23 CAGR 2018/23 Total
Fresh Coffee -4.4 0.2 1.1

- Fresh Coffee Beans - - -
- Fresh Ground Coffee -4.4 0.2 1.1
-- Fresh Ground Coffee Pods - - -
-- Standard Fresh Ground Coffee -4.4 0.2 1.1
Instant Coffee 1.3 1.0 5.0
- Instant Standard Coffee 0.3 -0.2 -0.9
Coffee -0.3 0.8 4.0
- Instant Coffee Mixes 1.6 1.4 6.9
Table 28 Retail Sales of Coffee by Category: % Value Growth 2018-2023

2022/23 2018-23 CAGR 2018/23 Total
Fresh Coffee 3.9 6.1 34.7

- Fresh Ground Coffee 3.9 6.1 34.7
-- Standard Fresh Ground Coffee 3.9 6.1 34.7
- Instant Standard Coffee 7.2 5.4 30.0
Coffee 6.2 5.9 33.5
Table 29 NBO Company Shares of Coffee: % Retail Value 2019-2023
% retail value rsp

Company 2019 2020 2021 2022 2023

Trung Nguyen Corp 19.0 18.4 17.4 17.9 18.2
Masan Group Corp 21.9 19.9 19.0 17.6 17.1
Fes Vietnam Co Ltd 3.6 3.4 3.5 3.6 3.7
Viet Thai International JSC 1.1 1.1 1.0 1.0 1.0
Phuc Long Coffee & Tea Co 0.4 0.5 0.4 0.7 1.0
Ltd
Gold Roast Vietnam Co Ltd 0.2 0.2 0.0 - -
Others 18.6 21.2 22.6 22.4 21.2
Total 100.0 100.0 100.0 100.0 100.0
Table 30 LBN Brand Shares of Coffee: % Retail Value 2020-2023
% retail value rsp

Nescafé (Nestlé SA) Nestlé Vietnam Co Ltd 35.3 36.0 36.7 37.8
Vinacafé Masan Group Corp 19.9 19.0 17.6 17.1
Trung Nguyen Trung Nguyen Corp 11.7 10.6 10.8 10.8
G7 Instant Coffee Trung Nguyen Corp 6.7 6.8 7.1 7.3
MacCoffee (Food Fes Vietnam Co Ltd 3.4 3.5 3.6 3.7
Empire Holdings Ltd)
Highlands Viet Thai International JSC 1.1 1.0 1.0 1.0
Phuc Long Phuc Long Coffee & Tea Co 0.5 0.4 0.7 1.0
Ltd
Gold Roast (Viz Branz Gold Roast Vietnam Co Ltd 0.2 0.0 - -
Ltd)
Eagle (Food Empire Fes Vietnam Co Ltd - - - -
Holdings Ltd)
Klassno (Food Empire Fes Vietnam Co Ltd - - - -
Holdings Ltd)
Others Others 21.2 22.6 22.4 21.2
Total Total 100.0 100.0 100.0 100.0
Table 31 Forecast Retail Sales of Coffee by Category: Volume 2023-2028
Tonnes
2023 2024 2025 2026 2027 2028
Fresh Coffee 14,135.0 13,879.6 14,042.6 14,390.7 15,211.5 16,419.1

Pods
-- Standard Fresh 14,135.0 13,879.6 14,042.6 14,390.7 15,211.5 16,419.1
Ground Coffee
Instant Coffee 38,683.9 39,596.0 40,517.7 41,440.8 42,315.1 43,132.9
Coffee 52,818.9 53,475.6 54,560.3 55,831.5 57,526.6 59,552.1
trade sources
Table 32 Forecast Retail Sales of Coffee by Category: Value 2023-2028
VND billion
2023 2024 2025 2026 2027 2028
Fresh Coffee 2,765.4 2,723.6 2,766.6 2,849.3 3,029.9 3,295.2

Pods
-- Standard Fresh 2,765.4 2,723.6 2,766.6 2,849.3 3,029.9 3,295.2
Ground Coffee
Instant Coffee 8,577.7 8,818.9 9,079.7 9,348.5 9,617.8 9,885.5
Coffee 11,343.1 11,542.5 11,846.3 12,197.9 12,647.7 13,180.7
trade sources
Table 33 Forecast Retail Sales of Coffee by Category: % Volume Growth 2023-2028
% volume growth
2023/24 2023-28 CAGR 2023/28 Total

Coffee 1.2 2.4 12.7
trade sources
Table 34 Forecast Retail Sales of Coffee by Category: % Value Growth 2023-2028

2023/2024 2023-28 CAGR 2023/28 Total


Coffee 1.8 3.0 16.2
trade sources
TEA IN VIETNAM - CATEGORY

ANALYSIS
KEY DATA FINDINGS
▪ Retail value sales increase by 5% in current terms in 2023 to VND8.4 trillion

▪ Fruit/herbal tea is the best performing category in 2023, with retail value sales growing by
10% in current terms to VND1.1 trillion
▪ Lipton Teas & Infusions is the leading player in 2023, with a retail value share of 17%
▪ Retail sales are set to grow at a current value CAGR of 7% (2023 constant value CAGR of
4%) over the forecast period to VND12.1 trillion
2023 DEVELOPMENTS
Tea continues to record positive retail value growth in 2023

Sales of tea have continued to recover in retail volume terms and foodservice volume terms in
2023. Despite the economic pressures facing many households tea has continued to see stable
demand in 2023 with sales backed by the end of the pandemic and government efforts to
stimulate spending, such as the decision to reduce VAT from 10% to 8% for the final six months
of the year. It is important to note that while tea as a whole has seen positive growth in 2023 the
performances within the different categories have been mixed. Green tea remains by far the
most popular option due to its long tradition in Vietnam and the well-known health benefits of
consuming it. There are also a wide range of options to choose from, including competitively
priced products, which ensures that it is accessible to most households. Likewise, fruit/herbal
tea is also benefiting from its healthy image and from the growing variety of products and
options available on the market.
In contrast, black tea and instant tea have both seen a decline in sales in retail volume terms
in 2023. Black tea is dominated by Lipton Yellow Label and is also the most expensive option on
average. Furthermore, black tea is not seen to have the same health benefits as green tea or
fruit/herbal tea. Instant tea has also fallen out of favour due to consumers switching to healthier
options.
Fruit/herbal tea is the most dynamic tea category in 2023 as focus on

health and wellness continues to grow
The outbreak of COVID-19 played a significant role in encouraging more consumers in
Vietnam to focus on their health and wellness and this trend continues to develop even now that
the pandemic is over. This has in turn resulted in a growing preference for products that offer
distinct health benefits, including within tea. In line with this trend, fruit/herbal tea has been the
most dynamic tea category in 2023 in retail volume terms with products that are positioned as
functional beverages seeing particularly strong growth. Fruit/herbal tea with ingredients that
have a specific positioning, such as aiding sleep/relaxation, lowering blood pressure and blood
sugar levels, or boosting immunity have continued to perform well. Players have also invested in
highlighting their functional ingredients or specific benefits in their marketing and packaging as
they look to benefit from the growing focus on health and wellness. In Vietnam, artichoke tea is
one of the most popular fruit/herbal tea options with these products continuing to see high
demand and interest in 2023 thanks to its various benefits such as stabilising blood sugar and
cholesterol levels and liver health.
Instant tea benefits from product innovation with a focus on reduced

sugar options
With consumers becoming more health conscious there has been a shift away from instant
tea in Vietnam in the last two years of the review period with consumers increasingly turning to
other options such as fruit/herbal tea. Nonetheless, against a backdrop of falling demand instant
tea has seen plenty of active product innovation and new product development. For example, in
March 2023, Ajinomoto Vietnam introduced its new Blendy brand of low sugar instant tea into
the market. This new range comes in three flavours namely Matcha Milk, Matcha Brown Rice,
and Royal.
Milk tea is a popular drink in Vietnam, especially among young consumers, and this is
reflected in the competitive landscape for instant tea in which the leading brand is Lipton Milk
Tea. However, more and more consumers are showing concern about their sugar intake and the
impact it can have on their weight and their health and as such some have been cutting back on
powder milk instant tea. The introduction of the Blendy brand of instant tea with less sugar is
seen as a way to address these concerns and to help stimulate demand from more health
conscious consumers. Besides this new brand, instant tea has also seen the launch of a taro
flavoured milk tea product from the Hillway brand.
Tea sales expected to see strong growth thanks to the various health
claims of these products and an improving economy
It is expected that tea will see strong and stable growth over the forecast period backed by a
well-developed tea drinking culture in Vietnam. Furthermore, Vietnam’s economy is projected to
see stronger GDP growth in the early part of the forecast period which should help to boost
consumer confidence and encourage people spend more on tea, including higher quality and
premium options. Black tea is likely to be a key beneficiary of any improvement in the economy
with these products carrying a higher price tag on average compared to more popular options
such as green tea.
Among the tea categories, fruit/herbal tea is projected to record the most dynamic growth in
retail volume terms over the forecast period. This is in line with the rising trend in Vietnam
whereby local fruit/herbal tea products are being promoted as potential cures for symptoms
such as insomnia, blood sugar control, blood pressure regulation, and digestion, among other
things. As demand grows it is also expected that the category will expand with more players
looking to take advantage of the burgeoning demand for natural solutions to everyday health
problems. Besides fruit/herbal tea, other tea is also expected to record a strong performance
thanks in part to the rising popularity of oolong tea in Vietnam. Oolong tea taps into the health
and wellness trend with health claims including aiding weight loss, lowering the risk of
developing type 2 diabetes, improving sleep and reducing the risk of heart disease, among other
claims.
Health and wellness will remain a key influence on sales of tea

Over the forecast period, Vietnam is expected to see a growing focus on health and wellness.
Heart disease, diabetes, some forms of cancer, and respiratory disorders are just few of the
many chronic diseases that can be avoided by leading a healthy lifestyle. The health and
wellness in Vietnam is therefore expected to have a growing influence on the demand for tea,
with healthier options expected to see strong growth. Together with the local culture of drinking
tea, Vietnamese people also believe that drinking tea will provide various health benefits.
Players are therefore projected to look to exploit this trend to a greater degree over the forecast
period and will likely look to highlight the key health benefits of their tea when promoting their
products and on their product packaging. Green tea is likely to remain a key beneficiary of this
due to its well-known health-giving properties, including weight control, improved brain function
and the lowering of cholesterol. Indeed, green tea is expected to remain the dominant tea
category in retail volume terms and will likely continue to benefit from further investment in new
product development, such as the addition of new flavours and blends.
Aside from healthier variants, the forecast period is also set to see an emerging demand for
premium products. A wider range of more sophisticated offerings is expected to appear on
retailers’ shelves, as the consumer audience for these types of products continues to widen. In
particular, affluent urban professionals are more likely to be interested in sophisticated, high-
quality and speciality variants of tea, with manufacturers likely to favour these products as they
are generally more profitable than standard types of tea. Within this, packaging design will
become increasingly important, as he leading players seek to attract consumer attention and to
build a premium image for their brands. This will likely also be a strong emphasis on the
naturalness of the ingredients, with this seen to be important.
These innovations are likely to be supported by increased investment in marketing and
advertising activities as the leading manufacturers seek to build strong brand awareness and
ultimately boost sales. By contrast, local players are expected to focus more on expanding their
distribution networks, in order to expand their consumer base.
Retail e-commerce will continue to expand its share in distribution

channels.
Over the forecast period, retail e-commerce will likely continue to expand its distribution share
in tea with locals becoming increasingly comfortable and confident about shopping online, while
also being attracted to the wide range of promotions and discounts that are often available. With
the strong development of retail e-commerce, more and more consumers will likely develop a
habit for purchasing tea products through popular retail e-commerce platforms such as tiki.vn,
Lazada.vn, and shopee.vn. In general, these retail e-commerce platforms provide a wide range
of products with constant promotional and discounted activities. Nevertheless, older generations
of consumers still usually prefer to purchase tea products at offline retail channels such as small
local grocers, supermarkets or hypermarkets.
CATEGORY DATA
Table 35 Retail Sales of Tea by Category: Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
- Loose Black Tea - - - - - -

- Tea Bags Black 1,567.8 1,654.0 1,711.9 1,691.4 1,694.5 1,657.9
Black Tea 1,567.8 1,654.0 1,711.9 1,691.4 1,694.5 1,657.9
Fruit/Herbal Tea 2,167.1 2,326.7 2,466.3 2,621.6 2,785.1 2,953.7
Green Tea 11,705.6 12,677.1 13,564.5 12,476.7 12,813.6 12,896.9
Instant Tea 3,271.9 3,497.3 3,672.2 3,828.5 3,617.4 3,561.6
Other Tea 286.9 302.1 317.3 329.1 334.4 335.5
Tea 18,999.3 20,457.3 21,732.1 20,947.4 21,244.9 21,405.4
Table 36 Retail Sales of Tea by Category: Value 2018-2023
VND billion
2018 2019 2020 2021 2022 2023

- Tea Bags Black 1,687.3 1,813.7 1,956.7 1,948.7 2,020.5 2,057.3
Black Tea 1,687.3 1,813.7 1,956.7 1,948.7 2,020.5 2,057.3
Fruit/Herbal Tea 652.2 723.6 810.3 888.8 975.8 1,074.9
Green Tea 3,648.7 4,067.5 4,311.5 4,104.6 4,371.4 4,590.0
Instant Tea 373.0 401.4 428.7 459.6 449.9 461.3
Other Tea 180.3 195.4 207.5 221.1 232.7 243.2
Tea 6,541.5 7,201.6 7,714.8 7,622.9 8,050.4 8,426.7
Table 37 Retail Sales of Tea by Category: % Volume Growth 2018-2023
% volume growth
2022/23 2018-23 CAGR 2018/23 Total
- Loose Black Tea - - -

- Tea Bags Black -2.2 1.1 5.7
Black Tea -2.2 1.1 5.7
Fruit/Herbal Tea 6.1 6.4 36.3
Green Tea 0.6 2.0 10.2
Instant Tea -1.5 1.7 8.9
Other Tea 0.3 3.2 16.9
Tea 0.8 2.4 12.7
Table 38 Retail Sales of Tea by Category: % Value Growth 2018-2023

2022/23 2018-23 CAGR 2018/23 Total

- Tea Bags Black 1.8 4.0 21.9
Black Tea 1.8 4.0 21.9
Green Tea 5.0 4.7 25.8
Instant Tea 2.5 4.3 23.7
Other Tea 4.5 6.2 34.9
Tea 4.7 5.2 28.8
Table 39 NBO Company Shares of Tea: % Retail Value 2019-2023
% retail value rsp
Company 2019 2020 2021 2022 2023
Lipton Teas & Infusions - - - - 16.6

Ecological Product JSC 7.8 8.0 8.0 8.3 8.6
Vietnam National Tea JSC 5.5 4.2 4.2 4.8 4.8
Vinh Tien Co Ltd 3.7 3.8 4.3 4.4 4.6
Hoang Long Tea Co Ltd 3.2 3.1 3.0 3.1 3.1
Cau Tre Export Goods 2.4 2.5 2.7 2.8 2.9
Processing JSC
MJF Group 0.7 0.7 0.8 1.0 1.1
Tam Chau Tea & Coffee Co 0.6 0.6 0.7 0.6 0.6
Ltd
Dai Gia Trade & Service 0.3 0.3 0.4 0.4 0.4
Co Ltd
Ekaterra - - - 17.1 -
Unilever Vietnam 16.3 16.3 17.1 - -
Qualitea Ceylon (PVT) Ltd 0.8 0.5 - - -
Others 56.9 58.1 57.0 56.0 55.8
Total 100.0 100.0 100.0 100.0 100.0
Table 40 LBN Brand Shares of Tea: % Retail Value 2020-2023
% retail value rsp

Lipton Yellow Label Lipton Teas & Infusions - - - 13.3

Cozy Ecological Product JSC 8.0 8.0 8.3 8.6
Vinh Tien Vinh Tien Co Ltd 3.8 4.3 4.4 4.6
Vinatea Vietnam National Tea JSC 3.6 3.5 4.1 4.2
Hoang Long Hoang Long Tea Co Ltd 3.1 3.0 3.1 3.1
Lipton Lipton Teas & Infusions - - - 2.9
Cau Tre Cau Tre Export Goods 2.0 2.2 2.3 2.4
Processing JSC
Nestea (Nestlé SA) Nestlé Vietnam Co Ltd 1.7 1.9 1.5 1.3
Dilmah MJF Group 0.7 0.8 1.0 1.1
Vinatea O Long Tea Vietnam National Tea JSC 0.6 0.7 0.7 0.7
Tam Chau O Long Tea Tam Chau Tea & Coffee Co Ltd 0.6 0.7 0.6 0.6
Cau Tre O Long Tea Cau Tre Export Goods 0.5 0.6 0.6 0.6
Processing JSC
Tra Dai Gia O Long Tea Dai Gia Trade & Service 0.3 0.4 0.4 0.4
Co Ltd
Lipton Yellow Label Ekaterra - - 13.7 -
Lipton Ekaterra - - 3.0 -
Lipton Yellow Label Unilever Vietnam 12.7 13.5 - -
(Unilever Group) International Co Ltd
Lipton (Unilever Group) Unilever Vietnam 3.4 3.2 - -
Qualitea Qualitea Ceylon (PVT) Ltd 0.5 - - -
Others Others 58.4 57.4 56.4 56.2
Total Total 100.0 100.0 100.0 100.0
Table 41 Forecast Retail Sales of Tea by Category: Volume 2023-2028
Tonnes
2023 2024 2025 2026 2027 2028

- Tea Bags Black 1,657.9 1,701.7 1,758.5 1,830.4 1,914.2 2,008.1
Black Tea 1,657.9 1,701.7 1,758.5 1,830.4 1,914.2 2,008.1
Fruit/Herbal Tea 2,953.7 3,126.1 3,302.2 3,473.4 3,624.1 3,773.3
Green Tea 12,896.9 13,132.6 13,408.9 13,716.2 14,053.2 14,440.3
Instant Tea 3,561.6 3,579.8 3,613.6 3,657.6 3,709.1 3,766.7
Other Tea 335.5 341.2 349.3 359.4 370.8 383.3
Tea 21,405.4 21,881.4 22,432.5 23,037.1 23,671.5 24,371.7
trade sources
Table 42 Forecast Retail Sales of Tea by Category: Value 2023-2028
VND billion
2023 2024 2025 2026 2027 2028

- Tea Bags Black 2,057.3 2,119.9 2,199.3 2,298.8 2,414.4 2,544.3
Black Tea 2,057.3 2,119.9 2,199.3 2,298.8 2,414.4 2,544.3
Fruit/Herbal Tea 1,074.9 1,139.6 1,205.9 1,271.0 1,333.7 1,397.7
Green Tea 4,590.0 4,704.7 4,836.4 4,981.5 5,141.0 5,320.9
Instant Tea 461.3 465.7 472.3 480.4 489.5 499.6
Other Tea 243.2 248.4 255.1 263.7 273.5 284.1
Tea 8,426.7 8,678.3 8,969.1 9,295.4 9,651.9 10,046.5
trade sources
Table 43 Forecast Retail Sales of Tea by Category: % Volume Growth 2023-2028
% volume growth
2023/24 2023-28 CAGR 2023/28 Total

Black Tea 2.6 3.9 21.1
Green Tea 1.8 2.3 12.0
Other Tea 1.7 2.7 14.3
Tea 2.2 2.6 13.9
trade sources
Table 44 Forecast Retail Sales of Tea by Category: % Value Growth 2023-2028

2023/2024 2023-28 CAGR 2023/28 Total

Black Tea 3.0 4.3 23.7

Green Tea 2.5 3.0 15.9
Other Tea 2.1 3.2 16.8
Tea 3.0 3.6 19.2
trade sources
OTHER HOT DRINKS IN VIETNAM -

CATEGORY ANALYSIS
KEY DATA FINDINGS
▪ Retail value sales increase by 1% in current terms in 2023 to VND5.3 trillion

▪ Other plant-based hot drinks is the best performing category in 2023, with retail value sales
increasing by 1% in current terms to VND2.5 trillion
▪ Nestlé Vietnam Co Ltd is the leading player in 2023, with a retail value share of 49%
▪ Retail sales are set to grow at a current value CAGR of 4% (2023 constant value CAGR of -
0.1%) over the forecast period to VND6.3 trillion
2023 DEVELOPMENTS
Other hot drinks continues to decline in retail volume terms

Sales of other hot drinks have continued to decline in retail volume terms in 2023 which is in
part due to consumers spending less time at home now that the pandemic is over and
consumers have returned to work and school. Retail sales of other hot drinks saw strong and
stable growth during the pandemic as children were forced to study at home and thus there
were more opportunities for consumption. The removal of COVID-19 restrictions allowed for the
return of children to school in 2022 while many Vietnamese people also returned to their
workplaces. This resulted in a decline in sales in retail volume terms in 2022 with this pattern
continuing into 2023 as sales returned to levels similar to the pre-pandemic period.
Typically, parents usually prefer to buy ready-to-drink malted drinks for their children to bring
to school for convenience, and therefore with children spending less time at home there has
been less demand for malt-based hot drinks. Additionally, more people are opting for on-the-go
beverages as a quick breakfast solution, while there are also a wide range of other available
breakfast choices in Vietnam. As a result, the number of at-home consumption occasions for
other hot drinks has continued to decline in 2023 which has negatively impacted retail volume
sales.
Foodservice sales thriving in 2023 while milo cements its leading

position in the category
While other hot drinks has seen further struggles in retail volume terms the opposite has been
true for foodservice sales which have seen double-digit growth in volume terms in 2023. This is
partly down to consumers returning to busier lives away from the home now that the pandemic
is over with consumers meeting for social occasions and children meeting with friends and
family for lunch and dinner. The strong growth being seen in foodservice volume terms is also
thanks to the fact that malt-based hot drinks are becoming popular in consumer foodservice
outlets such as KFC, Burger King and Texas Chicken. With parents becoming increasingly
concerned about their children’s diet some are steering them away from what they perceive to
be more unhealthy options such as carbonates and towards other options, including other hot
drinks.
Nestlé’s Milo brand accounts for most sales of malt-based hot drinks in Vietnam, with children
being key consumers of its products. The brand focuses on its healthy ingredients in its
marketing with its marketing being linked to sport and more active lifestyles, while it also
regularly runs competitions where consumers can win sportswear and other prizes that are
linked to a healthy and active lifestyle. This has helped to preserve a healthy image for the
brand in the minds of consumers, with its website and marketing looking to educate parents
about the importance of a healthy and balanced nutrition in supporting their children’s
development.
Retail e-commerce is getting popularity in other hot drinks’ distribution

Retail e-commerce has become an increasingly popular distribution channel for a wide range
of fast moving consumer goods, including other hot drinks. Online sales exploded following the
outbreak of COVID-19 as consumers were unable or unwilling to visit their local stores and as
such were forced to shop online. Although the pandemic is now over many consumers continue
to shop for other hot drinks online. This is in part thanks to the fact that retail e-commerce
players usually offer free shipping, discounts and promotions on double day (1.1,2.2, 3.3 etc)
sales events, which are proving increasingly popular with shoppers.
Shopee.vn, Lazada.vn, and tiki.vn are three of the most popular retail e-commerce platforms
in Vietnam with leading players in other hot drinks having established official stores on these
platforms as they look to retain and grow their share. For example, Nestlé has official stores on
these platforms through which it not only offers discounts but also bundle offers, which often
include packs of Milo, with these representing excellent value.
Other hot drinks set to face strong competition from various other
products
The performance of other hot drinks during the forecast period is expected to be
characterised by further positive growth in foodservice volume terms and a further decline in
retail volume terms. The key factor influencing these trends is expected to be the growing
tendency of Vietnamese consumers to go to cafés, specialist coffee and tea shops, restaurants,
and bars to consume hot drinks in general, and thus this will likely also influence where other
hot drinks are consumed too. Increased availability of products such as Milo in more foodservice
outlets should also help to promote growth in foodservice volume terms.
Although foodservice volume sales are set to see healthy growth it is expected that growth will
gradually slow as the forecast period progresses. This is partly due to maturity of demand but
also because these products are likely to face strong competition from other drinks in
foodservice outlets such as carbonates, juice and milk tea. This scenario is also likely to limit the
demand for other hot drinks for at-home consumption. With consumers leading increasingly
busy lifestyles other hot drinks is expected to face strong competition from other products
including RTD malt-based drinks in Vietnam. For instance, alongside its range of malt-based hot
drinks the Milo brand also offers and promotes its RTD malt-based drinks, which it advertises as
being ideal for kid’s lunchboxes or for taking to sports activities to provide an energy boost.
Vietnam’s developing health and wellness trend likely to inform new

product development and innovation
It is expected that over the forecast period innovation within other hot drinks will increasingly
focus on the creation of reduced sugar and sugar-free choices, with this being likely to have a
major influence on the most popular brands. This reflects rising customer demand for healthier
hot drinks options and an increased awareness of the dangers of consuming too much sugar.
Leading players in this category, such as FrieslandCampina Vietnam Co Ltd, Nestlé Vietnam,
and Masan Group Corp, are all expected to focus their efforts on producing healthier versions of
their existing products.
Providing reduced sugar choices under their current product lines is seen as the most
straightforward approach to meeting consumers' increased desire for health and wellness
products. This approach is in line with current trends and would assist businesses in meeting
customer expectations for healthier options. Aside from an increased focus on sugar levels it is
also likely that consumers will pay more attention to product labels in general with the aim of
reducing the consumption of salt, trans-fats, and other potentially harmful ingredients. With this
in mind players could also look to provide cleaner and more natural ingredients, as well as
educating consumers about the healthy properties of their products.
Chocolate-based flavoured powder drinks likely to remain a niche, but

other plant-based hot drinks should benefit from healthy image
Over the forecast period, it is expected that malt-based hot drinks will continue to account for
most sales of flavoured powder drinks with chocolate-based flavoured powder drinks likely to
remain a niche area with negligible sales. First, many people find the texture of chocolate-based
flavoured powder drinks to be unappealing, as it can range from gritty to thick. Second, the
sweetness of chocolate-based flavoured powder drinks is not very appealing to local palates
and it does fit well with the current trend for reducing sugar consumption. Third, the price of
chocolate-based flavoured powder drinks is too high for most consumers in Vietnam, with prices
being much higher than those for malt-based drinks.
Other plant-based hot drinks will likely remain the only category within other hot drinks to see
growth in retail volume terms over the forecast period. The category is highly fragmented but it
is likely to retain its appeal due to the healthy image of products such as leading brand Vinacafé
Instant Nutritious Cereal. These products are also typically more affordable with there being a
wide range of domestic brands and products present in the category. The category is also
expected to witness the arrival of more imported brands over the forecast period, as companies
seek to serve a niche segment of consumers, particularly foreign nationals living in Vietnam.
CATEGORY DATA
Table 45 Retail Sales of Other Hot Drinks by Category: Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
Flavoured Powder Drinks 16,705.5 16,404.8 16,732.9 17,021.1 16,402.7 15,749.5

- Chocolate-based - - - - - -
Flavoured Powder Drinks
- Malt-based Hot Drinks 16,705.5 16,404.8 16,732.9 17,021.1 16,402.7 15,749.5
- Non-Chocolate-based - - - - - -
Other Plant-based Hot 15,979.8 17,465.9 18,618.7 19,476.9 19,015.5 18,441.7
Drinks
Other Hot Drinks 32,685.3 33,870.7 35,351.6 36,498.0 35,418.1 34,191.3
Table 46 Retail Sales of Other Hot Drinks by Category: Value 2018-2023
VND billion
2018 2019 2020 2021 2022 2023

Drinks
Other Hot Drinks 4,314.6 4,576.2 4,858.1 5,161.7 5,220.4 5,265.0
Table 47 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2018-2023
% volume growth
2022/23 2018-23 CAGR 2018/23 Total
Flavoured Powder Drinks -4.0 -1.2 -5.7

- Chocolate-based Flavoured Powder Drinks - - -
- Malt-based Hot Drinks -4.0 -1.2 -5.7
- Non-Chocolate-based Flavoured Powder Drinks - - -
Other Plant-based Hot Drinks -3.0 2.9 15.4
Table 48 Retail Sales of Other Hot Drinks by Category: % Value Growth 2018-2023

2022/23 2018-23 CAGR 2018/23 Total
Flavoured Powder Drinks 0.5 2.4 12.6

- Malt-based Hot Drinks 0.5 2.4 12.6
Other Plant-based Hot Drinks 1.3 6.1 34.8
Table 49 NBO Company Shares of Other Hot Drinks: % Retail Value 2019-2023
% retail value rsp

Company 2019 2020 2021 2022 2023

Masan Group Corp 10.1 10.2 7.6 7.7 7.8
FrieslandCampina Vietnam 4.4 4.4 4.3 4.2 3.9
Co Ltd
Gold Roast Vietnam Co Ltd 2.3 2.4 2.5 2.6 2.7
Others 33.3 33.7 36.9 36.8 36.9
Total 100.0 100.0 100.0 100.0 100.0

Table 50 LBN Brand Shares of Other Hot Drinks: % Retail Value 2020-2023
% retail value rsp

Milo (Nestlé SA) Nestlé Vietnam Co Ltd 49.3 48.7 48.7 48.7
Vinacafé Instant Masan Group Corp 10.2 7.6 7.7 7.8
Nutritious Cereal
Ovaltine (Associated FrieslandCampina Vietnam 4.4 4.3 4.2 3.9
British Foods Plc) Co Ltd
Calsome (Viz Branz Ltd) Gold Roast Vietnam Co Ltd 2.4 2.5 2.6 2.7
Others Others 33.7 36.9 36.8 36.9
Total Total 100.0 100.0 100.0 100.0
Table 51 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2023-2028
Tonnes
2023 2024 2025 2026 2027 2028

Drinks
Other Hot Drinks 34,191.3 33,872.7 33,683.8 33,602.8 33,617.6 33,705.6
trade sources
Table 52 Forecast Retail Sales of Other Hot Drinks by Category: Value 2023-2028
VND billion
2023 2024 2025 2026 2027 2028

Drinks
Other Hot Drinks 5,265.0 5,222.2 5,200.0 5,199.1 5,213.1 5,238.0
trade sources
Table 53 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2023-
2028
% volume growth
2023/24 2023-28 CAGR 2023/28 Total

Other Plant-based Hot Drinks -0.1 0.9 4.6
trade sources
Table 54 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2023-
2028

2023/2024 2023-28 CAGR 2023/28 Total

Other Plant-based Hot Drinks 0.1 1.3 6.6
trade sources

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Hot Drinks in Vietnam

LIST OF CONTENTS AND TABLES

Table 43 Forecast Retail Sales of Tea by Category: % Volume Growth 2023-

HOT DRINKS IN VIETNAM - INDUSTRY

Hot drinks in 2023: The big picture

2023 key trends

Foodservice vs retail split

What next for hot drinks?

Retail 61.7 61.5 66.6 69.9 66.4 64.1

Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2018-2023

Retail -1.1 1.1 5.8

Table 3 Retail Sales of Hot Drinks by Category: Volume 2018-2023

2018 2019 2020 2021 2022 2023

Coffee 50,808.6 52,210.5 53,130.8 53,453.1 52,986.3 52,818.9

Table 4 Retail Sales of Hot Drinks by Category: Value 2018-2023

Coffee 8,497.8 9,017.1 9,704.3 10,161.6 10,680.1 11,343.1

Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2018-2023

Coffee -0.3 0.8 4.0

Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2018-2023

% current value growth

Coffee 6.2 5.9 33.5

Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2018-2023

Coffee 56,369.1 59,301.7 49,161.1 42,524.4 49,540.9 53,868.0

Hot Drinks 63,490.9 66,733.6 55,359.3 47,835.3 55,588.5 60,625.0

Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2018-2023

Coffee 8.7 -0.9 -4.4

Table 9 Total Sales of Hot Drinks by Category: Total Volume 2018-2023

Coffee 107,177.7 111,512.2 102,291.9 95,977.4 102,527.2 106,686.9

% total volume growth

Coffee 4.1 -0.1 -0.5

Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2019-2023

% retail value rsp

Nestlé Vietnam Co Ltd 26.9 26.7 27.5 27.5 27.8

Hoang Long Tea Co Ltd 1.1 1.1 1.0 1.0 1.1

Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2020-2023

% retail value rsp

Lipton Yellow Label Ekaterra - - 4.6 -

Table 13 Retail Distribution of Hot Drinks by Format: % Volume 2018-2023

Retail Channels 100.0 100.0 100.0 100.0 100.0 100.0

Retail Channels 100.0 100.0 100.0

Table 15 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown

Retail 64.1 62.4 60.9 59.5 58.2 57.1

Retail 0.8 1.6 8.5

Table 17 Forecast Retail Sales of Hot Drinks by Category: Volume 2023-2028

Coffee 52,818.9 53,475.6 54,560.3 55,831.5 57,526.6 59,552.1

Table 18 Forecast Retail Sales of Hot Drinks by Category: Value 2023-2028

Coffee 11,343.1 11,542.5 11,846.3 12,197.9 12,647.7 13,180.7

Coffee 1.2 2.4 12.7

% constant value growth

Coffee 1.8 3.0 16.2

Table 21 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2023-2028

Coffee 53,868.0 58,299.2 62,976.2 67,965.7 73,221.9 78,546.2

Other Hot Drinks 1,450.2 1,556.6 1,657.8 1,756.8 1,853.4 1,955.4

Table 22 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth

Coffee 8.2 7.8 45.8

Coffee 106,686.9 111,774.8 117,536.5 123,797.3 130,748.4 138,098.3

% total volume growth

Coffee 4.8 5.3 29.4

Summary 1 Research Sources