1.

Current Trends and New Trends

● Young generation – the driving factor
○ According to the United Nations Population Fund, currently, nearly 25% of
Vietnam’s population are between the ages of 16 and 30. This is considered a
valuable resource that promises to bring uniqueness and creativity to the F&B
industry.
○ Although their income is not too high, Generation Z is still willing to spend a large
amount of money on eating out, with a total amount of nearly 900 thousand VND
(40 USD) per month. Always ready to welcome new and exciting things,
Generation Z is considered the top target group of international food venues.
● Consumer preferences in rural areas gradually emulate those in urban
○ Top 3 categories with the biggest occasion shares in both Urban and Rural areas
are Tea, Nutritional Drinks and Coffee
○ ⅖ top beverage categories in urban and rural areas are the same: Fruit/Veg juice
and Loose leaf tea
○ For Gen Z: ⅘ top beverage categories in urban and rural areas are the same:
Bottled water, RTS tea/milk tea, CSD, Fruit/Veg juice
● The booming of varieties and flavors:
○ Different drinks are chosen during the week
■ The 19–34-year-old group has the most diverse drinking habits. And the
group's frequency of drinking is lower than that of other age groups,
showing how fierce competition is to win in this group.

○ % weekly penetration: Bird’s nest 10%. Juicy milk 10%

○ Many new drinks are launched with dynamic recipes and flavors:
● Rapid growth of online ordering:
○ The online ordering trend began to bloom in 2019 and is still thriving after the
Covid-19 pandemics
■ The online channel ranked 5th in Gen Z’s top chosen channels (+3 ranks
compared to 2019)
■ Top 3 drink delivery platforms: ShopeeFood → Grabfood → Baemin
● Organic and Foods of Natural Origin + Sustainability
○ Not only the elderly but also younger groups, particularly Millennials, are
interested in and choose drinks for health purposes.
○ Government campaigns are pushing awareness about the need for increased
food safety and a clean food chain and this is combining with the desire for a
healthier lifestyle to push demand for organic products.
○ Consumers are becoming more aware of how their surroundings can impact on
the quality of the food that they eat, and this increased environmental awareness
is pushing food and beverage venues to become more sustainable.
■ With Vietnam’s middle class growing, its population is becoming
increasingly engaged with global trends, such as sustainability and
healthy eating.
■ Since the outbreak of the pandemic, consumers are concerned more about their
health and well-being. → According to the Vietnam Report (2019), green and
clean products will be the new market train in the coming years. The new trend
has presented opportunities for industry players and newcomers to the F&B
market as they can take advantage of Vietnamese people’s new drinking habits.
 ○ A wide variety of drinks for different health purposes, with 3 main categories:

Health Booster Detox Digestion Support

- Liquid Milk - Bottled Water - Drinking Yogurt

- Plant-based Drinks - Fruit/Vegetable Juice - Loose-leaf Tea
- Fruit/Vegetable Juice - RTD Tea (Ready-to- - Herbal Drinks
- Bird's Nest drink)
- Herbal Drinks

2. Market segmentation of beverages industry (Source: alliedmarketresearch)

By type By distribution channel

● Energy drinks ● Supermarket

● Sports drinks ● Hypermarket
● Dairy-based beverages ● Specialty stores
● Juices ● E-commerce
● Others ● Others

By end-user By geographical factors

● Athletes ● Urban area

● Casual consumers ● Rural area
● Fitness lifestyle users

By demand

● Water & Water+

● Start my day
● Flavor up routine
● Stay efficient
● Meal accompaniment
● Daily family moments
● Family celebration
● Connecting time
○ The biggest demand space is Connecting time, followed by Daily family moments and
Water/Water+
○ In Urban, me moments contribute a big part while in Rural, it’s all about social/family
engagements
○ Gen Z spends more “me time” with more flavor up routine and staying efficient. While
Millennials spend more time with others on daily family moments and connecting time