Vietnam’s food & Beverage sector: Trends, Growth drivers, and Investment prospects

This article is Part 4 of the series "Emerging Market Vietnam — The Next Big Move!"

By Linh Pham.

Vietnam’s food and beverage (F&B) industry stands at the forefront of Southeast Asia’s consumer markets, backed by compelling demographics, a rising middle class, expanding urban centers, and increasing consumer sophistication. As one of the fastest-growing economies in the region, Vietnam offers a dynamic and increasingly lucrative F&B landscape that continues to attract both domestic and international investors.

Building a world-class coffee roastery factory, Highlands Coffee champions Vietnamese coffee culture.. Source: Highland Coffee

Market Overview: A Sector on the Rise

Accounting for approximately 15% of Vietnam’s GDP, the F&B sector is one of the country’s most vital economic pillars. Retail sales of consumer goods and services reached over VND 5.68 quadrillion (USD 240 billion) in 2023—marking a 9.6% year-on-year growth—with F&B consumption contributing a significant share.

The Vietnam Food and Beverage Market was valued at USD 24.8 billion in 2023, driven by rising disposable incomes, urbanization, and a growing middle class. Key players include Vinamilk, Masan Consumer, TH Group, Nestle, PepsiCo, and Coca-Cola. The market is segmented by product type (beverages, packaged foods, fresh foods), distribution channel (hypermarkets, convenience stores, online retail), and region (North, West, East, South) and the growth is expected over the next five years.

8 Top Trends Driving Vietnam’s Food & Beverage Sector

• Emerging strong from the COVID-19 pandemic

• A top nation in food & Beverage sales

• A young and globally-oriented consumer base

• Health & Wellness trends mirror global patterns

• Brand values integral to consumer decision-making

• Reliance on imports in key Australian industries

• An increasingly Westernised Food & Beverage market 

• Premiumization trends Boosted by rising disposable incomes

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  The Vietnam Food and Beverage Market is projected to grow significantly from 2018 to 2028, with a notable increase in 2023, reaching around USD 24.8 billion. The chart illustrates the compound annual growth rate (CAGR) for this period.

Emerging Trends Reshaping the Industry

1. Health and wellness prioritization

Vietnamese consumers are increasingly embracing health-conscious lifestyles. This shift has fueled demand for:

• Organic, plant-based, and low-sugar products.

• Functional beverages such as probiotics, collagen drinks, and herbal infusions.

• Rebranded traditional foods emphasizing clean labels and natural ingredients.

2. Convenience-driven consumption

Urbanization and time constraints are pushing demand toward ready-to-eat (RTE), frozen, and instant products. The accelerated growth of food delivery platforms like GrabFood, ShopeeFood, and Baemin has transformed how Vietnamese consumers access food.

3. Premiumization and global tastes

As disposable incomes rise, Vietnamese consumers are increasingly willing to spend more on premium, imported, and branded goods. Imported wines, craft beer, artisanal snacks, and international cuisines are gaining popularity in Tier 1 and Tier 2 cities.

4. Sustainability and responsible sourcing

Environmental awareness is rising, particularly among younger consumers. Brands adopting sustainable packaging, ethical sourcing, and corporate social responsibility (CSR) initiatives are being rewarded with stronger customer loyalty and market share.

5. Cultural modernization

Traditional Vietnamese dishes are being reimagined with a modern twist—blending local culinary heritage with contemporary presentation and global techniques. This fusion is a winning formula among the growing number of food-savvy millennials.

Sub-Sector performance and key players

Vietnam F&B Market Leaders 2024: KFC remains top, with Trung Nguyên Legend and Jollibee rising in rankings due to significant score increases, according to Decision Lab.

📦 Packaged Foods and Snacks

With a market exceeding USD 20 billion, the packaged food segment continues to expand steadily. Leading domestic and international players include:

• Masan Consumer – Instant noodles, sauces, and beverages.

• Acecook Vietnam – Noodle products with widespread penetration.

• Vissan – Processed meat and canned goods.

• Bibica – Confectionery and bakery products.

• Orion Vina – Korean snacks and cookies.

🥤 Beverages

Vietnam is one of the region’s largest beverage consumers, spanning dairy, soft drinks, and alcoholic beverages.

• Vinamilk – Dominant in dairy and functional drinks.

• TH Group – Organic milk, juices, and herbal beverages.

• SABECO and Habeco – Legacy beer brands with national coverage.

• Tân Hiệp Phát – RTD tea and energy drinks.

• Coca-Cola and PepsiCo Vietnam – International players with wide distribution networks.

🍽️ Foodservice & Restaurant Chains

Vietnam’s restaurant and café scene is rapidly diversifying and modernizing, led by both local and international brands.

• Highlands Coffee

• The Coffee House

• Phúc Long

• Pizza 4P’s

• Lotteria Vietnam

Quick-service restaurants (QSRs) and premium dining establishments are growing across major cities, fueled by demand for Western, Japanese, and Korean cuisine.

🥛 Dairy and Functional Foods

This segment is expanding in response to nutritional concerns and changing dietary habits.

• Vinamilk

• Nutifood

• IDP (International Dairy Products)

• Mộc Châu Milk

• FrieslandCampina (Dutch Lady Vietnam)

Foreign Investment: Rising Confidence and Deal Activity

Vietnam's food and beverage (F&B) market is experiencing significant growth, driven by increased investment and M&A activity. Trung Nguyen Legend is building a $78 million coffee factory in Dak Lak to boost robusta processing. HiteJinro, a South Korean beverage company, is constructing a soju plant in Thai Binh, slated for completion in 2026, to serve Vietnamese and global markets. Suntory Beverage & Food is expanding production capacity in Thailand and Vietnam, including building a new factory in Vietnam.

Vietnam's F&B market is projected to grow by 9.6% in 2025, with revenue reaching $27 billion in 2024, a 16.6% increase from 2023. Golden Gate is reportedly acquiring The Coffee House, while Excelsior Capital Vietnam Partners invested in Aladdin. Funds are prioritizing acquiring F&B chains for optimized cash flows. The industry is also accelerating its transition to sustainable practices. Despite some store closures, F&B businesses remain optimistic. M&A activity is increasing across sectors including food, signalling improved investor sentiment.

It is also emains a hotspot for foreign direct investment (FDI), supported by:

• Competitive labor costs and production capabilities.

• Trade agreement benefits (CPTPP, EVFTA, RCEP).

• Rising domestic demand for processed and premium goods.

Notable deals include:

• ThaiBev’s USD 4.8 billion acquisition of SABECO – a landmark move that signaled global confidence.

• Kido Group and Vinamilk's joint venture in beverages.

• CJ Group (Korea) scaling operations across processing and logistics.

Future Outlook and Investment Opportunities

The F&B market is forecast to grow at a CAGR of 8% through 2027, potentially surpassing USD 66 billion in value. Key investment opportunities include:

• Health-focused and organic products

• Premium food and wine retail chains

• Cold chain and logistics infrastructure

• Digital F&B startups and delivery platforms

• Sustainable packaging and traceability technologies

Vietnam's largest coffee chain, Highlands Coffee, is preparing to relaunch its long-delayed IPO, nearly a decade after the plan was first announced. This move is expected to invigorate Vietnam's food and beverage (F&B) industry, attracting both domestic and international investors.​

Conclusion: A Market Ripe for Innovation and Investment

Vietnam’s F&B sector is no longer a frontier—it’s a maturing market with ample room for innovation, consolidation, and growth. From fast-moving consumer goods to gourmet dining, the country offers one of Southeast Asia’s most compelling stories for F&B investors and entrepreneurs.

As long as players navigate regulatory shifts and consumer expectations, the Vietnamese F&B industry promises attractive, long-term returns for those who can bring quality, innovation, and scale to this evolving market.

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