Vietnamese consumers: frugal with food but splash out on drinks

With more than 93 million citizens and the population seems to increase gradually, Vietnam is now potential for purchasing power which can bring huge chance for the development of the food and beverage industry.

According to the Vietnam Beer, Alcohol and Beverage Association (VBA), in the year 2015, the beverage industry itself turned over 30 trillion VND (1.3 billion USD). While men’s drinking habit makes Vietnam famous for beer and alcoholic consumption, a Decision Lab’s report in 2016 shows that healthy soft drinks such as juice, smoothie or milk could be more promising in consumption when each of them appeal mainly to women.

This report also revealed that the CSD/capita (Carbonated Soft Drink) in Vietnam in 2016 is at 7.2 liters per year, an increase from previous years.

It is recommended statistically that brands should find opportunities in soft drink instead of food because of the price sensitivity. According to the research, 7 percent of people choose drink based on their value of money comparing to 12 percent of food items. On the other hand, healthy soft drink is a bigger driven of sales than of food with 13 percent of drinks chosen and 7 percent of food one.

“While Vietnamese will perhaps not feel comfortable splurging on a lunch or snack, they’ll happily part with money on a premium coffee from a coffee shop chain, bubble tea or drinks perceived to have health values”, said by Decision Lab Research Director Katrin Roscher.

 Image 01: Out-of-home drink serving of Vietnamese men (Source: Decision Lab) 

Image 02: Out-of-home drink serving of Vietnamese women (Source: Decision Lab)

Another aspect to mention in the Report that among healthy drink categories, lactose-free milk is considered as potential market given by the fact that Asian people are hard to digest lactose because when it comes to Asian eating culture, cheese and milk are increasingly consumed for example Korean cuisine uses melted cheese for chicken and instant noodle or in making desserts and snacks like ice-cream, cake, yoghurt or cookies.

Source: Decision Lab

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