The F&B industry is forecast to reach a revenue of 655 trillion VND this year, up from 590 trillion VND in 2023. (Photo: VNA) A recent market analysis by iPOS.vn found optimism across the industry.
Findings showed that the F&B industry reached a revenue of 590 trillion VND(23.65 billion USD) in 2023, a rise of 11.47% against 2022, in which dine-inaccounted for more than 91%.
More than 79% of F&B establishments saw their business on a good trend andsaid they had enough resources for further development, while more than 51.7%of owners said that they had plans to expand their operation in the comingfuture.
iPOS.vn forecast that the industry will reach a revenue of 655 trillion VND thisyear.
Mordor Intelligence estimated that the F&B market will hit a scale of 36.29billion USD in 2029 with a compound annual growth rate of 9.82% in the 2024-29period.
Vu Thanh Hung, general director of iPOS.vn, said that 2023 was a challengingyear for the F&B industry but the large domestic market coupled withtourism boom after COVID-19 supported the growth of the F&B revenue.
The number of restaurants and cafés rose 1.26% to 317,299 establishments lastyear, quite a low growth rate due to the wave of closures of small and mediumsized F&B establishments and the strategy of reducing the operation scaleof major players.
Some major players such as Golden Gate, Phuc Long Coffee & Tea andHighlands Coffee shut down some stores in prime locations to optimise profitsand increase efficiency.
Meanwhile, the market saw the expansion of small-scale establishments whichfast caught up with trends.
Online food delivery reached 52.4 trillion VND in 2023, up 20.18% from thelevel of 2022 and 3.5 times the figure of pre-pandemic period, demonstratingthat ordering food online is increasingly popular and providing significantopportunities for F&B businesses apart from dine-in. Nearly 48% ofenterprises had online revenue accounting for 25-50% of total revenues.
The middle class in Vietnam currently accounts for 13% of the country’spopulation and is forecast to increase to 26% by 2026.
The country’s GDP per capita is expected to exceed 5,000 USD this year.
The boom of the middle class will drive the demand for the F&B market,according to the report. Notably, the gen Z (born between 1997 and 2012) isgradually becoming the main market driver.
Although the F&B market has strong potential, given the country’s hugepopulation reaching 100 million and rising middle class, competition is growingfiercer.
iPOS.vn predicted that 2024 will witness the strong rise of small and mediumsized beverage shops which follow the trend of convenience.
There will be increasing competition among high-end restaurants for Michelinawards, the company said, adding that many F&B brands are making efforts toimprove the quality of their dishes and services.
The competition will not only benefit Vietnamese diners, but also acceleratethe popularity of Vietnamese cuisine in the global map, Hung said.
According to Kao Sieu Luc, general director of Asia Bakery – ConfectioneryJoint Stock Company, companies should focus on improving product quality,enhancing competitiveness and seeking for new sales and marketing channels toexpand international reach.
In addition, F&B should also change their operation models to adapt tomarket trends and optimise operation, especially online food ordering./.
VNA
