Kirin Capital: Vietnam F&B market value in 2024 is expected to increase 10.92% to more than 655 trillion VND

The report states that according to forecasts of the World Monetary Fund (IMF), Vietnam is one of the countries capable of outstanding economic development in the next 5 years. The strongly promoted driving forces of investment, consumption, tourism and import-export are the driving force for the Vietnamese economy in general and the F&B industry (in particular) to increase growth momentum.

2023 is considered a challenging year for many Vietnamese economic sectors, but the F&B industry still records impressive growth, with total revenue reaching 590,000 billion VND. By 2024, the market value of the F&B industry in Vietnam is expected to reach more than 655 trillion VND. It is forecast that from now until 2027, independent F&B stores will still dominate with 93.9% market share, affirming the dominant position of this model.

F&B businesses are promoting digitalization with more than 50% of businesses selling food online.

According to a report by iPOS.vn, 2023 will witness the explosion of cashless payments in Vietnam. Bank transfer/QR code scanning dominates with 61.4% of users, followed by e-wallets (11.8%) and bank cards/credit cards (7.2%). Although near field communication (NFC) payment method was recently launched, it also attracted 1.1% of users to choose it.

Regarding the online food delivery market, the scale in 2023 will reach 52.4 trillion VND, growing 20.18% in 2022 and 3.5 times higher than the pre-epidemic period. This shows that Vietnamese people’s habit of ordering food online is increasingly popular, because of its many conveniences. This is also a “fertile land” that F&B businesses can exploit effectively in parallel with on-site sales.

Online business is helping F&B stores have more cash flow. In the list of F&B businesses using online food delivery applications, 47.9% of businesses have online revenue accounting for 25-50% of total revenue.

The past year has seen a growth in the number of online stores and food delivery applications. However, the online store market share remains almost the same compared to 2022.

6 outstanding trends of F&B 2024

Analyzing F&B industry trends in 2024, Kirin Capital pointed out 6 outstanding contents.

The first, wave of convenient drinks. The increasing demand for convenience and speed will promote the strong development of small and medium-sized beverage models. With reasonable investment costs, convenient location, and diverse menu suitable for takeout and delivery, this segment promises to explode in 2024.

Monday, The need to “eat clean, drink clean” is increasing. In 2023, it can be easily seen that many “hot trends” in eating have emerged from this trend of “eating clean, drinking clean”, typically diet cakes, keto milk tea, and moon cakes. healthy, or sugar-free cakes…

This trend is both a challenge for brand leaders, requiring brands to be quick to “catch the trend” to meet customer needs, and also an opportunity for those who want to enter the industry. F&B. Taking advantage of the peak healthy eating trend, newcomers in the industry can successfully attract consumer attention and quickly make profits for their business. By 2024, the trend of “eating clean, drinking clean” promises to continue to attract many people’s attention.

Tuesday, Michelin race, raising the level of Vietnamese cuisine. Fierce competition among high-end restaurants to receive the prestigious Michelin award is becoming a prominent trend. Recognizing the importance of this award, F&B brands are making every effort to improve food quality, enhance service and perfect customer experience. The Michelin race not only brings benefits to Vietnamese diners but is also a strong lever for restaurants to affirm their position on the international culinary map.

Wednesday, Improve quality and experience. Grasping the general market trend, F&B businesses will focus on improving the quality of products, services and customer experience to attract and retain diners.

Thursday, Digital transformation in F&B business. F&B business is considered one of the industries with a very fast digital transformation rate in Vietnam. First, businesses switched from offline business, only on-site sales, to online business and multi-channel integration.

Online marketing is also a trend that will continue to grow strongly in the Vietnamese F&B market. The most obvious thing to see is that restaurants, cafes, or even popular eateries also invest in setting up fanpages, creating websites, and even designing their own applications to build brand images and convenient systems. beneficial for your business.

Friday, F&B industry opportunities for foreign investors. The Vietnamese market in recent years has been an attractive “piece of cake” for many foreign investors aiming to invest, especially in the form of franchising. According to statistics from the Ministry of Industry and Trade, in the past 10 years, more than 50% of franchise deals signed in Vietnam have been in the F&B sector. Due to the change in user behavior to become more modern and willing to spend, Vietnam is expected to become the top 3 Asian countries in the field of F&B business.

In addition, with the digital transformation of the dining experience, the increased demand for high-quality products, along with an understanding of new trends and thinking in the F&B business are also highlights. making foreign investors pay attention to the Vietnamese market.

On the contrary, Vietnamese F&B brands are also gradually becoming more cautious about their production processes and operations, from choosing input materials, processing lines, packaging, to upgrading service quality. service… This shows that Vietnamese brands are making moves to consolidate and maintain their position not only with foreign competitors but also to compete with domestic competitors.

“The F&B industry has overcome difficulties and is ready to transform and innovate. Therefore, the upcoming period will witness positive changes and developments in the F&B industry, bringing potential investment opportunities to the market”, Kirin Capital commented.

Hai Minh