Ready-to-Drink (RTD) Coffee - Vietnam

The Ready-to-Drink (RTD) Coffee market in Vietnam has been experiencing significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: Vietnamese consumers are increasingly seeking convenient and on-the-go options, which has led to a rise in demand for RTD coffee products. The busy lifestyles and hectic work schedules of urban consumers have made ready-to-drink beverages a popular choice. Additionally, the younger generation is becoming more open to trying new and innovative flavors, leading to a greater variety of RTD coffee options in the market.

Trends in the market: One of the key trends in the RTD coffee market in Vietnam is the increasing popularity of cold brew coffee. Cold brew coffee offers a smoother and less acidic taste compared to traditional hot brewed coffee, which appeals to a wide range of consumers. This trend is in line with the global shift towards healthier and more natural beverage options. As a result, many local and international coffee brands have introduced cold brew coffee products in Vietnam. Another trend in the market is the growing demand for premium and specialty RTD coffee products. Vietnamese consumers are becoming more discerning when it comes to the quality and origin of their coffee. They are willing to pay a premium for products that offer unique flavors and are made from high-quality coffee beans. This trend is driving the market towards a more premium segment, with a focus on gourmet and single-origin coffees.

Local special circumstances: Vietnam is one of the largest coffee producers in the world, known for its high-quality Arabica and Robusta coffee beans. This local advantage has played a significant role in the development of the RTD coffee market in Vietnam. Domestic coffee brands have leveraged the country's coffee heritage and expertise to create unique and authentic coffee flavors that resonate with local consumers. This has also attracted international coffee brands to enter the Vietnamese market and collaborate with local coffee producers.

Underlying macroeconomic factors: The growing middle class and rising disposable incomes in Vietnam have contributed to the expansion of the RTD coffee market. As consumers have more purchasing power, they are willing to spend on premium and convenient beverage options. Additionally, the increasing urbanization and modernization of the country have led to a shift in consumer lifestyles, with a greater emphasis on convenience and ready-to-consume products. In conclusion, the Ready-to-Drink (RTD) Coffee market in Vietnam is witnessing significant growth due to changing customer preferences, including a demand for convenience and on-the-go options, as well as a preference for premium and specialty products. The local special circumstances, such as Vietnam's reputation as a coffee producer and the collaboration between domestic and international brands, have further fueled the market's growth. The underlying macroeconomic factors, such as the growing middle class and rising disposable incomes, have also played a crucial role in the expansion of the RTD coffee market in Vietnam.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.