Soft Drinks - Vietnam

The Soft Drinks market in Vietnam is experiencing significant growth and development in recent years.

Customer preferences: Vietnamese consumers have shown a growing preference for soft drinks, driven by factors such as urbanization, rising disposable incomes, and changing lifestyles. Soft drinks are seen as convenient and refreshing beverages that can be consumed on-the-go, making them popular among busy urban dwellers. Additionally, the younger generation in Vietnam is increasingly adopting Western lifestyles and embracing the consumption of carbonated soft drinks and other non-alcoholic beverages.

Trends in the market: One of the key trends in the Soft Drinks market in Vietnam is the increasing demand for healthier options. As consumers become more health-conscious, there has been a shift towards low-sugar or sugar-free beverages, as well as drinks with natural ingredients and functional benefits. This trend is driven by a desire for healthier alternatives and a growing awareness of the negative health effects of excessive sugar consumption. Another trend in the Soft Drinks market in Vietnam is the rising popularity of ready-to-drink (RTD) products. RTD beverages, such as bottled teas, coffees, and energy drinks, offer convenience and are favored by busy individuals who are looking for quick and easy refreshments. The availability of a wide range of RTD options in supermarkets, convenience stores, and cafes has contributed to the growth of this segment.

Local special circumstances: Vietnam's young population and increasing urbanization have played a significant role in the growth of the Soft Drinks market. With a large proportion of the population under the age of 35, there is a strong demand for soft drinks among the younger generation. Additionally, as more people move to urban areas and lead fast-paced lifestyles, the demand for convenient and portable beverages has increased. Furthermore, the hot and humid climate in Vietnam also contributes to the popularity of soft drinks. Cold beverages, such as carbonated drinks, bottled water, and iced teas, are sought after to quench thirst and provide relief from the heat.

Underlying macroeconomic factors: The growing economy and rising disposable incomes in Vietnam have provided consumers with more purchasing power, allowing them to spend on non-essential items such as soft drinks. As the middle class expands, there is an increased capacity to afford and indulge in soft drinks, leading to higher consumption levels. In conclusion, the Soft Drinks market in Vietnam is witnessing growth and development due to changing customer preferences, including a demand for healthier options and convenient RTD beverages. The young population, urbanization, and hot climate in Vietnam also contribute to the market's growth. The underlying macroeconomic factors, such as the growing economy and rising disposable incomes, further support the expansion of the Soft Drinks 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.