Vietnamese Food Market Trends in 2022

Vietnam has one of the fastest growing economies in Southeast Asian region. It has pleasant and well-established business environment which offers a number of opportunities for domestic and foreign companies. Besides, lately, UsNews published report, according to which Vietnam ranked the 7th among top countries to launch business.

Talking about Vietnamese food and beverage market, it is one of the most attractive markets globally. It was ranked 10th in Asia in 2020. Total sales of food and beverage reached US$41.7 million (which is 3.8% more than in the previous year) in 2020. In this article we want to tell you more about Vietnamese food market trends and its main features.

Vietnamese food market trends in Vietnam

Here are some trends of Vietnamese F&B market observed in 2022

1. Young population as a driver of growth

According to the UN population fund, 25% (which is about 25 million people) of Vietnamese population are people between 16 and 30 years old. Over 20% of the population in Vietnam is under 14. It makes Vietnamese nation extremely young and dynamic. What is more, young generation didn’t experience the deprivation of the war and post-war years. So, they were grown up with better nutrition and higher expectations of the living standards than the older generations.

Gen Z is coming into adulthood and is open to new trends such as spending their money on eating out. Researches have proved that they spend a large portion of their income (on average 900,000 VND=around $40) on eating outside the home. They are also more receptive to international products. It allows a lot of foreign companies to establish business in Vietnam.

They are more aware of the human impact on the planet, so they follow such trends as ethical sourcing, sustainability, etc.

2. Healthy nutrition

This trend can be observed across the Southeast Asian region in general because consumers are ready to pay more for healthier food products. Focus on healthy nutrition stimulates demand for new kinds of products and diets such as gluten-free and keto.

Healthier products are only one side of this trend. Awareness of the components that food contains and product traceability is increasing as well.

3. Organic food and products of natural origin

Increasing income and a growing middle class together with a young population is creating demand for organic products. Clean eating is becoming a more mainstream part of healthy life.

Hence, manufacturers have to think more about, for example, being more sustainable in raw material sourcing. They also have to take into consideration the type of packaging that they use before starting selling products.

4. Importance of origin and brand values

The retail digitalization combined with increased awareness about what is a healthy lifestyle is promoting the growth of modern advanced distribution channels. Supermarkets and online retail platforms are benefiting from being more likely to guarantee quality and for mentioning the origin of their commodities.

Consumers in Vietnam are more interested in how the products are made and what are the benefits of buying particular things. Digitalization is leading to a more personalized consumption approach that may provide brand loyalty.

These factors are increasing the influence of origin stories and making focus on brand values.

5. Retail digitalization

After COVID-19, Vietnamese consumers had to turn to online shopping. Ride-hailing services like Grab and GoJek turned into food and parcel delivery. At the same time, domestic e-commerce platforms (Shopee, Tiki, Lazada, Sendo) with supermarket chains (VinMart, Lotte Mart, BigC) launched door-to-door shipping.

The transition to e-commerce has changed a lot for small and medium businesses. It allowed them to reduce the costs for maintaining offline stores and focus more on promotion, improving customer service, and optimizing logistics.

6. Online food delivery

According to the report published by IMARC Group, Vietnamese online food delivery market size reached US$ 597 million in 2021. What is more, it is expected to reach US$ 1,555 million by 2027 (with growth rate of 16.4% during 2022-2027).

Online delivery ensures express deliveries, fewer misunderstandings, and minimum human interactions. Numerous discounts and cash backs offered by these platforms made online ordering very popular among young people in Vietnam.

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