Euromonitor International' s Soft Drinks in Vietnam market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

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Get insight into trends in market performance
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Product coverage

Asian Speciality Drinks; Bottled Water; Carbonates; Concentrates; Fruit/Vegetable Juice; Functional Drinks; RTD Coffee; RTD Tea

Executive summary

Healthy drinks become more popular

In 2009, while carbonates continue to lose favour among local consumers, other healthy alternative choices such as RTD tea, fruit/vegetable juice or Asian speciality drinks became more popular. This is the result of increasing awareness of people about health and wellness. The trend was evident in the increasing number of new product developments with more brands entering the market or more variants being added to the existing product portfolio. Thus, carbonates can secure its share of the on-trade channel thanks to the development of fast food and full-service restaurants.

Competition intensifies

In 2009, the market for soft drinks in Vietnam became more competitive in terms of the number of players entering or competing for market share. When any new product is introduced to the market and immediately catches the attention of consumers, other manufacturers soon follow, bringing a similar product to the market. Some sectors, particularly RTD tea, see very high numbers of new product development. Thus, there is also a chance of cross-market competitiveness, for example Asian speciality drinks and RTD tea as the ingredients are similar from consumers' point of view. Brands both new and old need a lot of marketing support as well as brand differentiation in order to make them stand out from competitors.

Supermarkets/hypermarkets is the main channel of distribution

As for many other products, open markets remained the main channel for distribution as they are a tradition in Vietnam and there are more than 1,000 open markets across the country. However, soft drinks is largely seeing more sales via supermarkets/hypermarkets, convenience stores and independent food stores. As consumers have growing awareness of hygiene and cleanliness, they switch to shopping at supermarkets and convenience stores for their hygiene and clearly originated food. Since they welcome more consumers, modern retail outlets offer more promotions and allocate strategically positioned shelf space to soft drinks products.

Soft drinks market to continue to grow significantly over the forecast period

With per capita consumption far lower than that of other Asia Pacific countries, Vietnam became a very attractive market for both international and domestic players. Demand for soft drinks in Vietnam is very high and the current production still cannot satisfy demand. It is expected that during the forecast period, the market of soft drinks in Vietnam will continues to maintain its strong growth. Despite the slower trend during the review period, carbonates will likely recover over the forecast period while other drinks e.g. RTD tea, fruit/vegetable juice and Asian speciality drinks will continue to lead the growth. There is a strong chance that greater segmentation will occur, with RTD coffee and low calorie cola carbonates penetrating further, filling the gap in the market that still remains for the players to tap into.