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The Taste of Vietnam: A Daily $13 Million Coffee and Tea Affair

10 May, 2025

THE HANOI TIMES — Vietnamese consumers’ spending habits on coffee and milk tea revealed an interesting trend in 2024. With a daily expenditure of over VND320 billion ($12.6 million), the total sales for beverage shops reached an impressive VND118.3 trillion ($4.6 billion) for the year.

These insights were unveiled in a market report collaboratively released by iPOS.vn, Euromonitor, and VIRAC. iPOS.vn, a management solutions platform catering to over 100,000 restaurants and coffee shops, conducted a comprehensive survey with nearly 4,500 participants across Vietnam, primarily focusing on Hanoi and Ho Chi Minh City.

Diving into Consumer Behavior

Phuc Long aims for substantial net sales growth in the upcoming year.

The report highlighted a notable 13% revenue increase from 2018 to 2024, marking the highest growth rate during this period. This growth is attributed to consumers resuming their busy pre-pandemic lifestyles. Coffee shops, milk tea venues, and bars have transformed into versatile spaces, attracting consumers for socializing, remote work, studying, and business meetings.

Additionally, the burgeoning coffee culture in Vietnam, coupled with modern consumer trends and a burgeoning middle class, has significantly bolstered the industry’s growth trajectory.

The survey unveiled that Vietnamese consumers are increasingly opting for out-of-home beverage options, with 51% visiting these venues three to four times weekly, reflecting a significant increase from the previous year.

In 2024, there was a noticeable shift in spending patterns, with 40% of purchases falling in the VND21,000 ($0.8) to VND35,000 ($1.4) range. Interestingly, the proportion of consumers spending less than VND20,000 ($0.78) also rose from 4.3% in 2023 to 12.3% in 2024.

On the other hand, the premium beverage segment experienced a decline, with the share of shoppers willing to spend VND70,000 ($2.7) and above dropping from 7.3% in 2023 to 5.1% in 2024. This shift prompted premium brands to enhance their promotions throughout the year.

A notable decrease was also observed in the number of consumers spending between VND35,000 ($1.4) and VND50,000 ($2), falling from 47.7% in 2023 to 31.5% in 2024.

The F&B Sector’s Growth Story

Vietnam’s F&B industry witnessed modest growth in terms of outlet numbers and revenue.

The Vietnamese food and beverage (F&B) industry demonstrated modest growth, with the number of outlets reaching 323,000 in 2024, reflecting a 1.8% year-on-year increase. The sector’s total revenue was estimated at approximately VND689 trillion ($27 billion), signifying a nearly 17% growth.

However, this growth was not consistent throughout the year, with the report indicating that the first half of the year predominantly drove it. In the latter half, as the economy recovered, consumer spending witnessed a sharp decline, especially post-Typhoon Yagi. As the market entered the year-end holiday season in November 2024, sales were expected to pick up. The growth in the F&B sector was also bolstered by the return of international tourists and the surge in online food delivery services.

iPOS forecasted a total revenue of nearly VND755.4 trillion ($29.6 billion) for the F&B industry in 2025, representing a slower growth rate of about 9.6%. This deceleration is attributed to factors such as rising unemployment, salary cuts in the private sector, and rationalization in state-owned enterprises.

Vu Thanh Hung, CEO of iPOS, emphasized that the F&B sector is anticipated to recover gradually in the latter half of the year, driven by macroeconomic growth, stabilizing policies, improved business environments, and increased consumer spending.

Phuc Long, a prominent Vietnamese milk tea brand, foresees intense competition as brands diversify their product offerings, especially towards healthier options, and enhance their online presence. Only agile and innovative brands will be able to retain their market leadership.

For 2025, Phuc Long plans to modernize its stores while retaining its signature elements. Their expansion strategy focuses on strategic locations to enhance visibility. The brand is also committed to improving the customer experience on digital platforms and in-store to ensure seamless interactions.

Phuc Long projects net revenue between VND1.9 trillion ($74 million) and VND2.2 trillion ($86 million) for the upcoming year, targeting growth of 18% to 36%. The company remains dedicated to continuous product innovation and service enhancements to deliver exceptional tea experiences within Vietnam’s dynamic beverage market.