Maximize growth potential
The non-alcoholic beverage industry is a critical part of the food and beverage sector. According to Euromonitor research, Vietnam’s beverage market grew at an average rate of 8.4% from 2015 to 2019, reaching a scale of around USD 5.3 billion in 2019. VIRAC, a research company, estimates that the revenue of Vietnam’s beverage industry will reach USD 8.25 billion in 2023 and likely exceed USD 10 billion by 2027.
|Businesses must meet stringent standards for product quality and sustainability when entering foreign markets.
With a stable macroeconomy, expected decrease in inflation, and a robust recovery in the tourism industry, beverage consumption is set to increase, creating bright prospects for the industry.
Dr. Vo Tri Thanh, Director of the Institute for Brand and Competitiveness Strategy, stated that Vietnam has abundant raw material resources. Effective utilization of this advantage will propel businesses to new heights. However, the beverage industry is highly competitive, necessitating investment, perseverance, and flexibility in business strategies for growth.
Vo Tri Thanh assessed the potential of Vietnamese beverage brands in export markets, noting that while current beverage exports are relatively small in scale and face various market access difficulties, there is a positive outlook for the sector in the long term due to international demand. To meet this demand, businesses must invest in technology, human resources, and build brand trust.
Across the world, the beverage production sector attracts investment from numerous major brands, leading to fierce competition. Vietnamese domestic companies in the beverage industry still lag behind their counterparts in developed countries in terms of technology and techniques. Consequently, many businesses encounter challenges when venturing into foreign markets, particularly those with high technical standards such as the US, EU, and Japan.
|Vietnamese beverage brands are present in more than 20 countries worldwide.
The increasing global demand for beverage products presents Vietnamese businesses with opportunities to maximize their growth potential by effectively exploiting and accessing export markets. However, experts suggest that Vietnamese businesses need to concentrate on investing in production technology to ensure product quality while capitalizing on their competitive advantages such as raw materials and human resources.
During a recent international fair in Mexico, the organizing committee representatives highlighted the growing interest of Mexican and Latin American consumers in all-natural food and beverages due to their health benefits and their potential to address the rising overweight issue in these countries.
The continuously growing beverage industry possesses immense future potential and positive outlooks for businesses.
Investing to establish Vietnamese brands’ position on the global beverage map
In Vietnam’s beverage industry, Vietnamese brand Tan Hiep Phat consistently holds the top position. In the instant tea segment, Tan Hiep Phat ranks first with a market share of 32% by 2022, as indicated by Euromonitor data.
Since its inception, Tan Hiep Phat has been committed to producing and trading products that are beneficial to the health of Asian consumers. Their products offer appropriate flavors and meet international quality standards, while satisfying the existing and potential needs of customers and establishing itself as a preferred business partner.
|Tan Hiep Phat remains steadfast in its commitment to selling healthy products since day one.
Tan Hiep Phat constantly strives to become one of the leading businesses in the Asian food and beverage market while catering to global consumers.
To achieve this objective, the company has invested in 12 Aseptic cold extraction lines for its production, making it the sole unit in Vietnam to possess this state-of-the-art line. Operating on an automatic and closed principle, the aseptic production line covers everything from raw material extraction to bottle blowing, filling, capping, labeling, and packaging.
Such significant investments reflect the resolute determination of a local business committed to creating products that greatly benefit consumers’ health and conquering challenging markets.
|Close-up of Tan Hiep Phat’s Aseptic cold extraction line
With its cutting-edge technology, Tan Hiep Phat’s beverage products meet all the rigorous quality control requirements of demanding markets such as the US, Canada, and Middle Eastern countries…
The company has established itself on the global beverage map by operating in more than 20 countries and territories, demonstrating its “nothing is impossible” approach. Tan Hiep Phat’s success stems from staying true to its vision and mission since its inception, which has greatly inspired Vietnamese businesses. They firmly believe in the adage “Where there is a will, there is a way”.
High product quality empowers Tan Hiep Phat to excel even in demanding markets. Furthermore, to gain a competitive edge over international giants, the company focuses on leveraging natural resources and cost-effective labor.
List of more than 20 markets where THP has exported products to date.