Movements in the F&B Industry

According to a report by iPOS on the Vietnamese food and beverage market in the first six months of 2024, the country recorded approximately 304,700 establishments, a decrease of 3.9% compared to the figures from 2023. At least 30,000 outlets nationwide have closed, along with a limited number of new openings.

Despite facing many challenges, the total revenue of the F&B sector surprisingly reached 403.9 trillion VND, equivalent to 68.46% of the total revenue for the entire year of 2023.

According to the survey, the frequency of high consumption levels (3-4 times/week, daily) has remained almost unchanged compared to 2023. Meanwhile, the group of customers who visit 1-2 times per week has increased by 4.1% compared to the previous year. Overall, the loyal customer segment continues to maintain their eating habits as before, indicating that the appeal of the F&B sector remains very strong.

Notably, spending on “going for coffee” has dropped significantly in the first six months of 2024, with frequency also seeing a considerable decline. Although price ranges from 41,000 to 71,000 VND per cup have become more popular, with an 11.5% increase in the proportion of customers choosing this option, premium segments are facing difficulties. The percentage of people spending over 100,000 VND per cup has plummeted from 6% to just 1.7%.

Assessing the state of the F&B market in the first half of 2024, Mr. Vu Thanh Hung, CEO of iPOS.vn, stated that significant fluctuations have posed numerous challenges for the entire service industry, particularly in the F&B sector.

“However, Vietnamese F&B businesses have demonstrated remarkable flexibility by quickly adjusting their operations, cutting unnecessary costs, and optimizing cash flow. At the same time, continuous innovation in product development has provided unique dining experiences that attract a large number of customers”, he commented.