Prospects and trends in the F&B industry from late 2022 to 2023

F&B (Food and Beverage) is a highly potential consumer goods industry in Vietnam. Understanding market trends, maintaining community engagement, and sustaining momentum are crucial for the revival of F&B, especially in the new normal phase like the present.

Vietnamese F&B market.

According to Collier’s assessment, Vietnam is an attractive investment destination for F&B compared to neighboring Southeast Asian countries. Vietnam has a young, dynamic, intelligent population that adapts quickly, and is projected to reach 105 million people by 2030.

The rapid changes in consumer shopping behavior and spending habits after the pandemic have led to the exponential growth of the e-commerce industry and an increasing demand for seamless multi-channel experiences. This has made F&B one of the most successful retail sectors in Vietnam, with a growing number of restaurants and eateries catering to the large dining needs of customers.

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According to statistics, the F&B sector contributed 15.8% to the total national GDP in 2021. Food and beverage expenditure accounted for the highest proportion, approximately 35% of total expenditure.

In addition, the per capita spending on dining services by the population is also high, at over $360 per month. This figure is higher compared to countries in the region such as Indonesia, Thailand, Philippines, and Malaysia.

According to forecast experts, in the coming quarters, the prices of major raw materials are expected to decrease. As a result, the profit margins of businesses in the industry will have the opportunity to increase or maintain their recovery potential by 2023.

In particular, the F&B industry in Vietnam is expected to experience further growth. Dining services will be widely opened thanks to tourism stimulus policies that attract visitors. All of these factors will contribute to the strong development of the F&B industry in general and specific businesses in the sector.

Future trends in the F&B industry.

The past two years of the Covid-19 pandemic have had a significant impact on businesses, especially in the F&B sector. However, many adaptable and flexible businesses have quickly grasped the trends and opportunities in adversity, swiftly adapting to withstand the challenges and recover and develop after the pandemic.

In the near future, F&B business activities will be geared towards the younger generation. The population of people aged 16-30 currently accounts for about 25% of the total population of the country. With a large young population and abundant resources for development, the F&B industry in Vietnam has a solid foundation for future growth.

In addition, young people are also the most important customer group in the F&B industry in Vietnam. The demand for eating out among young people is constantly increasing, especially in big cities. According to estimates, young people aged 15-25 are the most potential customer group that F&B businesses need to pay attention to.

The reality shows that young people in our country are always willing to spend a large amount on food and beverage services. They are also considered the top target group of food and beverage businesses.

In addition, the consumer trend is gradually moving towards using more health-friendly products, which is a market that businesses need to pay attention to and develop. Users are willing to spend more to ensure the quality of the food and drinks they consume.

Illustration: F&B trends in Vietnam 2023.

Specifically, food and beverage manufacturers can market plant-based nutritional products, organic food, or products with health-friendly ingredients. In addition, they can also cater to dietary needs, such as low-salt diets, gluten-free diets, or keto diets (low-carb diets).

At the same time, customers are now more concerned about environmental factors in order to make appropriate choices. Therefore, the F&B industry will focus on more sustainable values in the future, opening up new directions for those in the industry. Companies need to be more careful in the process of building their brand, from sourcing input materials to packaging products.

The change in consumer behavior towards modern payment habits is predicted to continue to develop. In the digital transformation era, applying technology to payment when shopping has become increasingly popular.

Nowadays, young people are familiar with making payments through QR codes, electronic wallets on smartphones, or various types of cards instead of using cash. Food and beverage businesses are gradually having to integrate multiple payment methods that are suitable for global trends. This is also a wise choice to reach a wider range of different customer groups.