Takasago, a Japanese flavor and fragrance giant established over a century ago, entered Vietnam in 1994 and launched its local subsidiary, Takasago Vietnam, in 2024. The company has introduced health-focused beverages, aiming to reshape market trends in the country. In partnership with Tan Hiep Phat, Takasago seeks to unlock new growth opportunities by utilizing local ingredients to cater to evolving consumer preferences.
Leading the health-driven beverage trend
Founded in 1920 in Japan, Takasago is a global corporation that has spent over a century developing flavors and fragrances for various industries, including food, beverages, fragrances, and household products worldwide.
Takasago has partnered with Tan Hiep Phat Beverage Group to introduce Zero Degree Green Tea. With its distinct natural flavor from the renowned Thai Nguyen tea leaves, the product set the stage for the growing trend of health-oriented, naturally sourced beverages, which was embraced by millions of consumers.
Flavor is a crucial factor in the success of a beverage brand. As a strategic partner, Takasago played an integral role in the early stages of product development, collaborating with Tan Hiep Phat’s R&D team to create a distinct and high-quality Zero Degree Green Tea. This partnership enabled the product to dominate the market and resonate strongly with consumers. The collaboration between Takasago and Tan Hiep Phat has been a significant success, having a lasting impact on Vietnam’s beverage industry.
Takasago mentioned that its partnership with Tan Hiep Phat has played a key role in ensuring a stable supply of raw materials and maintaining quality. The company has also focused on developing innovative flavors alongside Tan Hiep Phat to create successful market products. Additionally, through market research and trend analysis, Takasago and Tan Hiep Phat have collaborated to develop products that cater to the demands of global consumers.
The relationship between the century-old Japanese developer and Vietnam’s leading beverage producer, Tan Hiep Phat, continues to strengthen with new development plans.
Creating new values for betterment of society
Consumer trends in Vietnam increasingly favor sustainability, with a growing demand for eco-friendly products. The Consumer Outlook and Expectation 2024 report by NIQ reveals that 16% of Vietnamese consumers consider sustainability a crucial factor in their long-term lifestyle and purchasing choices. Additionally, 24% currently prioritize sustainable living in their short-term plans, reflecting the expanding influence of sustainable lifestyles.
In line with this trend, Takasago announced that it will work closely with Tan Hiep Phat to create new value for the beverage market. Their collaboration will focus on leveraging local ingredients to develop products that cater to the preferences of both domestic and international consumers. The aim is to provide sustainable value to the community while promoting Vietnamese products on the global stage.
Both parties are set to focus on enhancing research and development of new products, particularly those promoting health, boosting energy, and offering functional benefits. At the same time, Tan Hiep Phat and Takasago will ramp up their strategy to expand into international markets, particularly in neighboring regions like Southeast Asia and Asia, aiming to bring their products closer to global consumers.
“The journey ahead for Tan Hiep Phat and Takasago holds great promise, paving the way for growth and market expansion opportunities,” Takasago said.
Vietnam’s beverage industry is set for remarkable transformation in the coming years, fueled by the rapid rise of health-oriented drinks that meet the growing demand for healthy lifestyles and wellness, especially among younger and middle-aged consumers. These evolving trends not only highlight shifts in domestic consumption patterns but also create huge opportunities for product development and exports to international markets.
“Implementing green production strategies has provided businesses with substantial benefits, particularly as consumers increasingly focus on sustainable consumption. The green consumer market is projected to experience robust growth through 2030 and beyond, with sustainable solutions and advanced technologies increasingly shaping global trends,” said Le Minh Trang, associate director of retail measurement services at NielsenIQ.
Recognizing the evolving market demands, Tan Hiep Phat has collaborated with strategic partners in researching and developing green consumer products that align with sustainability-focused consumer trends.
Brewing the next chapter
The collaboration between Takasago and Tan Hiep Phat marks more than just a business alliance—it reflects the growing convergence between innovation, health, and sustainability in Vietnam’s beverage sector. As consumer expectations shift toward cleaner, more functional products, particularly those rooted in natural ingredients, the role of global expertise and local insight becomes increasingly important. Takasago’s century-long experience in flavor development, combined with Tan Hiep Phat’s market reach and production capabilities, has created a foundation for long-term value creation.
Their focus on sustainability is not merely reactive to trends but part of a deliberate strategy to align with broader global movements toward responsible consumption. The commitment to using local resources, maintaining product quality, and exploring eco-friendly production methods signals a forward-looking approach that resonates with today’s consumers, many of whom are actively seeking healthier choices and environmentally conscious brands.
Looking ahead, the partnership is poised to play a central role in shaping the next wave of beverage innovation in Vietnam and the region. As they double down on research and international expansion, Takasago and Tan Hiep Phat offer a model of how strategic collaboration can drive both commercial success and positive societal impact in a rapidly transforming industry.
