HCMC – Vietnam’s food and beverage (F&B) industry generated VND688.8 trillion in revenue in 2024, yet nearly 60% of businesses experienced a decline in earnings, according to the Vietnam F&B Market Report 2024 released by iPOS in collaboration with Nestlé Professional.
By the end of 2024, the number of F&B establishments in Vietnam had reached 323,010, a 1.8% increase compared to the previous year. Despite this growth, many businesses struggled, with the industry’s total revenue rising by 16.6% year-on-year.
The year saw a natural market shakeout, as independent outlets faced rising operating costs and weakened consumer demand, forcing many to close.
In contrast, F&B chains demonstrated greater adaptability, benefiting from optimized operations and stronger financial management, the report noted.
While the industry’s total revenue increased, a survey of 4,005 F&B businesses nationwide found that only 25.5% reported stable earnings, while just 14.7% saw growth. This means nearly 60% of businesses experienced a revenue decline in 2024.
After a dynamic 2023, marked by fast-changing food trends, the F&B market in 2024 showed signs of slowing down, with 52.8% of businesses opting not to follow any new food trends, reflecting a more cautious investment approach.
Some trends, however, continued to gain traction. Matcha beverages emerged as the most popular, adopted by 29.6% of businesses, making it a notable new trend in Vietnam’s F&B sector.
Meanwhile, strong-flavored tea, a major trend in 2023, saw its adoption rate decline to 21.4%, signaling a cooling-off period.
Despite ongoing challenges, the Vietnamese F&B industry is expected to grow by 9.6% in 2025, with the emergence of new food trends, according to the iPOS report.
However, rising ingredient costs remain a major concern, prompting 49.2% of F&B businesses to plan price increases in 2025 to offset financial pressures.
