Vietnam’s Food and Beverage Sector Anticipates Profit Pressures in 2024: Report

Vietnam’s food and beverage (F&B) sector has encountered significant challenges in profitability during 2024, primarily due to escalating cost pressures, despite an overall revenue growth of 16.6% year-on-year. These insights were highlighted in a recent report released by iPOS, a provider of hotel and café management solutions, in collaboration with Nestlé Professional.

The report draws on data gathered from 4,005 restaurants and cafés, along with insights from 4,453 consumers nationwide. It also integrates secondary data from market research firms and thorough interviews with nearly 100 F&B industry experts and business leaders across Vietnam.

As of the end of 2024, Vietnam’s F&B sector boasted around 323,010 outlets, reflecting a modest 1.8% increase compared to the previous year. Notably, the sector’s revenue is projected to reach approximately VND688.8 trillion (around $27.3 billion), showcasing a commendable rise of 16.6% from 2023.

However, not all businesses share in this growth narrative. Only 25.5% of the surveyed F&B establishments reported stable revenue levels when compared to 2023, with a mere 14.7% indicating any form of growth. Such discrepancies highlight the uneven distribution of success across the sector, driven by varying capacities to adapt and respond to market conditions.

A concerning trend has emerged wherein 49.2% of F&B businesses are contemplating price increases in 2025, motivated by rising raw material costs that threaten their operational stability. The iPOS report notes that 2024 marked a significant “cleansing” period for the industry, as many underperforming independent outlets were compelled to shut down due to these rising operational costs and a decrease in consumer purchasing power. In contrast, larger F&B chains have showcased resilience, effectively adapting through optimized operational strategies and robust financial management.

Consumer Insights and Attitudes

A survey involving nearly 4,500 consumers illustrates that while overall spending remains steady, there is a discernible shift in consumer behavior. Today’s consumers are increasingly prioritizing high-quality offerings at affordable prices, seeking genuine value in their dining experiences.

When examining food trends, the F&B market, having previously been vibrant in 2023, showed signs of deceleration in 2024. According to the report, 52.8% of businesses opted not to align with any specific food trend, indicating a more cautious approach to investments in trending offerings. Nevertheless, some trends persist, with Matcha beverages emerging as a favorite among 29.6% of businesses, solidifying its position as a key focus within Vietnam’s F&B landscape.

Interestingly, strong-flavored teas, once a major trend in 2023, are showing indications of saturation as the preference for these beverages has fallen to 21.4%. Instead, numerous businesses are investing significantly in specialty Oolong tea, Shan Tuyet tea, and other traditional teas known for their robust flavors, underscoring a commitment to preserving traditional tea-drinking experiences amidst evolving consumer preferences.

Despite these challenges, the F&B industry in Vietnam is forecasted to grow by 9.6% in 2025, with the anticipation of new and innovative food trends emerging on the horizon.

In terms of food offerings, fresh beef hotpot from Chaozhou is drawing substantial interest, celebrated for its rich flavors and tender meat. Additionally, steam-heated hotpot methods, which prioritize nutrient preservation without oil, are gaining popularity among health-conscious consumers.

As for beverages, Matcha continues to reign supreme, not only in its traditional incarnations but also through creative elaborations that cater to the diverse palates of younger consumers.