Ready-to-Drink (RTD) Coffee & Tea - Vietnam

The Ready-to-Drink (RTD) Coffee & Tea market in Vietnam has been experiencing significant growth in recent years.

Customer preferences: Vietnamese consumers have shown a growing preference for convenient and on-the-go beverages, which has contributed to the rise of the RTD Coffee & Tea market. With busy lifestyles and a desire for convenience, consumers are increasingly seeking ready-to-drink options that can be easily consumed while commuting or during work breaks. Additionally, the younger generation in Vietnam has embraced Western culture and trends, leading to an increased demand for coffee and tea-based beverages.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Vietnam is the increasing popularity of coffee-based drinks. Coffee has long been a staple in Vietnamese culture, and the emergence of RTD coffee products has allowed consumers to enjoy their favorite beverage in a convenient format. In addition to traditional coffee flavors, there has been a rise in demand for flavored coffee drinks, such as caramel and mocha, catering to the evolving tastes of Vietnamese consumers. Another trend in the market is the growing demand for healthier and natural ingredients. Vietnamese consumers are becoming more health-conscious and are seeking beverages that are low in sugar and free from artificial additives. This has led to the introduction of RTD Coffee & Tea products that are made with natural ingredients and have reduced sugar content. Additionally, there is a growing interest in functional beverages, such as those infused with vitamins or antioxidants, which provide added health benefits.

Local special circumstances: Vietnam has a strong coffee culture, with coffee shops and street vendors being a common sight across the country. This cultural preference for coffee has translated into a high demand for RTD coffee products. Furthermore, Vietnam is one of the largest coffee producers in the world, which ensures a steady supply of high-quality coffee beans for the RTD Coffee & Tea market.

Underlying macroeconomic factors: Vietnam's strong economic growth and rising disposable incomes have played a significant role in the development of the RTD Coffee & Tea market. As consumers have more disposable income, they are willing to spend on premium and convenient beverages. Additionally, the growing urbanization in Vietnam has led to an increase in the number of working professionals, who often seek quick and convenient options for their daily caffeine fix. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Vietnam is experiencing growth due to customer preferences for convenient and on-the-go beverages, the popularity of coffee-based drinks, the demand for healthier ingredients, the strong coffee culture in Vietnam, and the country's economic growth and rising disposable incomes.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.