Prospects in Vietnam’s F&B Market in 2024

Posted by Written by Melissa Cyrill Reading Time: 6 minutes

The Vietnam food and beverage (F&B) market is set for significant growth in 2024, driven by strong brand loyalty, strategic expansions, and ongoing innovation in products and services.

Vietnam’s food and beverage (F&B) market is poised for significant growth in 2024, driven by strong brand loyalty, strategic expansions, and continuous innovation in product offerings and service quality.

The recently published Best F&B Rankings 2024 by market research and data consultancy Decision Lab highlights the robust performance of top F&B brands, setting the stage for another dynamic year in this sector.

Market leaders retain their track record

In the latest rankings, KFC and Highlands Coffee have successfully defended their top two positions for the second consecutive year, underscoring their strong foothold in the Vietnamese market.

Notably, Trung Nguyen Legend and Jollibee each climbed one spot, now ranking third and eighth, respectively. Decision Lab’s CEO Thue Quist Thomasen emphasized that these rankings reflect the deep brand loyalty among Vietnamese consumers. The Decision Lab report assessment considered various indicators, including impression, quality, value, satisfaction, recommendations, and reputation.

Thomasen highlighted the importance of branding in achieving sustainable growth. Brands that prioritize high-quality products and services, alongside cultivating a strong brand reputation, are better positioned to foster long-term customer engagement and loyalty.

2024 Decision Lab Findings: F&B Market Leaders in Vietnam

Rank in 2024

Rank in 2023

Rank change


Score for 2024

Score for 2023

Score change









Highlands Coffee







Trung Nguyên Legend







Phuc Long Coffee and Tea













The Coffee House


























Pizza Hut




Source: Decision Lab

Strategic investments and innovations

  • KFC

KFC Vietnam’s General Director, Sibojyoti Chatterjee, noted that maintaining a leading position in the competitive F&B landscape requires adaptability and continuous improvement in product and service quality. With over 200 stores nationwide, the US fast-food brand has been a pioneer in incorporating technology into its operations, offering ordering kiosks for a seamless customer experience. KFC also frequently updates its menu to align with consumer preferences, introducing seasonal and trending dishes to keep the offering fresh and appealing.

  • Jollibee

Similarly, the Philippine fried chicken brand Jollibee has focused on menu diversification and enhancing the overall customer experience. Jollibee has around 170 stores in Vietnam and reported consistent double-digit sales growth. General Manager Lam Hong Nguyen emphasized their commitment to innovation and quality, which has resonated well with Vietnamese consumers.

Expanding beverage market

The beverage sector, though trailing behind the dine-in market in terms of revenue, is expected to see significant growth driven by small and medium-sized models. According to’s April report, the market value of Vietnam’s F&B industry is projected to reach over US$27.3 billion in 2024, marking a 10.9 percent increase from 2023.

  • Phuc Long Coffee & Tea

Phuc Long Coffee & Tea has strategically reduced its kiosk operations, shifting focus back to flagship stores. This change aims to enhance customer experience and operational efficiency. The brand plans to open new stores and explore international markets, having already established a presence in the United States. CEO Joanne Jihyun Lee noted that Phuc Long is gearing up for its next growth phase amid rising competition, with projected revenues between US$74 million to US$90 million for 2024.

  • Starbucks

Starbucks continues its expansion strategy, having recently opened its 107th store in Vietnam. The brand is dedicated to introducing seasonal and trendy beverages to attract customers. The leadership transition to Mai Ho, a Vietnamese national with extensive experience in retail and fast-moving consumer goods, marks a new chapter for Starbucks Vietnam. Ho aims to enhance customer experiences and drive further growth.

Vietnam’s F&B market outlook: Insights from Dezan Shira & Associates

The F&B industry in Vietnam demonstrated a growth rate of nearly 11.5 percent in 2023, achieving revenues of over US$23.6 billion. The dining market alone contributed US$21.6 billion, a 10.9 percent increase from the previous year. Looking ahead, the food service market is projected to grow at an annual compound rate of 9.7 percent, potentially reaching US$36.86 billion by 2027, according to Research and Markets.

In a conversation with Do Thanh Huyen, Manager of Business Intelligence at Dezan Shira & Associates, Vietnam Briefing discussed the key factors driving the dynamic growth of Vietnam’s food and beverage industry.

  1. Vietnam Briefing: What factors are driving the growth of Vietnam’s food and beverage industry?
    Do Thanh Huyen: Several key factors are driving the growth of Vietnam’s F&B industry. Firstly, Vietnamese households allocate a significant portion of their income—between 20 percent and 48 percent—to food and drink. This high spending is fueled by the rapid growth of the middle class and a sizable youth demographic with increasing disposable incomes.
  2. Vietnam Briefing: How have disposable incomes changed in Vietnam, and what impact does this have on the F&B industry?
    Do Thanh Huyen: Over the past 20 years, Vietnam has experienced a compound annual GDP growth rate of 5 percent, leading to higher disposable incomes. By 2023, the disposable income per household reached an estimated US$16,070, up from US$12,610 in 2020. This figure is projected to rise to US$25,220 by 2028. As disposable incomes increase, the budget for food, accommodation, and entertainment expands, benefiting F&B stakeholders significantly.
  3. Vietnam Briefing: What role does social media play in the F&B industry in Vietnam?
    Do Thanh Huyen: Social media plays a crucial role, especially among the younger population. Vietnamese youth are more inclined to eat out and share their dining experiences online. Platforms like Facebook, Instagram, and Pinterest are popular among local foodies. With 70 million social media accounts, accounting for 71 percent of the population, social media significantly promotes food and beverage consumption.
  4. Vietnam Briefing: Can you elaborate on the trends in alcohol consumption in Vietnam?
    Do Thanh Huyen: Vietnam is one of Asia’s top beer consumers, with a market estimated to be worth over US$5 billion in 2023 and expected to grow annually by 7.76 percent up to 2027. A noticeable trend is the shift towards low and no-alcohol beers, like Heineken 0.0 and Sabeco’s Sagota. Additionally, craft beers are becoming increasingly popular.
  5. Vietnam Briefing: How is the coffee drinking culture in Vietnam and what are the prospects for foreign brands?
    Do Thanh Huyen: The Vietnamese practice of “going to coffee” has fostered a youthful coffee culture where coffee shops serve as social hubs for various activities beyond drinking coffee, such as dating, socializing, and relaxing. Vietnam’s significant coffee production supports this trend, with urban areas showing high tea and coffee consumption rates. The F&B industry in Vietnam is rapidly growing, with sales projected to significantly increase by 2026. The number of restaurants and coffee chain outlets has surged, with domestic and international brands like Highlands, Trung Nguyen, Phuc Long, and Starbucks expanding their presence. This growth and competition highlight the vibrant and lucrative nature of Vietnam’s F&B market.
  6. Vietnam Briefing: How are sustainability and healthy eating trends influencing the F&B market in Vietnam?
    Do Thanh Huyen: Vietnamese cuisine, known for its fresh vegetables and spices, aligns well with global healthy eating trends. The growing middle class is increasingly engaged with sustainability and healthy eating, driving demand for organic and environmentally conscious food options. Government campaigns promoting food safety and cleaner supply chains are further boosting this demand.
  7. Vietnam Briefing: How has the take-away food sector evolved in Vietnam?
    Do Thanh Huyen: The COVID-19 pandemic accelerated the normalization of online food delivery in Vietnam. Now, a range of food and beverage delivery services operate nationwide, reflecting the sector’s evolution and growth.
  8. Vietnam Briefing: What opportunities do these trends present for foreign F&B enterprises?
    Do Thanh Huyen: These trends present significant opportunities for foreign firms. There is potential both in distributing their products within Vietnam and in establishing their own F&B enterprises to cater to the growing demand for diverse and high-quality food and beverage options.


Vietnam’s F&B market is poised for substantial growth in 2024, driven by strong brand loyalty, strategic expansions, and innovation in product offerings.

Market leaders like KFC and Highlands Coffee continue to dominate, while other brands such as Trung Nguyen Legend and Jollibee are rising in prominence. The beverage sector, particularly coffee, is experiencing significant growth, supported by a robust café culture and high consumption rates.

Additionally, trends towards sustainability and healthy eating, coupled with the increasing popularity of online food delivery, are reshaping the market landscape.

These dynamics present abundant opportunities for both domestic and international F&B enterprises, making Vietnam a highly competitive and lucrative market.

Foreign brands are seeking to scale up their presence on the ground to establish market familiarity with consumers who are presented with an array of options from local players and emphasizing technology upgrades and menu offerings closer to the food culture habits of the nation.

Exploring Vietnam’s F&B Market: Key Trends, Strategic Export Tips, and EVFTA Opportunities

Webinar | Wednesday, June 26, 2024 / 3:00 PM Vietnam / 4:00 PM Singapore / 10:00 AM CET

Dezan Shira & Associates, represented by Vivie Wei, Country Director Vietnam, and The German Chamber of Industry and Commerce in Vietnam (AHK Vietnam), represented by Ngo Cat Thuong, Market Entry Consultant, have joined their expertise to provide a comprehensive briefing about the opportunities for foreign F&B players to succeed in Vietnam.

This webinar is free of charge

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Dezan Shira & Associates assists foreign investors throughout Asia from offices across the world, including in Hanoi, Ho Chi Minh City, and Da Nang. We also maintain offices or have alliance partners assisting foreign investors in China, Hong Kong SAR, Dubai (UAE), Indonesia, Singapore, Philippines, Malaysia, Thailand, Bangladesh, Italy, Germany, the United States, and Australia.