Many large Vietnamese firms such as NutiFood and Vinamilk have announced their plans to venture into the café store chain market.
NutiFood Nutrition Food JSC (NutiFood), a leading nutrition food producer in Vietnam, has been successful in launching ice fresh milk coffee. NutiFood has also worked with its partners to develop Ong Bau restaurant cafe chain.
Meanwhile, Vinamilk, the country’s largest dairy producer, has announced plan to expand its one Hi-Cafe outlet to a chain of stores. Its first store opened in 2019.
Phuc Sinh Coffee JSC, a leading coffee exporter has also launched K Coffee brand in Vietnam.
The café (coffee chain) market in Vietnam includes major players like Highlands Coffee with 299 stores followed by The Coffee House (160 stores), Trung Nguyen Legend (100 stores), Starbucks (64), Phuc Long Coffee & Tea (60 stores), Cong Café (61 stores) and Coffee Bean & Tea Leaf (10 stores)
In a separate development, the global coffee shop market is projected to reach US$237.6 billion by 2025. Urbanisation of leisure resulting from lifestyles centered around work and offices has created a need for leisure environment as an alternative to leisure in the streets. As a result, there is a mushrooming of boutique coffee shops which have now become a trademark of virtually every city or neighborhood in most countries.
The US and Europe represent a huge chunk of the market with a combined share of 69.8% supported by the well-established coffee culture in these regions.
China however ranks as the fastest growing market with a CAGR of 7.8%. The urban chinese lifestyles in the top-tier cities are no longer locally determined, rather they are globally influenced which bodes well for the coffee shop culture. Presently there are more than 7,500 shops in Shanghai; 6,000 shops in Beijing; and over 4,000 in Guangzhou and Shenzhen.
