A recent study conducted by Kantar Worldpanel showed that drinking out of home accounted for 59% of the total spending on non-alcoholic drinks in HCMC. This is above the global average of 52% indicating that Vietnamese like to go out for drink.
Kantar surveyed 10 countries with Vietnam (HCMC) ranked 4th in out-of-home consumption behind Indonesia, Spain and Thailand which recorded a range from 64% to 67%.
At the bottom of the ranking were Brazil, Mexico, France and Portugal with 28-37%.
For out-of-home drinking, coffee and tea were the 2 most popular choices for Vietnamese, accounting for one out of four drinking occasions each, while around a third was dedicated to nutritional and health drinks.
At home, juices were the most popular followed by loose leaf tea and instant coffee. The report also noted that the energy drink segment in HCMC has become much more innovative and competitive recently, with annual growth of 6-7% in both rural and urban areas in Vietnam. Kantar also reported that 62% of energy drink consumers in HCMC were individuals below 35.
In terms of occasions, energy drinks were mostly consumed at work or school (44%), followed by street restaurants and coffee shops (36%) and sport centers/ gyms, on the go or during outdoor activities (13%).
Kantar reported that a person in HCMC spends an average Dong 4.5 million (US$195) a year on non-alcoholic drinks with roughly 65% for in-home and 35% for out-of-home.
Kantar Worldpanel reported that people globally are spending more than ever out- of-home. In addition, the speciality coffee culture is booming on a global scale while demand for hot drinks on the go are also showing no signs of abating. Kantar reported that coffee represented 80% of spend globally within the hot drinks category.
Chart 1.0 showed the spending for out-of-home versus in-home globally in 2018. It is evident that global consumers prefer out-of home consumption of coffee (70%) as compared to in-home (30%), thereby encouraging the proliferation of specialty coffee stores and smaller coffee shops in many countries in Asia and globally.
