Sales volume of soft drink in Vietnam has reached 4.658 billion litres in 2023 representing a healthy growth of 4.8% annually, according to latest report released in July by Research and Markets.
The Top 3 soft drink segments are RTD tea, bottled water, and carbonated drinks with sales (in volume terms) amounting to 1.594 billion litres, 940 million litres and 824 million litres respectively.
Bottled water is the fastest-growing category with a CAGR of 9.9% while carbonated drinks saw moderate growth.
Rise in disposable incomes, higher level of post-pandemic activities as well as rising summer temperatures have led to the rise in demand for soft drink, often consumed as a thirst-quencher or during socialising and outdoor activities with friends and families.
Major players in Vietnam’s soft drink industry include Suntory PepsiCo Vietnam Beverage Co. which is a market leader in the carbonated drinks, juices, bottled water and sports drinks categories. It is also the largest soft drink company in Vietnam. Second largest player is Tan Hiep Phat Group with its Zero Degree and Dr Thanh tea beverage brands aligning well with the growing health and wellness trends, although it faces competition from other players like URC Vietnam Co. Ltd.
According to the report, sustainability is also a key development trend in the industry, with more Vietnamese soft drink brands committing to using 100% recycled materials in their packaging. This drives the development of a circular economy in Vietnam, turning waste into resources rather than releasing it into the environment. Manufacturers are also working to encourage consumers to recycle bottles by displaying messages like ‘Recycle Me’ on packaging to raise awareness and motivate people to take action. In the long run, beverage companies that adopt sustainability will definitely see a positive impact on consumer demand for their products, as responsible sourcing and production will eventually offer a more competitive edge in terms of brand image and pricing.
Research and Markets projected that the soft drink industry in Vietnam will remain stable during the forecast period from 2024 to 2033, with major players to continue to stimulate demand through new product development, active marketing campaigns, and special events.
Meanwhile, bottled water and juice will be the most dynamic categories in Vietnam’s soft drink industry in the future, benefiting from a healthier image. In contrast, the carbonated drinks category is expected to slow down in terms of growth due to its unhealthy image and high sugar contents.
Sales in Vietnam’s soft drink industry is projected to reach 7.453 billion litres by 2033 with a CAGR of 4.8% from 2024 to 2033.
