According to a report from Vietnam Drink Research Institute, the beverage industry will record negative growth of -7.8% in July compared to the same period a year ago, marking a shift from slow growth to a real decline.
The negative trend is attributed to domestic and foreign market instability over a few years. From 2019-2022, the market saw growth of 3.2% but by 2022-2024, growth slowed to 1% reflecting a weakening in consumer demand. Notable decline can be seen in certain soft drink segments.
One major domestic factor that led to lacklustre trend is the proposal to impose special consumption tax on the soft drink industry.
As for now, the soft drink industry relies heavily on domestic consumption and as such, manufacturers need to focus more on boosting local demand in order to achieve growth.
