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With nearly 100 million people, Vietnam is considered a potential market for the development of businesses in the F&B sector, such as food, restaurants, and hotels. However, the impact of economic downturn in 2023 made businesses more difficult. Let’s explore the general situation of the market and the development prospects in 2024 together with Kamereo!
Overview of the F&B market in 2023
In the first months of 2023, the F&B market in Vietnam underwent challenging fluctuations. The economic downturn affected the personal income of workers, leading to a significant decrease in consumer spending. The trend of tight spending was evident not only in the retail market and overall consumption but also across the entire F&B sector.
However, according to a market report published by iPOS.vn, industry revenue increased by 11.47% to over 590 trillion dong. The restaurant market alone contributed 538.5 trillion dong, up 10.87% from 2022.
Despite economic challenges, among over 3,000 F&B businesses surveyed, up to 79.6% indicated that their business situation was trending positively and they had sufficient resources to develop in the near future. Furthermore, 51.7% of these food establishments planned to expand their scale.
Expected industry development in 2024
According to the International Monetary Fund (IMF), Vietnam is predicted to be one of the standout economies in the next five years. Factors such as investment, consumption, tourism, and imports and exports are expected to be driving forces for overall economic growth, particularly in the F&B sector.
The value of the F&B market in Vietnam in 2024 is expected to increase by 10.92% compared to 2023, reaching over 655 trillion dong. Over the period until 2027, the revenue structure will remain largely unchanged with independent F&B outlets maintaining a dominant share of 93.9%.
In line with convenience trends, 2024 will witness strong development of medium-sized and small-scale beverage models. Stores will be opened with criteria such as reasonable investment costs, convenient locations, suitability for takeaway and delivery services, and pricing in the mid-range and affordable segments.
F&B technology companies in 2024
Payment & E-wallets
By the end of December 2023, the State Bank of Vietnam had granted operational licenses for intermediary payment service providers to 51 non-bank organizations. Among these, financial switching and electronic clearing services were licensed to one organization, collection and disbursement support services to 49 organizations, electronic money transfer support services to 49 organizations, and e-wallet services to 14 organizations.
According to the State Bank of Vietnam, as of the end of 2023, there were approximately 36.23 million active e-wallets (accounting for 63.23% of the nearly 57.31 million e-wallets activated). The total amount of money on these wallets is estimated at around 2.96 trillion dong.
FiinGroup recently published a report on the intermediary payment service market, indicating that the transaction volume via e-wallets in Vietnam has a Compound Annual Growth Rate (CAGR) of 83.5% during the 2018-2023 period. FiinGroup forecasts that by the end of 2024, the number of active e-wallets in Vietnam could reach 50 million alongside major players including ZaloPay, VNPAY, Momo, VinID, Samsung Pay, Apple Pay,…
Food Delivery
The food delivery market in Vietnam over the past year has been fairly evenly split between two major apps: GrabFood (47% market share) and ShopeeFood (45% market share). Additionally, Baemin (5%), Gojek (3%), and other platforms like Loship, Delivery K, Capichi,… account for the remaining smaller market shares.
Although Vietnam recorded an impressive 30% increase in Gross Merchandise Volume (GMV) to $1.4 billion last year, compared to platforms in neighboring markets, Vietnam’s scale is still relatively modest.
Currently, most food delivery platforms in Southeast Asia have either reached or are nearing EBITDA break-even. Some platforms are aiming for positive free cash flow by 2024.
Online Marketplaces
According to Metric’s forecast, the Direct to Consumer (DTC) trend—businesses manufacturing and selling directly to consumers without intermediaries—will continue to rise in 2024. This allows manufacturers to comprehensively control processes from production, marketing to sales. At the same time, it minimizes intermediary costs to maximize profit margins.
Metric also predicts that price competition will continue to intensify on e-commerce platforms in 2024. Therefore, manufacturers need to understand the operations of each e-commerce platform and consumer approaches to devise suitable sales policies and maintain relationships with distribution partners.
Similar to other industries, online shoppers increasingly prioritize products from socially and environmentally responsible brands. They are not just interested in prices and promotions but also these values. Additionally, technologies like Artificial Intelligence (AI), machine learning, and Big Data analytics have and will continue to bring many benefits to businesses operating on e-commerce platforms.
Some businesses that have joined this model and achieved success in 2023 include: Tiki Ngon, Sendo Farm, Cooky,…
B2B Suppliers
In the business market, digital transformation is an important and unavoidable trend, especially in the F&B sector among B2B businesses. In 2024, digital transformation trends in the FnB B2B industry are expected to continue with a focus on automation technologies to perform activities such as ordering, delivery, and order tracking.
Moreover, artificial intelligence technology will be applied in demand forecasting, supply chain optimization, and effective business decision support for B2B enterprises. IoT technology will also be applied in areas such as origin tracking and product quality control. This helps F&B businesses enhance the quality of their products and services.
Two companies, Kamereo and Losupply, are currently operating vigorously in the B2B supply sector to meet the needs of many restaurants, hotels,… It is predicted that these businesses will continue to thrive in the future due to positive signs from the market and the government.
Read more: Introduction to Kamereo
Media
In the F&B industry, dynamism always comes with many potentials and challenges. To succeed in this fiercely competitive environment, businesses need to grasp trends and apply effective marketing strategies.
As such, the trend of online food ordering has developed strongly during the pandemic and is expected to continue to increase in 2024. Businesses need to focus on optimizing online sales channels, collaborate with reliable delivery platforms, and implement attractive promotional programs to attract customers.
The rise of social media, especially TikTok, encourages businesses to build creative content strategies, attracting and interacting with customers on popular platforms like Facebook, Instagram, and TikTok. In addition, appearing on third-party platforms such as: Foody, Trip Advisor, Riviu, 5food,… helps businesses promote their images more effectively.
POS – Point of Sale Systems
Currently, retail point of sale (POS) systems have undergone significant transformations and play a crucial role in reshaping the retail operations of many businesses, particularly in the F&B sector. Modern POS systems are not just transaction points but have evolved into comprehensive retail management solutions.
By integrating advanced technologies such as cloud computing, artificial intelligence (AI), and data analytics, POS systems offer capabilities for inventory management, real-time sales tracking, and customer data analysis. Moreover, these systems seamlessly integrate with other business tools such as CRM and ERP systems to ensure streamlined and efficient operations.
Companies providing POS systems achieved much success in 2023 and are expected to continue growing in 2024, including: iPOS, Ocha, KiotViet, PosApp, mPos, Sapo,…
Recruitment
According to the JobsGO Market Recruitment Survey 2023 – 2024, the recruitment plans of businesses in Vietnam for 2024 are quite diverse. 39.6% of businesses plan to strengthen their workforce by adding 10-30% more personnel. Meanwhile, 31.6% of businesses plan to recruit fewer than 10% of new staff.
This brings positive signals to workers with many new opportunities during the recruitment season. Despite facing various risks due to the global economic situation in 2024, recruitment opportunities remain wide open and diverse.
Specifically for the F&B sector, workers and businesses can participate through three major platforms including: Hoteljob, HUFR and Chefjob.vn to find suitable jobs or candidates.
Table Reservation
Online table booking is no longer unfamiliar in the F&B market. This method helps customers save time and ensure they have preferred seating at restaurants. Moreover, due to technology development and the habit of using smartphones, the demand for online table reservations is increasing, especially in 2024.
In addition, table reservation apps such as: Table Check, SevenRooms, Open Table, Dining City, TORETA, PasGo,… are increasingly preferred by customers due to their ability to provide many options. Restaurants also adapt to the online table booking trend by integrating booking apps into their websites or social media pages to provide convenience to customers.
Rewards & Gift Vouchers
Rewards & gift vouchers are a marketing trend in 2023. Many businesses apply this method to attract customers, increase revenue, and build brand loyalty.
In particular, the gamification trend is widely applied in Rewards & Gift Vouchers programs. This helps increase customer attraction and interaction. Moreover, technology plays a crucial role in developing this market, making it easy for businesses to implement and manage programs, providing a convenient experience for customers.
This market is predicted to continue to develop strongly in 2024 with the participation of many companies including: URBOX, Got It, Jamja, Giftee, PEKO, Savyu, Clingme, The Golden, Spoon, Rewards+, Hotdeal, KembaQ, Wisepass and WMC Prestige.
Accounting & Purchasing
According to MISA’s calculation, promoting digital transformation in the financial – accounting sector can save 75% of costs compared to organizing traditional accounting departments. Some leading companies in the industry include: FAST, MISA, SAP,…
Moreover, outsourcing platforms are rapidly applying many new technologies such as: artificial intelligence (AI), data science, Chat GPT,… to meet the increasing demand for digital transformation as today.
Cloud Kitchen
Cloud Kitchen, also known as a central kitchen, is becoming a promising restaurant business model in the F&B sector. This model attracted the attention of many investors and businesses in 2023 including: CloudEats, Air Kitchen, Deliany, Hangry, Chef Station, Révi Coffee & Tea, QUỐC YẾN CLOUD KITCHEN and Cyber Kitchen.
According to many experts’ predictions, the Cloud Kitchen market will develop strongly in 2024 with the following potentials:
- Busy lifestyles make consumers increasingly prefer fast and convenient food ordering methods
- Online delivery platforms like: GrabFood, ShopeeFood,… are becoming more popular, creating favorable conditions for the development of Cloud Kitchen.
- Compared to traditional restaurant models, Cloud Kitchen has lower operating costs due to saving on space and service staff,…
Read more: What is a Cloud Kitchen? New F&B Business Trend in 2024
In conclusion
These are predictions about the situation of technology companies in the F&B sector in 2024. However, the actual situation may change depending on the market, so the information may not be accurate and Kamereo does not recommend applying it to one’s business situation. Stay tuned to the FoodTech section for the latest updates on the market and technology!
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