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In the first half of 2024, the Vietnamese F&B market witnessed remarkable growth, with the market value of the F&B industry forecasted to increase by 10.92% compared to 2023. According to statistics and forecasts observed by industry experts, how should F&B businesses embrace tourism trends and seek opportunities to boost revenue from these trends?
Telling numbers about Vietnam’s tourism market in 2023-2024
According to the International Monetary Fund (IMF) forecast, Vietnam is one of the countries capable of outstanding economic development in the next 5 years.
The Chairman of Traveloka, Mr. Caesar Indra, observed that Vietnam’s tourism industry is experiencing exceptional growth, contributing 6.24% to the country’s Gross Domestic Product (GDP) in the first 9 months of the year. “This contribution, especially from domestic tourism, is very important during a time of global economic instability,” according to Mr. Indra. (1)
According to the Vietnam National Administration of Tourism, in the first 6 months of 2024, Vietnam welcomed 66.5 million visitors, with 8.8 million international visitors, an increase of 58.4% compared to the same period last year and 4.1% higher than the same period in 2019. (2)
The diversity of tourist demographics is becoming increasingly common, with not only wealthy people from developed countries traveling but also all other social classes from various countries participating in greater numbers.
In 2024, the market value of the F&B industry in Vietnam is forecasted to grow by an additional 10.92% compared to 2023, reaching over 655 trillion VND. At the end of 2023, the F&B industry’s revenue recorded a huge growth figure of over 590 trillion VND (23.6 billion USD), marking an increase of 10.87% compared to 2022. According to the latest data from the General Statistics Office of Vietnam, the F&B (Food and Beverage) industry contributed 17.2% to the total national GDP in 2023. (3)
Accordingly, although Vietnam’s economy still faces many challenges, the F&B market will continue to grow. As most customers are and will be expanding their spending on the industry. Food and beverage services are widely opened, policies to stimulate tourism and attract tourists are implemented. All will contribute to promoting the strong development of the F&B industry in general and businesses in particular.
Dominant tourism trends in Vietnam’s tourism market in 2024
This year, the three tourism trends shaping Vietnam’s tourism in 2024 are green tourism, sustainable tourism, and tourism combined with local cultural events.
Green tourism:
Green tourism is growing due to increased awareness of climate change. This type focuses on environmentally friendly experiences, favored by international tourists, especially from Europe, North America, Japan, and Thailand. This trend meets tourists’ needs for safety, health, and closeness to nature.
Sustainable tourism:
Sustainable tourism is developing strongly, especially among young people. They prefer outdoor activities, long holidays, small group travel, and private tours. According to Traveloka data, young travelers seek green experiences and accommodations, minimizing environmental impact. Destinations like Ninh Binh and Hoi An attract many tourists, with accommodation demand in Ninh Binh increasing by more than 80% in the first half of 2023.
Tourism linked to events and culture:
This trend is highlighted through events such as Blackpink’s concert in Hanoi, which doubled room bookings. Tourism linked to cultural exploration is also developing, with the goal of accounting for 15-20% of total tourism revenue by 2030.
How have these trends impacted Vietnam’s F&B market?
Focusing on healthy eating needs
With their own health in mind, consumers are now more fully aware of their surrounding environment to make choices that align with the values they pursue. Customers are willing to spend more to feel assured about the quality of the food and drinks they consume. This change encourages Vietnam’s F&B industry to focus on more sustainable values while opening up new directions for those in the industry. They need to be more careful in the branding process, from sourcing raw materials to packaging products.
Focusing on healthy eating needs, in an ongoing effort to meet the growing demand of consumers for green food products, KAMEREO, the leading food ordering platform for F&B businesses in Vietnam, has made continuous efforts in launching product groups “Ready to Cook”, “Ready to Enjoy Immediately” and environmentally friendly household products.
Digital transformation in F&B business
The F&B industry in Vietnam is undergoing a powerful transformation, with changes happening rapidly that we can clearly feel in major cities. Consumers are increasingly favouring modern payment methods, pushing businesses to innovate to reach diverse customers. The transformation is also reflected in the trend of integrating multiple sales channels, promoting online marketing, developing private applications, and optimizing operations and cost management, which are being invested in by businesses.
Convenient purchasing technology, fast supply chain delivery, and operational management are also being heavily invested in. However, technology to optimize restaurant material management still has many shortcomings and has not been invested in much. KAMEREO is currently the unit providing raw material ordering services for restaurants right on the application and is currently serving restaurants in the Ho Chi Minh City area. As shared by this business, the model of comprehensive and convenient supply of raw materials still has much room for development and has plans to expand in the future in major cities. In addition, businesses, from high-end restaurants to popular eateries, are actively building brand images and online utility systems, demonstrating rapid adaptation to technology trends in F&B business.
Michelin stars
2023 witnessed strong growth in the mid-range and high-end restaurant segment. The appearance of Michelin stars in Vietnam has had a profound impact on the F&B industry. This title establishes new standards, encouraging restaurants to improve product quality, service, and customer experience. This recognition also helps promote Vietnamese cuisine to the world, enhancing the country’s position on the global culinary map.
Vietnamese tourism facing the “upscale” trend
The trend of luxury tourism is showing a clear shift in Vietnam, with this segment expanding significantly, no longer limited to a few subjects as before. Notably, the price factor is no longer the deciding factor; instead, tourists are increasingly focusing on deep and personalized experiences in their trips.
According to Mr. Do Duy Thanh, F&B Director, 2023 witnessed strong growth in the mid-range and high-end restaurant segment, partly thanks to the effect of the Michelin award. This recognition also helps promote Vietnamese cuisine to the world, enhancing the country’s position on the global culinary map. (3)
Opening up many job opportunities
F&B business activities are extremely diverse with support linked to many departments. Along with the expansion of business in the industry, positions with different levels are continuously recruited, opening up job opportunities for many ages, genders, and different professional capabilities.
Attracting foreign investment
The Vietnamese market in recent years has been an attractive “pie” for many foreign investors aiming to participate in investment, especially in the form of franchising. According to statistics from the Ministry of Industry and Trade, in the past 10 years, more than 50% of franchise deals signed in Vietnam belong to the F&B field. Due to the change in user behavior, becoming more modern and willing to spend more, Vietnam is expected to become one of the top 3 Asian countries in the F&B business field.
*This article was compiled and synthesized by KAMEREO from multiple sources:
- Three trends shaping Vietnam’s tourism in 2024 – Vietnam.vn
- Outstanding tourism information in the first 6 months of the year: Promoting promotion, Vietnam’s tourism recovers strongly – Vietnam National Administration of Tourism
- Experts forecast F&B industry revenue to grow nearly 11% this year – VnEconomy
