Vietnam Food Service Market to Grow with a CAGR of 10.75% through 2028
Vietnam
Food Service Market is driven by a combination of factors such as rapid
urbanization, changing lifestyles, rising disposable income, tourism, and
technological advancements.
According
to TechSci Research report, “Vietnam
Food Service Market – By Region, Competition, Forecast and Opportunities,
2018-2028F”, the Vietnam Food Service Market stood at USD 20.52
billion in 2022 and is anticipated to grow with a CAGR of 10.75% in the
forecast period, 2024-2028. Vietnam, a Southeast Asian country known for its
lush landscapes, bustling cities, and rich cultural heritage, has made a name
for itself in the global culinary scene. The Vietnam Food Service Market, a
dynamic and ever-evolving sector, reflects the nation's deep-rooted love for
food. Vietnam's food culture has a long
and storied history, dating back thousands of years. The nation's culinary
traditions are deeply rooted in the ancient practices of growing and preparing
food, which have been passed down through generations. A rich tapestry of
influences from Chinese, French, and Southeast Asian cuisines has shaped the
contemporary Vietnamese culinary landscape.
One
of the most iconic dishes that exemplifies this fusion of culinary influences
is "pho." This fragrant noodle soup, featuring a delicate broth, rice
noodles, and tender slices of beef or chicken, is often considered Vietnam's
national dish.
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"Vietnam Food Service Market”
Vietnam's culinary diversity is a
hallmark of its food service market. The country is geographically divided into
three regions: Northern, Central, and Southern Vietnam, each with its unique
culinary traditions. The Northern region, with its cooler climate and fertile
land, is famous for dishes like "bun cha" (grilled pork with
vermicelli) and "bun thang" (Hanoi-style noodle soup). In Central
Vietnam, the cuisine is characterized by bold and spicy flavors, with dishes
like "bun bo Hue" (Hue-style beef noodle soup) and "banh
xeo" (savory pancakes) taking center stage.
Southern Vietnam, with cities like Ho
Chi Minh City and Vung Tau, holds a significant share in the Vietnam Food
Service Market. Its unique blend of flavors reflects its multicultural history,
with influences from Cambodia, India, China, and France. Southern Vietnamese
cuisine is known for its freshness, vibrant herbs, and a balance of sweet,
sour, and savory flavors. Iconic dishes include "pho nam"
(Southern-style pho), "banh mi" (Vietnamese sandwich), and "com
tam" (broken rice).
The Vietnam Food Service Market is
fueled by various factors, making it a vibrant and evolving industry. Among
these, rapid urbanization is a key driver. As cities grow and more people move
into urban areas in search of better economic opportunities, the demand for
dining out and convenience has surged. Urban dwellers often lead fast-paced
lives, and this has led to an increase in restaurants, cafes, and eateries that
cater to the need for quick, delicious, and diverse meals.
The rising disposable income of the
population is another pivotal factor driving the market's growth. As people
have more money to spend on dining experiences, they are willing to explore a
wider range of culinary options, from traditional street food stalls to
high-end restaurants. The willingness to experiment with new flavors and dining
concepts has contributed to the proliferation of innovative food businesses in
Vietnam.
Moreover, Vietnam's economic
development, particularly in cities like Ho Chi Minh City, has significantly
bolstered the food service market. These urban centers offer a conducive
environment for the growth of the restaurant industry, with diverse business
models such as fine dining, fast food, and casual dining establishments finding
success.
Culinary tourism has gained prominence
in Vietnam, attracting travelers from around the world. The country's unique
and diverse cuisine, combined with its breathtaking landscapes and cultural
heritage, has made it a culinary destination of choice. Tourists often embark
on food tours, exploring local markets, street food stalls, and upscale
restaurants to savor authentic Vietnamese flavors.
One of the most renowned culinary
destinations in Vietnam is the Mekong Delta, often referred to as the
"Rice Bowl of Vietnam." This fertile region, with its intricate
network of rivers and canals, supplies an abundance of fresh produce, seafood,
and rice, making it a treasure trove of ingredients for Vietnamese cuisine.
Visitors can partake in cooking classes, where they learn to prepare
traditional dishes using locally sourced ingredients.
The street food culture in Vietnam is a
significant draw for culinary tourists. Vibrant street markets come alive at
night, offering a tantalizing array of dishes, from "banh mi" and
"goi cuon" (spring rolls) to "bun rieu cua" (crab noodle
soup). These markets not only showcase the nation's culinary excellence but
also serve as social hubs where locals and tourists come together to celebrate
their love for food.
The availability of fresh, high-quality
ingredients is a crucial aspect of Vietnam's food service market. The country's
agricultural sector, with its fertile soil and favorable climate, plays a
pivotal role in supplying fresh produce to restaurants and eateries. Rice, the
staple food of Vietnam, is abundantly produced, ensuring a steady supply for
various rice-based dishes.
The Mekong Delta is a primary source of
rice and an essential agricultural region. It's not just rice; the delta also
provides an abundance of fresh seafood, tropical fruits, and a wide variety of
vegetables. This agricultural abundance fuels the creation of farm-to-table
dining experiences, promoting sustainability and quality in the food service
industry.
The sourcing of fresh seafood, including
prawns, fish, and crabs, is a crucial aspect of Southern Vietnamese cuisine,
particularly in coastal cities like Vung Tau. These cities have thriving
fishing industries, ensuring a constant supply of seafood to meet the demands
of the region's seafood-loving population.
Herbs and spices are fundamental to
Vietnamese cuisine, contributing to its distinct and delightful flavors.
Commonly used ingredients include cilantro, basil, mint, and lemongrass, all of
which are grown locally and sourced fresh for daily culinary preparations.
While the Vietnam Food Service Market
thrives, it is not without its challenges. The industry faces several obstacles
that impact its growth and development.
One challenge is the increasing
competition among food service establishments. As the market becomes more
saturated, businesses must continually innovate to stand out and attract
customers. This often leads to a rapid turnover of restaurants and eateries, as
those unable to adapt to changing consumer preferences may struggle to survive.
The evolving food safety and hygiene
regulations are another challenge. As consumers become more aware of food
safety issues, they demand higher standards from food service providers.
Adhering to these standards can be costly and complex for smaller businesses.
The recent global economic fluctuations
have also impacted the industry. Inflation, supply chain disruptions, and
fluctuating commodity prices can challenge the cost-effectiveness and stability
of food service businesses.
However, challenges also bring
opportunities. The rise of food delivery services, spurred on by the COVID-19
pandemic, has created a new market segment. Food delivery apps and platforms
have made it easier for restaurants to reach a broader customer base, even
during lockdowns and restrictions.
Innovations in culinary technology,
including automation and digital menus, have the potential to streamline
operations, reduce costs, and improve customer experiences.
The Vietnam Food Service market is
segmented into type, ownership, brands, and region.
Based
on type, PBCL has a significant share in the Vietnam food service market. First
and foremost, PBCL venues offer a unique and diverse range of experiences for
both locals and tourists. These establishments cater to different preferences,
from lively nightclubs and bars serving craft cocktails to cozy lounges and
traditional pubs where patrons can unwind over a cold beer.
Based
on ownership, standalone outlets have a significant share in the Vietnam food
service market. The popularity of standalone outlets can be attributed to
several factors. First and foremost, they offer an authentic taste of
Vietnamese cuisine, often prepared using time-honored recipes passed down
through generations. These outlets are known for serving iconic dishes such as
pho, banh mi, com tam, and goi cuon, providing locals and tourists with a
genuine taste of Vietnam's culinary heritage.
Key
market players in the Vietnam Food Service market include:
- CP All PCL
- Golden Gate JSC
- Imex Pan Pacific Group
- Jollibee Foods Corporation
- Lotte GRS Co. Ltd
- Mesa Group
- Restaurant Brands International Inc.
- Starbucks Corporation
- The Al Fresco's Group Vietnam
- Yum! Brands Inc.
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“The
Vietnam Food Service Market is a thriving and dynamic sector that has witnessed
remarkable growth in recent years. This robust industry is fueled by a
combination of factors, making it a vital component of the country's economy.
One of the primary drivers of this market is Vietnam's rapidly urbanizing
population. As more people migrate to urban centers, there is a growing demand
for convenient dining options, leading to a surge in the number of restaurants,
cafes, and food delivery services. The increasing disposable income of the
Vietnamese population is another crucial factor contributing to the market's
expansion. With higher incomes, people are more willing to dine out and explore
a variety of culinary experiences, including both local and international
cuisines. This financial capacity has also led to a rise in the number of
upscale dining establishments and luxury food offerings in the country.” said
Mr. Karan Chechi, Research Director with TechSci Research, a research-based
Global management consulting firm.
“Vietnam
Food Service Market By Type (Dining Service (Hotels,
Restaurants), PBCL (Pubs, Bars, Clubs and Lounges), QSR (Quick Service
Restaurants), and Others (Cafeteria, Cloud Kitchen, Vending Companies)), By
Ownership (Standalone Outlets and Chained Outlets), By Brands (Domestic and
International Brands), By Region, Competition, Forecast and Opportunities,
2018-2028F”, has
evaluated the future growth potential of Vietnam food service and provides
statistics and information on market structure, size, share, and future growth.
The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides, the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the Vietnam food service market.
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