Vietnam Food Services Market By Type (Full-Service Restaurants, Quick Service Restaurants, Others), By Ownership (Standalone Outlets, Chained Outlets), By Brands (Domestic, International), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

The Vietnam Food Services market was valued at USD 22.23 Billion in 2024 and is expected to grow to USD 26.89 Billion by 2030 with a CAGR of 12.34% during the forecast period. The Vietnam Food Services market is experiencing significant growth, driven by factors such as rapid urbanization, increasing disposable incomes, and changing consumer preferences. As more people move to urban areas, demand for dining out and convenience food is rising. The growing middle class, along with greater purchasing power, has fueled the demand for diverse food options, including international cuisines and high-quality dining experiences. Also, Vietnam’s thriving tourism sector continues to contribute to the growth of the food services market, with both international tourists and domestic travelers seeking authentic and diverse dining experiences. The rising popularity of online food delivery services and the expansion of quick-service restaurants (QSRs) also play key roles in shaping market dynamics.

Key Market Drivers

Rising Number of Fast-Food Chain

The rising number of fast-food chains is a key driver in the growth of Vietnam's food services market. As a part of this, according to Government of Canada, as of 2022, the total sales of Vietnam's consumer foodservice amounted to USD 22.8 billion, representing approximately 55.7% of food purchases and 44.3% of drink sales. Sales were highest from standalone foodservice outlets (90.8%), followed by retail (4%), travel (2.2%), lodging (2%), and leisure locations (1%). With the growing middle class and increasing disposable incomes, there is a rising demand for quick, affordable, and convenient dining options. Fast-food chains, both international brands and local franchises, are capitalizing on this demand by expanding their presence across major cities like Hanoi, Ho Chi Minh City, and Da Nang, as well as in emerging suburban areas. The fast-food sector is attracting young, busy professionals and families who prioritize convenience without compromising on quality or taste. The popularity of global fast-food brands, such as McDonald's, KFC, and Burger King, as well as local fast-food chains, is driving the sector's expansion. These chains are also adapting their menus to cater to local tastes and preferences, offering a variety of products that appeal to Vietnamese consumers, such as rice-based meals, noodle dishes, and localized snacks. Also, the rise in online food delivery services has further boosted the fast-food sector, making it even more accessible to consumers. Fast-food chains have capitalized on this trend by enhancing their digital platforms and offering delivery services through popular apps. This combination of convenience, affordability, and adaptability has positioned fast-food chains as a dominant force in Vietnam's growing food services market.

Increasing Consumer Spending on Fast-Food Consumption

Increasing consumer spending on fast food consumption is a significant driver of growth in the Vietnam food services market. As a part of this, according to United States Department of Agriculture, as of 2024, Vietnamese consumer expenditure on food deliveries reached USD 1.4 billion, marking a growth of 30 percent and the highest rate among Southeast Asian countries. As the country experiences rapid economic growth, a rising middle class, and increased disposable incomes, consumers are spending more on dining out and convenience foods. Fast food, which offers affordability, quick service, and consistent quality, has become a popular choice among busy professionals, students, and families. This shift in consumer behaviour is driven by several factors. The fast-paced urban lifestyle, particularly in cities like Ho Chi Minh City and Hanoi, makes fast food a convenient option for those with limited time for home-cooked meals. Also, the appeal of international fast-food chains such as McDonald’s, KFC, and Burger King has increased, as these brands are perceived as offering high-quality food at competitive prices. Vietnam’s younger population is more inclined to spend on fast food due to their exposure to global food trends and the increasing influence of social media and marketing. The growing popularity of delivery services and the availability of fast food through online platforms have made it even easier for consumers to access their favourite meals from the comfort of their homes. Overall, the combination of higher disposable income, changing lifestyles, and the expansion of fast-food chains has led to a surge in consumer spending on fast food, further propelling the growth of Vietnam's food services market.

Growing Working Population

The growing working population in Vietnam is a key driver of the country's expanding food services market. As a part of this, according to a recent study, as of 2023, Vietnam's employment figures reached approximately 51.29 million people, with around 27.65 million individuals employed as payroll workers. As the economy continues to develop, more individuals are entering the workforce, particularly in urban areas. This increasing number of working professionals, especially in cities like Ho Chi Minh City and Hanoi, has led to higher demand for convenient, affordable dining options during lunch breaks, after work, or on-the-go. Busy professionals, students, and individuals working long hours seek quick, accessible meal solutions, making fast food, quick-service restaurants (QSRs), and takeaway food increasingly popular. The food services industry has adapted to this shift by offering more delivery and takeout options, catering to the time-constrained working population. Also, many food outlets now focus on providing healthier, more diverse menu options to meet the evolving preferences of this demographic. The growth of the middle class has also contributed to an increase in spending power among the working population, enabling them to dine out more frequently or order food for delivery. Also, with a significant number of working women, the demand for convenient food services that cater to both professional and family needs is rising. The growth of the working population is also driving innovation in the food services sector, including the development of digital platforms, meal subscription services, and corporate catering. As the number of working individuals continues to rise, the demand for food services will keep expanding, further accelerating market growth.

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Key Market Challenges

 Changing Consumer Preference

Changing consumer preferences present a significant challenge in the Vietnam food services market. As the population becomes more health-conscious, there is a growing demand for healthier food options, including low-fat, low-sugar, and plant-based alternatives. Consumers are increasingly seeking organic, sustainable, and ethically sourced ingredients, which can be more costly and require adjustments in menu planning and sourcing. In addition to health-conscious eating, there is also a shift towards more diverse and international cuisines as Vietnamese consumers become more exposed to global food trends. This requires food service providers to constantly innovate their offerings to meet changing tastes and preferences. Traditional fast food and local dishes are no longer sufficient to satisfy the growing demand for variety, forcing many restaurants and chains to adapt quickly. Also, the rise of food delivery services has shifted how people access food, and convenience is now a higher priority. This demand for both health-conscious and convenient food can complicate menu design and operational processes for restaurants, requiring them to strike a balance between quality, nutrition, and speed of service. As consumers increasingly expect customized dining experiences, food service operators must constantly monitor trends and adjust their offerings to stay relevant in a highly competitive market.

Intense Competition Among Players

Intense competition among players is a significant challenge in the Vietnam food services market. The sector has seen a surge in both local and international brands, with numerous restaurants, cafes, fast-food chains, and food delivery services competing for consumer attention. This overcrowding in the market forces businesses to constantly innovate, enhance customer experiences, and differentiate their offerings to maintain a competitive edge. International brands, such as McDonald's, KFC, and Starbucks, are expanding rapidly in Vietnam, intensifying competition for local players. At the same time, local chains are adapting to consumer preferences by offering traditional Vietnamese dishes alongside modern dining concepts. This competition often leads to price wars, which can reduce profitability, especially for smaller businesses that lack the resources of larger multinational chains. Also, the rise of food delivery platforms like GrabFood and Now.vn has intensified competition among food outlets, as consumers increasingly rely on convenience. Restaurants and food services are pressured to optimize their delivery operations, ensuring fast and efficient service while maintaining food quality. To stand out in this highly competitive market, food service providers must continuously enhance their value propositions, focusing on food quality, customer service, digital presence, and innovation. Maintaining brand loyalty and attracting new customers are ongoing challenges in such a dynamic and crowded market environment.

Key Market Trends

Rising Trend for Online Ordering

The rising trend for online ordering is one of the key trends driving growth in the Vietnam food services market. As a part of this, according to a recent study, as of 2024, Vietnam's online food delivery market is anticipated to generate USD 2.37 billion in revenue by 2024. From 2024 to 2029, the market is expected to grow at an annual rate of 11.15%, reaching a projected value of USD 4.02 billion by 2029.With the increasing adoption of smartphones and internet penetration, more consumers are turning to online platforms for food delivery and takeout. Food delivery services such as GrabFood, Now.vn, and Baemin have become integral to the dining experience, offering convenience and a wide variety of food options at consumers' fingertips. This trend is fueled by busy lifestyles, particularly in urban areas like Ho Chi Minh City and Hanoi, where working professionals and students seek fast, convenient meals. The growing preference for online ordering is also being driven by the ease of accessing multiple restaurant menus, discounts, and promotions offered by food delivery platforms. Restaurants and food outlets are increasingly partnering with these online platforms to expand their reach and cater to changing consumer behaviors. As a result, many food service providers are investing in improving their digital infrastructure, including user-friendly apps, efficient delivery systems, and better customer service to stay competitive in the market. The trend toward online ordering is also influencing menu offerings, as more food outlets optimize their dishes for delivery, ensuring food quality and packaging that can withstand the journey. As online ordering continues to gain popularity, the food services market in Vietnam is expected to see further digital transformation and growth in delivery-based revenue.

Growing Adoption of Digital Payment

The growing adoption of digital payment methods is a significant trend in the Vietnam food services market. With the increasing use of smartphones, e-wallets, and mobile banking apps, consumers are increasingly opting for cashless transactions when dining out or ordering food online. Payment platforms like MoMo, ZaloPay, and VNPay are gaining popularity among Vietnamese consumers, providing fast, secure, and convenient payment options for both online orders and in-store purchases.This shift towards digital payments is driven by the growing preference for convenience and the rising number of tech-savvy consumers, especially in urban areas. Consumers appreciate the speed and security digital payments offer, particularly when ordering food through delivery apps or quick-service restaurants. Also, digital payments often come with rewards, cashback offers, and discounts, further encouraging their adoption. For food service providers, embracing digital payment solutions helps streamline operations, reduce cash handling, and improve customer experience. Many restaurants and food outlets have integrated digital payment systems into their point-of-sale (POS) terminals, while online food delivery platforms increasingly offer a variety of payment options, including credit/debit cards, mobile wallets, and even cryptocurrencies in some cases.As the Vietnamese population continues to embrace digital solutions, the growing adoption of digital payment methods is expected to play a key role in shaping the future of the food services market, improving convenience for both consumers and businesses..

Rising Popularity of Organic Food

The rising popularity of organic food is a significant trend in the Vietnam food services market. As consumers become more health-conscious and aware of the environmental impact of their food choices, the demand for organic, locally sourced, and chemical-free food options is increasing. This trend is particularly prevalent among middle and upper-income groups in urban areas like Ho Chi Minh City and Hanoi, where there is greater access to health-focused dining options. Organic food offerings are expanding across various food service segments, from restaurants and cafes to fast-casual chains and delivery services. Many food service providers are incorporating organic ingredients into their menus, offering dishes that cater to the growing demand for nutritious and sustainable meals. This includes organic vegetables, free-range meats, and products free from preservatives and artificial additives. The rise in popularity of organic food is also linked to the broader global trend toward sustainability and environmental consciousness. Consumers are increasingly concerned about the environmental footprint of conventional farming practices, which has led them to seek out organic alternatives. Food services that embrace organic ingredients are also tapping into the demand for clean eating and environmentally responsible dining. With a growing focus on wellness and sustainability, the popularity of organic food in the Vietnam food services market is expected to continue rising, encouraging food outlets to offer healthier, eco-friendly options to meet changing consumer preferences.

Segmental Insights

Type Insights

Full-Service Restaurants dominated the Vietnam Food Services market, driven by consumer preferences for high-quality dining experiences. These establishments offer a wide range of menu options, from local Vietnamese dishes to international cuisines, catering to diverse tastes. The increasing demand for dine-in experiences, especially among the growing middle class and affluent consumers, has fueled the popularity of FSRs. Also, FSRs provide a comfortable environment for social gatherings, family meals, and business meetings, making them a preferred choice for consumers seeking more than just a meal. The sector benefits from strong customer loyalty and repeat visits due to personalized service and a premium dining atmosphere. As the Vietnamese economy continues to grow, full-service restaurants are expected to maintain their leadership position in the market, supported by rising disposable incomes and changing lifestyles.

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Regional Insights

Northern dominated the Vietnam Food Services market, led by Hanoi,  the dominant force in the country's food services market. Known for its rich culinary heritage and unique dishes like pho and bun cha, the region attracts both locals and tourists, driving demand for diverse dining options. As urbanization and disposable incomes rise, consumers in the north are increasingly seeking varied food experiences, from traditional eateries to international cuisine. Also, the thriving tourism sector and growing middle class in northern cities further boost the region’s food service sector. With these factors, the northern market continues to lead the overall growth of Vietnam's food services industry, setting trends and influencing consumption patterns across the country.

Recent Developments

• In March 2024, KFC distinguishes itself in the Vietnamese fast-food market by focusing on two core strategies: taste innovation and exceptional customer service. This approach seamlessly blends global standards with local culinary preferences, ensuring each meal aligns with the Vietnamese palate. By combining international quality with local authenticity, KFC offers a unique dining experience that appeals to both global and local tastes.
• In September 2024, Pizza Hut Vietnam, under the management of Jardine Restaurant Group of Vietnam (JRGVN), launched a sustainable hexagonal pizza box design made from FSC-certified paper. This initiative has led to a reduction of more than 6,000 kg of plastic waste each year. Other Pizza Hut packaging, such as takeaway cups and salad boxes, also employs FSC-certified paper, aiding in forest conservation. The FSC (Forest Stewardship Council) certification guarantees sustainable forest management that strikes a balance between environmental protection, social benefits, and economic viability.
• In July 2023, Jollibee Foods Corp., a leading fast-food company from the Philippines, has announced its ambition to become the largest quick-service restaurant (QSR) chain in Vietnam. As of Q1 2023, Jollibee is the third-largest QSR brand in the country, operating 158 outlets and serving a 100% local Vietnamese customer base.

Key Market Players  

• Vietnam Lotteria Co.Ltd
• Golden Gate Group Joint Stock Company
• Jollibee Vietnam Company Limited
• Starbucks Coffee Company
• Pizza Hut
• Domino's Pizza Vietnam
• McDonald's
• Kfc Vietnam Joint Venture Company Ltd
• Burger King Corporation
• Popeyes Vietnam

Report Scope:

In this report, the Vietnam Food Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Vietnam Food Services Market, By Type:

o   Full-Service Restaurants

o   Quick Service Restaurants

o   Others

• Vietnam Food Services Market, By Ownership:

o   Standalone Outlets

o   Chained Outlets

• Vietnam Food Services Market, By Brands:

o   Domestic

o   International

• Vietnam Food Services Market, By Region:

o   Southern

o   Northern

o   Central

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Vietnam Food Services Market.

Available Customizations:

Vietnam Food Services Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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