Hot Drinks in Vietnam
Euromonitor International's Hot Drinks in Vietnam market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 54 | Publication date: Dec 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
High Growth for All Three Sectors in 2007
Sales of hot drinks reached VND3,770 billion in 2007, an increase of 11% compared to 2006. Tea is the most valuable, with a share of some 53% of total value. Coffee accounts for 30%, while other hot drinks – primarily flavoured powder drinks – accounts for less than 18%. In terms of actual value increment, tea saw the most significant gains in 2007, rising by VND173 billion, although both coffee and other hot drinks also saw impressive gains (VND120 billion and VND73 billion respectively).
Large Domestic Production for Export
Vietnam is a country that has a suitable climate for cultivating and producing coffee and tea. Vietnam has become the second largest coffee and the seventh largest tea exporting country in the world. However, consumption of coffee and tea in Vietnam is tiny compared with production. Domestic producers concentrate on exporting rather than expanding the domestic-market. Vietnamese coffee producers have recently invested heavily in building more production facilities and increasing the output of coffee, especially instant coffee, which they intend to sell abroad.
Domestic Producers Dominate Coffee but Not Tea
Domestic coffee manufacturers such as Vinacafe – Vietnam National Coffee Corp and Trung Nguyen Coffee Co Ltd dominate coffee and the reason for this is easy to understand. Vietnamese Coffee players were the first to trade domestically and can undercut any foreign imports. This story is different for tea. Vietnam is also a big tea producer and exporter, but foreign tea player's such as Unilever Vietnam, MJF Group and Qualitea Ceylon (PVT) Ltd have won over domestic producers. Domestic production was always intended to be exported. Foreign players have marketed their goods at domestic Vietnamese consumers whilst domestic producers have ignored them.
Strong Potential Left in Fresh Coffee and Black Tea Varieties
Hot drinks is expected to grow by a CAGR of 7% in constant value terms, and 6% in volume terms. Coffee and other hot drinks have the greatest potential for dynamic value growth, with forecast CAGRs of 8% each in constant value terms. However, price competition in tea will limit overall growth in average unit prices.
In coffee, fresh coffee will remain the most valuable, with sales expected to increase by as much as VND414 billion by 2011, overshadowing instant coffee, despite the latter's higher prospective growth rate. In tea, black standard tea and speciality tea will dictate overall growth, and remain the most valuable categories, despite emergent niche growth for green tea and fruit/herbal tea.
Table of contents
HOT DRINKS IN VIETNAM : MARKET INSIGHT
EXECUTIVE SUMMARY
High Growth for All Three Sectors in 2007
Large Domestic Production for Export
Domestic Producers Dominate Coffee but Not Tea
Strong Potential Left in Fresh Coffee and Black Tea Varieties
KEY TRENDS AND DEVELOPMENTS
Vietnam Benefits from High Economic Growth
Domestic Consumption Remains Limited
Price of Coffee Beans Has Declined Sharply
Domestic Coffee Producers Dominate
MARKET DATA
Table 1 Sales of Hot Drinks by Sector: Volume 2001-2006
Table 2 Sales of Hot Drinks by Sector: Value 2001-2006
Table 3 Sales of Hot Drinks by Sector: % Volume Growth 2001-2006
Table 4 Sales of Hot Drinks by Sector: % Value Growth 2001-2006
Table 5 Hot Drinks Company Shares by Value 2002-2006
Table 6 Hot Drinks Brand Shares by Value 2003-2006
Table 7 Sales of Hot Drinks by Distribution Format: % Analysis 2001/2006
Table 8 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2006
Table 9 Forecast Sales of Hot Drinks by Sector: Volume 2006-2011
Table 10 Forecast Sales of Hot Drinks by Sector: Value 2006-2011
Table 11 Forecast Sales of Hot Drinks by Sector: % Volume Growth 2006-2011
Table 12 Forecast Sales of Hot Drinks by Sector: % Value Growth 2006-2011
DEFINITIONS
LOCAL COMPANY PROFILES - VIETNAM
HUNG PHAT CO LTD - HOT DRINKS - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Hung Phat Company Ltd: Key Facts
Summary 2 Hung Phat Company Ltd: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
TAM CHAU TEA & COFFEE CO LTD - HOT DRINKS - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Tam Chau Tea & Coffee Co Ltd: Key Facts
Summary 4 Tam Chau Tea & Coffee Co Ltd: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
Summary 5 Tam Chau Tea & Coffee Co Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
TRUNG NGUYEN COFFEE CO LTD - HOT DRINKS - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Trung Nguyen Coffee Co Ltd: Key Facts
Summary 7 Trung Nguyen Coffee Co Ltd: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
VINACAFE - VIETNAM NATIONAL COFFEE CORP - HOT DRINKS - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Vinacafe - Vietnam National Coffee Corp: Key Facts
Summary 9 Vinacafe - Vietnam National Coffee Corp: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
Summary 10 Vinacafe - Vietnam National Coffee Corp: Production Statistics 2006
COMPETITIVE POSITIONING
COFFEE IN VIETNAM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 13 Sales of Coffee by Type: Volume 2001-2006
Table 14 Sales of Coffee by Type: Value 2001-2006
Table 15 Sales of Coffee by Type: % Volume Growth 2001-2006
Table 16 Sales of Coffee by Type: % Value Growth 2001-2006
Table 17 Standard vs Coffee Pods 2004-2006
Table 18 Coffee Company Shares 2002-2006
Table 19 Coffee Brand Shares 2003-2006
Table 20 Foodservice Sales of Coffee by Distribution Format 2001/2006
Table 21 Forecast Sales of Coffee by Type: Volume 2006-2011
Table 22 Forecast Sales of Coffee by Type: Value 2006-2011
Table 23 Forecast Sales of Coffee by Type: % Volume Growth 2006-2011
Table 24 Forecast Sales of Coffee by Type: % Value Growth 2006-2011
TEA IN VIETNAM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 25 Sales of Tea by Subsector: Volume 2001-2006
Table 26 Sales of Tea by Subsector: Value 2001-2006
Table 27 Sales of Tea by Subsector: % Volume Growth 2001-2006
Table 28 Sales of Tea by Subsector: % Value Growth 2001-2006
Table 29 Tea Company Shares 2002-2006
Table 30 Tea Brand Shares 2003-2006
Table 31 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 32 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 33 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 34 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS IN VIETNAM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 36 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 37 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 38 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 39 Other Hot Drinks Company Shares 2002-2006
Table 40 Other Hot Drinks Brand Shares 2003-2006
Table 41 Forecast Sales of Other Hot Drinks by Subsector: Volume 2006-2011
Table 42 Forecast Sales of Other Hot Drinks by Subsector: Value 2006-2011
Table 43 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2006-2011
Table 44 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2006-2011