Better For You Beverages in Vietnam

PROSPECTS

Consumer interest in BFY beverages remains low

Consumer awareness of and interest in BFY beverages remained low in Vietnam in 2018. Most consumers do not consider such products to be significantly healthier than standard alternatives.

BFY carbonates are the only product type to register significant sales

Due to a lack of interest among consumers and limited investment from manufacturers, BFY beverages in Vietnam remained underdeveloped at the end of the review period. Reduced sugar carbonates and reduced caffeine cola carbonates were the only categories to register significant sales in 2018.

Increased investment by producers should strengthen interest in BFY beverages

BFY beverages looks set to remain a relatively small and underdeveloped category over the forecast period. Nonetheless, it is expected to post steady growth in retail volume and current value sales thanks to rising health-consciousness among Vietnamese consumers.

COMPETITIVE LANDSCAPE

Coca-Cola claims the overall lead in BFY beverages in 2018

A strong performance by the Coca-Cola Light brand saw Coca-Cola become the overall leader in BFY beverages in value terms in 2018. Towards the end of the review period, Coca-Cola Light benefited from improvements in distribution via modern grocery retailers channels such as supermarkets and hypermarkets.

Presence of local manufacturers remains negligible

The presence of local companies in BFY beverages remained negligible in 2018. During the review period, low interest in BFY products among Vietnamese consumers discouraged domestic players from investing in the category.

Potential for local companies to develop reduced sugar juice and RTD tea products

The competitive environment within BFY beverages is unlikely to change significantly over the forecast period, with Coca-Cola, Suntory PepsiCo and Aje Group expected to remain the clear leaders. Competition between Coca-Cola and Suntory PepsiCo in reduced sugar carbonates will remain intense, and it is likely that their strong positions will continue to discourage local companies from entering this category.

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