Revenue of food and beverage industry increased dramatically

Illustrative photo

High revenue thanks to domestic consumption

Thanks to increased domestic consumption, Masan Consumer Corporation achieved revenue of VND 7,387 billion in the second quarter of 2024, up 14% compared to last year. This growth was contributed by the convenience food, beverage and coffee sectors with increases of 20.7%, 17.6% and 16% year-on-year respectively. This result was achieved thanks to strong brands, accelerating the premiumization strategy to achieve high selling prices in the context of lower raw material costs in the convenience food sector.

In the financial report for the second quarter of 2024 recently announced by Vietnam Dairy Products Joint Stock Company, the company's revenue was high in the second quarter with the main source of revenue coming from the domestic channel reaching VND 11,850 billion, an increase of 3.8% over the same period and the highest increase in the last 3 quarters... thanks to many efforts to improve products, expand distribution channels and effective marketing.

According to AC Nielsen, the fast-moving consumer goods (FMCG) industry in the second quarter of 2024 grew by 1.8% compared to last year, higher than the sideway in the first quarter of 2024 and the increase of 1.1% in 2023. In particular, dairy products recorded a recovery trend when the decrease was only 1.8% in the second quarter of 2024 compared to a decrease of 2.8% in the first quarter of 2024 and a decrease of 4% in the fourth quarter of 2023. Notably, in June 2024, according to the prestigious report "Brand Footprint" from Kantar Worldpanel, Vinamilk was the most chosen milk brand in Vietnam in 2024, and the Top 3 most chosen FMCG manufacturers in both rural and urban areas.

In the seafood industry, in addition to exports, many enterprises have focused on domestic consumption. With many solutions to bring goods to domestic restaurants and supermarkets, the revenue of seafood companies has increased significantly in the Vietnamese market. For example, Vinh Hoan Joint Stock Company increased by 47% in the first 6 months of 2024, reaching VND 329 billion; in 6 months of trial sales, Bach Hoa Xanh consumed about 1,300 tons of shrimp from Minh Phu Group. The goal in 2024, Bach Hoa Xanh will consume about 3,000 tons of shrimp from Minh Phu.

In addition to ensuring quality, many enterprises also pay more attention to investing in packaging, design as well as communication campaigns. Mr. Peter Christou, General Director of Kantar Vietnam, said that two main factors helped Vinamilk maintain a high ranking in the consumer basket in 2024. The first is the repositioning strategy helping promote the brand's heritage values ​​in a more attractive way to the younger generation of consumers. But more importantly, according to Kantar's representative, it was the character of constant innovation – creativity which was the key to helping enterprises dominate the market. “I want to emphasize innovation. Vinamilk constantly launches new products to serve all consumers and all demand, or suggests to them many different ways to use the product. This is especially important in the context of consumers having many choices. It is difficult to attract them to try your products, but it is even more difficult to keep them coming back to buy the products in second or third time”, Mr. Peter added.

Accelerating continuously

According to the latest report on the food and beverage industry by Kirin Capital, Vietnam has had remarkable development in the field of food and beverage production, especially in food processing. Food and beverage business is considered one of the industries with the fastest digital transformation speed in Vietnam.

First of all, most business units today have changed their sales methods, switching from offline business, selling only on-site, to online business and integrating multiple channels. Next, online marketing is also a trend that will continue to develop strongly in the Vietnamese food and beverage market. Most clearly, we can see that restaurants, cafes, or even popular eateries also invest in creating fanpages, creating websites, and even designing their own applications to build brand image and utility systems for their business operations.

Speaking at the opening of the food and beverage exhibition last weekend, Deputy Minister of Industry and Trade Phan Thi Thang said that Vietnam was a country with abundant agricultural products and raw materials, which was very favourable for supplying inputs for food production and processing activities. In terms of market, with a population of nearly 100 million people, a young population structure, an increasing middle class and high income, Vietnam was considered one of the most potential food and beverage consumption markets in the region.

According to the assessment, the annual consumption of the Vietnamese food and beverage industry always accounts for about 15% of GDP and tends to increase in the coming time. “The revenue of the Vietnamese food and beverage industry will continue to grow, expected to reach more than VND 720 trillion in 2024, an increase of 10.92% compared to 2023. After recovering and growing strongly, the food and beverage industry will continue to develop with a compound annual growth rate of 10.26% in the period 2024 – 2029” - Deputy Minister Phan Thi Thang emphasized.