Vietnam’s beverage production increased by 51.3 percent in January compared to the 2019 baseline, according to Vietnam’s Industrial Production Index. However, this was lower than December 2024, when output stood at 67.8 percent above 2019 levels.
Month-on-month, production declined in January compared to December by 10.9 points. Year-on-year, the sector recorded a slight 0.1 percent decline from January 2024.
Vietnam’s beverage production industry is a major contributor to the country’s economy, driven by strong domestic demand, export growth, and increasing investment from both local and international companies. The industry includes a wide range of products such as bottled water, soft drinks, fruit juices, dairy-based beverages, tea, coffee, and alcoholic drinks like beer and spirits.
Non-alcoholic beverages, particularly bottled water, carbonated drinks, and ready-to-drink tea and coffee, have seen strong growth. Companies like Suntory PepsiCo, Coca-Cola, and Nestlé have expanded their production facilities in Vietnam to meet rising consumer demand. Local brands such as Vinamilk and TH Group dominate the dairy beverage segment, producing fresh milk, flavored milk, and yogurt drinks.
Vietnam’s coffee and tea industries are also important to the beverage sector. As one of the world’s largest coffee producers, Vietnam has a well-developed coffee processing industry, with both traditional Vietnamese-style coffee and instant coffee gaining popularity in domestic and export markets. The tea segment, particularly green and herbal tea, continues to grow, with many companies focusing on organic and premium varieties.
The alcoholic beverage market is led by beer production, with Vietnam being one of the largest beer consumers in Southeast Asia. Major brewers such as Sabeco, Habeco, Heineken, and Carlsberg operate large-scale breweries in the country. The wine and spirits segment is smaller but growing, particularly in the premium and imported alcohol categories.
Despite strong growth, the industry faces challenges such as rising production costs, stricter regulations on alcohol consumption, and environmental concerns related to plastic packaging and waste. However, increasing investment in sustainable production methods and innovation in healthier beverage options are shaping the future of the sector.
See also: Food and Beverage Industry in Vietnam