Vietnam’s F&B industry revenue fell 10.1 percent quarter-on-quarter, largely driven by a 15.4 percent drop in domestic sales after Tet, according to a report from FiinGroup→view source.
Export momentum was stronger, with F&B exports up 13.1 percent year-on-year.
Key details in the report include:
- Seasonal post-Tet spending decline and inflation pressures weighed on domestic demand.
- Exports of flour, seafood, and processed foods grew. Dairy, sugar, beer and malt faced weak domestic sales.
- Profitability compressed by rising input costs, including raw materials, logistics, and FX. Agricultural price drops, notably rice, further reduced margins.
- U.S. tariffs pose structural risk. Long-term higher tariffs could erode profitability for seafood, cashews, and coffee.
- Domestic demand for discretionary items remains soft amid inflation. Beer and premium dairy sales were particularly weak.
- F&B firms may raise prices in 2025 to defend margins.
- Sector adaptation needed. More automation, renegotiated supply contracts, and market diversification are required.
- Outlook cautiously optimistic. EU and China markets offer potential offsets to US tariff risks.
- High-value segments such as processed foods, seafood, flour milling, oils, and fisheries remain key growth drivers.
- Gen Z trends are reshaping the domestic market. There is rising demand for convenience, innovation, heritage, and fusion products.
FiinGroup’s analysis signals a complex operating environment for Vietnam’s F&B industry in 2025. Export demand remains solid, but profit risks from US tariffs, cost inflation, and soft domestic demand are mounting. Firms will need strategic adjustments to navigate margin pressures and shifting consumer trends.
See also: Vietnam’s Food and Beverage Industry 2025: Market Trends, Exports, and Key Players