Việt Nam’s F&B market recovers amid intensifying competition
Industry revenue reached an estimated VNĐ432.7 trillion (US$16.7 billion) in the first six months of 2026, up from VNĐ406.1 trillion a year earlier, according to a report released by iPOS.vn and Nestlé Professional on September 9.
HÀ NỘI — Việt Nam’s food and beverage (F&B) industry posted 6.6 per cent revenue growth in the first half of 2026, but a sharp rise in the number of outlets meant average revenue per store remained broadly flat and even edged down, highlighting intensifying competition despite signs of a market recovery.
Industry revenue reached an estimated VNĐ432.7 trillion (US$16.7 billion) in the first six months of 2026, up from VNĐ406.1 trillion a year earlier, according to a report released by iPOS.vn and Nestlé Professional on September 9.
But the number of food service outlets rose to about 329,200 by the end of the second quarter from around 299,900 a year earlier, adding nearly 30,000 outlets to the market.
That means a larger share of total industry revenue is being spread across a significantly greater number of businesses, leaving many individual operators with little improvement in sales despite headline growth in the overall market.
The divergence underscores the pressure facing Việt Nam’s F&B sector after a year of intense consolidation, as new outlets increasingly compete for the same pool of consumers.
Nguyễn Đỗ Anh Quân, brand director at iPOS.vn, said the first half of the year is typically a period of significant market consolidation.
“After the Lunar New Year holiday, outlets with weak cash flows or an unstable operating foundation often have to leave the market,” Quân said.
The total number of outlets declined just 0.1 per cent from the end of 2025, suggesting closures have slowed while new openings have been sufficient to offset most businesses leaving the market, he said.
“This can also be seen as a sign that the market is gradually becoming more stable, while F&B businesses are beginning to operate in a more structured, professional and planned manner,” Quân said.
The revenue growth also needs to be viewed against seasonal and price factors. The 2025 Lunar New Year fell on January 29, splitting the peak shopping season between December 2024 and January 2025. In 2026, Lunar New Year fell on February 17, nearly three weeks later, meaning most of the peak consumption period fell within the first half of this year.
Consumer prices rose 4.4 per cent year-on-year on average in the first half of 2026. This suggests that part of the 6.6 per cent increase in F&B revenue reflected higher prices and broader macroeconomic factors, rather than a corresponding increase in real consumer demand.
The strain on individual businesses is reflected in a survey of 481 F&B operators across 15 provinces and cities. About 43 per cent reported lower revenue than a year earlier. Of these, 27.5 per cent recorded declines of 5 to 20 per cent but remained in operation, while 15.2 per cent suffered declines of more than 20 per cent and faced significant difficulties.
At the other end of the spectrum, 20.2 per cent of businesses reported revenue growth of more than 5 per cent, while 37.1 per cent saw relatively stable revenue.
The figures suggest that consumer spending has not disappeared from the market, but is being allocated more selectively. Even businesses operating in the same area and facing similar cost structures and customer demographics can post sharply different results.
Vũ Thanh Hùng, CEO of iPOS.vn, was quoted by Đầu tư (Investment) newspaper as saying that consumers were still eating and drinking outside the home and were even spending more, but were becoming more selective and demanding experiences that justified the money they spent.
“Total spending has not left the market, it has simply changed destinations,” Hùng said.
He said the reallocation of consumer spending helps explain why businesses operating under similar conditions have achieved markedly different results over the past six months.
The divergence is particularly visible between food and beverage businesses. While the share of outlets reporting declining revenue was broadly similar in the two segments, food businesses recorded stronger growth. Some 25.6 per cent of food businesses reported growth of more than 5 per cent, compared with 15.8 per cent among beverage outlets.
Food businesses can rely on demand for meals, group dining and bundled products to increase average bill values. Beverage outlets, by contrast, face intense competition for each upsizing decision, additional topping or attempt to persuade customers to choose a higher-priced drink.
Pressure is also coming from a growing number of mass-market and low-cost models. Some 88.5 per cent of surveyed owners said they had clearly seen such models emerge around their business areas, while about 58.2 per cent said they had actually felt the pressure.
Some 35.4 per cent of outlets kept their existing sales approach and accepted losing some customers, while 22.8 per cent proactively cut prices, introduced promotions or added lower-priced products.
The trend suggests low-cost models have not yet forced the entire market into across-the-board price cuts, but are gradually taking customers away from outlets that are slow to adapt.
Source: VNS
Photo: Photo thuongtruong.com.vn
