F&B industry to reach 30 billion USD in 2024: MOIT
The Ministry of Industry and Trade (MoIT) forecasts that the revenue of the food and beverage (F&B) industry will grow by 10.92 per cent this year, reaching more than 720 trillion VND (29.8 billion USD).
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A survey by Vietnam Report from July - August this year shows that 62.5 per cent of businesses expect the F&B industry to grow by 5-10 per cent this year.
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| A survey by Vietnam Report from July - August shows that 62.5% of businesses expect the F&B industry to grow by 5-10% this year.(Source: kinhtedouong.vn) |
This is a sharp increase in business optimism about the prospects of the F&B market, with the rate increasing from 61.6 per cent to 87.6 per cent.
Optimistic signals about improving the F&B industry also come from consumers' financial situation.
The survey results show that up to 52.7 per cent of consumers believe their income will improve slightly, and 21.8 per cent will improve significantly in the next 12 months.
In addition, Decree No. 74/2024/ND-CP regulating the regional minimum wage, effective from July this year, will continue to contribute to the growth of the F&B industry in the coming time when the year-end spending season is approaching.
To reap the 'sweet fruit' of the expansion they expect, businesses have steadily overcome a series of consecutive challenges.
Compared to a year ago, concerns about weak purchasing power or rising inflation have cooled significantly, giving way to concerns related to changes in consumer behavior and large inventories.
Up to 72.2 per cent of F&B businesses surveyed said that changes in consumer behavior were one of the biggest difficulties this year. This rate has increased sharply from 37.5 per cent in 2022 to 75 per cent this year.
In addition to being concerned about price and product quality, most consumers today also place great importance on sustainability, health safety, and corporate social responsibility. They tend to prioritize green, organic products with clear origins.
At the same time, the popularity of e-commerce and online shopping trends have also changed how products are accessed, forcing businesses to invest in digital sales channels to maintain a competitive advantage.
The report said that constant changes in consumer preferences and needs required businesses to be flexible, to constantly innovate, and to update strategies to meet market expectations.
In addition to changes in consumer behavior, 44.4 per cent of enterprises said that large inventories posed challenges for enterprises.
Due to unpredictable market fluctuations, many companies have stockpiled goods in large quantities to cope with disruptions in the supply chain and fluctuations in consumption. However, this puts great pressure on storage costs, inventory management, and especially the risk of product value reduction when goods are stored for too long, especially for items with short shelf life.
Moreover, a large inventory can make it difficult for companies to adjust their production and respond flexibly to new consumer trends.
Despite many difficulties, there are still many drivers to support businesses in their prospects, the first being the development of e-commerce.
The second driving force comes from the strong recovery of tourism. As many as 50% of F&B businesses choose this as one of the main growth drivers this year.
(Source: VNA)
