Vietnam Foodservice Market Outlook to 2028
Description
Vietnam Foodservice Market Overview
The Vietnam Foodservice market is valued at USD 22.6 billion, based on a five-year historical analysis. This market is driven primarily by rapid urbanization, the growth of the middle class, and increasing disposable income, leading to a rise in demand for dining out and food delivery services. The surge in tourism has also contributed to the market's growth, particularly in cities like Ho Chi Minh and Hanoi, where international visitors frequently seek foodservice outlets.
Ho Chi Minh City and Hanoi are the dominant cities driving the market, mainly due to their large population, strong tourism industries, and increasing number of expatriates and international visitors. These cities host a variety of restaurants, cafes, and street food vendors that cater to both local consumers and tourists.
In 2024, the Vietnamese government launched a campaign to promote Vietnamese cuisine globally, which is expected to increase international food tourism by 15 million meals served at local restaurants. This initiative is particularly focused on promoting the countrys culinary heritage in regions such as Hanoi, Ho Chi Minh City, and Da Nang, which will provide a boost to local food service providers.
Vietnam Foodservice Market Segmentation
By Service Type: The market is segmented by service type into full-service restaurants, quick-service restaurants, cafes and bars, catering services, and street vendors. Quick-service restaurants hold the largest market share due to their fast-paced, convenience-driven model, which resonates with the growing younger population and urban professionals. This segment has seen significant growth as brands like Lotteria and KFC have invested heavily in expanding their footprint across the country, especially in urban areas.
By Cuisine Type: The market is segmented by cuisine type into Vietnamese cuisine, international cuisine, and fusion cuisine. Vietnamese cuisine dominates the market share due to its deep cultural roots, affordability, and wide acceptance among both locals and tourists. The popularity of dishes like pho, banh mi, and bun cha continues to attract local consumers and international visitors, contributing to the growth of this segment.
Vietnam Foodservice Market Competitive Landscape
The market is dominated by a mix of local and international players, creating a highly competitive landscape. Global brands like KFC, Starbucks, and Mc Donalds have strong market positions due to their well-established operations, brand recognition, and consistent product offerings.
Company Name
Establishment Year
Headquarters
Number of Locations
Revenue (2023)
Key Products
Digital Presence
Franchise Model
Marketing Initiatives
Expansion Strategy
Golden Gate Group
2005
Hanoi
Highland Coffee
1999
Ho Chi Minh City
KFC Vietnam
1997
Ho Chi Minh City
Pizza 4Ps
2011
Ho Chi Minh City
Lotteria Vietnam
2004
Ho Chi Minh City
Vietnam Foodservice Market Analysis
Market Growth Drivers
Rise in Tourism and International Influence: Vietnam's foodservice market is driven by the increasing influx of international tourists. In 2024, the Vietnamese government aims to welcome 17 million international visitors, contributing over 750,000 new meals served daily in the foodservice industry. The culinary preferences of these tourists, particularly from South Korea, China, and Japan, are shaping menu offerings across casual dining and quick service restaurants, thereby boosting market growth.
Expanding Middle Class: Vietnam's expanding middle class, which is expected to reach 40 million people in 2024, plays a crucial role in driving the foodservice industry. This segment demands more variety, higher-quality food, and dining experiences, leading to the growth of fast-casual restaurants and fine dining establishments. As household expenditure on dining out is set to exceed VND 2 trillion annually, the foodservice sector is seeing an upswing in revenues.
Increase in Urban Workforce: Vietnams urban workforce is growing, with nearly 25 million people expected to be employed in cities by 2024. The growing workforce in urban areas is creating a demand for quick-service restaurants and food delivery services. The shift in employment patterns is encouraging more frequent dining out, with an estimated 300,000 additional daily visits to urban restaurants by workers in major cities like Ho Chi Minh City and Hanoi.
Market Challenges
Regulatory Compliance and Food Safety Concerns: The Vietnamese government has intensified its focus on food safety regulations, mandating strict hygiene standards in foodservice establishments. In 2024, the number of food safety inspections is projected to increase by 30%, with restaurants facing fines up to VND 500 million for non-compliance. This has created operational challenges for smaller foodservice players who struggle to meet the evolving regulatory demands.
Competition from Informal Street Vendors: Despite the growth of organized foodservice chains, competition from informal street vendors remains fierce. Street food vendors still account for over 60% of Vietnam's foodservice market, with an estimated 2.5 million stalls operating across the country. This fragmented market landscape makes it difficult for formal restaurants to attract budget-conscious consumers who prefer affordable, quick meals from vendors.
Vietnam Foodservice Market Future Outlook
Over the next five years, the Vietnam foodservice market is expected to show growth, driven by continuous consumer demand for dining convenience, the expansion of food delivery platforms, and the increasing preference for diverse dining experiences.
Future Market Opportunities
Expansion of Regional Cuisine in Urban Centers: Over the next five years, regional Vietnamese cuisines will play a larger role in urban foodservice markets, with over 200 restaurants specializing in dishes from central and southern Vietnam expected to open in Ho Chi Minh City and Hanoi by 2029. This trend will cater to the increasing demand for traditional flavors among both locals and tourists.
Increased Investment in Sustainable Practices: By 2029, the majority of leading foodservice chains will have adopted sustainable practices, with 400 outlets expected to shift to eco-friendly packaging, reducing plastic waste by 30 million items annually. This push towards sustainability will be driven by both consumer demand and government regulations focused on environmental responsibility.
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The Vietnam Foodservice market is valued at USD 22.6 billion, based on a five-year historical analysis. This market is driven primarily by rapid urbanization, the growth of the middle class, and increasing disposable income, leading to a rise in demand for dining out and food delivery services. The surge in tourism has also contributed to the market's growth, particularly in cities like Ho Chi Minh and Hanoi, where international visitors frequently seek foodservice outlets.
Ho Chi Minh City and Hanoi are the dominant cities driving the market, mainly due to their large population, strong tourism industries, and increasing number of expatriates and international visitors. These cities host a variety of restaurants, cafes, and street food vendors that cater to both local consumers and tourists.
In 2024, the Vietnamese government launched a campaign to promote Vietnamese cuisine globally, which is expected to increase international food tourism by 15 million meals served at local restaurants. This initiative is particularly focused on promoting the countrys culinary heritage in regions such as Hanoi, Ho Chi Minh City, and Da Nang, which will provide a boost to local food service providers.
Vietnam Foodservice Market Segmentation
By Service Type: The market is segmented by service type into full-service restaurants, quick-service restaurants, cafes and bars, catering services, and street vendors. Quick-service restaurants hold the largest market share due to their fast-paced, convenience-driven model, which resonates with the growing younger population and urban professionals. This segment has seen significant growth as brands like Lotteria and KFC have invested heavily in expanding their footprint across the country, especially in urban areas.
By Cuisine Type: The market is segmented by cuisine type into Vietnamese cuisine, international cuisine, and fusion cuisine. Vietnamese cuisine dominates the market share due to its deep cultural roots, affordability, and wide acceptance among both locals and tourists. The popularity of dishes like pho, banh mi, and bun cha continues to attract local consumers and international visitors, contributing to the growth of this segment.
Vietnam Foodservice Market Competitive Landscape
The market is dominated by a mix of local and international players, creating a highly competitive landscape. Global brands like KFC, Starbucks, and Mc Donalds have strong market positions due to their well-established operations, brand recognition, and consistent product offerings.
Company Name
Establishment Year
Headquarters
Number of Locations
Revenue (2023)
Key Products
Digital Presence
Franchise Model
Marketing Initiatives
Expansion Strategy
Golden Gate Group
2005
Hanoi
Highland Coffee
1999
Ho Chi Minh City
KFC Vietnam
1997
Ho Chi Minh City
Pizza 4Ps
2011
Ho Chi Minh City
Lotteria Vietnam
2004
Ho Chi Minh City
Vietnam Foodservice Market Analysis
Market Growth Drivers
Rise in Tourism and International Influence: Vietnam's foodservice market is driven by the increasing influx of international tourists. In 2024, the Vietnamese government aims to welcome 17 million international visitors, contributing over 750,000 new meals served daily in the foodservice industry. The culinary preferences of these tourists, particularly from South Korea, China, and Japan, are shaping menu offerings across casual dining and quick service restaurants, thereby boosting market growth.
Expanding Middle Class: Vietnam's expanding middle class, which is expected to reach 40 million people in 2024, plays a crucial role in driving the foodservice industry. This segment demands more variety, higher-quality food, and dining experiences, leading to the growth of fast-casual restaurants and fine dining establishments. As household expenditure on dining out is set to exceed VND 2 trillion annually, the foodservice sector is seeing an upswing in revenues.
Increase in Urban Workforce: Vietnams urban workforce is growing, with nearly 25 million people expected to be employed in cities by 2024. The growing workforce in urban areas is creating a demand for quick-service restaurants and food delivery services. The shift in employment patterns is encouraging more frequent dining out, with an estimated 300,000 additional daily visits to urban restaurants by workers in major cities like Ho Chi Minh City and Hanoi.
Market Challenges
Regulatory Compliance and Food Safety Concerns: The Vietnamese government has intensified its focus on food safety regulations, mandating strict hygiene standards in foodservice establishments. In 2024, the number of food safety inspections is projected to increase by 30%, with restaurants facing fines up to VND 500 million for non-compliance. This has created operational challenges for smaller foodservice players who struggle to meet the evolving regulatory demands.
Competition from Informal Street Vendors: Despite the growth of organized foodservice chains, competition from informal street vendors remains fierce. Street food vendors still account for over 60% of Vietnam's foodservice market, with an estimated 2.5 million stalls operating across the country. This fragmented market landscape makes it difficult for formal restaurants to attract budget-conscious consumers who prefer affordable, quick meals from vendors.
Vietnam Foodservice Market Future Outlook
Over the next five years, the Vietnam foodservice market is expected to show growth, driven by continuous consumer demand for dining convenience, the expansion of food delivery platforms, and the increasing preference for diverse dining experiences.
Future Market Opportunities
Expansion of Regional Cuisine in Urban Centers: Over the next five years, regional Vietnamese cuisines will play a larger role in urban foodservice markets, with over 200 restaurants specializing in dishes from central and southern Vietnam expected to open in Ho Chi Minh City and Hanoi by 2029. This trend will cater to the increasing demand for traditional flavors among both locals and tourists.
Increased Investment in Sustainable Practices: By 2029, the majority of leading foodservice chains will have adopted sustainable practices, with 400 outlets expected to shift to eco-friendly packaging, reducing plastic waste by 30 million items annually. This push towards sustainability will be driven by both consumer demand and government regulations focused on environmental responsibility.
Please Note: It will take 5-7 business days to complete the report upon order confirmation
Table of Contents
97 Pages
- 1. Vietnam Foodservice Market Overview
- 1.1 Definition and Scope
- 1.2 Market Taxonomy
- 1.3 Market Growth Rate
- 1.4 Market Segmentation Overview
- 2. Vietnam Foodservice Market Size (In USD Billion)
- 2.1 Historical Market Size
- 2.2 Year-On-Year Growth Analysis
- 2.3 Key Market Developments and Milestones
- 3. Vietnam Foodservice Market Analysis
- 3.1 Growth Drivers (Government Initiatives, Changing Consumer Preferences, Tourism Boom, Health-Conscious Eating Trends)
- 3.2 Market Challenges (Supply Chain Inefficiencies, High Real Estate Costs, Skilled Labor Shortages, Regulatory Hurdles)
- 3.3 Opportunities (Expansion into Tier-II Cities, Growing Demand for Specialty Foods, Rise of Delivery Services, Franchise Opportunities)
- 3.4 Trends (Sustainability in Foodservice, Cloud Kitchens, Digital Payment Integration, Personalized Dining Experiences)
- 3.5 Government Regulations (Food Safety Standards, Labor Laws, Environmental Guidelines, Business Licensing)
- 3.6 SWOT Analysis
- 3.7 Stake Ecosystem
- 3.8 Porters Five Forces
- 3.9 Competition Ecosystem
- 4. Vietnam Foodservice Market Segmentation
- 4.1 By Service Type (In Value %)
- 4.1.1 Full-Service Restaurants
- 4.1.2 Quick-Service Restaurants
- 4.1.3 Cafes and Bars
- 4.1.4 Catering Services
- 4.1.5 Street Vendors
- 4.2 By Cuisine Type (In Value %)
- 4.2.1 Vietnamese Cuisine
- 4.2.2 International Cuisine
- 4.2.3 Fusion Cuisine
- 4.3 By Channel Type (In Value %)
- 4.3.1 Dine-In
- 4.3.2 Takeaway
- 4.3.3 Online Delivery
- 4.4 By Consumer Group (In Value %)
- 4.4.1 Individual Consumers
- 4.4.2 Corporate Clients
- 4.4.3 Tourists
- 4.5 By Region (In Value %)
- 4.5.1 North
- 4.5.2 East
- 4.5.3 West
- 4.5.4 South
- 5. Vietnam Foodservice Market Competitive Analysis
- 5.1 Detailed Profiles of Major Companies
- 5.1.1 Golden Gate Group
- 5.1.2 Highland Coffee
- 5.1.3 KFC Vietnam
- 5.1.4 Pizza 4Ps
- 5.1.5 Lotteria Vietnam
- 5.1.6 Trung Nguyen Coffee
- 5.1.7 Starbucks Vietnam
- 5.1.8 McDonald's Vietnam
- 5.1.9 Jollibee Vietnam
- 5.1.10 The Coffee House
- 5.1.11 King BBQ
- 5.1.12 El Gaucho
- 5.1.13 Domino's Pizza Vietnam
- 5.1.14 Wrap & Roll
- 5.1.15 The Pizza Company
- 5.2 Cross Comparison Parameters (Number of Locations, Revenue, Franchise Model, Average Transaction Value, Market Share, Menu Diversity, Digital Presence, Customer Satisfaction Score)
- 5.3 Market Share Analysis
- 5.4 Strategic Initiatives
- 5.5 Mergers and Acquisitions
- 5.6 Investment Analysis
- 5.7 Venture Capital Funding
- 5.8 Government Grants
- 5.9 Private Equity Investments
- 6. Vietnam Foodservice Market Regulatory Framework
- 6.1 Food Safety Standards
- 6.2 Labor Laws and Wages
- 6.3 Licensing and Permits
- 6.4 Environmental Regulations
- 7. Vietnam Foodservice Future Market Size (In USD Billion)
- 7.1 Future Market Size Projections
- 7.2 Key Factors Driving Future Market Growth
- 8. Vietnam Foodservice Future Market Segmentation
- 8.1 By Service Type (In Value %)
- 8.2 By Cuisine Type (In Value %)
- 8.3 By Channel Type (In Value %)
- 8.4 By Consumer Group (In Value %)
- 8.5 By Region (In Value %)
- 9. Vietnam Foodservice Market Analysts Recommendations
- 9.1 TAM/SAM/SOM Analysis
- 9.2 Customer Cohort Analysis
- 9.3 Marketing Initiatives
- 9.4 White Space Opportunity Analysis
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