Market shifting as green tea and herb drinks gain in popularity.
After a long time dominating Vietnam’s bottled beverage market, purified bottled water is now facing strong competition from other bottled products, especially bottled green tea and herbal drinks.
“There have been months when new products in the herb product line have recorded revenue 20-30 per cent higher than that of purified bottled water,” said the manager of one local convenient store. There are six types of bottled herbal drinks and four green tea products sold at his store.
Mr. Nguyen Dang Hien, General Director of beverage supplier Bidrico, confirmed that the bottled beverage market is now seeing intense competition from the appearance of new product lines. “We have about 48 bottled water product lines, 36 of which are uncarbonated and extracted from fruit or herbs,” he said. “Because of the intense competition, in order to increase market share we must push exports while focusing on areas around schools in different types of partnerships.”
Recent research by Euromonitor showed that Vietnam’s bottled beverage market has a value of around $2 billion a year. According to a forecast from Business Monitor International (BMI), consumption of non-alcoholic beverages will rise to 2.7 billion liters by 2017 with average growth at around 7 per cent annually. Sales of soft drinks will grow at an average of 14.2 per cent annually, reaching VND136 trillion ($6.12 billion) by 2017.