Vietnam is considered as a prospective market for beverage companies due to the country’s rapidly expanding economy (an average of 6–8 percent/year). What should beverage start-ups prepare to enter this potential market? It is crucial to conduct initial market research on soft drinks. Businesses need to comprehend the industry and have a clear plan in order to establish and maintain a position. Additionally, with the presence of enormous tycoons in this beverage industry, it is extremely easy to understand your position and competitiveness versus rivals on the challenging business route. Therefore, market research is one of the most important countermeasures and needs to be implemented meticulously with a high level of accuracy.

Today’s beverage market

1. Soft drink market overview

In Vietnam, the beverage industry has amazing growth numbers. On average, Vietnamese consume more than 23 liters of beverage per person per year. Beverage businesses hold 85% of the production rate of the Beer – Alcohol – Beverage industry.

The Vietnam Beer-Alcohol-Beverage Association forecasts that the beverage industry will maintain an annual growth rate of 7%. Meanwhile, the average growth rate of countries such as France and Japan is only expected to reach 2% per year.

Through market research on soft drinks, it can be seen that this business segment is very potential. This is the right time to promote beverage production and sales.

Currently, on the market, there are many types of soft drinks, but the most popular ones are carbonated and non-carbonated mineral water, purified water, soft drinks, energy drinks, ready-to-drink tea, and water. fruit,…

It is obvious that corporations are able to “sense” new consumer needs as a result of market research on soft drinks. Since then, natural and healthy products have quickly emerged, generating millions of dollars in sales. This step is the launch pad to bring a beverage to a new level with unique products such as bottled herbal tea, canned coconut water with pure flavor, fruit-flavored carbonated water, and vegetable smoothies,…

Beverage market research highlights the challenges and opportunities of businesses. With impressive growth year by year, Vietnam’s beverage industry is still considered a delicious “piece of cake” compared to neighboring countries. Although there are several prospects, it is not simple to maintain them. Businesses must be realistic and prepared to face numerous obstacles that, if ignored, could lead to the demise of their brand.

The biggest challenge for Vietnam’s beverage market in the next few years will be the heavy impacts of the COVID-19 epidemic (according to a report by the International Bank). According to market analysis, shortly there are two big opportunities that will affect young businesses in the beverage industry in Vietnam:

The first opportunity: The tropical climate is the invisible lever of the beverage industry

Vietnam is a country with a hot and humid climate and a very diverse food culture, so the demand for beverage consumption has increased rapidly, along with a high young population density (aged 15-50 years old), accounting for up to 15 years of age. 63% of beverage demand, this is the object that is not afraid to try new flavors, so the potential for exploitation is great.

The second opportunity: Beverage production market after the 3rd pandemic tends to increase

This year, research and analysis show that the Vietnamese beverage market has many encouraging indicators:

• The beverage industry increased by 16.1% (relatively increased compared to the same period last year)
• Beer and milk powder increased by 18.1% (a strong increase compared to the same period last year).

2. Focus on researching the beverage market before entering

First, let’s take the R&D activity as a guide. Research and development activities for new products, new technologies, new models, and optimized production processes. These studies help best meet the needs of the market and the development strategy of the business.

Even with realistic data, businesses will be on the right track, anticipating and anticipating challenges in the field they are operating. So it is not exaggerated to say that R&D is the key to the success of many companies. the company, the largest corporation in the world.

The next is to firmly grasp market trends right from the start and throughout the business development process. This helps the product stay close to consumer demand.

Beverage studies have shown that to produce a quality beverage, it is necessary to use a well-researched and in-depth beverage flavoring. Especially for water that wants to keep its natural flavor, the ingredients must combine flavoring technology with natural flavoring biotechnology.

Traders understand that markets are ever-changing and increasingly complex. For businesses not to “fall back” and then disappear, it is extremely important to grasp the fluctuations, understand the market and have experience in the beverage business. Only when doing well can businesses have a suitable strategy in providing products and services.

For the production to be highly effective, it is advisable to shake hands with companies that are methodical in terms of formulas. Then, depending on the capacity, development stage, and business conditions, consider whether to produce OEM or ODM. Finding a beverage supplier who understands the market and transfers technology with industry experience is essential at this time. This is the most important and the most time-consuming. Researching new recipes, or refreshing existing products on the market requires high expertise.

Win R&D is a center for transferring formula and technology for beverage production with rich experience in the market. The market research data on soft drinks shows that despite the immediate difficulties due to the Covid-19 epidemic and facing big players, soft drinks still have a very good growth rate. When the epidemic turns out well, the state will certainly have policies to support businesses. Therefore, the startup is completely capable of penetrating the market and promoting the business at present.

Source: Foodtechmaster