Overcoming numerous difficulties in export activities, many domestic beverage businesses have gradually moved faster and deeper into foreign markets, affirming the unique mark of Vietnamese brands.
Expand growth potential
The soft drinks industry (or non-alcoholic beverage industry) is an important part of the food and beverage industry. According to Euromonitor research, from 2015 to 2019, Vietnam’s beverage market grew 8.4% per year on average, with a scale of about USD 5.3 billion in 2019. According to data compiled by VIRAC, a research company, the revenue of Vietnam’s beverage industry in 2023 is estimated to reach USD 8.25 billion. The figure will likely reach USD 10 billion in 2027.
|Businesses have to meet strict standards for product quality, and green and sustainability requirements when accessing foreign markets.
The macroeconomy is stable, inflation rate is expected to decrease along with the strong recovery of the tourism industry, contributing to promoting beverage consumption and opening up bright growth prospects for the industry.
Dr. Vo Tri Thanh, Director of the Institute for Brand and Competitiveness Strategy, said that Vietnam has strengths in raw material resources. Well-exploitation of this advantage will help businesses make a breakthrough. However, the beverage industry is fiercely competitive, requiring each business to invest and have perseverance and flexibility in business strategy for growth.
Assessing the potential of export market for Vietnamese beverage brands, Vo Tri Thanh said: “Vietnam’s current beverage export is still small in scale and has many difficulties in accessing the market. Businesses must meet requirements regarding product quality, and green and sustainable standards. In the long term, the group of beverage enterprises has a positive outlook because the international market has a high demand for this product. To fulfill such demand, businesses are required to promote investment in technology and human resources, and build brand trust.”
Around the world, beverage production attracts investment from many big brands with fierce competition. In Vietnam, domestic companies in the beverage industry still have limitations in technology and techniques compared to those in developed countries. Therefore, when approaching foreign markets, especially demanding markets that require high technical standards such as the US, EU, and Japan… many businesses face difficulties.
|The Vietnamese beverage brand is present in more than 20 countries around the world.
The increasing demand for beverage products in the world opens up opportunities for Vietnamese businesses to increase their growth potential if they know how to exploit and access export markets. However, according to experts, to assert their position in the global market, Vietnamese businesses need to focus on investing in production technology to ensure product quality while maximizing their local competitive advantage such as raw material and human resources.
At a recent international fair held in Mexico, representatives of the organizing committee said that Mexican people in particular, and Latin American people in general have an increasing interest in foods and drinks of all-natural origin because they are not only good for health but also help to reduce the increasing overweight problem in these countries.
The beverage industry has been growing continuously, showing outstanding future potential and positive prospects for businesses.
Invest to affirm the position of Vietnamese brands on the global beverage map
In Vietnam’s beverage industry, Vietnamese brand Tan Hiep Phat constantly holds the top position. In the instant tea segment, data from research firm Euromonitor shows that Tan Hiep Phat ranks first with a market share of 32% by 2022.
Since its establishment, Tan Hiep Phat has been steadfast in its mission of “producing and trading products that are good for the health of Asian consumers with appropriate flavors and product quality according to international standards, while satisfying the existing and potential needs of customers to become a better preferred business partner.”
|Tan Hiep Phat has been steadfast in its mission of selling healthy products since the first day of its establishment.
Tan Hiep Phat always strives to pursue the goal of becoming one of the pioneering businesses in food and beverages in the Asian market, while serving global consumers.
To realize this goal, the company has invested in 12 Aseptic cold extraction lines into its production. It is also the only unit in Vietnam to own this line. This is currently the most modern aseptic production line, operating on an automatic and closed principle from raw material extraction, bottle blowing to filling, capping, labeling to packaging.
The investment level shows the determination of a local business that is steadfast in creating products that are most beneficial to consumers’ health and ready to conquer difficult markets.
|Close-up of Tan Hiep Phat’s Aseptic cold extraction line
With modern technology, Tan Hiep Phat’s beverage products meet all strict product quality control requirements in demanding markets such as the US, Canada, and Middle Eastern countries…
The company has affirmed its position on the global beverage map by being present in more than 20 countries and territories, showing its “nothing is impossible” efforts, and that when there is a goal, there will be a solution. Tan Hiep Phat’s success comes from being steadfast with the vision and mission set from the first day of its establishment, which has strongly inspired Vietnamese businesses, that is “Where there is a will, there is a way”.
Good product quality enables Tan Hiep Phat to conquer even demanding markets. In addition, to create a competitive advantage against large international competitors, natural materials and inexpensive labor are two factors that this company also focuses on researching and exploiting.
|List of more than 20 markets where THP has exported products to date.