Published By : 09 Sep 2015 | Published By : QYRESEARCH
Most economies all over the world are witnessing declining demand for carbonated beverages and surging demand for healthier alternatives such as functional beverages and flavored water. However, Vietnam is quite an exception in this regard. At present, Vietnam is witnessing soaring demand for aerated beverages. The Vietnam soft drinks market is expanding rapidly because of factors such as urbanization, rising incomes levels, and most importantly a rapidly growing population.
In 2010, the total soft drinks consumption stood at 587 million liters, and by 2014, it increased to 836 million liters thereby indicating a growth rate of almost 10%. It has been observed that more than 50% of the total population in Vietnam are less than 35 years of age, with urbanization catching up in a big way. These two factors have played vital roles in bringing the Vietnam soft drinks market to where it is today.
There are several international players that are looking for lucrative opportunities for growth in the Vietnam market, with the investment scenario looking rather favorable. The aerated beverages sector in Vietnam has been exempted from a certain tax that is otherwise imposed on other goods such as spirits, beers, and cigarettes. This is a prominent factor that is anticipated to give a significant boost to the Vietnam carbonated beverages market in the years to come.
With the government going against the implementation of a consumption tax on aerated beverages is a very positive sign for foreign companies to invest in the Vietnam beverages market. Suntory PepsiCo Vietnam Beverage and Tropicana Frutz were the two main launches in this market in 2014, and the young urban consumers were the main target.
Despite the growing awareness about the benefits of switching to low calorie drinks, in the Vietnam beverages market, the demand for carbonated drinks remains high and will only increase in the near future.