As specialists in food and beverage industry recruitment in Vietnam, following the latest trends is important to our team as it offers a useful way to keep tabs on emerging markets and segments. Vietnam and the wider Asia Pacific region is currently enjoying some of the most dynamic economic growth in the world. In addition, thanks to a population of 660 million, the region is now home to approximately 8% of the global population.
As access to China’s borders is still heavily restricted, countries such as Vietnam are offering an increasingly realistic alternative for multinational businesses, keen to grab a share of the country’s rapidly expanding food and beverage industry. With this in mind, in this article we’ll take a look at some of the factors which are helping to drive Vietnam’s food and beverage industry, whilst also taking a dive into the country’s major food and beverage trends.
Vietnam defies the pandemic slump
Alongside Taiwan, Vietnam was seen as once of the few nations which managed to not only keep control over the outbreak of the Covid-19 pandemic, but to simultaneously maintain a steady GDP growth rate of approximately 3%. This is an impressive figure when you consider that the majority of the world’s nations struggled to cope with negative values.
Despite 2021 proving to be a challenging year for Vietnam, with numerous manufacturing facilities and factories shut because of the pandemic, the country still management to achieve GDP growth of 2.6%. In addition, towards the end of 2021, a high rate of Covid vaccinations helped the country to achieve a return to what almost seemed like normal life.
As a result of an uninterrupted lock down which lasted six months in 2021, Vietnamese consumers had to cope with the complete closure of all non-essential shops, whilst the country’s food stores and traditional wet markets severely restricted customer access. As such, this resulted in a massive boost to online food sales.
The outlook for Vietnam’s economic growth in 2022 has been largely a positive one and obviously it is hoped that this will continue into 2023 and beyond. Strong trends are helping to drive the growth of the country’s increasingly dynamic food and beverage industry; it’s worth noting at this point that almost no other nation in the Asia Pacific region has signed as many free trade agreements as Vietnam, whilst the country also holds a neutral position in trade conflicts.
Leading trends in Vietnam’s food and beverage industry
When considering food and beverage industry recruitment in Vietnam, it’s worth bearing in mind that the countries food and beverages market accounts for around 45% of household expenditure. As a result, food and beverage industry specialists like Peak are paying close attention to this lucrative market which is likely to see sustained growth. Thanks to a consumer base which is increasingly mobile, affluent and urban, combined with evolving consumer behaviour, Vietnam looks set to become one of the Asia-Pacific region’s top three nations for food and beverage product development.
Healthy eating is a food and beverage trend which is on the rise across the Asia-Pacific region, and Vietnam is no exception. Post-pandemic, consumers appear to be increasingly willing to pay more for healthier food and drinks, whilst interest in diets such as keto is resulting in new products coming to market. Businesses who are successfully reaping the benefits of this trend are paying close attention to Vietnamese food culture combining this with healthier options.
It’s not only an interest in healthy ingredients which is behind the healthy eating trend, and consumers are becoming increasingly aware of the nutritional content of different foods and food traceability. As such, this has raised a number of issues surrounding the safety of vegetables and fruit purchased from wet markets.
Whilst on the theme of healthy eating, another trend worth highlighting is an increase in demand for organic foodstuffs. Thanks to a rising disposable income, a burgeoning middle class and a young population interested in a wider range of food products, organic foods are becoming increasingly popular.
Another factor which is contributing demand for ‘green products’ is their perceived safety. Food safety and the importance of a clean food chain are being highlighted by various government campaigns, helping to drive consumer demand for organic, natural foods. As consumer awareness of food safety increases, it’s evident that there needs to be a drive in the recruitment of individuals with expertise in a range of segments, including food safety, product development, supply chain management, agri-tech and more.
Last and by no means least, the digitalisation of Vietnam’s food and beverage sector is proving to be something of a game-changer for the sector’s small and medium-sized businesses. Rather than coping with the expense of maintaining bricks-and-mortar offline stores, SMEs have the resources to concentrate on developing customer services and streamlining their businesses to increase revenue.
Furthermore, it’s not only Vietnam’s food retailers who are changing their approach, as consumer brands and food manufacturers reject traditional distribution channels by making the most of online sales streams.
Change brings challenges
Although Vietnam’s food and beverage industry is riding high on recent successes, there are also a number of challenges to be faced. The country’s domestic food and beverage industry must raise its standards if they are to successfully compete against international brands over the medium and long term.
Problems including a shortfall in the number of highly qualified staff, inconsistent product quality, difficulties in guaranteeing traceability, weak branding, poor quality packaging and small scale production facilities are likely to call for the expertise of food and beverage recruitment consultants in Vietnam. As a result, wide ranging and increased recruitment will be necessary in a number of segments such as sales, commercial operations, marketing, innovation, manufacturing, quality and supply chain management.
Contact Peak Recruitment – food and beverage recruitment consultants in Vietnam
We have many years of expertise in working with food and beverage businesses in Vietnam and throughout the Asia-Pacific region. We have the industry-specific insights and contacts you need to find talented individuals to expand your business. Contact us to speak to one of our food and beverage recruitment consultants in Vietnam.