New Beverages market report from Euromonitor International: "Coffee in Vietnam"
[USPRwire, Tue Oct 14 2014] Coffee registered current off-trade value growth of 14% and off-trade volume growth of 10% in 2013. This growth was supported by higher demand for coffee from the younger generations. Furthermore, the increase in unit prices and efforts of manufacturers/distributors in stimulating the demand were other factors supporting the growth of this category. In particular, they introduced new product developments and ran promotional activities such as discounts. For example, in April 2013, Trung Nguyen introduced a new product called G7 Gu Manh X2. This product was developed from its popular product line G7, targeting men and was advertised as it could enhance alertness and concentration as well as increase creativity and productivity.
Nestle remained the leader in coffee in 2013, with 33% of value sales, largely due to the dominance of its brand Nescafe. A diversified product portfolio, acceptable product quality, reasonable prices and a nation-wide distribution network were the main reasons for its success in the country. Furthermore, new products were launched on the market in 2013 and active marketing activities, including advertising and product promotions supported sales further. In the first quarter of 2013, the company introduced a new product under the brand "Nescafe Cafe Viet". This new product was a coffee in concentrated liquid form that only required ice to produce an iced coffee. In 2013, the company also opened a new coffee manufacturing facility in Vietnam. This new plant is located in the Amata Industrial Zone of Bien Hoa Dong Nai province and cost the company US$248 million. As a result, thanks to these heavy investments, the company continued to strengthen its dominant position in coffee and was the company that enjoyed the fastest value growth of 16% in 2013.
Industry Prospects
Coffee is projected to see a constant value CAGR of 6% over the forecast period, nearly one percentage point higher than the historic constant CAGR. The increasing awareness of health and wellness trends, higher disposable incomes, higher living standards and better education are the main factors fostering this trend. Furthermore, manufacturers, especially leading ones such as Nestle and Trung Nguyen are expected to invest more heavily in new product developments and marketing activities in order to continue to stimulate the demand.
Report Overview
Discover the latest market trends and uncover sources of future market growth for the Coffee industry in Vietnam with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
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