The largest producers of sweet carbonated beverages in Vietnam are multinational companies Coca-Cola and PepsiCo, with more than 94% of the market. Nine modern factories (three producing Coca-Cola brands and six producing PepsiCo brands) in Ho Chi Minh City, Da Nang, Hanoi and other cities produce their products. Due to their large output volumes, the products of these companies are represented throughout the country. Local soda producers have a small market share, but their brands are popular among locals due to their more competitive price.
In 2019-2023, consumption of soft drinks in Vietnam declined by an average of 0.6% annually in volume terms due to the COVID-19 pandemic, while growing by 1.0% in value terms due to price increases. In 2023, consumption of these products almost fully recovered in 2023, increasing 19.7% in volume terms and 29.0% in value terms relative to 2021. Total consumption of soft drinks in Vietnam in 2023 was 5.7 billion liters (US$5.5 billion).
In 2023, bottled water accounted for the largest share of soft drinks consumption in the country, accounting for 31.4% of the total volume (1.8 billion liters). Sweet carbonated beverages are the second most demanded product in this product category with consumption volume at 1.3 billion liters (22.5%) in 2023. Energy drinks are also in demand in the country with 0.9 billion liters (15.8% of total volume), juices with 0.6 billion liters (10.6%), and sports drinks with 0.2 billion liters (3.7%). Other types of soft drinks accounted for 16.1% (0.9 billion liters) of consumption in 2023.
In value terms, soft drinks sales in Vietnam reached a record high of US$5.5 billion in 2023. Energy drinks accounted for the largest share of total sales with 24.9% (US$1.4 billion), followed by sweet carbonated beverages with a share of 23.9% (US$1.3 billion). Bottled water and juices accounted for 15.2% (US$0.8 billion) and 13.2% (US$0.7 billion) of total sales, respectively. Sales of other beverages reached US$1.1bn (20%) in the country in 2023.
Consumption of sweet carbonated beverages in Vietnam declined in 2020-2021 and recovered in 2022-2023, resulting in a 5.3% increase in volume and 14.6% increase in value by 2023 compared to 2019 levels, reaching nearly 1.3 billion liters (US$1.3 billion). On average, soda consumption in the country has grown by 1.3% in volume terms and 3.5% in value terms annually over the past five years.
The consumption of sweet carbonated beverages in Vietnam is dominated by cola-flavored drinks (41.6% of total consumption in volume terms and 36.4% in value terms by the end of 2023). Lemon or lime flavored sodas are also popular in the country (25.8% in volume terms and 24.1% in value terms). In third place are orange-flavored drinks (18.6% and 23.8%, respectively). Demand for products with the listed flavors is gradually increasing from 2019. At the same time, there is stagnation in the segment of sweet carbonated beverages with tonic and other flavors.
In recent years, the consumption of sweet carbonated beverages with reduced sugar content has gradually increased in Vietnam. At the end of 2023, the share of such beverages increased to 2.0% (or 24.6 million liters) of the total consumption, up from 1.7% (or 20.2 million liters) in 2019.
In 2019, sugar-sweetened carbonated beverages with reduced sugar content accounted for 2.4% (US$26.6 million) of total sales of these products by value in Vietnam, increasing to 3.0% (US$38.8 million) by the end of 2023. At the same time, the average price of sugar-sweetened beverages in the country is noticeably higher than that of other (classic) sodas.
The per capita consumption of sweet carbonated beverages in Vietnam reached 12.7 liters/year by the end of 2023, exceeding the pre-pandemic level. The average annual growth rate of the indicator value in 2019-2023 was 0.3%. Overall, the per capita consumption of sweet carbonated beverages in Vietnam is below the average of Southeast Asian countries (about 18.5 l/year), but this high level in the region is achieved by consumption in the Philippines (41.7 l/year), Thailand (36.3 l/year) and Singapore (20.0 l/year).
The most common type of packaging for sweet carbonated beverages in Vietnam is plastic bottles, which accounted for 72.5% of total sales of these products in volume terms in 2023. Also, sweet carbonated beverages in tin cans accounted for about 24.5% of year-end sales. The least popular type of soda packaging in the local market is the glass bottle (3.0% of sales volume in 2023).
Branded sweet carbonated beverages in Vietnam are predominantly sold in small containers. In 2023, sodas in containers up to 0.4 liters accounted for 94.4% of all retail sales of this product category in volume terms. At the same time, the share of sales of beverages in large packs of 1.5 liters and 3.1 liters is insignificant (5.2% and 0.4%, respectively).
The major players in the sweet carbonated beverages market in Vietnam are multinational corporations. Suntory PepsiCo, a joint venture between PepsiCo Group and Japanese beverage company Suntory Group, accounted for 51.9% of sales of these products in the country in 2023. Coca-Cola ranked second with a 42.2% share. Vietnamese company Chuong Duong Beverages (0.5%) was also among the top three players in the sweet carbonated beverages market in 2023. Cumulatively, the listed manufacturers accounted for 94.7% of the total sales volume of sodas in Vietnam in 2023.
In 2023, Vietnam's imports of sweet carbonated beverages totaled 325.4 thousand tons worth US$369.4 million, up 46.9% in volume terms (+103.8 thousand tons) and 56.2% in value terms (+$132.9 million) from 2022. According to the results of the year, the Republic ranked first in Asia and 11th in the world among soda-buying countries. In 2019-2023, the country's purchases of sweet carbonated beverages increased annually by an average of 42.3% in volume terms and 51.4% in value terms.
The main supplier of sweet carbonated beverages to Vietnam is its largest regional producer, Thailand, which accounted for 97.2% of Vietnam's imports in volume terms (316,200 tons) in 2023. The second place in terms of exports of these products to the country is occupied by China with a share of 0.9% (2.8 thousand tons). In 2023, Vietnam increased purchases of sweet carbonated beverages from Thailand by 51.9% compared to the level of 2022 (+108.1 thousand tons). At the same time, imports of these products from Australia decreased (-95.5% or -3.9 thousand tons).
The main exporter of sweet carbonated beverages to Vietnam in value terms is Thailand, which supplied products worth USD 359.0 million in 2023 (97.2% of the country's imports). China (0.9%) was also among the largest exporters to the country's market at the end of the year.
In 2023, Vietnam increased purchases of sweet carbonated beverages compared to 2022 levels from Thailand by 61.6% (+136.8 million USD) and the Republic of Korea by 78.9% (+0.7 million USD). At the same time, imports of these products from Australia decreased (-95.2% or USD 4.1 million).
In 2023, the average import price of sweet carbonated beverages in Vietnam increased by 1.6% to reach US$1,086 per tonne. The most expensive products came from Australia, China and the Republic of Korea.
