Vietnam Energy Drinks Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 794.35 Million |
| Market Size (2029) | USD 975.64 Million |
| CAGR (2024 - 2029) | 4.20 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vietnam Energy Drinks Market Analysis
The Vietnam Energy Drinks Market size is estimated at USD 794.35 million in 2024, and is expected to reach USD 975.64 million by 2029, at a CAGR of 4.20% during the forecast period (2024-2029).
The acceleration of life and the entry of more people into the workforce have led to a noticeable uptick in the consumption of ready-to-drink beverages, particularly energy drinks. For instance, it was reported by the World Bank that female labor force participation in Vietnam climbed to 68.5% in 2023, up from 68.2% in 2021. This increased workforce participation has led to demand for energy drinks, as an instant energy booster. Beverages that offer more than mere hydration are being gravitated towards by Vietnamese consumers. Energy drinks, now fortified with vitamins, minerals, and herbal extracts, are catering to this demand. Overall health and well-being are being promoted by these enhancements, which have also driven a notable surge in energy drink consumption in recent years.
Furthermore, the energy drink market is being buoyed by an increasing number of individuals participating in various physical activities, from athletics and bodybuilding to cycling and swimming. This market expansion is being further propelled by heightened health awareness and a pronounced demand from millennials. According to Encyclopædia Britannica, Inc., football (soccer) has reigned supreme in Vietnam, but other sports like volleyball, badminton, wrestling, bicycling, chess, and dominoes are also enjoyed widely. Sports are being actively promoted by the government, with stadiums being constructed and training facilities being established. The increase in sports participation is directly driving growth in energy drink consumption. The high energy requirements of athletic activities align with the functional benefits of these beverages, establishing a clear correlation between sports engagement and energy drink demand.
Moreover, heightened awareness of health issues, such as diabetes and high cholesterol, has spurred a demand for low-sugar, low-calorie energy drinks. Nationwide sales of sugar-free, low-calorie beverages have also been positively influenced by this trend. For context, it was reported by the Ministry of Health that in 2021, nearly five million Vietnamese, or 7.1% of adults, were diagnosed with diabetes. Additionally, a healthy diet is being prioritized by over half of Vietnamese consumers, aiming to enhance their physical and mental well-being, extend their lifespan, and mitigate disease risks. Thus, with rising sports participation, an increasing number of health-conscious consumers, and growing fitness-oriented consumers, the demand for energy drinks in Vietnam continues to surge.
Vietnam Energy Drinks Market Trends
Rising Preference for Canned Energy Drinks Among Professionals Fuels Demand
Vietnam's economy is expanding, particularly in sectors like manufacturing, construction, and services, where extended hours are frequently faced by workers. To counteract fatigue and maintain focus during these long shifts, energy drinks are turned to by many. These beverages have become a staple for those with demanding schedules, including students, professionals, and laborers. This trend is highlighted by data from the General Statistics Office of Vietnam: the country's labor force grew from 50.74 million in Q4 2021 to 52.53 million in Q4 2023.
On the other hand, distinct advantages are offered by energy drinks packaged in cans. Their lightweight nature ensures portability, allowing easy transport without the risk of spills or damage, whether at the office, gym, or during other activities. The drink is protected from light and air by cans, preserving its freshness and quality. This makes canned energy drinks an ideal choice for those commuting, enduring long shifts, or balancing multiple jobs. Furthermore, a longer shelf-life is boasted by cans compared to many other packaging formats, contributing to their rising popularity. Rough handling, high temperatures, and challenging worksite conditions are better endured by cans than bottles or other fragile packaging. Since single-serving portions are typically offered in cans, they cater to workers seeking a quick energy boost without the temptation to overconsume.
Moreover, cans provide efficient cooling in refrigerators, making them suitable for cold beverages in office environments. Their rapid temperature reduction capability enhances their utility for corporate events and meetings, especially when utilized with ice buckets. Coupled with an affordable price point, frequent purchases are driven by these factors, particularly among the younger workforce seeking budget-friendly energy solutions. For instance, in June 2023 Thums Up Charged debuted in Vietnam, catering to consumers seeking a revitalizing drink enriched with benefits like vitamin B3, caffeine, and zinc. Currently, Thums Up Charged is being sold at retail outlets in the northern regions of the country. Thums Up Charged offers two variants: Fresh Kiwi and Juicy Berry. The product is formulated with additional caffeine, vitamin B3, and zinc to address consumer demands. Hence, the portability, durability, affordability, and accessibility of canned energy drinks resonate with the needs of Vietnam's expanding labor force, fueling their rising demand.
Supermarkets and Hypermarkets Holds a Dominant Share
Supermarkets and hypermarkets in Vietnam such as Co.opmart, Winmart, Sakuko, Lanchi Mart, and Mega Mart are some of the most visited retail locations due to the availability of a wide range of products from various brands that cater to varying consumer preferences. Owing to this, consumers are opting for shopping in supermarkets. This factor is boosting the demand for energy drinks in the country. According to the General Statistics Office of Vietnam, in 2023, Vietnam boasted over 1,260 supermarkets. The rising popularity of modern retail channels in the country has fueled a rapid increase in the number of supermarkets over recent years. These retail outlets are predominantly found in urban centers like Ha Noi and Ho Chi Minh City.
Additionally, consumers in Vietnam also prefer to shop at large-scale retail outlets because they offer attractive discounts and promotions. Supermarkets and hypermarkets like Fujimart, and Winmart increase shelf visibility through display and assortments. Energy and sports drinks consistently attract consumer attention due to their strategic positioning at store entrances, checkout areas, and dedicated beverage sections. Additionally, sales and marketing strategies, including a combination of sampling/tastings, location, and price tactics, are used to entice consumers.
Moreover, to expand their businesses and gain a competitive edge, supermarket stores are also concentrating on making their products accessible in every city of the country. Factors like business expansion and the proliferation of supermarkets and hypermarkets bolster their sales while significantly impacting the sports and energy drinks sector. The rapid growth of brands is a major contributor to shifting customer preferences. For instance, in July 2024, Central Retail in Vietnam approved the investment and operation of GO! Hung Yen at the Conference on Master Plan Announcement and Investment Promotion in Hung Yen Province. The approval was issued in the presence of Prime Minister Pham Minh Chinh and other high-ranking government officials. In Hung Yen Province, Central Retail commenced construction on Hypermart GO, paving the way for greater promotion of Vietnamese goods. Thus, such initiatives, coupled with the rising expansion and demand for hypermarkets, make it a dominant distribution channel for energy drinks in Vietnam.
Vietnam Energy Drinks Industry Overview
The Vietnam energy drinks market is competitive, with a majority of the share held by PepsiCo, Inc., Red Bull GmbH, Universal Robina Corporation, Masan Group Corporation, and The Coca-Cola Company. The leading players in the energy drinks market enjoy a dominant presence in the country, owing to their extensive product portfolio. These players are focusing on leveraging opportunities posed by emerging markets to expand their product portfolio and cater to the requirements for various applications, especially for functional beverages. However, advanced distribution networks and manufacturing expertise give an upper edge to manufacturers to expand their range of products across the country. Additionally, these companies differentiate their products through flavor profiles, product quality, and packaging design to establish a competitive advantage in the market.
Vietnam Energy Drinks Market Leaders
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PepsiCo, Inc.
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Universal Robina Corporation
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Masan Group Corporation
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Red Bull GmbH
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The Coca-Cola Company
*Disclaimer: Major Players sorted in no particular order
Vietnam Energy Drinks Market News
- June 2024: Number 1 Energy Drink unveiled an exclusive program in Vietnam, offering consumers a chance to win billions of VND. Titled “Rip Now for Instant Wins—Number 1” and “Energize—Break Through to Become Number 1,” the initiative offers over 250,000 valuable cash prizes to consumers nationwide. Such marketing strategies significantly boost the demand for energy drinks.
- June 2024: According to sources from the Vietnamese government, PepsiCo Inc. is set to invest nearly USD 400 million in Vietnam. This investment will fund the establishment of two new plants: one dedicated to beverages and the other to food products, both utilizing renewable energy. The beverage plant, costing over USD 300 million, will be situated in the southern Long An province. Notably, operations will be managed by the existing joint venture, Suntory PepsiCo Vietnam Beverage. This announcement coincided with a three-day visit to Vietnam by delegations from over 60 U.S. companies, including Suntory PepsiCo Vietnam Beverage.
- January 2024: Vietnam's Masan Group introduced EnerZ, a new energy drink to the market. The beverage's formulation includes choline, vitamin B6, and caffeine as its primary active ingredients. EnerZ is available in two flavor variants: melon and mango & passion fruit, providing consumers with a palatable energy drink option containing real fruit juice. The product utilizes Ace-K and sucralose as sweetening agents.
Vietnam Energy Drinks Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Strong Demand from Fitness-Oriented Consumers
4.1.2 Growing Influence of Endorsements, Sponsorships, And Social Media Marketing
4.2 Market Restraints
4.2.1 Availability of Substitute Products
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Packaging Type
5.1.1 Bottles
5.1.2 Cans
5.2 Distribution Channel
5.2.1 Supermarkets/Hypermarkets
5.2.2 Convenience Stores/Grocery Stores
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Strategies Adopted By Leading Players
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Tan Hiep Phat Beverage Group
6.3.2 Universal Robina Corporation
6.3.3 The Coca-Cola Company
6.3.4 PepsiCo, Inc.
6.3.5 Red Bull GmbH
6.3.6 Masan Group Corporation (Masan Consumer)
6.3.7 Osotspa Public Company Limited
6.3.8 T.C. Pharmaceutical Industries Company Limited
6.3.9 AJE Group
6.3.10 Monster Beverage Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vietnam Energy Drinks Industry Segmentation
Energy drinks contain stimulant compounds, usually caffeine, that provide energy and enhance the consumer's physical performance and mental alertness. It may or may not be carbonated and contains sugar, other sweeteners, herbal extracts, vitamins, minerals, and amino acids.
The Vietnam Energy Drinks Market is segmented into packaging type and distribution channels. By packaging type, the market is segmented into bottles, and cans. In terms of distribution channels, the market is segmented into supermarkets/hypermarkets, convenience/grocery stores, online retail stores, and other distribution channels. The market sizing has been done in value terms in USD for all the abovementioned segments.
| Packaging Type | |
| Bottles | |
| Cans |
| Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Convenience Stores/Grocery Stores | |
| Online Retail Stores | |
| Other Distribution Channels |
Vietnam Energy Drinks Market Research FAQs
How big is the Vietnam Energy Drinks Market?
The Vietnam Energy Drinks Market size is expected to reach USD 794.35 million in 2024 and grow at a CAGR of 4.20% to reach USD 975.64 million by 2029.
What is the current Vietnam Energy Drinks Market size?
In 2024, the Vietnam Energy Drinks Market size is expected to reach USD 794.35 million.
Who are the key players in Vietnam Energy Drinks Market?
PepsiCo, Inc., Universal Robina Corporation, Masan Group Corporation, Red Bull GmbH and The Coca-Cola Company are the major companies operating in the Vietnam Energy Drinks Market.
What years does this Vietnam Energy Drinks Market cover, and what was the market size in 2023?
In 2023, the Vietnam Energy Drinks Market size was estimated at USD 760.99 million. The report covers the Vietnam Energy Drinks Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Energy Drinks Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Energy Drinks Industry Report
Statistics for the 2024 Vietnam Energy Drinks market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vietnam Energy Drinks analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
