Vietnam expects a better outlook for its food and beverage industry in 2022, stimulated by new swings in consumption.
According to the Deloitte survey, consumer spending will have a different pattern. They will spend 84% on fresh foods and 70% on packaged foods. It’s because they fear they won’t be able to buy more of it, especially during this pandemic.
Fitch Solutions described the country’s expenditure on basic goods. It estimated food and beverages, housing and utilities to grow by 8% next year and 10% in 2023. This is currently influenced by increased post-pandemic spending.
New Consumption Trends Drive Food and Beverage Industry in 2022
Globally, Vietnam ranks 17th as one of the largest countries with a demography of almost 100 million people. Notably, there is also an increase in demand for high-end consumer products. The country currently has the highest growth rate in terms of gross domestic product (GDP). Its compound annual growth rate for 2018 to 2020 reached 6.9%.
Fitch Solutions suggest that Vietnam’s disposable income for each household will reach US$6,848 by 2024. It will have a compound growth rate of 8% from 2020 to 2024. Additionally, an increasingly emerging middle-income class and rising disposable income will expand the country’s luxury products demands. VNDirect Securities said that the stable growth of per capita income, including regulated inflation and foreign exchange rates, will assist local people in accessing expensive products.
How the Covid-19 Pandemic Changes Vietnam’s Shift in Consumption
Vietnam’s consumption shift is evident since the pandemic wreaked havoc worldwide. It established opportunities for advanced distribution channels to develop fast. Consumers turned to online shopping or supermarkets that do deliveries. This preference enables them to procure quality and origin-stated commodities without going out, thus protecting their health.
Economic experts noted that companies in the food and beverage industry with robust modern distribution systems could do well from changes to increase growth eventually.
However, even with a positive outlook, the potential risks associated with the pandemic and input costs will remain. Moreover, it will impact the food and beverage industry next year.
If the pandemic lingers more than expected, it will interrupt the industry’s supply and distribution chains. At the same time, it will badly affect the profits if input material costs are higher than anticipated.
Vietnamese Resto to Open in West Virginia
West Virginians can now have a taste of delectable Vietnamese food. “Hello Vietnam” restaurant started serving authentic dishes like pho and banh mi sandwiches to Bridgeport residents on its December 22 soft opening. It is now ready to serve Harrison County and West Virginia, customers.
Food and Beverage Menu Unlisted Cat and Dog Meat
Each year, Vietnam consumes about 5 million dogs making the country the second-highest in the world, following China. They eat canine meats believing it will ward off bad luck.
According to Hoi An City vice mayor Nguyen The Hung, they want to help advocate animal welfare by eradicating rabies. They need to discontinue the dog and cat meat trade and thus make the city a tourist chief destination.
Four Paws International signed an agreement with Hoi An authorities promising that city will no longer sell, let alone eat dog and cat meat. Moreover, the animal rights group conducted a study with 600 Vietnamese participants. Only 6.3% consume cat and dog meat, while 88% support the ban.
In 2018, Hanoi authorities influenced people to cease eating dog meat because it’s ruining the capital’s reputation. Besides, it involves health concerns, which could lead to lethal rabies infections.
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