Vietnam records the imported value of over 130 million USD in 2016 for tea (including green and black tea). Most of primary exporters came from Asia, which were China, Hong Kong, Sri Lanka, India, etc.

Market trend

One of the most interesting trends in terms of tea distribution in Vietnam in recent years has been the growing sale of packaged and branded products for retail consumption via manufacturer-owned cafés and specialist coffee shops outlets. In addition to serving as a channel for the sale of packaged and branded products for home consumption, company-owned cafés and specialist coffee shops chains also help popular players to reinforce awareness of their hot drinks brands among local consumers.

Instant tea and fruit/herbal tea were the fastest developing tea categories in retail volume growth terms in 2016, with both recording increases of 8%. While instant tea benefited greatly from the emergence of instant matcha latte and milk tea products, the performance of fruit/herbal tea was bolstered as companies continued to diversify their portfolios via the addition of new product types and flavour variants. Instant tea and fruit/herbal tea products are favoured by many Vietnamese consumers thanks to their savoury taste, convenience, affordable prices and perceived health benefits.

Forecast for upcoming trend

Green tea is expected to be the most dynamic tea category in retail volume growth terms, with a CAGR of 9% projected. This would be a substantial improvement on the corresponding CAGR of 6% recorded by the category during the review period. Retail volume growth will be bolstered by growing consumer appreciation for the many health benefits of green tea, which include fat-burning, immune-boosting and detox effects.

Reference: Trade Map, Euromonitor

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