Localization trend gains momentum in Vietnam's F&B sector

The food and beverage (F&B) sector is entering a new phase as brands with distinctive products and loyal customer bases sustain momentum, while those lacking identity and failing to keep up risk revenue declines. At Food & Hospitality Vietnam 2026, industry experts said branding is shifting away from luxury ingredients or displays of technical complexity toward a more local identity, including local ingredients, seasonal specialties, and ingredients once overlooked in traditional kitchens.

Local identity expands beyond fine dining

The change is not limited to fine dining. Hospitality and F&B concepts increasingly use local ingredients to tell authentic culinary stories tied to the land and the community where the brand operates. As a result, menus are being treated not only as lists of dishes but as a “cultural map.”

Sustainability focus: energy, water, biodiversity

As market cleansing intensifies in Vietnam, F&B businesses are emphasizing long-term sustainable development. Experts highlighted priorities including energy and water management, biodiversity, and regenerative agriculture. Local sourcing, reducing waste, and building green supply chains are positioned as foundational steps for brands seeking a distinctive imprint.

Brand strategy: localization as a competitive necessity

Ms. Nguyen Thi Kieu Phuong, Head of Brand Strategy at La’Bon Vietnam, said localization is no longer optional but necessary in a more competitive environment. “Not only domestic brands; even international chains entering Vietnam are adapting to local tastes. This is how brands retain customers, especially the younger generation,” she said.

She added that local identity should be embedded in products, including jams, tea, and powders made from Vietnamese fruits. “If a brand operates among Vietnamese agricultural products and does not use Vietnamese ingredients, that is merely marketing and not sustainable,” she said.

Examples from major brands and menu localization

Pizza 4P’s illustrates how localization can be integrated into a farm-to-table approach. By 2025, it operated about 35–36 restaurants in Vietnam across Ho Chi Minh City, Hanoi, Da Nang, Hai Phong, and Nha Trang. Globally, the network reached around 40 restaurants, including locations in Cambodia, India (Bengaluru), and Japan (Tokyo), with plans to expand to Indonesia.

The brand’s approach includes producing cheese from locally sourced milk and partnering with farms in Vietnam’s Central Highlands to supply organic vegetables. These elements support pizzas that can incorporate Vietnamese herbs and locally emblematic ingredients such as smoked salmon.

At The Pizza Company, the Specialty Pizza line is also linked to regional stories, including Durian Pizza from Phong Dien (Can Tho) and Seafood Pesto with Bình Phước cashews, where local ingredients are used to enrich global-style formats.

For Starbucks, localization has included appointing a local leader and tailoring parts of the menu to Vietnamese preferences. Offerings mentioned include Salted Coffee and Coconut Coffee, as well as Coffee Jelly and Vietnamese coffee phin.

Local ingredients as a value driver for tourism and retail

Brand positioning through local ingredients is also seen as a way to keep younger customers engaged. In Khánh Hòa, a local tourism-focused manufacturing company began packaging local specialties as souvenirs for visitors, reflecting how cultural value can be monetized through products.

In Western-style menus and modern retail channels, local ingredients are described as helping raise the value of Vietnamese agricultural produce. The article also emphasized that localization does not require forced “Vietnamization,” but rather helps meals feel more familiar to Vietnamese tastes through emotional depth and cultural storytelling.

Survey data: local cuisine demand and adoption rates

Marriott International’s Asia-Pacific survey found that 85% of properties have already incorporated local ingredients or dishes into their menus. Booking.com’s study, based on nearly 28,000 travelers from 33 countries and territories, reported that 81% want to experience local cuisine and 61% care about the origin of signature dishes at a destination.

Impact and remaining challenge: seasonality and consistency

The figures suggest that prioritizing local ingredients is no longer a short-term trend but a new norm for the F&B industry. However, seasonality can create supply volatility and raise questions about cost and consistency, particularly for large-format operations. For many brands, the focus has shifted from whether to use local ingredients to how to implement them sustainably, efficiently, and over the long term.