Vietnam F&B 2025: Growth Persists but Momentum Shifts Toward Operational Efficiency

Vietnam’s food and beverage (F&B) sector continued to grow in 2025, but the pace is increasingly driven by operating efficiency and the ability to adapt to rising cost pressures rather than by expanding outlet numbers or a surge in demand.

Growth slows as outlet expansion loses momentum

After double-digit growth in 2023 driven by a strong rebound in dining-out demand following the Covid-19 period, 2024 and 2025 saw the market stabilize while facing new pressures. One of the clearest changes in 2025 is the slower pace of store expansion: the number of F&B outlets increased by only about 2% year-on-year, lower than in earlier periods.

This suggests that the strategy of “opening more to grow” is becoming less effective. Many firms have become more cautious about opening new outlets, shifting attention toward optimizing performance per store. As a result, growth is increasingly tied to monetizing revenue at each outlet rather than relying on quantity expansion.

Cost pressures reshape operations and pricing

Rising costs are a major drag on margins and are reshaping operational decisions. The report cited that 69.38% of enterprises consider material costs the biggest challenge in 2025, with many product groups reporting increases of 30–40%. In addition, occupancy and operating costs continue to pressure 45.95% of firms, while 57.11% say regulatory compliance requirements are becoming more stringent.

These pressures are not occurring in isolation. They combine to squeeze margins, and nearly 60% of firms have had to raise prices—higher than the 49% that only planned to in 2024.

Restructuring to manage costs

Cost pressure is also pushing operational restructuring. Many units have cut product lines, optimized processes, or switched to domestic sourcing to better control costs.

Divergence between operators and changing consumer behavior

As growth becomes harder, differences between business groups are becoming more pronounced. Large chains—benefiting from scale, data, and bargaining power—posted growth roughly twice that of smaller operators. Meanwhile, small “mom-and-pop” stores faced greater difficulty maintaining margins.

On the consumer side, dining-out frequency has declined, but spend per visit has increased. This points to consumer caution rather than an outright reduction in spending. For businesses, this creates a dual challenge: controlling costs while maintaining perceived value to retain customers.

Industry outlook: growth by efficiency and adaptability

Mr. Nguyễn Đỗ Anh Quân, Director of Brand at iPOS.vn, said: “The market is shifting from growth by breadth to growth by depth. Companies that can operate efficiently, control costs, and clearly position value will continue to grow. Conversely, models lacking flexibility will struggle more.”

In this context, the 5.5% growth for 2025 reflects a shift in Vietnam’s F&B sector. Growth continues, but the underlying drivers are changing—moving toward operating efficiency, adaptability, and long-term strategy, which are expected to shape the industry’s structure in the coming years.