Tea in Vietnam

Euromonitor International
November 2024
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2024 DEVELOPMENTS ............................................................................................................... 1
Vietnamese consumers continue to tighten their spending, affecting the growth of tea ........... 1
Product innovation stimulates consumer demand and interest ................................................. 1
Online channels help boost sales of tea in 2024 ...................................................................... 1
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Tea predicted to grow well thanks to a brighter economic performance ................................... 2
The category will see diversification in the future ..................................................................... 2
Both the government and manufacturers will continue to focus on the sustainable
development of tea in the future ............................................................................................... 2
CATEGORY DATA ....................................................................................................................... 3
Table 1 Retail Sales of Tea by Category: Volume 2019-2024................................... 3
Table 2 Retail Sales of Tea by Category: Value 2019-2024 ..................................... 3
Table 3 Retail Sales of Tea by Category: % Volume Growth 2019-2024 .................. 3
Table 4 Retail Sales of Tea by Category: % Value Growth 2019-2024 ..................... 4
Table 5 NBO Company Shares of Tea: % Retail Value 2020-2024 .......................... 4
Table 6 LBN Brand Shares of Tea: % Retail Value 2021-2024 ................................. 4
Table 7 Forecast Retail Sales of Tea by Category: Volume 2024-2029.................... 5
Table 8 Forecast Retail Sales of Tea by Category: Value 2024-2029....................... 5
Table 9 Forecast Retail Sales of Tea by Category: % Volume Growth 2024-
2029 ............................................................................................................. 6
Table 10 Forecast Retail Sales of Tea by Category: % Value Growth 2024-
2029 ............................................................................................................. 6

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TEA IN VIETNAM
KEY DATA FINDINGS
▪ Retail value sales rise by 5% in current terms in 2024 to VND8.7 trillion
▪ Other tea is the best performing category in 2024, with retail value sales rising by 6% in
current terms to VND257 billion
▪ Lipton Teas & Infusions is the leading player in 2024, with a retail value share of 17%
▪ Retail sales are set to grow at a current value CAGR of 7% (2024 constant value CAGR of
3%) over the forecast period to VND12.0 trillion

2024 DEVELOPMENTS

Vietnamese consumers continue to tighten their spending, affecting the

growth of tea
While the price of raw coffee has increased by two to three times in the past year, increasing
the cost of this product, the price of raw tea has been relatively stable. However, consumers are
still concerned about the economic downturn, and feel insecurity about job losses caused by
slow economic recovery and global uncertainty due to wars and security crises. Thus,
Vietnamese consumers have shown a more cautious approach to their spending, prioritising
essential items over those that are non-essential. They regularly look out for discount events,
hoping for anywhere between 20% and 50% price reductions, and are open to buying
alternative brands if they offer more competitive pricing. Consequently, these factors are set to
prevent stronger retail volume and current value growth for tea in 2024.

Product innovation stimulates consumer demand and interest

Despite the challenges, tea is set to maintain volume and current value growth in retail in
Vietnam in 2024. Health awareness has been steadily increasing amongst Vietnamese
consumers, influenced by the expansion of the internet and social networks. An increasing
number of people are placing more emphasis on their health, and are attracted to products
which provide additional benefits, including weight loss, skin enhancement, and hormone
balance. Therefore, many people continue to purchase these innovative products for their added
health benefits, despite the higher costs. This trend has also led local and international players
to concentrate on developing and releasing new innovative tea products in 2024, to enhance
consumer demand and interest. For instance, Lipton Teas & Infusions has a selection of three
aromatic milk tea flavours which offer a delightful consumption experience, skilfully combining
exquisite taste with a focus on health, with each cup containing fewer than 100 calories.

Online channels help boost sales of tea in 2024

In 2024, despite a decrease in shopping frequency, consumers are expanding their shopping
channels and increasing the average spend per purchase. Indeed, Vietnamese men in particular
are showing significant interest in online shopping through retail e-commerce platforms such as
Shopee, Lazada, and TikTok, due to regular discount campaigns and convenience. More
brands are also using livestreaming on online platforms to reach and interact with customers in
Vietnam. For example, Cozy (Ecological Product JSC) advertised a massive sale with up to
15% off, and a discount down to VND19,000 for Gold Label Cozy tea bags via a livestream on

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TikTok Shop. Furthermore, consumers can often enjoy free shipping and receive free items
such as spoons or glasses when they purchase products during livestreams. Overall, online
channels have been helping to boost sales of tea in 2024, and retail e-commerce is therefore
set to witness notable value growth in Vietnam in 2024, and represent an increasing share of
sales of tea in this year. However, while the shift in share from traditional offline retail channels
to modern online e-commerce platforms presents opportunities to reach new customers across
the country, it also presents business challenges. This is because it becomes more challenging
to build customer loyalty, as customers can easily switch to other brands with lower prices within
the same e-commerce platform.

PROSPECTS AND OPPORTUNITIES

Tea predicted to grow well thanks to a brighter economic performance

The World Bank’s 2024 forecast indicates that Vietnam’s GDP is expected to experience
growth in the coming years, with projections of 6.0% for 2025 and 6.5% for 2026. This is
expected to contribute to growth in demand for tea in the future, as individuals become more
assured in their financial ability to purchase tea products. Consequently, tea in Vietnam is
expected to see steady rises in both retail volume and current value terms throughout the
forecast period. Furthermore, Vietnamese consumers are expected to increasingly acknowledge
the importance of their health, as they are constantly influenced by information from the
government, media, and online platforms. This trend is expected to boost sales of tea, since
many consumers hold a strong belief in the health benefits of tea, including stress reduction,
weight loss, and skin improvement, amongst others.

The category will see diversification in the future

According to the Vietnam Tea Association, the most popular domestic tea products during the
forecast period are expected to remain those within green tea. However, sales are increasingly
split, with various consumer preferences. One of the outstanding demands is strong flavours.
There is a common misconception that young people today prefer coffee to tea. However, some
young people also like tea; they enjoy it in different ways than young people did in the past.
Instead of drinking pure tea, they mix it with fruits and other ingredients to create unique
flavours. Thus, international brands such as Cozy and Lipton are launching innovative products
for the younger generation, such as new fruit-flavoured instant teas
Meanwhile, local companies are paying more attention to exporting speciality teas from each
region to high-end customers. For example, Tay Bac Tea and Special Food Company Ltd
(Shanam tea brand) has invested in speciality teas made from ancient tea trees named “Thach
Co Tra”, located in the primeval forest. This local ancient tea holds significant economic value
due to its numerous medicinal properties, and its processed products can sell for between
VND2.5 and VND25 million per kilogram, therefore offering a higher profit margin than other
speciality teas. The company, having succeeded in the northern market, is now targeting the
high-end gifting segment in the southern region.

Both the government and manufacturers will continue to focus on the

sustainable development of tea in the future
During the forecast period, more people in Vietnam are expected to pay more for sustainable
products, driven by the government’s strong promotion of a Net Zero lifestyle. Therefore, local
companies such as Tan Hiep Phat and Cau Dat will collaborate with the government to push the
development of sustainable tea moving forward. As an example, Thai Nguyen has been chosen

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as a key area for growing a number of industrial crops, mostly tea trees that are used for
processing and drinking. This has made Thai Nguyen a centre for processing tea. To make the
Northern Midland and Mountainous Region Planning for 2021-2030 work better, with a vision
towards 2050, the government has pushed for the use of science and technology in the
production and processing of safe VietGAP (Vietnamese Good Agricultural Practices) and
organic tea, which will improve the quality of products. At the same time, the Provincial People’s
Committee, unions, and cooperatives will work closely with farmers to review tea production
areas associated with tourism development, building growing area codes, and expanding the
area for organic and clean tea.

CATEGORY DATA
Table 1 Retail Sales of Tea by Category: Volume 2019-2024

Tonnes
2019 2020 2021 2022 2023 2024

Tea 20,457.3 21,732.1 20,947.4 21,244.9 21,260.9 21,432.0

Black Tea 1,654.0 1,711.9 1,691.4 1,694.5 1,657.7 1,645.9
- Loose Black Tea - - - - - -
- Tea Bags Black 1,654.0 1,711.9 1,691.4 1,694.5 1,657.7 1,645.9
Fruit/Herbal Tea 2,326.7 2,466.3 2,621.6 2,785.1 2,795.8 2,807.4
Green Tea 12,677.1 13,564.5 12,476.7 12,813.6 12,883.8 13,020.5
Instant Tea 3,497.3 3,672.2 3,828.5 3,617.4 3,588.1 3,617.6
Other Tea 302.1 317.3 329.1 334.4 335.5 340.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Retail Sales of Tea by Category: Value 2019-2024

VND billion
2019 2020 2021 2022 2023 2024

Tea 7,201.6 7,714.8 7,622.9 8,050.4 8,344.9 8,738.7

Black Tea 1,813.7 1,956.7 1,948.7 2,020.5 2,057.2 2,134.4
- Loose Black Tea - - - - - -
- Tea Bags Black 1,813.7 1,956.7 1,948.7 2,020.5 2,057.2 2,134.4
Fruit/Herbal Tea 723.6 810.3 888.8 975.8 1,017.5 1,064.6
Green Tea 4,067.5 4,311.5 4,104.6 4,371.4 4,562.3 4,795.2
Instant Tea 401.4 428.7 459.6 449.9 464.7 487.6
Other Tea 195.4 207.5 221.1 232.7 243.2 256.9
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Retail Sales of Tea by Category: % Volume Growth 2019-2024

% volume growth
2023/24 2019-24 CAGR 2019/24 Total

Tea 0.8 0.9 4.8

Black Tea -0.7 -0.1 -0.5
- Loose Black Tea - - -
- Tea Bags Black -0.7 -0.1 -0.5

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Fruit/Herbal Tea 0.4 3.8 20.7

Green Tea 1.1 0.5 2.7
Instant Tea 0.8 0.7 3.4
Other Tea 1.5 2.4 12.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Retail Sales of Tea by Category: % Value Growth 2019-2024

% current value growth

2023/24 2019-24 CAGR 2019/24 Total

Tea 4.7 3.9 21.3

Black Tea 3.8 3.3 17.7
- Loose Black Tea - - -
- Tea Bags Black 3.8 3.3 17.7
Fruit/Herbal Tea 4.6 8.0 47.1
Green Tea 5.1 3.3 17.9
Instant Tea 4.9 4.0 21.5
Other Tea 5.6 5.6 31.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 NBO Company Shares of Tea: % Retail Value 2020-2024

% retail value rsp

Company 2020 2021 2022 2023 2024

Lipton Teas & Infusions - - - 16.8 16.7

Ecological Product JSC 8.0 8.0 8.3 8.5 8.6
Vietnam National Tea JSC 4.2 4.2 4.8 4.9 4.9
Vinh Tien Co Ltd 3.8 4.3 4.4 4.4 4.3
Hoang Long Tea Co Ltd 3.1 3.0 3.1 3.1 3.0
Cau Tre Export Goods 2.5 2.7 2.8 2.8 2.8
Processing JSC
Nestlé Vietnam Co Ltd 1.7 1.9 1.5 1.4 1.3
MJF Group 0.7 0.8 1.0 1.1 1.1
Tam Chau Tea & Coffee Co 0.6 0.7 0.6 0.6 0.7
Ltd
Dai Gia Trade & Service 0.3 0.4 0.4 0.4 0.4
Co Ltd
Ekaterra - - 17.1 - -
Unilever Vietnam 16.3 17.1 - - -
International Co Ltd
Qualitea Ceylon (PVT) Ltd 0.5 - - - -
Others 58.1 57.0 56.0 56.0 56.2
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 LBN Brand Shares of Tea: % Retail Value 2021-2024

% retail value rsp

Brand (GBO) Company (NBO) 2021 2022 2023 2024

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Lipton Yellow Label Lipton Teas & Infusions - - 13.4 13.3

Cozy Ecological Product JSC 8.0 8.3 8.5 8.6
Vinh Tien Vinh Tien Co Ltd 4.3 4.4 4.4 4.3
Vinatea Vietnam National Tea JSC 3.5 4.1 4.2 4.2
Lipton Lipton Teas & Infusions - - 3.0 3.0
Hoang Long Hoang Long Tea Co Ltd 3.0 3.1 3.1 3.0
Cau Tre Cau Tre Export Goods 2.2 2.3 2.3 2.2
Processing JSC
Nestea (Nestlé SA) Nestlé Vietnam Co Ltd 1.9 1.5 1.4 1.3
Dilmah MJF Group 0.8 1.0 1.1 1.1
Vinatea O Long Tea Vietnam National Tea JSC 0.7 0.7 0.7 0.7
Tam Chau O Long Tea Tam Chau Tea & Coffee Co Ltd 0.7 0.6 0.6 0.7
Cau Tre O Long Tea Cau Tre Export Goods 0.6 0.6 0.6 0.6
Processing JSC
Tra Dai Gia O Long Tea Dai Gia Trade & Service 0.4 0.4 0.4 0.4
Co Ltd
Lipton Yellow Label Ekaterra - 13.7 - -
Lipton Ekaterra - 3.0 - -
Lipton Yellow Label Unilever Vietnam 13.5 - - -
(Unilever Group) International Co Ltd
Lipton (Unilever Group) Unilever Vietnam 3.2 - - -
International Co Ltd
Qualitea Qualitea Ceylon (PVT) Ltd - - - -
Others Others 57.4 56.4 56.4 56.6
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 Forecast Retail Sales of Tea by Category: Volume 2024-2029

Tonnes
2024 2025 2026 2027 2028 2029

Tea 21,432.0 21,781.3 22,229.5 22,737.3 23,306.5 23,948.8

Black Tea 1,645.9 1,663.4 1,697.2 1,742.5 1,795.3 1,871.4
- Loose Black Tea - - - - - -
- Tea Bags Black 1,645.9 1,663.4 1,697.2 1,742.5 1,795.3 1,871.4
Fruit/Herbal Tea 2,807.4 2,846.3 2,901.4 2,964.4 3,035.9 3,109.1
Green Tea 13,020.5 13,268.6 13,570.2 13,902.7 14,271.8 14,679.1
Instant Tea 3,617.6 3,654.9 3,702.9 3,758.6 3,822.0 3,894.1
Other Tea 340.6 348.1 357.8 369.0 381.5 395.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 8 Forecast Retail Sales of Tea by Category: Value 2024-2029

VND billion
2024 2025 2026 2027 2028 2029

Tea 8,738.7 8,925.1 9,165.6 9,446.8 9,761.9 10,128.8

Black Tea 2,134.4 2,165.7 2,218.9 2,287.8 2,367.8 2,479.5
- Loose Black Tea - - - - - -
- Tea Bags Black 2,134.4 2,165.7 2,218.9 2,287.8 2,367.8 2,479.5
Fruit/Herbal Tea 1,064.6 1,081.3 1,104.4 1,134.8 1,169.8 1,205.8
Green Tea 4,795.2 4,919.9 5,066.5 5,228.3 5,406.1 5,600.7
Instant Tea 487.6 494.9 503.8 513.9 525.2 537.8
Other Tea 256.9 263.4 272.0 282.0 293.0 305.0

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Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 9 Forecast Retail Sales of Tea by Category: % Volume Growth 2024-2029

% volume growth
2024/25 2024-29 CAGR 2024/29 Total

Tea 1.6 2.2 11.7

Black Tea 1.1 2.6 13.7
- Loose Black Tea - - -
- Tea Bags Black 1.1 2.6 13.7
Fruit/Herbal Tea 1.4 2.1 10.7
Green Tea 1.9 2.4 12.7
Instant Tea 1.0 1.5 7.6
Other Tea 2.2 3.0 16.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Retail Sales of Tea by Category: % Value Growth 2024-2029

% constant value growth

2024/2025 2024-29 CAGR 2024/29 Total

Tea 2.1 3.0 15.9

Black Tea 1.5 3.0 16.2
- Loose Black Tea - - -
- Tea Bags Black 1.5 3.0 16.2
Fruit/Herbal Tea 1.6 2.5 13.3
Green Tea 2.6 3.2 16.8
Instant Tea 1.5 2.0 10.3
Other Tea 2.5 3.5 18.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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