Market Trends of Vietnam Metal Can Packaging Industry
This section covers the major market trends shaping the Vietnam Metal Can Packaging Market according to our research experts:
Growing Demand For Convenience Food In Vietnam to Drive the Market
- The growing rate of urbanization across the country has resulted in a higher demand for convenience food. Eating out and convenience food take over food shopping, preparing, and home cooking in Vietnam. The fast-growing middle class and the young population are the two major growth factors of this trend.
- The healthy growth of convenience stores such as coffee and snack outlets, retail establishments, hospitality, and others is expected to drive the need to produce metal can packaging.
- As incomes have increased and young consumers have grown due to rapid urbanization, the market for convenience food has shown remarkable growth, whereas traditional markets are declining. Furthermore, the frequent turn to convenience food caused due to working professionals' busy schedules support the consumer to seek convenience in everyday products like food.
- Post-pandemic, the demand for plant-based foods has significantly increased in the market. Vietnam's vegetarian food exporters are exploring ample opportunities as the United Kingdom is the major market for Vietnam for its plant-based products. For instance, in August 2022, Dong Thap Province-based Bình Loan vegetarian food factory exported two tonnes of canned vegetarian food to the United Kingdom with the support of Longdan, the biggest importer of Vietnamese goods in the United Kingdom.
- The expansion of modern convenience stores and supermarkets across the country has geared up, which may likely add growth to the market studied. For instance, in July 2022, WinCommerce, a retail giant, could plan to open hundreds of new supermarkets and convenience stores in Vietnam by the end of the year to cater to the increased demand for convenience food products and to accelerate the expansion of its market share in the country.
Understand The Key Trends Shaping This Market
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Beverages Sector to Hold the Largest Market Share
- The beverage metal cans find considerable demand in beer and wine packaging and other beverage markets in Vietnam. The growing consumer awareness to use green and environmentally sustainable products and increasing recycling rate and reusability drive the beverage metal cans market.
- Moreover, with the help of economic development, favorable demographics, rising tourism, and rising middle-class income, Vietnam's beverage industry is expanding quickly. According to data from USDA Foreign Agricultural Service, in 2021, the production of beverages increased by 96.8 % in Vietnam.
- A Vietnamese person consumes more than 23 liters of beverages annually. Vietnam's total beverage production was expected to increase from 8.3 to 9.2 billion liters by 2021. According to the VBA, there are approximately 1800 beverage manufacturing establishments. According to vtown.vn, carbonated soft drinks account for 23.74% of Vietnam's beverage market. However, tea is the most popular product, accounting for 36.97% of the market share. With 18.28%, energy drinks are followed by fruit juices (10.91%) and mineral water (5.45%).
- The Vietnam wine market is booming, with hotels, restaurants, and retailers offering a wide variety of global wines. Vietnam's myriad free trade agreements (FTAs) have helped it become competitive, attracting foreign investors to relocate production or set up operations. The main objective of free trade agreements (FTAs) is to make an integrated market among country members by substantially reducing or fully liberalizing custom tariffs for imported products.
