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Tea in Vietnam

Vietnam Tea Market: New insights

In 2014, tea registers current value growth of 9%, which is slightly faster than that in 2013. The healthy growth indicates stable demand for tea. Moreover, due to higher living standards in the country, consumers started to switch from unbranded to branded tea. Premium tea products are also becoming more popular, leading to strong growth of value sales of tea.

In 2013, tea registered retail current value growth of 8%, which was more than one percentage point higher than in 2012. Despite the poor economy in Vietnam, the category still enjoyed healthy growth thanks to stable demand for tea from Vietnamese consumers. Drinking tea is part of Vietnamese culture, with tea being popular across all age groups. Furthermore, the increase in unit prices, as well as the higher living standards has resulted in higher consumption of premium products.

Green tea is traditionally the most popular type of tea in Vietnam, and it accounted for a 61% share of tea off-trade volume sales in 2012. Green tea is perceived to be more beneficial to health compared to black tea; however, as green tea sales were heading towards maturity, it saw low growth in off-trade volume sales over the review period. Meanwhile, instant tea and fruit/herbal tea became increasingly popular with Vietnamese consumers thanks to their sweet and pleasant tastes.

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Tea in Vietnam

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