INSTANT COFFEE
Overview
In late 2011, Masan Group acquired a controlling stake in Vinacafé Bien Hoa ("Vinacafe”), a market leader in instant coffee, in order to enter the beverage market.
Growth driver
Vietnam’s instant coffee market is expected to continue to grow steadily in coming years due to a number of market trends, including:
- Hectic lifestyle of working consumers – The growth of instant coffee stemmed from rising demand among adolescent consumers, who seek convenient and timesaving methods for consuming hot drinks in tune with their busy lifestyles. Moreover, fierce competition in the category saw manufacturers highlighting the benefits of coffee and developing products that are more in line with local needs and taste profiles
- Changing consumer preferences - The instant coffee market is evolving quickly, with manufacturers adding different types of coffee (e.g. 2-in-1, 3-in-1, and 4-in-1) to their portfolios to cater to consumer preferences
- Better instant products await consumers – Instant coffee manufacturers are likely to continue in their efforts to improve the quality of instant hot coffee, with the goal of achieving parity with fresh ground coffee in terms of taste. Large players are likely to invest in their production facilities in order to meet the requirements of both domestic and international consumption.
