Vietnamese consumers increasingly tighten spending, a challenge for the F&B industry

Decision Lab, a unit specializing in evaluating and optimizing digital marketing, has just released a report on the F&B market in Vietnam. Of which, 84% of those surveyed are tightening their spending. This could be a challenge for the F&B industry in the last months of the year.

According to a report by Decision Lab, Vietnamese people are becoming more cautious in managing their personal finances and spending on eating out. This is an inevitable trend in the context of an economy facing recession and rising living costs.

In a survey by Decision Lab, 84% of respondents set spending limits for themselves. Among them, Gen Z (young people born between 1997 and 2012) is leading with 49% of survey participants saying they are strictly controlling their spending on eating out, much higher than other age groups.

Additionally, 42% of respondents said their finances have improved. 63% of consumers expect their finances to improve in the next 12 months. However, this financial improvement will not be used for non-essential spending, including dining out.

Regarding Vietnamese people's eating out activities, Decision Lab said that 57% of consumers prefer to drink at coffee shops and milk tea shops. This activity also occupies a high position in the top 10 most popular social activities outside of the people.

This is followed by dining at sidewalk stalls, small alley eateries and restaurants with 48%, 48% and 43% respectively. Local eateries are often the first choice of people, making the challenge for emerging F&B brands even more obvious.

Factors that are highly appreciated by users in the F&B field include: 52% of respondents choose food quality; 47% choose service quality and staff professionalism; 44% choose brand.

Interests in the F&B sector also vary by age. Millennials (1981-1996) care about the quality of food and the atmosphere in the store. Meanwhile, Gen Z (1997-2012) cares more about price.