Vietnamese people prioritize saving but eating out is still important

Decision Lab’s latest research shows that Vietnamese consumers are tightening their budgets when it comes to eating out, with 84% having set spending limits. However, going out for coffee and milk tea seems to remain an indispensable part of life.

Decision Lab, YouGov's exclusive partner in Vietnam, has just released a report on F&B industry trends in 2024, showing changes in Vietnamese consumers' spending habits on food and drink, amid an unstable economic context.

Accordingly, Vietnamese consumers are increasingly cautious about their finances and spending habits, focusing on long-term stability despite improvements in their personal finances.

Over the past year, 42% of consumers said their financial situation has improved, and a remarkable 63% of consumers expect their financial situation to continue to improve over the next 12 months. However, this positive trend has not translated into increased spending on non-essential items, especially in the food and beverage (F&B) sector. Consumers are now prioritizing savings, leading to a sharp decrease in their budgets for dining out and alcoholic beverages.

Drinking coffee and milk tea still seems to be an indispensable part of life. Photo: TH

Decision Lab’s latest research shows that Vietnamese consumers are tightening their budgets when it comes to eating out. Gen Z (born between 1997 and 2012) leads the trend, with 49% of them tightening their spending on eating out, the highest of all age groups. The cautious mentality is reflected across all generations, with an average of 44%.

Despite being financially cautious, eating out remains an integral part of Vietnamese social life. Dining-related activities rank high in the top 10 most popular outdoor activities, with 57% of consumers preferring to drink at coffee and milk tea shops.

Following behind were street food stalls, small alley food stalls, and restaurants, accounting for 48%, 48%, and 43%, respectively. Local eateries, coffee chains, and fast food restaurants remain consumers’ top choices when it comes to dining out.

To succeed in this challenging economic climate, F&B businesses must embrace changing consumer preferences.

The report found that consumers value meaningful connections with family and friends when dining out, with 47% prioritizing this factor. In addition to emotional factors, practical factors such as value for money (45%), food quality (44%), and ingredient safety (41%) also play a role in consumers’ decisions.

To thrive, F&B brands need to focus on maintaining consistent quality, ensuring value, and building trust with customers. By adhering to these core principles, businesses can stay competitive and attractive to consumers.

Thue Quist Thomasen, CEO of Decision Lab, commented that although consumer behavior has changed, they still prioritize economic value, food flavor, and ingredient quality, emphasizing the return to the basics of the F&B industry.