Tea-based drinks trump coffee by far in Saigon: study

Market research firm Kantar Worldpanel says RTD (ready-to-drink) and RTS (ready-to-serve) teas are twice as popular as coffee in Saigon.

Tea-based drinks are consumed by over half the Saigonese population, while only one third consumes coffee.

The most popular tea-based drink is milk tea, with one out of every five Saigonese buying this drink at least once since last month, the study found. Other top tea-based drinks include peach tea and matcha (green tea).

The report also noted that consumers are willing to pay 1.5-2 times the price of other tea-based drinks for the top three tea drinks.

Vietnam’s milk tea market has been heating up in recent years. The number of franchise tea stores has exploded, going from street corners into shopping malls, thanks to many foreign players who have been expanding their operations in the country, especially in major cities, said the report.

As such, the bubble tea market is expected to enjoy robust growth with more brands launching a greater number of flavors and toppings.

A survey released earlier this month by Nielsen said visiting a milk tea shop is among the most popular leisure activities in the city. Some 81 percent of Generation Z (born 1996-2005) and 85 percent of Millennials (born 1981-1996) described bubble tea shops as their favorite hangouts.

On the other hand, traditional Vietnamese black coffee and milk coffee are among the most popular coffee choices. However, it can also be seen that modern or western-influenced coffees like cappuccino, mocha and ice-blended coffees (frappe) are rising in popularity, accounting for one-fourth of the category revenue.

In HCMC, the top three brands that consumers patronize when they go out for tea or coffee are The Coffee House, Phuc Long and Highlands Coffee, the report says.