Vietnamese Consumers Prioritize Value Over Price in Coffee and Milk Tea Spending

Speaking at a conference hosted by restaurant management platform iPOS on September 9, Brand Director Nguyen Do Anh Quan noted that drinking habits are solidifying and spending levels are climbing. The historical consumer logic of choosing cheaper drinks as consumption frequency rises is reversing. Customers are willing to absorb higher prices for perceived value and preferred brands, Quan explained. The findings come from an iPOS first-half market report surveying nearly 1,000 respondents across 15 provinces, concentrated in Hanoi, Ho Chi Minh City, and Da Nang. Daily consumption surged from 13.6% in late 2025 to 19.2% in 2026, signaling that daily beverage purchases have become an ingrained consumer routine. Shifting consumer habits have expanded overall ticket sizes. The proportion of customers spending under 35,000 VND ($1.40) dropped sharply from 41.6% to 29.4%. Conversely, the mid-tier 36,000–70,000 VND ($1.45–$2.80) range expanded from 48.3% to 61.8%, capturing the majority of market demand. The 36,000–50,000 VND bracket experienced the fastest growth, rising from 33.4% to 40.3%. According to iPOS, this sweet spot sits between budget and lower-mid tiers. When chains raised menu prices, most consumers accepted the increase rather than cutting consumption. Budget outlets face the greatest operational squeeze. Demand for drinks priced between 21,000 and 35,000 VND fell from 34.4% to 24.6%. Analysts noted that these operators are caught in the middle: they cannot match the ultra-low pricing of street kiosks selling 7,000–15,000 VND milk tea, yet lack the ambiance and service quality to move upmarket into the mid-tier segment. Meanwhile, the premium tier exceeding 70,000 VND dipped slightly from 10.1% to 8.8%. This shift demonstrates that discretionary spending is not rushing into luxury outlets, but consolidating firmly within the mid-market. Analysts attribute this trend to habit retention. Once customers settle on a preferred brand, they prioritize consistency over hunting for new, trendy venues. While design-heavy cafes may secure initial foot traffic, repeat visits depend on dependable product quality and service speed. This customer loyalty benefits premium chains like Starbucks and Every Half as both aggressively expand outlets across Tier-1 cities. The report highlighted that over 80% of daily consumers either maintained their habits, upgraded to higher-end brands, or bought more drinks. Within this daily cohort, 17.3% spend over 70,000 VND per cup, valuing operational speed, taste consistency, and comfortable seating over marginal price savings of 10,000–15,000 VND. Macro indicators compiled by iPOS and Nestlé Professional mirror this resilience. Vietnam’s food and beverage sector generated an estimated 432.7 trillion VND ($17.3 billion) in the first half of 2026, up 6.55% year-on-year from 406.1 trillion VND, outpacing the 5.5% growth recorded across 2025. However, broader structural factors contributed to this revenue expansion. The Lunar New Year holiday fell entirely within mid-February, concentrating peak festive spending in the first half. Concurrently, General Statistics Office data showed consumer prices rose 4.38% year-on-year, pushing up menu pricing across the sector.