In 2014, tea registers current value growth of 9%, which is slightly faster than that in 2013. The healthy growth indicates stable demand for tea. Moreover, due to higher living standards in the country, consumers started to switch from unbranded to branded tea. Premium tea products are also becoming more popular, leading to strong growth of value sales of tea.

Vinatea - Vietnam National Tea Corp continues to lead tea, making up 28% of retail value sales in 2014. Unilever Vietnam International Co Ltd is the runner up with a 12% value share. Both companies are well established with extensive distribution networks. While Unilever Vietnam focus more on black tea products, Vinatea opts for a diversified product portfolio that caters to different consumer needs.

Value sales of tea are forecast to increase by a value CAGR of 3% at constant 2014 prices in the next five years, which is higher than the CAGR of the review period. The higher growth rate can be explained by the increasing preference for branded tea. Consumers tend to choose brands that are made from prestigious companies. In response, manufacturers will have to invest more in brand building and introduce new products with different health benefits to attract consumers.