Expert Webinar:

7 demand segmentations that matter

2022

Speaker: Phuong Ho I Expert Solutions Lead

Sample: 3,500 Individuals in Urban 4
key cities and total Rural.

>70,000 drinking occasions per week

2
What we covered in our study

All non-alcoholic drinks from bottled water,

liquid milk, to bird's nest, etc.

From branded to unbranded products.

From in-home to out-of-home channels

such as coffee shops, companies, schools.

From buying at stores, supermarkets

to ordering online.

From drinking alone to drinking with

friends and family.

3
TABLE OF CONTENTS

5 7
highlights in the drinking habits demand segmentations
of Vietnamese nowadays that matter

4
Consumer preferences
in rural areas gradually
emulate those in urban

5
Understand what consumers drink in 2022
Top 3 categories with the biggest occasion shares in both Urban and Rural areas are Tea, Nutritional Drinks
and Coffee
% drinking occasion

Tea
3%
7% 12%
21% Nutritional Drinks (liquid
6% milk, yogurt,…) 5% 31%
Coffee
5%
Fruit/Veg Juice
14%
6%
Bottle Water
Urban 4 19% Rural
Energy Drink 10%
13% CSD
20%
13%
18% Others

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L 6
Gen Z in rural and urban areas have similar drink preferences

Drink choices And for Gen Z…

top beverage categories in top beverage categories in urban and rural areas are
urban and rural areas are the same. the same.

Urban 4 Rural

Bottled water Fruit/Veg Juice

Loose
Fruit/Veg Juice leaf tea RTS tea/milk tea CSD
CSD Bottled water
Fruit/Veg Juice RTS tea/milk tea
Energy Drink Loose leaf tea

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L 7
The booming of
varieties and flavors

8
 Different drinks are chosen during the week
Particularly the 19–34-year-old group has the most diverse drinking habits. And the group's frequency of drinking
is lower than that of other age groups, showing how fierce competition is to win in this group.

Drink choices per week: 6.5

9 20

8.5 18
16
8
14
7.5 12
7 7.3 10 no. drink choices
7.0 8
6.5 6.8 6.7
6 frequency/week
6 6.2 4
5.5 5.9
2
(*) Drink choices = category x variant/flavor
5 0
<13 YO 13-18 YO 19-24 YO 25-34 YO 35-44 YO 45-60 YO

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L 9
 % weekly penetration

Bird’s Nest Juicy Milk

10% 10%

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L 10
Many new drinks are launched with dynamic recipes and flavors
Mix categories Mix many flavors Add toppings

Centella Juice with Brown Sugar CMB add

Juicy Milk Flavored Fresh Milk with
green bean paste Cocoa Oatmilk cacao jelly
Sparkling Water added brown sugar
& coconut milk Frappuccino
boba

Milk tea/ Energy Drink/ Soy milk with Celery, Apple, Fruit jelly juice
Coffee Mix Coffee Mix pine nuts Lemon Juice
almonds

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L 11
Rapid growth of
online ordering

12
The online ordering trend began to bloom in 2019 and is still thriving after the
Covid 19 pandemic

Gen Z’s top chosen channels Top 3 drink delivery platforms

(number of individuals per week) (number of individuals per week)

1 Street Shops

2 CVS / Minimarket

3 Tea/Coffee Shops

4 Street vendor
1/3
On average, Gen Z
orders drinks online
5 Online every three days!

+3 ranks compared to 2019

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L 13
Consumers mainly order drinks to consume at home, next is at work
The top 3 drinks ordered via delivery platforms are milk tea, ready-to-drink tea and fresh milk with black
sugar pearls.

Within Online purchases Orders made on online platforms

59%
To home Bottled water

RTS Coffee
35% RTS Milk Tea
To workplace Fresh milk with
black sugar pearls

RTS Tea

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L 14
Healthy diets among
young consumers

15
Not only the elderly but also younger groups, particularly Millennials, are
interested in and choose drinks for health purposes.

25% occasions for health motivation Each age group has different motivations

27
26 Gen X 45-60 YO:
25 Health booster
22
20 Immunity booster

Millennials 25-44 YO:

Detox
For skin beauty

13-18 YO 19-24 YO 25-34 YO 35-44 YO 45-60 YO

Gen Z 13-24 YO:
Digestion Support
For skin beauty

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L 16
A wide variety of drinks for different health purposes

Health Booster Detox

Liquid milk Plant-based drinks

Bottled water Fruit/Vegetable juice

RTD Tea Herbal Drinks

Fruit/Vegetable juice Bird’s nest
Digestion Support

Drinking yogurt Loose-leaf tea Herbal drinks

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L 17
Personalization –
The segment of me

18
Drink choices vary from region to region, and from age to age

Top 5 drinking categories

HCMC Hanoi Gen Z 13-24 YO Gen X 45-60 YO

Bottled Water Fruit/Vegetable juice Bottled Water Loose-leaf tea

Fruit/Vegetable juice Bottled Water RTS Tea/Milk Tea Fruit/Vegetable juice

RTS Coffee Loose-leaf tea CSD Bottled Water

RTS Tea/Milk Tea Liquid Milk Fruit/Vegetable juice RTS Coffee

CSD CSD Energy Drink Instant Coffee

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L 19
Gen Alpha does not only influence parents' choices but also makes purchase
decisions now
% buy drinks by themself

83%
1/3 13-18 YO buy their
own drinks at least
once a week
7–12 YO buy their
own drinks at least
once a week

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L 20
7
demand segmentations
that matter

21
The demand space principle
The market is so vast and complex – it’s not one-size-fits-all so it's important to categorize demands in a
meaningful way in order to understand, plan and progress within it

22
The demand spaces that matter
The biggest demand space is Connecting time, followed by Daily family moments and Water/ Water+.

Occasion share %
Water & Water+

15 Flavor up routine
27
Start my day
8
Stay efficient
Me time

7 Meal accompaniment

8
Daily family moments
9
Family celebration
20 9
Connecting time
With others

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L | Individual >12 YO 23
The demand spaces that matter – Urban vs Rural
In Urban, me moments contribute a big part while in Rural, it’s all about social/family engagements

Occasion share %

Water & Water+

14 Flavor up routine 15
24 28
Start my day
10 8
Stay efficient

Meal accompaniment
6
8 8
Urban 4 Rural
Daily family moments 8 8
14 11 Family celebration
8
12 Connecting time
21

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L | Individual >12 YO 24
Demand spaces that matter – Gen Z vs Gen Y
Gen Z spend more “me time” with more flavor up routine and staying efficient. While Millennials spend more time with others
on daily family moments and connecting time

% occasion

Water & Water+

12 Flavor up routine
11
25 7
Start my day 32
12
Stay efficient 6
Gen Z Gen Y
13-24YO 25-44YO
7 Meal accompaniment
9
9
Daily family moments

11 8 9
9 Family celebration

15 Connecting time 20

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L | Individual >12 YO 25
Why demand space matters?

One demand space can be fulfilled with a variety of beverage categories,

and one category can serve many different demand spaces

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Example of “Stay Efficient” and “Fruit Juice”

Categories consumed in “Stay Efficient” – occasion % Demand Spaces within Fruit juice – occasion %

Juice Milk 4 Start my day

CMB 4
3 Bird's Nest 7
3 Water & Water+
3 Milk Powder
4 RTS Non-milk Tea 7
5 RTS Milk Tea Daily family moments
6 Ground Coffee 7

8 Tea Bag
8 Flavor up routine
Liquid Milk
8 RTD Tea
RTS Coffee 12 Stay efficient
9
CSD
Soluble Coffee Meal accompaniment
12
Soya Milk
Energy Drink
12 Other drinks 31 Family celebration
Small bottled water
Fruit Juice Connecting time
15
Loose Leave Tea

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L | Individual >12 YO 27
Health motivation is seen across all demand spaces

% occasion with health motivation

45
40

33
29
24
20 20

Start my day Flavor up routine Family Meal Stay efficient Daily family Connecting time Water & Water+
celebration accompaniment moments

Source: Kantar | Worldpanel | Drink Usage Study 2022 | Urban 4 cities & Rural Vietnam | NAB exclude tap water & gallon>10L | Individual >12 YO 28
 5 7
highlights in the drinking habits demand segmentations
of Vietnamese nowadays that matter
SUMMARY

1. Consumer preferences in rural areas 0. Water & Water+

gradually catch up with those in urban 1. Start my day
2. The booming of varieties and flavors 2. Flavor up routine
3. Rapid growth of online ordering 3. Stay efficient
4. Healthy diets among young consumers 4. Meal accompaniment
5. The segment of me – Unlimited 5. Daily family moments
personalization 6. Family celebration
7. Connecting time
WHAT’S
NEXT?

→ Personalized offer to tackle consumers' need and make it accessible both online & offline
→ Winning formula: Health & tasty
→ Identify underserved demand space to innovate and adapt

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Q&A Phuong Ho
Expert Solutions Lead I Kantar Vietnam
To discuss on your key business questions at category/ brand level, E diemphuong.ho@kantar.com
please get in touch with your usual contacts at Worldpanel Division
Vietnam or with me.