In recent years, the Vietnamese milk tea market has witnessed unprecedented fierce competition. Once a "promised land" with great growth potential, the F&B industry has suddenly become a real arena, where a series of large and small brands continuously appear, constantly changing trends and reshaping consumer tastes.
While emerging names quickly update and innovate in products, forms and communication strategies to gain market share, sadly, some brands that were deeply attached to the childhood and memories of many generations quietly left the game. Those are the names that have been deeply imprinted in the memory, associated with the "first milk tea" cups of the 8x - 9x generation, leaving behind endless regrets.
Ten Ren, the unexpected withdrawal of a "big guy"
One of the clearest evidences of this fierceness is the story of Ten Ren - the leading famous milk tea chain in Taiwan (China). When officially entering the Vietnamese market in 2017, Ten Ren received great expectations, especially when it had the support of a large domestic corporation. With a reputation for high-quality tea, along with a modern and luxurious brand image, Ten Ren quickly expanded many branches in prime locations and attracted strong attention from the milk tea lover community. Many people believe that, with financial potential and experience from the international market, Ten Ren will easily capture a significant part of the potential Vietnamese market.
Ten Ren has a strong, high-quality, authentic Taiwanese tea flavor.
However, the unexpected happened less than two years later. In August 2019, Ten Ren Vietnam officially announced the closure of the entire system, withdrawing from the race in the astonishment of many fans and experts. Ten Ren's sudden departure is still considered one of the most regrettable "failed attempts" in the Vietnamese milk tea market, leaving many questions about strategy, adaptability and the terrible competitive pressure that even a "big guy" has to face.
To this day, this brand is still considered one of the unfortunate "failed attempts".
-18 Degrees Celsius: "Air-conditioned milk tea" of the past
If you were a student in Ho Chi Minh City during the period 2005-2010, the name -18 Degrees Celsius will surely bring back many memories. This is considered one of the pioneering shops to bring the "air-conditioned milk tea" model to Vietnam, a breakthrough combination of a comfortable coffee shop space and a rich milk tea drink menu.
Not only serving milk tea, "legendary" dishes such as egg rolls, stir-fried noodles typical of -18 degrees made young people crazy for a while
However, due to the rapid changes in the market, along with the shift in consumer habits and tastes. New trends have emerged, leading to the emergence of countless modern and more dynamic milk tea brands. In that context, -18 Degrees Celsius has gradually fallen behind. Currently, this brand has only one modest branch in District 3, Ho Chi Minh City, operating quietly.
Hot&Cold: Teen legend says goodbye after 14 years together
Launched in 2011, Hot&Cold quickly became a "favorite address", a legend associated with the teenage years of many young people in Ho Chi Minh City. Hot&Cold is not simply a milk tea shop; it is also a true "snack paradise" with a diverse menu from skewers, mixed noodles to fried chicken, satisfying all culinary preferences of young people.
Milk tea brand associated with many generations of students in Ho Chi Minh City
The spacious space, eye-catching decoration and youthful, vibrant music created an irresistible attraction. Thanks to that, Hot&Cold quickly expanded its chain to more than 65 branches nationwide, becoming a real phenomenon in the F&B industry at that time, a place where young people could freely express their personality and share joy.
However, after 14 years of continuous operation, this brand recently announced that it will stop operating the entire system from June 30, 2025. This decision has closed a long and emotional journey, leaving regrets for many young people who have associated their memorable memories with Hot&Cold.
This parting leaves many regrets.
Mr. Brian Dang, co-founder of UPWings - F&B Section, likened Hot&Cold to a "milk tea monument" of Ho Chi Minh City. He shared his memories of the first time he enjoyed milk tea at Hot&Cold about 14 years ago, when the Vietnamese milk tea market was just taking shape with early names like Hoa Huong Duong, Alo Tra or -18 Do C. What made Mr. Dang especially impressed at first sight was the brand identity and outstanding, distinctive packaging of Hot&Cold, helping this chain of stores quickly build its own image and attract attention in a young market.
Over time, drinking milk tea is no longer a temporary trend but has gradually become a popular habit, especially among young people and office workers in Ho Chi Minh City. For many people, a cup of milk tea is now not only a refreshing drink, but also a part of the working experience, a way to relax and enjoy moments of rest, while working and sipping a cup of tea with a variety of toppings.
Changes in taste as well as appearance requirements force milk tea brands to constantly "update" if they don't want to be left behind.
Customers are becoming more and more discerning, not only paying attention to taste but also to the overall experience, the origin of the tea and the reputation of the brand. This puts a lot of pressure on businesses, forcing them to constantly improve to meet the increasing expectations of consumers.
The latest report from iPOS shows a panoramic picture of the Vietnamese beverage industry. Although the industry's total revenue in 2024 will reach more than VND 118,000 billion, equivalent to more than VND 323 billion per day, the highest level since 2018, the growth momentum has shifted significantly. Notably, this growth no longer comes from high-end products as before, but is mainly driven by the popular segment.
