Located in South-eastern Vietnamese city Phu My, the factory is Otsuka Pharmaceutical’s first manufacturing facility in Vietnam for the electrolyte drink brand.
The factory, which stands on a site of 50,000m², produces POCARI SWEAT in 350ml and 500ml PET bottles. Its production capacity is said to be similar to that of other POCARI SWEAT factories in other countries.
Its goal is to serve the local Vietnamese market, and the products will be sold in both modern and general trade channels, including supermarkets and convenience stores.
The set up of the production facility comes 13 years after the brand’s entry into the Vietnamese market.
According to Otsuka Pharmaceutical, the POCARI SWEAT brand has grown steadily over the years in Vietnam - which was one of the reasons for wanting to build a production line in the country.
“Since entering the Vietnamese market in 2012, it has steadily expanded in line with the country’s economic development and growing focus on health and wellness.
“To meet rising local health needs, ensure a stable supply through local production, and contribute to the community through job creation, Otsuka has established the Phu My Factory, the first POCARI SWEAT manufacturing facility in Vietnam,” said the company.
Otsuka began operations in Vietnam in 2012 with the establishment of Otsuka Thang Nutrition Co., Ltd, a joint venture focused on functional beverages and foods.
The company initially sold POCARI SWEAT imported from Indonesia. In 2024, Otsuka Thang Nutrition became a wholly owned subsidiary of Otsuka and was renamed Otsuka Nutraceutical Vietnam Co., Ltd.
The subsidiary has 482 employees as of April 1, 2025, of which 81 are working from the new Phu My factory.
The launch of the new factory in Vietnam comes on the back of a shrinking demand in Japan and increased competition in its other major market - China.
“Sales in ‘Climate and Environmental Risks’ [products] decreased 3.5 per cent to 42.2 billion yen (US$285.09m) due to POCARI SWEAT slowdown owing to fewer cases of infectious disease in Japan and an intensifying competitive environment in China,” said Yuko Makino, senior executive director, CFO, and board member.
In Q1 FY25, the volume of POCARI SWEAT sold in Japan dropped 7.6 per cent from 4.3 million cases last year to 3.96 million cases.
In the overseas market, the decline in volume sales was 9.2 per cent, down from 9.99 million cases to 9.03 million cases.
Instead, sales of the company’s nutraceutical business was supported by women’s health brands Bonafide and Equelle, and healthier life brands Nature Made.
“Sales in ‘Women’s Health’ increased 11.2 per cent to 14.4 billion yen (US$94.6m) due to increased product awareness through aggressive promotion activities for Bonafide, which supports the diversifying needs of women. Sales of EQUELLE grew steadily due to wide-ranging activities to provide information.
“Sales in ‘Healthier Life’ was up 10.7 per cent to 58.1 billion yen (US$392.4m) due to an increase in market share of Nature Made in the US because of its high trust in brand and quality,” said Makino.
North America was also highlighted as the market leading the growth of its nutraceutical business.
