Market Scenario

Vietnam beer market was valued at US$ 7,526.3 million in 2023 and is projected to surpass the market valuation of US$ 14,154.2 million by 2032 at a CAGR of 7.27% during the forecast period 2024–2032.

The Vietnam beer market stands as a significant player in the Southeast Asian market. In 2022, Vietnam's annual beer consumption reached an impressive 3.8 million kiloliters, accounting for 2.2% of the global market. This achievement places Vietnam at the forefront in the ASEAN region and third in Asia, surpassed only by China and Japan. Despite this, the industry faces challenges due to global economic difficulties and tightening government regulations on alcohol consumption, especially for traffic participants, which may impact future consumption levels. 

As per analysis, the Vietnamese beer market is highly concentrated, dominated by four major brands: Sabeco, Habeco, Heineken, and Carlsberg. These brands have shown remarkable production and financial growth. For instance, Heineken Vietnam, operating six breweries across the country, produces 1.1 billion liters of beer annually, making its Vung Tau brewery the largest in Southeast Asia. Sabeco, with 26 factories, boasts an annual production capacity of over 2.2 billion liters and exports to 30 countries. Habeco, primarily serving the northern provinces of Vietnam, produces over 800 million liters per year. Carlsberg, with a plant in Hue, adds significantly to this volume with a capacity of 360 million liters per year. Apart from this, Sapporo Vietnam, Halong Beer, and international brands such as Budweiser, Corona, and Stella Artois also contribute substantially to the market. The industry has seen a notable increase in beer consumption per capita, estimated at 43-46 liters per person per year. This growth is driven by factors like economic advancement, urbanization, and changing consumer preferences, with beer often being the beverage of choice at social gatherings.

In terms of international trade, Vietnam exported $82.5 million worth of beer in 2022, with the United States, Singapore, and Thailand being the primary destinations. Conversely, the country imported $27.4 million in beer, mainly from Singapore, China, and the Netherlands. These figures reflect Vietnam's growing influence in the global beer market.

The industry is not without its challenges. The Vietnamese government imposes significant excise taxes on alcoholic beverages and has implemented restrictions on advertising to address public health concerns. These measures, along with alcohol control programs and campaigns, impact beer prices and consumption patterns. Additionally, the rising cost of production materials such as malt, hops, rice, and sugar further strain the industry. Despite these challenges, companies like SABECO are setting ambitious targets for 2023, aiming for net revenues of VND40.28 trillion ($1.72 billion) and an after-tax profit of $246 million. This optimism is fueled by digital transformation initiatives and a commitment to sustainable development, aligning with national strategies and corporate goals. 

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Market Dynamics 

Driver: Favorable Demographic and Economic Influences Spurring Beer Demand in Vietnam

The expansion of Vietnam's beer industry is significantly influenced by demographic and economic factors. Central to this is the burgeoning young population, a demographic that actively contributes to the growing demand for alcoholic beverages, especially beer. This youthful demographic, along with rising disposable incomes, is a pivotal driver for the market. The young population in Vietnam, which forms a substantial portion of the beer-consuming demographic, has been increasing steadily. Coupled with this is the rise in disposable incomes, contributing to higher spending on leisure activities, including beer consumption. Urbanization, another key factor, has led to an increase in entertainment venues such as bars and restaurants, further boosting beer consumption. The cultural significance of beer in Vietnamese social gatherings and celebrations also plays a crucial role.

The presence of a diverse range of beer options, from domestic to international brands, caters to varied tastes and preferences. This diversity is not just about flavor but also includes a range of prices, making beer accessible to different income groups. Additionally, the evolving lifestyle patterns, influenced by global trends and the increasing exposure to international brands, have led to a broader acceptance and popularity of beer among various demographic groups in Vietnam. Given these factors, the Vietnam beer market is poised for continued growth. The interplay of these demographic and economic elements not only drives current consumption patterns but also sets the stage for future market developments.

Trend: Shifting Focus of Consumers Towards Craft and Premium Beer

Trend: The Vietnam beer market is witnessing a significant shift towards the craft and premium beer segments. This trend reflects a change in consumer preferences, with an increasing number of consumers seeking unique and high-quality beer experiences. The craft beer segment, though still a niche market in Vietnam, has been growing at an impressive rate, with a significant number of craft beer establishments opening in major cities. Secondly, the premium beer segment has also seen substantial growth, with imported premium brands gaining popularity among Vietnamese consumers. Thirdly, consumer surveys indicate a growing willingness among Vietnamese beer drinkers to pay more for premium and craft beers, driven by a desire for quality and variety.

In the last few years, the Vietnam beer market has witnessed a significant surge in the beer festivals and events focusing on craft and premium beers. These events not only serve as platforms for brand promotion but also educate consumers about the diversity of beer. Moreover, social media and digital marketing have played a crucial role in promoting these beer segments, particularly among the younger, tech-savvy population. These trends indicate a maturing beer market in Vietnam, where consumers are increasingly informed and discerning in their choices. This shift towards premiumization presents opportunities for both local brewers and international brands to innovate and cater to the evolving tastes of Vietnamese consumers.

Opportunities: Untapped Potential of Market Expansion and Premiumization

Opportunity: The Vietnam beer market presents significant growth opportunities, particularly in the context of market expansion and premiumization. There is an increasing trend towards premiumization, with consumers showing a greater willingness to spend on imported and high-quality beers. This trend is particularly evident among the middle and upper-income groups, who are seeking more diverse and sophisticated beer experiences. Furthermore, the intense competition in the market, both among local and international brands, is fostering innovation and quality improvement. This competition is not only driving the growth of premium and craft beer segments but also encouraging companies to explore export opportunities. The Vietnamese beer brands are increasingly looking at neighboring countries and international markets for expansion, which is likely to lead to further growth in the industry.

The intensifying competition within the market is driving innovation and quality enhancements across the board. This competitive landscape is not only encouraging the growth of premium and craft beer segments but is also prompting Vietnamese beer brands to explore international markets, particularly in neighboring countries. This expansion is crucial for the long-term growth and sustainability of local brands in the global beer market. In addition to geographical expansion, there's a significant opportunity in aligning beer products with emerging consumer values such as sustainability and health consciousness. The rising interest in organic, low-alcohol, or environmentally-friendly beer options offers a new avenue for product differentiation and market capture. This alignment with contemporary consumer values is not just a trend but a business imperative in an increasingly socially conscious global market.

Segmental Analysis 

By Type 

Based on type, the Vietnamese beer market is led by the lager beer segment. In 2023, it not only dominated the market by type but also generated remarkable revenue of $4.8 billion. This segment is characterized by its crisp and refreshing taste, which appeals to a wide range of consumers, from casual drinkers to beer aficionados. Its popularity is also driven by its accessibility and affordability, making it a go-to choice for many. The preference for lager in Vietnam aligns with global trends where lager is often the most consumed beer type.

The lager segment is also expected to grow at the fastest CAGR of 7.61% during the forecast period. This growth can be attributed to several factors. The increasing number of young adults reaching legal drinking age, combined with a growing middle class, contributes significantly to the rising consumption of lager beer. The introduction of various lager flavors by both local and international brewers is another factor stimulating the market growth, as it caters to the evolving taste preferences of consumers. The expanding distribution networks and marketing strategies employed by breweries are also instrumental in popularizing lager beer, ensuring its continued dominance in the Vietnamese market.

By Packaging Type 

The Vietnamese beer market, in terms of packaging type, is led by the bottle segment, which generated a revenue of $3.50 billion in 2023. This preference for bottled beer can be attributed to various factors. Bottles are traditionally associated with premium quality, and many consumers perceive bottled beer to be superior in taste and freshness compared to other packaging types. This perception plays a significant role in influencing consumer choices, especially among those who value the quality of their beer.

The bottle segment is also projected to grow at the highest CAGR of 7.50% in the coming years. This growth is likely driven by the convenience and portability of bottles, making them a popular choice for both in-home consumption and social gatherings. The ability of glass bottles to preserve the flavor and quality of beer over time is another factor contributing to their popularity. Additionally, the aesthetic appeal of bottles, often used as a branding tool by breweries, resonates well with consumers seeking a premium drinking experience.

Environmental concerns and sustainability initiatives are influencing the market too. Many breweries are adopting eco-friendly practices, such as using recyclable or reusable bottles, which appeals to environmentally conscious consumers. The advancements in bottling technology, leading to more durable and lightweight bottles, are expected to further bolster the growth of this segment in the Vietnamese beer market.

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By Brewery Type

In the Vietnamese beer industry, macrobreweries are leading the market with a revenue of $4.85 million in 2023. This dominance is reflective of the scale and reach of macrobreweries, which have long been central to the country's beer market. These large-scale breweries are known for their extensive production capacities, allowing them to cater to the mass market efficiently. The ability to produce beer on such a large scale also enables macrobreweries to maintain cost-effectiveness, making their products affordable to a broad consumer base. The macrobrewery segment in Vietnam is projected to continue its growth trajectory at a CAGR of 7.47% in the years to come. This growth can be attributed to established strong brand recognition and loyalty among consumers, which is vital in a market where brand identity plays a significant role in consumer choice. The consistent quality and flavor profiles that these breweries offer have helped in maintaining a steady consumer base.

Apar from this, the distribution networks of macrobreweries are expansive, ensuring their products are widely available across various retail channels. This widespread availability is crucial in a country where beer consumption is culturally ingrained and widespread. Additionally, macrobreweries in Vietnam have been adapting to market changes by diversifying their product offerings. They are increasingly incorporating new flavors and specialty beers into their portfolios to cater to the evolving tastes of consumers, especially the younger demographics. This strategy of product diversification, coupled with robust marketing campaigns, helps in retaining market dominance and appealing to new customer segments. The international expansion of these breweries also plays a significant role in their growth. By exporting to other countries, they not only increase their revenue streams but also enhance their brand prestige both domestically and globally.

By Distribution Channel 

In terms of distribution channels, the Vietnamese beer market is predominantly led by the offline segment. In 2023, this segment generated substantial revenue of $3.98 billion. The dominance of offline channels can be attributed to several factors. The traditional shopping experience, where consumers can physically inspect products, remains a crucial aspect of the Vietnamese retail culture. Supermarkets, convenience stores, and liquor stores offer a wide variety of beer choices, catering to different consumer preferences, which drives sales in these channels.

The social aspect of buying beer from brick-and-mortar stores, especially in a culture that values social connections and interactions, also contributes to the preference for offline shopping. Additionally, the immediate availability of products in physical stores meets the spontaneous purchase behavior often associated with beer buying.

Conversely, the online segment, though smaller in comparison, is projected to grow at the highest CAGR of 7.46% during the forecast period. This growth is fueled by the increasing internet penetration, the proliferation of e-commerce platforms, and the growing trend of online shopping among the younger, tech-savvy population. The convenience of home delivery, the ability to browse a wide range of products online, and competitive pricing are factors contributing to the growth of the online beer market in Vietnam. The rising trend of omnichannel marketing strategies, where breweries and retailers integrate both offline and online channels, is expected to further enhance the growth of the online segment. This strategy not only broadens the consumer base but also provides a seamless shopping experience, catering to the diverse purchasing preferences of Vietnamese consumers. As the market evolves, the online segment is poised to play an increasingly significant role in the distribution of beer in Vietnam.

Top Players in Vietnam Beer Market 

• AB Inbev
• Carlsberg Vietnam
• Hanoi Beer Alcohol and Beverage Corporation
• Heineken Vietnam
• Saigon Beer Alcohol Beverage Corporation (Sabeco)
• Sapporo Breweries
• Halong Beer and Beverage
• Other Prominent Players

Market Segmentation Overview:

By Type

• Lager
• Ale
• Stout
• Wheat
• Others

By Packaging Type

• Bottle
• Can
• PET

By Brewing Type

• Macro Brewery
• Micro Brewery
• Craft Brewery

By Distribution Channel

• Online
• Offline