Beer - Vietnam

Vietnam, known for its vibrant street food culture and beautiful landscapes, is also a country where the Beer market has been experiencing significant growth in recent years.

Customer preferences: Vietnamese consumers have shown a growing preference for beer as their alcoholic beverage of choice. This can be attributed to several factors, including the cultural significance of beer in Vietnamese social gatherings and the increasing popularity of Western-style bars and pubs. Additionally, the hot and humid climate in Vietnam makes beer a refreshing and enjoyable drink for many locals and tourists alike.

Trends in the market: One of the key trends in the beer market in Vietnam is the rise of craft beer. Craft breweries have been popping up across the country, offering a wide variety of unique and flavorful beers. This trend can be attributed to the growing demand for premium and high-quality products among Vietnamese consumers. Craft beer appeals to those who are looking for a more diverse and sophisticated drinking experience. Another trend in the market is the increasing popularity of low-alcohol and non-alcoholic beers. Health-conscious consumers are seeking alternatives to traditional beer that have lower calorie content and are less intoxicating. This trend aligns with the global shift towards healthier lifestyles and the growing awareness of the negative effects of excessive alcohol consumption.

Local special circumstances: Vietnam has a large and young population, with a significant portion of the population falling within the legal drinking age. This demographic factor contributes to the growth of the beer market as there is a large consumer base for beer products. Additionally, Vietnam's tourism industry has been booming in recent years, attracting millions of international visitors who also contribute to the demand for beer.

Underlying macroeconomic factors: Vietnam's growing economy and rising disposable incomes have played a significant role in the development of the beer market. As people's purchasing power increases, they are more willing to spend on discretionary items such as alcoholic beverages. Furthermore, the government's efforts to promote tourism and foreign investment have attracted multinational beer companies to establish a presence in Vietnam, further driving the growth of the market. In conclusion, the beer market in Vietnam is experiencing growth due to the preferences of Vietnamese consumers, including their cultural affinity for beer and the refreshing nature of the beverage. The rise of craft beer and the demand for low-alcohol and non-alcoholic options reflect changing consumer preferences and global trends. Vietnam's young population, booming tourism industry, and growing economy are also contributing factors to the development of the beer market in the country.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.