Hard Seltzer - Vietnam

The Hard Seltzer market in Vietnam has seen significant growth in recent years, driven by changing consumer preferences and a growing demand for low-alcohol and low-calorie beverages.

Customer preferences: Vietnamese consumers are increasingly seeking healthier beverage options, and this has contributed to the rise in popularity of Hard Seltzers. These drinks are often marketed as low-calorie and low-sugar alternatives to traditional alcoholic beverages, appealing to health-conscious individuals who want to enjoy a refreshing drink without the guilt. Additionally, the younger generation in Vietnam is more open to experimenting with new and unique flavors, which has further fueled the demand for Hard Seltzers.

Trends in the market: One of the key trends in the Hard Seltzer market in Vietnam is the introduction of locally-inspired flavors. Manufacturers are incorporating traditional Vietnamese ingredients and flavors into their products, catering to the local palate and creating a sense of familiarity. This trend has resonated well with consumers, as they can enjoy the refreshing taste of Hard Seltzers while also experiencing the flavors of their culture. Another trend in the market is the increasing number of product launches by both local and international brands. As the demand for Hard Seltzers continues to grow, companies are capitalizing on this opportunity by introducing new flavors and variants to cater to different consumer preferences. This has led to a wider variety of options for consumers and has contributed to the overall market growth.

Local special circumstances: Vietnam has a young and dynamic population, with a rising middle class and increasing disposable income. This has created a favorable market environment for the Hard Seltzer industry, as consumers have more purchasing power and are willing to spend on premium and innovative products. Additionally, the country has a vibrant nightlife and a growing urban culture, which has further fueled the demand for trendy and fashionable alcoholic beverages like Hard Seltzers.

Underlying macroeconomic factors: Vietnam's economy has been growing steadily in recent years, with a strong focus on tourism and hospitality. This has led to an increase in the number of bars, restaurants, and entertainment venues, providing more opportunities for the sale and consumption of Hard Seltzers. Additionally, the country has a large young population, who are more open to trying new products and are driving the demand for trendy and innovative beverages. In conclusion, the Hard Seltzer market in Vietnam is experiencing significant growth due to changing consumer preferences, the introduction of locally-inspired flavors, and the increasing number of product launches. The country's young and dynamic population, along with its growing economy and urban culture, provide a favorable market environment for the industry to thrive. As the demand for healthier and low-alcohol beverages continues to rise, the Hard Seltzer market in Vietnam is expected to further expand in the coming years.

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.