Market Insights Consumer Alcoholic Drinks

Spirits - Vietnam

Vietnam

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to €283.4m in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to €28.1m in 2024.
Revenue, combined amounts to €311.5m in 2024.
The revenue, at home is expected to grow annually by 3.19% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated in China (€134,300m in 2024).
In relation to total population figures, the average revenue per capita, at home of €2.85 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 45.9m L by 2024.
Volume, out-of-home is expected to amount to 3,225.0k L in 2024.
Volume, combined is expected to amount to 49.1m L in 2024.
The Spirits market is expected to show a volume growth, at home of -0.2% in 2025.
The average volume per person, at home in the Spirits market is expected to amount to 0.46L in 2024.

Key regions: United States, United Kingdom, Worldwide, United Kingdom, Australia

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

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Analyst Opinion

The Spirits market in Vietnam has been experiencing significant growth in recent years.

Customer preferences: Vietnamese consumers have shown a growing interest in premium and imported spirits. This shift in preferences can be attributed to the increasing disposable income and changing lifestyle of the middle class population. With a rising middle class and a younger population, there is a growing demand for higher quality and more diverse spirits.

Trends in the market: One of the key trends in the Vietnamese Spirits market is the increasing popularity of whisky. Whisky consumption has been on the rise, driven by the growing number of young professionals and the influence of Western culture. Whisky is seen as a sophisticated and trendy drink, appealing to the aspirational lifestyle of the younger generation. Another trend in the market is the rising demand for craft spirits. Vietnamese consumers are becoming more discerning and are seeking unique and artisanal products. Craft spirits offer a different flavor profile and are often made with locally sourced ingredients, appealing to consumers who value authenticity and quality.

Local special circumstances: Vietnam has a rich cultural heritage and a strong tradition of alcohol consumption. Local spirits such as rice wine and herbal liquors have long been a part of Vietnamese culture. Despite the growing popularity of imported spirits, these traditional drinks continue to have a strong presence in the market. Many Vietnamese consumers have a deep emotional attachment to these local spirits, which are often consumed during special occasions and celebrations.

Underlying macroeconomic factors: The strong economic growth in Vietnam has played a significant role in the development of the Spirits market. The country has experienced a rapid increase in per capita income, leading to an expansion of the middle class. This has resulted in higher purchasing power and increased spending on luxury goods, including premium spirits. Additionally, the tourism industry in Vietnam has been booming, attracting a large number of international visitors who are interested in experiencing the local culture, including its traditional drinks and spirits. In conclusion, the Spirits market in Vietnam is experiencing growth due to changing customer preferences, including a shift towards premium and imported spirits, as well as the increasing demand for craft spirits. The market is also influenced by local special circumstances, such as the strong cultural heritage of alcohol consumption in Vietnam. The underlying macroeconomic factors, including strong economic growth and a thriving tourism industry, further contribute to the development of the market. Overall, the Spirits market in Vietnam presents opportunities for both local and international spirits brands to tap into the growing demand and cater to the evolving preferences of Vietnamese consumers.

Methodology

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.