Wine - Vietnam

The Wine market in Vietnam has been experiencing significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: Vietnamese consumers have traditionally favored beer and spirits over wine. However, there has been a shift in consumer preferences towards wine in recent years. This can be attributed to several factors. Firstly, there is a growing middle class in Vietnam with higher disposable incomes, leading to an increased demand for premium and luxury products, including wine. Secondly, wine is perceived as a healthier alternative to other alcoholic beverages, as it is often associated with a more sophisticated and refined lifestyle. Lastly, there is a growing interest in Western culture and lifestyle among Vietnamese consumers, and wine is seen as a symbol of Western sophistication and elegance.

Trends in the market: One of the key trends in the wine market in Vietnam is the increasing popularity of imported wines, particularly from countries such as France, Italy, and Australia. Imported wines are seen as higher quality and more prestigious than domestically produced wines. This trend is driven by the growing demand for premium and luxury products among Vietnamese consumers. Another trend is the rise of online wine retailers and e-commerce platforms, which provide consumers with a convenient and accessible way to purchase wine. This trend is in line with the overall growth of e-commerce in Vietnam and the increasing digitization of retail.

Local special circumstances: Vietnam has a unique cultural and culinary heritage, which influences consumer preferences and consumption patterns. Vietnamese cuisine is known for its vibrant flavors and diverse ingredients, and wine is increasingly being paired with traditional Vietnamese dishes. This presents opportunities for wine producers to market their products as a complement to Vietnamese cuisine. Additionally, Vietnam has a growing tourism industry, with an increasing number of international visitors. This has led to a greater exposure to international cultures and cuisines, including wine. As a result, there is a growing demand for wine among both domestic and international consumers in Vietnam.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the wine market in Vietnam. Firstly, Vietnam has experienced strong economic growth in recent years, resulting in an increase in disposable incomes and a growing middle class. This has led to an expansion of the consumer market and an increase in purchasing power. Secondly, Vietnam has a young and urbanizing population, with a high proportion of young adults who are more open to trying new products and experiences. This demographic trend has created a favorable environment for the growth of the wine market. Lastly, Vietnam has been actively promoting itself as a tourist destination, attracting a large number of international visitors. This has increased the exposure of Vietnamese consumers to international products and cultures, including wine. In conclusion, the Wine market in Vietnam is experiencing growth due to changing consumer preferences, the rise of imported wines, the increasing popularity of online wine retailers, the unique culinary heritage of Vietnam, and underlying macroeconomic factors such as strong economic growth and a growing middle class.

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.