Vietnam Beverage Industry Report

Published by EVBN, 2016, 36 pages

Executive Summary

Vietnam is considered to be one of the region’s most attractive markets for foreign investors with a steadily increasing GDP and booming foreign direct investment, a pattern which is forecasted to remain stable in the upcoming years. The nominal GDP in 2016 is estimated to reach €189.4 billion, recording a y-o-y growth rate of 6.2%. The country’s GDP is forecasted to attain €295.4 billion in 2020.

With a forecasted annual growth rate of 6% to 2020, the beverage industry in Vietnam is amongst the highest growth fast-moving consumer goods industries. Beverage consumption is estimated to reach 81.6 billion litres in 2016 with an outlook to reach 109 billion litres in 2020. Though receiving a humble compound annual growth rate (CAGR) of 3.5% until 2020, the beer sector in Vietnam is considered to have immense opportunities for investment as the country’s consumption is in the top 10 of Asian region and has a favourable per capita consumption at 42 litres in 2020. Wine and spirits and nonalcoholic drinks sectors are also forecasted to have an 8%- and 6.1%-CAGR respectively.

The country’s recent move to middle income level along with rising consumer affluence (GDP per capita is estimated to reach nearly €2,000 in 2016 and is forecasted to accelerate to over €2,800 in 2020) have accelerated the premiumisation momentum in the beverage industry. Vietnamese consumers are shifting towards consumption of beverages with higher value, creating gaps for penetration to upperclass beverage segments. Though both local and foreign players have attempted to act in response to this shift, overseas companies are currently at edge due to the favourability of using international brands of Vietnamese consumers.

Besides an improvement in demographic profile, it should be noted that Vietnamese consumers are the most health-conscious in Southeast Asia, calling for manufacturers to start rethinking market offerings which calibrate towards healthier product portfolio such as fruit juices or herbal teas. Ongoing development of the tourism industry and retailing network in Vietnam also act as catalysts for the growth of beverage industry as they create further demands for high-end drink segments as well as enhance the availability of beverage product lines via modern trade channels.

What is in the report

CHAPTER 1: VIET NAM OVERVIEW

Geo-demographics
Vietnam’s Economy
Structure of consumption expenditures

CHAPTER 2: OVERVIEW OF THE BEVERAGE INDUSTRY IN VIETNAM

Industry Overview
Non-alcoholic Drinks
Alcoholic Drinks
Market Trends
Key Growth Drivers

CHAPTER 3: COMPETITION ANALYSIS

Case study: Hanoi Liquor Joint Stock Company (Halico)
Case study: Carlsberg Vietnam

CHAPTER 4: CONSUMERS AND DISTRIBUTION

Profile of end consumer
Distribution channels

CHAPTER 5: REGULATORY AND LEGAL FRAMEWORK

Regulatory and Legal Framework
Market entry forms
Impact of the EU-Vietnam Free Trade Agreement (EVFTA)

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