Alcoholic Drinks - Vietnam

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

Customer preferences: Vietnamese consumers have shown a growing interest in alcoholic beverages, particularly beer and spirits. Beer is the most popular alcoholic drink in Vietnam, with a strong preference for local brands. Vietnamese consumers tend to favor light and refreshing beers, which are well-suited to the country's hot and humid climate. In addition to beer, there is also a growing demand for spirits, such as whiskey and vodka, among younger consumers who are looking for a more premium and sophisticated drinking experience.

Trends in the market: One of the key trends in the alcoholic drinks market in Vietnam is the increasing popularity of craft beer. Craft beer breweries have been popping up in major cities across the country, offering a wide range of unique and flavorful beers. This trend is driven by a desire for more diverse and high-quality beer options among Vietnamese consumers. Another trend in the market is the rise of cocktail culture, with more bars and restaurants offering a variety of creative and innovative cocktails. This trend is driven by a growing middle class and an increasing number of young professionals who are looking for new and exciting drinking experiences.

Local special circumstances: Vietnam has a strong drinking culture, with alcohol often being consumed as part of social gatherings and celebrations. This cultural aspect contributes to the growth of the alcoholic drinks market in the country. Additionally, Vietnam has a large and young population, which provides a significant consumer base for alcoholic beverages. The country's rapid urbanization and increasing disposable income also contribute to the growth of the market, as more people have the means to purchase alcoholic drinks.

Underlying macroeconomic factors: Several macroeconomic factors contribute to the growth of the alcoholic drinks market in Vietnam. The country's GDP has been steadily increasing, leading to a rise in consumer spending power. This, coupled with a growing middle class, has resulted in higher demand for alcoholic beverages. Furthermore, Vietnam has been experiencing strong economic growth, which has led to an increase in foreign direct investment and a rise in tourism. These factors have contributed to an overall increase in consumer confidence and a greater willingness to spend on discretionary items such as alcoholic drinks.

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.