Alcoholic Drinks in Vietnam
Euromonitor International's Alcoholic Drinks in Vietnam market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 123 | Publication date: Feb 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Alcoholic drinks recorded strong performance in 2008
Thanks to the improvement in Vietnam’s economy there has been a significant increase in consumers’ disposable incomes as well as their living standards, especially as Western habits are being absorbed quickly by a growing number of young consumers, male and female alike. These factors contributed greatly to the strong performance of alcoholic drinks in Vietnam as manufacturers are motivated to expand their capacity, diversify their products as well as launch many promotional campaigns to attract consumers. The potential of this market has also attracted the interest of many multinationals to establish as well as strengthen their presence in Vietnam.
Beer continued to lead growth in 2008
In 2008, while volume growth in other sectors such as spirits and wine was slower or remained the same, beer showed a stronger performance compared to the review period CAGR. This is because of the growing Vietnamese habit of drinking beer, and with higher incomes, consumers are switching to beer with better taste. In fact, not only are local manufacturers trying to improve their product quality, many international manufacturers such as Anheuser-Busch have also set up operations in Vietnam, bringing more premium beer to consumers.
Spirits growth in 2008 was slightly slower than the review period CAGR due to counterfeit and contraband issues which caused considerable caution among consumers when purchasing these products. Wine growth remained largely unchanged due to growing maturity and a downturn in the economy.
SABECO remains leader while Vietnam Brewery and HABECO move up
In 2007, Saigon Brewery Co (SABECO) remained the leader in alcoholic drinks. Vietnamese consumers are familiar with the company mainly through its beer brands 333’ export and Saigon, which are positioned very well in the standard lager segment. Its success was also attributed to several other factors including recently re-structured nationwide distribution, and frequent advertising and promotional campaigns.
Vietnam Brewery was the second-ranked player in alcoholic drinks in 2007, followed by Hanoi Brewery (HABECO). While SABECO’s market share was unchanged in 2007, the next two companies in the ranking showed an increase in share through various activities such as enhancing production capacity and product quality as well as brand image, which made the market more competitive and were beneficial to consumers.
On-trade channel dominates distribution
The on-trade channel, including hotels, restaurants, bars, pubs and discotheques, continues to do well and dominates volume sales of alcoholic drinks. Indeed, with higher disposable incomes, many more Vietnamese can afford and often prefer to socialise with friends, engage in business and consume alcoholic drinks in a bar or restaurant to enjoy an attractive atmosphere with food and music. In addition, more and more premium restaurants, hotels and sophisticated bars and discotheques have been opened up targeting the growing number of affluent, young Vietnamese, expatriates, and foreign tourists. This has spurred growth in the sale of alcoholic drinks through on-trade channels as compared to off-trade outlets.
Alcoholic drinks expect healthy growth over the forecast period
As the Vietnamese economy is expected to continue to progress well over the next few years, leading to higher disposable incomes as well as modern lifestyles, alcoholic drinks sales are projected to continue their healthy growth. However, there may be a slight slowdown in volume terms, especially for low-end products, as consumers move towards higher standard products thanks to their greater purchasing power. More new types of premium products are expected to be launched in each sector, especially with the presence of well-known multinationals such as Asahi Breweries and Anheuser-Busch, etc.
Table of contents
ALCOHOLIC DRINKS IN VIETNAM : MARKET INSIGHT
EXECUTIVE SUMMARY
Alcoholic drinks recorded strong performance in 2008
Beer continued to lead growth in 2008
SABECO remains leader while Vietnam Brewery and HABECO move up
On-trade channel dominates distribution
Alcoholic drinks expect healthy growth over the forecast period
KEY TRENDS AND DEVELOPMENTS
Increasing consumer base and living standards drive alcoholic drinks growth
New drinking habits emerge among Vietnamese consumers
Tougher competition as a result of global integration
Multinationals strengthen their presence in the market
More brand promotion activities to retain competitive advantage
Specialist retailers
Market mergers and acquisitions activity
Summary 1 Speculative Mergers and Acquisitions Activity
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2008
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 3 Selling Margin of a Typical Domestically Produced Beer Brand 2008 - Larue
Table 4 Selling Margin of a Typical Domestically Produced Wine Brand 2008 - Dalat
Table 5 Selling Margin of a Typical Imported Wine Brand 2008 – Jacob’s Creek
Table 6 Selling Margin of a Typical Domestically Produced Spirits Brand 2008 – Hanoi Lua Moi
Table 7 Selling Margin of a Typical Imported Spirits Brand 2008 – Smirnoff Red
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 8 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 9 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 10 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 12 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 17 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 18 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 19 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Sources
Summary 2 Research Sources
LOCAL COMPANY PROFILES - VIETNAM
DONG XUAN LIQUOR CO LTD - ALCOHOLIC DRINKS - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Dong Xuan Liquor Co Ltd: Key Facts
Summary 4 Dong Xuan Liquor Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 5 Dong Xuan Liquor Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 6 Dong Xuan Liquor Co Ltd: Competitive Position 2007
HANOI BREWERY CO - ALCOHOLIC DRINKS - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Hanoi Brewery Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 8 Hanoi Brewery: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 9 Hanoi Brewery Co: Competitive Position 2007
LAMDONG FOODSTUFFS JSC (LADOFOODS) - ALCOHOLIC DRINKS - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 10 LamDong Foodstuffs JSC: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 11 LamDong Foodstuffs JSC: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 12 LamDong Foodstuffs JSC: Competitive Position 2007
SAIGON BREWERY CO (SABECO) - ALCOHOLIC DRINKS - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Saigon Brewery Co: Key Facts
Summary 14 Saigon Brewery Co: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 15 Saigon Brewery Co: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 16 Saigon Brewery Co: Competitive Position 2007
THANG LONG LIQUOR CO - ALCOHOLIC DRINKS - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Thang Long Liquor Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 18 Thang Long Liquor Co: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 19 Thang Long Liquor Co: Competitive Position 2007
BEER IN VIETNAM
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 20 Lager by Price Band 2008
Published Data Comparisons
SECTOR DATA
Table 24 Sales of Beer by Subsector: Total Volume 2003-2008
Table 25 Sales of Beer by Subsector: Total Value 2003-2008
Table 26 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 27 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 32 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 33 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 34 Beer Exports by Country of Destination: Total Value 2002-2007
Table 35 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 36 Beer Imports by Country of Origin: Total Value 2002-2007
Table 37 Company Shares of Beer by National Brand Owner 2003-2007
Table 38 Company Shares of Beer by Global Brand Owner 2003-2007
Table 39 Brand Shares of Beer 2004-2007
Table 40 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 41 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 42 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 43 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013
CIDER/PERRY IN VIETNAM
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published Data Comparisons
RTDS/HIGH-STRENGTH PREMIXES IN VIETNAM
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published Data Comparisons
WINE IN VIETNAM
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
Published Data Comparisons
SECTOR DATA
Table 44 Sales of Wine by Subsector: Total Volume 2003-2008
Table 45 Sales of Wine by Subsector: Total Value 2003-2008
Table 46 Sales of Wine by Subsector: % Total Volume Growth 2003-2008
Table 47 Sales of Wine by Subsector: % Total Value Growth 2003-2008
Table 48 Sales of Wine by On-trade vs Off-trade Split: Volume 2003-2008
Table 49 Sales of Wine by On-trade vs Off-trade Split: Value 2003-2008
Table 50 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 51 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 52 Volume Sales of Still Red Wine by Price Segment 2003-2008
Table 53 Volume Sales of Still White Wine by Price Segment 2003-2008
Table 54 Volume Sales of Still Rosé Wine by Price Segment 2003-2008
Table 55 Volume Sales of Other Sparkling Wine by Price Segment 2003-2008
Table 56 Sales of Still Red Wine by Grape/Varietal Type 2003-2008
Table 57 Sales of Still White Wine by Grape/Varietal Type 2003-2008
Table 58 Sales of Still Rosé Wine by Grape/Varietal Type 2003-2008
Table 59 Sales of Still Red Wine by Quality Classification 2003-2008
Table 60 Sales of Still White Wine by Quality Classification 2003-2008
Table 61 Sales of Still Rosé Wine by Quality Classification 2003-2008
Table 62 Wine Production, Imports and Exports: Total Volume 2002-2007
Table 63 Wine Exports by Country of Destination: Total Volume 2002-2007
Table 64 Wine Exports by Country of Destination: Total Value 2002-2007
Table 65 Wine Imports by Country of Origin: Total Volume 2002-2007
Table 66 Wine Imports by Country of Origin: Total Value 2002-2007
Table 67 Company Shares of Still Light Grape Wine by National Brand Owner 2003-2007
Table 68 Company Shares of Still Light Grape Wine by Global Brand Owner 2003-2007
Table 69 Brand Shares of Still Light Grape Wine 2004-2007
Table 70 Company Shares of Champagne by National Brand Owner 2004-2007
Table 71 Company Shares of Champagne by Global Brand Owner 2004-2007
Table 72 Brand Shares of Champagne 2004-2007
Table 73 Company Shares of Non-grape Wine by National Brand Owner 2004-2007
Table 74 Company Shares of Non-grape Wine by Global Brand Owner 2004-2007
Table 75 Brand Shares of Non-grape Wine 2004-2007
Table 76 Forecast Sales of Wine by Subsector: Total Volume 2008-2013
Table 77 Forecast Sales of Wine by Subsector: Total Value 2008-2013
Table 78 Forecast Sales of Wine by Subsector: % Total Volume Growth 2008-2013
Table 79 Forecast Sales of Wine by Subsector: % Total Value Growth 2008-2013
SPIRITS IN VIETNAM
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Vodka, gin and other blended Scotch whisky price band methodology
Published data comparisons
SECTOR DATA
Table 80 Sales of Spirits by Subsector: Total Volume 2003-2008
Table 81 Sales of Spirits by Subsector: Total Value 2003-2008
Table 82 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008
Table 83 Sales of Spirits by Subsector: % Total Value Growth 2003-2008
Table 84 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008
Table 85 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008
Table 86 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 87 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 88 Sales of Other Blended Scotch Whisky by Premium/Super-premium Split 2003-2008
Table 89 Sales of Gin by Premium/Super-premium Split 2003-2008
Table 90 Sales of Vodka by Premium/Super-premium Split 2003-2008
Table 91 Sales of Flavoured vs Non-flavoured Vodka 2003-2008
Table 92 Spirits Production, Imports and Exports: Total Volume 2002-2007
Table 93 Spirits Exports by Country of Destination: Total Volume 2002-2007
Table 94 Spirits Exports by Country of Destination: Total Value 2002-2007
Table 95 Spirits Imports by Country of Origin: Total Volume 2002-2007
Table 96 Spirits Imports by Country of Origin: Total Value 2002-2007
Table 97 Company Shares of Spirits by National Brand Owner 2003-2007
Table 98 Company Shares of Spirits by Global Brand Owner 2003-2007
Table 99 Brand Shares of Spirits 2004-2007
Table 100 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013
Table 101 Forecast Sales of Spirits by Subsector: Total Value 2008-2013
Table 102 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013
Table 103 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013