Alcoholic Drinks in Laos

High per capita alcohol consumption in Laos is due mainly to the popularity of artisanal rice-based spirits such as lao lao and there is considerable room for further growth in licensed sales of packaged products. Laotians tend to be extremely sociable and alcohol consumption is usually tied to socialising at parties and festivals.

Market insight: COVID-19 impact

On-trade sales declines are expected to be seen across alcoholic drinks during 2020 as a result of the COVID-19 pandemic and the official response to it in Laos. In particular, the lockdown that was enforced in the country for several weeks during the second quarter of the year made on-trade establishments unavailable to the population for an extended period, while a generally very strict approach to social distancing and a general willingness to take steps to avoid the risk of contagion meant that there were very few opportunities for socialising outside of the home during the year.

Country insight: COVID-19 impact

On 24 March 2020, Laos became the last country in Southeast Asia to report its first confirmed case of the COVID-19 virus. Movement restrictions were introduced at very short notice from 1 April.

Country insight: Pre-COVID-19

Per capita consumption of alcoholic drinks remains quite high in Laos. Drinking alcoholic is socially acceptable in all parts of the country and this is not expected to change in the near future.

Socioeconomic trends

Laos has been generating strong GDP growth for many years and a 5% increase was registered in 2019, which followed the 6% growth registered in 2018. Such robust economic growth is being supporting by considerable levels of foreign direct investment in the country.

Logistics/infrastructure

Laos is a landlocked country surrounded by Myanmar and China to the north, Vietnam to the east, Cambodia to the south and Thailand to the west. It has no coastline and thus no seaports or harbours.

Legislation

The legal minimum age for the purchase or sale of alcoholic drinks is 18-years-old, although no legal minimum drinking age is defined in law. However, the Laotian Law on Alcohol Control (dated 19 December 2014) mentioned individual responsibility that covered students, young consumers and employees and stated that they must be aware of alcohol and refrain from consumption whenever possible.

Taxation and duty levies

All alcoholic drinks sold in Laos attract sales tax of 10%, while imported products also face an additional import tax of 10%. Domestic products thus benefit from a tax advantage, which enables them to offer lower prices.

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