Friday, 16 July 2010 Market structure and size
Despite the recent global financial crisis and economic recession, Vietnam’s beverage market has managed to remain a strong growth opportunity. Alcoholic consumption in 2009 was estimated at 28,034 billion VND, increasing by 4.47 percent year-on-year (approximately US$1.54 billion, falling by 5.88 percent due to the dong devaluation). Accordingly, beer sales were estimated at 2,005 million liters, increasing by 8.38 percent year-on-year. The figures for wine and spirits were 29.6 million liters (rising 6.09 percent year-on-year) and 16.5 million liters (rising 3.77 percent year-on-year), re- spectively. Although there are no official figures for soft drink sales in Vietnam, it is expected that soft drink consumption in the market is moving in the same positive direction as the alcoholic sector.
The alcoholic sector’s market structure is changing. The low-end market is contracting, as rising consumer incomes begin to erode consumer price sensitivity, according to Vietnam’s Beer, Alcohol, and Soft Drinks Association (VBA). Particularly, the high-end segment in Vietnam for brewery products, which currently accounts for 12 percent in terms of volume, and 20 percent in terms of value. Some major brands names are Heineken, Carlsberg, and Tiger. The respective figures for the middle and the low-end segments are 45 percent and 43 percent in terms of volume, and 50 percent and 30 percent in term of value.
In terms of regional patterns, the North is the biggest market for brewery products. The region consumed more than 1 billion liters of beer last year, accounting for more than 50 percent of the whole country’s consumption. Standing in second is the Southeast (including Ho Chi Minh City, Binh Duong, Binh Phuoc, and Dong Nai, with annual beer consumption of 750 million liters. On the other hand, the Southeast also had more than 50 percent of the total consumption in