F&B Insights Asia Magazine Issue3 F&B Insights Asia Magazine Issue3 | Page 21

Insight
Asia
**Source:
Asia Food & Beverages Report
ASEAN
Update
VIETNAM IS BIGGEST
BEER MARKET IN ASEAN
V
‘
ietnam is the biggest beer market in ASEAN with nearly 3.8
billion litres of beer consumed in 2016.
Vietnamese drank 42
litres of beer on average
in 2016, an increase
from 4 litres last year.
Commercial reports from the Ministry of Industry and Trade show
that every Vietnamese drank 42 litres of beer on average in 2016,
an increase from 4 litres last year. The ministry said beer industry’s
growth was 9.3% last year, 14.4% lower than the year-end goal
because excise tax was increased by 5% to 55% last January. It will
be raised to 65% in 2018.
Many brewing facilities had faced difficulties as they were forced
to increase prices and pay tax arrears. Despite the prices, spending
on beer increased. It is projected that 3.9 billion litres of beer will be
produced this year, an increase of 10% compared to 2016. The
beer industry hopes to produce 4.1 billion litres of beer in 2020 and
5.5 billion litres of beer in 2035.
,
According to Canadean research findings, in 2015, average beer
consumption reached 41 litres per person, behind South Korea and
Ja- pan. However, Vietnam’s beer industry growth in the past 5
years has been high at 5.7%. Beer is favoured by many Vietnamese
people as it accounts for 94% of total alcoholic consumption and
the market will continue to grow at the annual rate of 4-5%, thanks
to young population and rising personal incomes.
Sabeco dominates the southern market; Bia Hue (Hue Brewery) of
Carlsberg is well known in the central region, Habeco is favored by
Hanoians; and Heineken is the foreign brand known throughout the
country. In terms of geo- graphical distribution, sales accounted
for 35% in the north, 6% in the central region and 59% in the south.
The difference in beer consumption and taste in different regions
explain the dominance of the brewers. Another report showed
that the 4 big brewers command 90% share of the beer market in
Vietnam.
, Hue Brewery under Carlsberg and Sabeco hold huge market
shares in Vietnam while Heineken is leading the premium segment.
New brands that have just appeared in Vietnam recently such
as Sapporo and AB In- Bev have not been able to gain much
shares yet, however their promotion campaign is posing tough
competition to other brands.
Latest news reported that Heineken has sur- passed Habeco to
become the 2nd largest beer producer in the country. Saigon Beer,
Alcohol and Beverage Corporation (Sabeco) remains the largest
beer producer in Vietnam with 24 breweries and a market share
of 40%, followed by Heineken (25%) and Habeco (18%). Carlsberg
controls 10.8% while other beer producers such as Sapporo, AB
InBev, and Masan take most of the remainder. Carlsberg is seeking
to acquire Habeco in a bid to raise its market share in Vietnam.
Heineken, with 25% share and 5 breweries in Vietnam, is better
known for its high-end products, and holds 67% share of the high-
end market, of which 40% belongs to Tiger and 27% to Heineken.
Vietnam is among the 25 countries with the highest rates of
increase in alcohol and beer consumption in the world. It has 129
brewing facilities mostly in big cities like Hanoi, Hue and HCMC. In
addition, Vietnam also imports 3 million litres and exports over 70
million litres of beer each year.
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