Vietnam Beer Market By Type (Ale, Lager, Lambic), By Production (Macro Brewery, Micro Brewery, Craft Brewery), By Packaging (Bottles, Cans), By Category (Alcoholic, Non-Alcoholic), By End User (Residential, Commercial), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

The Vietnam Beer market was valued at USD 3.45 billion in 2024 and is expected to grow to USD 4.78 billion by 2030 with a CAGR of 6.42% during the forecast period. The Vietnam Beer market is driven by the rapidly growing young population, which constitutes a significant consumer base for beer. With expanding middle class and increasing disposable incomes, more consumers are willing to spend on premium, craft, and imported beers. Urbanization is another driving factor, as more people in cities are consuming beer in social settings, boosting demand for diverse beer options. Also, the rise of the craft beer segment in Vietnam reflects a shift in consumer preferences toward unique, high-quality brews. Growing social acceptance of alcohol consumption, especially among younger demographics, and increased availability through expanding retail channels further contribute to the market's growth. These factors combined are positioning Vietnam as a rapidly growing market for beer in the Asia-Pacific region.

Key Market Drivers

Growing Consumption of Beer

The growing consumption of beer is a significant driver of the Vietnam beer market. The country has a young and vibrant population, with a high proportion of consumers in the legal drinking age group. As a part of this, according to the Government of Canada, lager beer accounts for most retail beer sales in Vietnam, with sales increasing by 3.1% per year from 2018 to 2022 and expected to rise by 9.8% per year to 7.9 billion litres by 2027. Domestic premium lager grew the fastest at 12.4% per year, followed by domestic economy lager (5.4%) and standard beer (3.1%). As disposable income rises, more consumers are willing to purchase higher-quality and premium beer options. Beer consumption is deeply embedded in Vietnamese social culture, particularly during gatherings and celebrations, contributing to its widespread popularity.

Also, the urbanization trend is leading to an increased presence of bars, restaurants, and retail outlets offering a wide range of beer varieties, from traditional local brands to imported and craft beers. The growing tourism sector also boosts beer demand, as international visitors bring diverse drinking habits. As beer consumption continues to rise among both locals and tourists, the Vietnam beer market is expected to expand further.

Expansion Strategy Adopted by Key Player

The range of expansion strategy adopted by major players to expand its production facility to better serve the customers is likely to boost its market growth. As a part of this, as of June 2024, Heineken Vietnam Brewery Limited Company (Heineken Vietnam) intends to begin building on a USD 540-million facility expansion project in Ba Ria-Vung Tau province, increasing yearly output by 500 million liters. 500 million liters per year is more than twice the yearly output of the Heineken factory in Quang Nam province, which produces 220 million liters.

Increasing Disposable Income

Increasing disposable income is a key factor driving the Vietnam beer market. As the country’s economy grows, particularly in urban areas, more consumers have the financial flexibility to spend on discretionary products like beer. As a part of this, according to a recent study, as of 2024, the household disposable income per capita in Vietnam is expected to be USD 3. 50k.The rising middle class, especially among young adults and working professionals, is more willing to invest in premium and craft beers, reflecting a shift in consumer preferences toward higher-quality alcoholic beverages. The trend is further supported by the growth of modern retail outlets, bars, restaurants, and social venues offering diverse beer selections.

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Key Market Challenges

 Increased Taxation Rate

Increased taxation rates pose a significant challenge to the Vietnam beer market. The government has periodically raised taxes on alcohol, including beer, to curb excessive drinking and improve public health. While these measures aim to reduce alcohol-related harm, they also lead to higher prices for consumers, which can dampen demand, particularly for mass-market beer brands. As a part of this, as of June 2024, Vietnam's Finance Ministry recommended raising a special consumption tax on alcoholic beverages to 100% by 2030, a move that might severely harm the country's beverage industry. Under the draft proposal, which is awaiting legislative approval, the special consumption tax on beer and strong liquor will be hiked to 70% to 80% by 2026, gradually increasing to 90% to 100% by 2030, up from the current 65%.

Intense Competition Among Key Players

Intense competition among key players is a significant challenge in the Vietnam beer market. The market is highly fragmented, with numerous local and international brands vying for consumer attention. Leading local breweries, such as Platinum, dominate the market, but global players like Heineken, Carlsberg, and Asahi are also increasing their presence. Also, the rise of craft beer breweries introduces further competition, as consumers are increasingly drawn to unique, high-quality options. This competitive landscape leads to price wars, marketing battles, and a constant push for innovation. As a result, maintaining a competitive edge in this crowded market remains a significant challenge for all players.

Key Market Trends

Rising Popularity of Innovative Packaging

The rising popularity of innovative packaging is a significant trend in the Vietnam beer market. With increasing competition and changing consumer preferences, breweries are adopting unique and creative packaging solutions to stand out on store shelves and attract attention. This includes the use of eco-friendly materials, such as recyclable cans and bottles, which appeal to environmentally conscious consumers.

As consumer behaviour evolves, these packaging innovations not only enhance product appeal but also serve as a marketing tool to strengthen brand identity. This trend is helping breweries differentiate their products in a crowded market and meet growing consumer demand for both aesthetics and sustainability.

Increasing Demand for Premium & Craft Beer

The rising demand for premium and craft beers in Vietnam is fuelled by the country's increasing disposable incomes and a shift in consumer preferences toward higher-quality products. As the middle class grows, consumers are seeking more sophisticated and unique beer options, moving away from traditional mass-produced brands. Craft beers, with their variety of flavors and brewing techniques, have gained popularity, particularly among younger, more adventurous drinkers who are willing to pay a premium for distinctive tastes and experiences. This shift is also supported by a growing interest in beer culture, with more breweries offering innovative styles, including IPAs, stouts, and seasonal brews.

Growing Health-Conscious Population

The growing health-conscious population is becoming a key driver in the Vietnam beer market. As awareness of health and wellness increases, consumers are shifting toward lighter, low-calorie, and alcohol-free beer options. Younger demographics are prioritizing healthier lifestyles, influencing their beverage choices. This shift has prompted breweries to innovate, introducing low-alcohol, gluten-free, and organic beers that cater to these health-conscious consumers. Also, the popularity of fitness and wellness trends, such as yoga and gym culture, has led to a demand for products that align with active lifestyles. As a result, the market is expanding to accommodate these evolving preferences, with brewers increasingly focusing on developing and promoting beers that fit the growing health-conscious mindset.

Segmental Insights

End User Insights

Commercial dominated the Vietnam Beer market primarily driven by the widespread consumption of mass-produced beers in both urban and rural areas. Commercial breweries, produce large volumes of affordable beer that caters to the everyday drinking habits of consumers. These brands are deeply integrated into local culture, with beer being a popular choice for social gatherings, meals, and celebrations.

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Regional Insights

Northern dominated the Vietnam Beer market, driven by factors such as large urban populations and a rich cultural affinity for beer consumption. Cities like Hanoi and Hai Phong are key hubs, where beer plays an essential role in social gatherings, business meetings, and daily life. The region’s beer market is fuelled by the presence of major local breweries which has a strong market share, and its deep integration into the Northern lifestyle. Also, the Northern region is home to a rising middle class with higher disposable incomes, driving demand for premium and imported beers. The region’s growing tourism sector also contributes to increasing beer consumption, as international visitors and expatriates bring diverse beer preferences. These factors combined make the North a dominant and rapidly growing market for beer in Vietnam.

Recent Developments

• In November 2024, Sabeco inaugurated the cutting-edge Sabeco Beer Research and Development Centre (SRC), with the goal of elevating Vietnam's beverage industry. The establishment of the SRC will be the ideal site for them to generate more innovative recipes with high process and efficiency, delivering consumers high-quality beverage goods and thereby accomplishing the dream of developing the Vietnamese beverage sector to world-class levels.
• In August 2024, The Saigon Beer-Alcohol-Beverage Corporation (SABECO) launched 333 Pilsner, demonstrating the company's commitment to ongoing innovation in offering high-quality goods that meet the changing demands of the consumers. 333 Pilsner is the first addition to Bia 333's portfolio, which includes some of the earliest beer brands accessible in Vietnam. This new offering represents SABECO's dedication to continual innovation, producing a high-quality product to match the shifting needs of Vietnamese consumers.
• In October 2023, Carlsberg, one of the world's leading breweries, and the TV show Shark Tank Vietnam, which fosters the country's entrepreneurial spirit, entered a collaboration to celebrate development and shares in the success of the Vietnamese economic landscape. The collaboration offers a tremendous synergy in which some of Vietnam's most successful business executives will identify the greatest entrepreneurial talent and raise a glass of world-renowned Carlsberg to toast their achievement.
• In September 2023, Bia Viet launched its improved version, which includes some uniquely Vietnamese upgrades to the product's appearance and taste. The new Bia Viet remains committed to the brand's goal of becoming the beer that embodies the spirit of Vietnamese people. The new product is also presented in a green bottle, which adds a refreshing sense to the beer and gives it a more premium appearance. The new Bia Viet, brewed with high-quality hops, has a rich scent, a robust flavor, and a smooth finish that is likely to excite Vietnamese consumers across the country.

Key Market Players

• Asahi Group Holdings Ltd
• Carlsberg Vietnam Breweries Limited
• Diageo Vietnam
• Heineken Vietnam Brewery Limited Company
• Saigon Beer Alcohol Beverage Corporation
• Platinum Beverages Distribution Co., Ltd 
• Anheuser-Busch InBev Vietnam Brewery Co., Ltd
• Devans Modern Breweries Ltd
• Inbrew Beverages Private Limited
• United Breweries Ltd

Report Scope:

In this report, the Vietnam Beer Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Vietnam Beer Market, By Type:

o   Ale

o   Lager

o   Lambic

• Vietnam Beer Market, By Production:

o   Macro Brewery

o   Micro Brewery

o   Craft Brewery

• Vietnam Beer Market, By Packaging:

o   Bottles

o   Cans

• Vietnam Beer Market, By Category:

o   Alcoholic

o   Non-Alcoholic

• Vietnam Beer Market, By End User:

o   Residential

o   Commercial

• Vietnam Beer Market, By Region:

o   Southern

o   Northern

o   Central

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Vietnam Beer Market.

Available Customizations:

Vietnam Beer Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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