Beer in Vietnam PDF

Beer in Vietnam
Euromonitor International
July 2019
BEER IN VIETNAM Passport i
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Beer Encounters Various Barriers and Difficulties .................................................................... 1
Stricter Government Policies Are Expected for Beer in the Forecast Period ............................ 1
Beer Still Has Much Potential for Development Despite the Expected Difficulties .................... 1
Competitive Landscape ................................................................................................................ 2
Saigon Alcohol Beer & Beverages Corp (sabeco) Strengthens Its Lead .................................. 2
Thai Beverage Acquires Shares in Sabeco .............................................................................. 2
the Competition Becomes Increasingly Intense ........................................................................ 2
Category Background ................................................................................................................... 2
Lager Price Band Methodology ................................................................................................ 2
Summary 1 Lager by Price Band 2018 ............................................................................ 3
Category Data .............................................................................................................................. 3
Table 1 Sales of Beer by Category: Total Volume 2013-2018 .................................. 3
Table 2 Sales of Beer by Category: Total Value 2013-2018 ..................................... 3
Table 3 Sales of Beer by Category: % Total Volume Growth 2013-2018.................. 4
Table 4 Sales of Beer by Category: % Total Value Growth 2013-2018..................... 5
Table 5 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018 ........................ 5
Table 6 Sales of Beer by Off-trade vs On-trade: Value 2013-2018 ........................... 5
Table 7 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018 ....... 6
Table 8 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018 .......... 6
Table 9 GBO Company Shares of Beer: % Total Volume 2014-2018 ....................... 6
Table 10 NBO Company Shares of Beer: % Total Volume 2014-2018 ....................... 6
Table 11 LBN Brand Shares of Beer: % Total Volume 2015-2018.............................. 7
Table 12 Forecast Sales of Beer by Category: Total Volume 2018-2023 ................... 8
Table 13 Forecast Sales of Beer by Category: Total Value 2018-2023 ...................... 8
Table 14 Forecast Sales of Beer by Category: % Total Volume Growth 2018-
2023 ............................................................................................................. 9
Table 15 Forecast Sales of Beer by Category: % Total Value Growth 2018-
2023 ............................................................................................................. 9
© Euromonitor International
BEER IN VIETNAM Passport 1
BEER IN VIETNAM
HEADLINES
▪ In 2018, beer increases by 6% in total volume terms, to reach 4.1 billion litres
▪ Beer faces various difficulties and barriers to growth in 2018
▪ Imported premium lager registers the highest total volume growth of 12% in 2018
▪ The average unit price of beer continues to increase in current terms in 2018
▪ Local brands continue to have better competitive position than international brands; Saigon
Alcohol Beer & Beverages Corp (Sabeco) leads beer in 2018, with a 43% total volume share
▪ Over the forecast period, beer is projected to see a total volume CAGR of 5%, to reach 5.3
billion litres in 2023
PROSPECTS
Beer Encounters Various Barriers and Difficulties

During the period 2017-2018, players in beer in Vietnam experienced various difficulties and
barriers to increasing their sales and expanding their market. First, the special consumption tax
on beer continued to put pressure on players to maintain their prices in order to stimulate their
sales. Second, the Vietnamese government increased its public campaigns to educate
consumers on the negative impact of overconsumption of alcoholic drinks on their daily lives
and families. As such, more people tried to limit their consumption of beer. Lastly, during the
period 2017-2018, natural disasters in Vietnam, such as typhoons, tropical depressions,
thunderstorms, flash floods and cold spells, amongst others, led to heavy economic damage for
the country overall. Many houses were destroyed, and thousands of people faced difficulty
maintaining even a basic standard of living. Vietnamese consumers therefore tended to tighten
their budgets for beer towards the end of the review period. Players in beer thus struggled to
maintain the same strong growth as in previous years.
Stricter Government Policies Are Expected for Beer in the Forecast

Period
Over the forecast period, beer is predicted to continue to face difficulties in Vietnam,
especially due to stricter government policies for beer. The government currently has a plan to
continue to increase the special consumption tax on beer to limit consumption, as there are a
many public reports about the negative impact of drinking beer on public health. In 2018, the
World Health Organization also issued a warning about the negative impact of beer on public
health, and recommend the Vietnamese government take urgent action on beer consumption.
Beer Still Has Much Potential for Development Despite the Expected
Difficulties
Towards the end of the review period, several factors hampered the growth of beer in
Vietnam. Nevertheless, the category is still expected to record a good performance in the
forecast period. This is thanks to the large contribution of the young adult population in Vietnam.
Young adults tend to prefer beer to other alcoholic drinks, such as spirits and wine, because
they believe beer is less harmful due to its lower alcohol content. Another factor contributing to
the development of beer in Vietnam is the drinking culture in the country. Beer is the popular
choice for gatherings with family and friends, or for business dinners, thanks to its affordable
price. Besides, birthday and wedding parties, for example, drink beer, as consumers consider
this is the best way to express their happiness and best wishes to the hosts. As a result, beer is
expected to remain a lucrative category for both local and international players, which can
stimulate sales with marketing and discounting activities. Over the forecast period, players such
as Saigon Alcohol Beer & Beverages Corp (Sabeco) are expected to launch various marketing
and advertising activities to promote sales and expand their market.
COMPETITIVE LANDSCAPE
Saigon Alcohol Beer & Beverages Corp (sabeco) Strengthens Its Lead
In 2018, Saigon Alcohol Beer & Beverages Corp (Sabeco) maintained its lead in beer in total
volume terms, and even saw an increase in its share. The success of Sabeco is thanks to its
established brands in the market, namely Saigon Export, 333’ export and Saigon Lager.
Besides, the company also has an extensive distribution network, including in rural and urban
areas.
Thai Beverage Acquires Shares in Sabeco

In December 2017, Thai Beverage, a player from Thailand, successfully bid USD5 billion for
shares in Sabeco, which was equivalent to a 54% share at that time. After the acquisition,
Sabeco was able take advantage of Thai Beverage’s wide retail network and rich experience in
beer to support its growth during the period 2017-2018, which helped it thrive despite the
difficulties for the beer category in Vietnam.
the Competition Becomes Increasingly Intense

Although beer in Vietnam still has a great deal of room for growth, it is not easy for players to
survive and to expand their shares. This is due to the fact that the category is becoming
increasingly competitive. With their strong financial support, key players such as Saigon Alcohol
Beer & Beverages Corp (Sabeco) and Vietnam Brewery (Heineken) appear to be superior to
other players in term of distribution and marketing strategies. As such, key players find it easy
not only to secure their shares, but also to see share expansion.
CATEGORY BACKGROUND
Lager Price Band Methodology

Premium lager, priced at above VND35,000 per litre, has limited distribution, as it can only be
found in specialist shops or on-trade channels. The only exception is Heineken, which can be
found throughout the country, even in some suburban areas, due to its famous brand name.
Premium lager is usually preferred by middle- to high-income consumers in urban areas. Most
of the brands in this segment are international, such as Carlsberg Draught Beer, Corona Extra
and Pilsner Urquell.
Mid-priced lager, priced at VND21,000-35,000 per litre, consists of the most popular brands
from the three biggest breweries in the country, Habeco, Sabeco and Vietnam Brewery. These
brands are widely available in both rural and urban areas, in various grocery channels.
Economy lager, priced at below VND21,000 per litre, includes lower-end brands, and
especially bia hoi, a kind of Vietnamese fresh beer. Bia hoi is mostly home brewed, with the
exception of Bia Hoi Hanoi by Habeco. Bia hoi is available mostly in small independent
restaurants in suburban and rural areas, due to its affordable price. Based on its fragmented
nature, bia hoi tends to be not regulated or monitored by the government.
Summary 1 Lager by Price Band 2018

Category Price range per litre
Premium Above VND35,000
Mid-priced VND21,000-35,000
Economy VND16,000-21,000
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Note: Price bands for lager are based primarily on price, but positioning and packaging are other factors that
are considered in classification
CATEGORY DATA
Table 1 Sales of Beer by Category: Total Volume 2013-2018
million litres
2013 2014 2015 2016 2017 2018
Dark Beer - - - - - -
- Ale - - - - - -
- Sorghum - - - - - -
- Weissbier/Weizen/ - - - - - -
Wheat Beer
Lager 3,037.5 3,152.2 3,363.5 3,644.0 3,894.7 4,143.7
- Flavoured/Mixed Lager - - - - - -
- Standard Lager 3,037.5 3,152.2 3,363.5 3,644.0 3,894.7 4,143.7
-- Premium Lager 273.9 263.4 276.4 311.1 346.7 383.1
--- Domestic Premium 247.9 234.8 245.9 276.1 307.3 338.9
Lager
--- Imported Premium 26.0 28.6 30.5 35.0 39.4 44.1
Lager
-- Mid-Priced Lager 1,821.2 1,938.1 2,107.4 2,290.4 2,454.8 2,619.0
--- Domestic Mid-Priced 1,821.2 1,938.1 2,107.4 2,290.4 2,454.8 2,619.0
Lager
--- Imported Mid-Priced - - - - - -
Lager
-- Economy Lager 942.5 950.7 979.7 1,042.6 1,093.1 1,141.7
--- Domestic Economy 942.5 950.7 979.7 1,042.6 1,093.1 1,141.7
Lager
--- Imported Economy - - - - - -
Lager
Non/Low Alcohol Beer - - - - - -
- Low Alcohol Beer - - - - - -
- Non Alcoholic Beer - - - - - -
Stout - - - - - -
Beer 3,037.5 3,152.2 3,363.5 3,644.0 3,894.7 4,143.7
Table 2 Sales of Beer by Category: Total Value 2013-2018
VND billion
2013 2014 2015 2016 2017 2018
Dark Beer - - - - - -
- Ale - - - - - -
- Sorghum - - - - - -
Wheat Beer
Lager 116,033.8 124,558.2 131,949.5 147,787.9 166,148.6 184,789.5
- Standard Lager 116,033.8 124,558.2 131,949.5 147,787.9 166,148.6 184,789.5
-- Premium Lager 17,801.9 18,125.5 19,021.0 21,805.2 25,716.3 29,692.8
--- Domestic Premium 13,906.3 13,748.0 14,522.2 16,604.2 19,546.5 22,440.3
Lager
--- Imported Premium 3,895.6 4,377.4 4,498.8 5,201.0 6,169.8 7,252.4
Lager
-- Mid-Priced Lager 68,054.9 75,057.4 80,934.8 90,554.7 101,252.2 112,131.8
Lager
Lager
-- Economy Lager 30,177.0 31,375.3 31,993.7 35,428.0 39,180.2 42,964.8
--- Domestic Economy 30,177.0 31,375.3 31,993.7 35,428.0 39,180.2 42,964.8
Lager
Lager
Stout - - - - - -
Beer 116,033.8 124,558.2 131,949.5 147,787.9 166,148.6 184,789.5
Table 3 Sales of Beer by Category: % Total Volume Growth 2013-2018
% total volume growth

2017/18 2013-18 CAGR 2013/18 Total
Dark Beer - - -
- Ale - - -
- Sorghum - - -
- Weissbier/Weizen/Wheat Beer - - -
Lager 6.4 6.4 36.4
- Flavoured/Mixed Lager - - -
- Standard Lager 6.4 6.4 36.4
-- Premium Lager 10.5 6.9 39.8
--- Domestic Premium Lager 10.3 6.5 36.7
--- Imported Premium Lager 12.0 11.2 69.8
-- Mid-Priced Lager 6.7 7.5 43.8
--- Domestic Mid-Priced Lager 6.7 7.5 43.8
--- Imported Mid-Priced Lager - - -
-- Economy Lager 4.4 3.9 21.1
--- Domestic Economy Lager 4.4 3.9 21.1
--- Imported Economy Lager - - -
Non/Low Alcohol Beer - - -
- Low Alcohol Beer - - -
- Non Alcoholic Beer - - -
Stout - - -
Beer 6.4 6.4 36.4
Table 4 Sales of Beer by Category: % Total Value Growth 2013-2018
% local currency, current value growth
2017/18 2013-18 CAGR 2013/18 Total
Dark Beer - - -
- Ale - - -
- Sorghum - - -
Lager 11.2 9.8 59.3
-- Premium Lager 15.5 10.8 66.8
Stout - - -
Beer 11.2 9.8 59.3
Table 5 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018
million litres
2013 2014 2015 2016 2017 2018
Off-trade 886.9 937.8 1,003.8 1,089.2 1,166.1 1,243.8

On-trade 2,150.7 2,214.3 2,359.7 2,554.9 2,728.5 2,899.8
Total 3,037.5 3,152.2 3,363.5 3,644.0 3,894.7 4,143.7
Table 6 Sales of Beer by Off-trade vs On-trade: Value 2013-2018
VND billion
2013 2014 2015 2016 2017 2018
Off-trade 26,065.2 28,613.0 30,668.7 34,274.9 38,678.0 43,337.3

On-trade 89,968.6 95,945.3 101,280.8 113,513.0 127,470.6 141,452.2
Total 116,033.8 124,558.2 131,949.5 147,787.9 166,148.6 184,789.5
Table 7 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018
% volume growth
2017/18 2013-18 CAGR 2013/18 Total
Off-trade 6.7 7.0 40.3

On-trade 6.3 6.2 34.8
Total 6.4 6.4 36.4
Table 8 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018
% constant value growth

2017/18 2013-18 CAGR 2013/18 Total
Off-trade 12.0 10.7 66.3

On-trade 11.0 9.5 57.2
Total 11.2 9.8 59.3
Table 9 GBO Company Shares of Beer: % Total Volume 2014-2018
% total volume
Company 2014 2015 2016 2017 2018
Thai Beverage PCL - - - 42.7 43.4

Heineken NV 18.6 20.6 21.1 22.1 22.7
Hanoi Alcohol Beer & 18.4 18.3 17.5 15.3 15.0
Beverages Corp (Habeco)
Carlsberg A/S 8.7 8.2 8.0 7.9 7.4
Sapporo Holdings Ltd 1.5 1.5 1.4 1.4 1.4
San Miguel Corp 0.8 0.8 0.9 0.9 1.0
Anheuser-Busch InBev NV 0.2 0.2 0.5 0.5 0.5
Oetker-Gruppe 0.4 0.4 0.4 0.4 0.3
Bitburger Braugruppe GmbH 0.1 0.1 0.1 0.1 0.1
Saigon Alcohol Beer & 42.5 41.5 41.9 - -
Beverages Corp (Sabeco)
SABMiller Ltd 0.4 0.4 - - -
Asia Pacific Breweries - - - - -
Ltd
Others 8.4 7.9 8.2 8.6 8.2
Total 100.0 100.0 100.0 100.0 100.0
Table 10 NBO Company Shares of Beer: % Total Volume 2014-2018
% total volume
Company 2014 2015 2016 2017 2018
Saigon Alcohol Beer & 42.5 41.5 41.9 42.7 43.4

Vietnam Brewery Ltd 18.6 20.6 21.1 22.1 22.7
Hanoi Alcohol Beer & 17.2 16.9 16.1 14.1 13.8
Hue Brewery Ltd - HBL 5.5 5.0 4.9 4.7 4.4
Carlsberg Vietnam 3.2 3.2 3.2 3.1 3.0
Trading Co Ltd
Sapporo Vietnam Co Ltd 1.5 1.5 1.4 1.4 1.4
Thanh Hoa Beer JSC 1.3 1.4 1.3 1.2 1.2
San Miguel Brewery 0.8 0.8 0.9 0.9 1.0
Vietnam Ltd
Anheuser-Busch InBev NV 0.1 0.2 0.1 0.2 0.3
Dong Xuan Liquor Co Ltd 0.4 0.4 0.3 0.3 0.3
Bitburger Braugruppe GmbH 0.1 0.1 0.1 0.1 0.1
SABMiller Vietnam Co Ltd 0.4 0.4 0.3 0.2 0.1
South East Asia Brewery - - - - -
Ltd
Others 8.5 8.0 8.3 8.7 8.3
Total 100.0 100.0 100.0 100.0 100.0
Table 11 LBN Brand Shares of Beer: % Total Volume 2015-2018
% total volume
Brand (Global Brand Company 2015 2016 2017 2018
Owner)
Saigon Export (Thai Saigon Alcohol Beer & - - 17.0 17.3

Beverage PCL) Beverages Corp (Sabeco)
333' export (Thai Saigon Alcohol Beer & - - 14.5 14.8
Tiger (Heineken NV) Vietnam Brewery Ltd 10.8 11.5 12.7 13.4
Hanoi Hanoi Alcohol Beer & 14.7 14.0 12.0 11.8
Saigon Lager (Thai Saigon Alcohol Beer & - - 10.3 10.2
Heineken (Heineken Vietnam Brewery Ltd 5.0 5.1 4.7 4.5
NV)
Huda (Carlsberg A/S) Hue Brewery Ltd - HBL 5.0 4.9 4.7 4.4
Larue (Heineken NV) Vietnam Brewery Ltd 3.1 3.0 3.0 3.1
Bia Hoi Ha Noi Hanoi Alcohol Beer & 2.2 2.1 2.1 2.0
Halida (Carlsberg A/ Carlsberg Vietnam 2.1 2.1 2.1 1.9
S) Trading Co Ltd
Saigon Export Saigon Alcohol Beer & 16.7 16.7 - -
333' export Saigon Alcohol Beer & 13.3 13.9 - -
Saigon Lager Saigon Alcohol Beer & 10.7 10.5 - -
Others Others 16.3 16.3 16.8 16.4
Total Total 100.0 100.0 100.0 100.0
Table 12 Forecast Sales of Beer by Category: Total Volume 2018-2023
million litres
2018 2019 2020 2021 2022 2023
Dark Beer - - - - - -
- Ale - - - - - -
- Sorghum - - - - - -
Wheat Beer
Lager 4,143.7 4,394.9 4,632.0 4,865.5 5,097.6 5,327.3
- Standard Lager 4,143.7 4,394.9 4,632.0 4,865.5 5,097.6 5,327.3
-- Premium Lager 383.1 417.5 451.1 483.3 513.4 540.6
--- Domestic Premium 338.9 368.4 396.8 423.4 447.6 468.7
Lager
--- Imported Premium 44.1 49.1 54.3 59.9 65.8 72.0
Lager
-- Mid-Priced Lager 2,619.0 2,787.7 2,944.3 3,100.2 3,258.5 3,418.4
Lager
Lager
-- Economy Lager 1,141.7 1,189.7 1,236.6 1,282.0 1,325.7 1,368.3
Lager
Lager
Stout - - - - - -
Beer 4,143.7 4,394.9 4,632.0 4,865.5 5,097.6 5,327.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 13 Forecast Sales of Beer by Category: Total Value 2018-2023
VND billion
2018 2019 2020 2021 2022 2023
Dark Beer - - - - - -
- Ale - - - - - -
- Sorghum - - - - - -
Wheat Beer
Lager 184,789.5 197,948.2 210,686.3 223,352.6 236,106.6 248,864.4
- Standard Lager 184,789.5 197,948.2 210,686.3 223,352.6 236,106.6 248,864.4
-- Premium Lager 29,692.8 32,780.6 35,948.2 39,114.7 42,241.6 45,278.4
--- Domestic Premium 22,440.3 24,617.6 26,802.4 28,922.7 30,941.1 32,811.8
Lager
--- Imported Premium 7,252.4 8,163.0 9,145.7 10,191.9 11,300.6 12,466.6
Lager
-- Mid-Priced Lager 112,131.8 119,909.2 127,308.5 134,721.9 142,307.9 150,016.8
Lager

Lager
-- Economy Lager 42,964.8 45,258.4 47,429.6 49,516.0 51,557.1 53,569.2
Lager
Lager
Stout - - - - - -
Beer 184,789.5 197,948.2 210,686.3 223,352.6 236,106.6 248,864.4
trade sources
Table 14 Forecast Sales of Beer by Category: % Total Volume Growth 2018-2023
% total volume growth

2018/19 2018-23 CAGR 2018/23 Total
Dark Beer - - -
- Ale - - -
- Sorghum - - -
Lager 6.1 5.2 28.6
Stout - - -
Beer 6.1 5.2 28.6
trade sources
Table 15 Forecast Sales of Beer by Category: % Total Value Growth 2018-2023
% local currency, constant value growth
2018/2019 2018-23 CAGR 2018/23 Total
Dark Beer - - -
- Ale - - -
- Sorghum - - -
Lager 7.1 6.1 34.7

Stout - - -
Beer 7.1 6.1 34.7
trade sources

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Beer in Vietnam

LIST OF CONTENTS AND TABLES

Beer Encounters Various Barriers and Difficulties

Stricter Government Policies Are Expected for Beer in the Forecast

Thai Beverage Acquires Shares in Sabeco

the Competition Becomes Increasingly Intense

Lager Price Band Methodology

Summary 1 Lager by Price Band 2018

Premium Above VND35,000

Table 2 Sales of Beer by Category: Total Value 2013-2018

Table 3 Sales of Beer by Category: % Total Volume Growth 2013-2018

% total volume growth

Table 4 Sales of Beer by Category: % Total Value Growth 2013-2018

% local currency, current value growth

2017/18 2013-18 CAGR 2013/18 Total

Table 5 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018

Off-trade 886.9 937.8 1,003.8 1,089.2 1,166.1 1,243.8

Table 6 Sales of Beer by Off-trade vs On-trade: Value 2013-2018

Off-trade 26,065.2 28,613.0 30,668.7 34,274.9 38,678.0 43,337.3

Table 7 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018

Off-trade 6.7 7.0 40.3

Table 8 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018

% constant value growth

Off-trade 12.0 10.7 66.3

Table 9 GBO Company Shares of Beer: % Total Volume 2014-2018

Thai Beverage PCL - - - 42.7 43.4

Table 10 NBO Company Shares of Beer: % Total Volume 2014-2018

Saigon Alcohol Beer & 42.5 41.5 41.9 42.7 43.4

Table 11 LBN Brand Shares of Beer: % Total Volume 2015-2018

Saigon Export (Thai Saigon Alcohol Beer & - - 17.0 17.3

Table 12 Forecast Sales of Beer by Category: Total Volume 2018-2023

Table 13 Forecast Sales of Beer by Category: Total Value 2018-2023

--- Imported Mid-Priced - - - - - -

Table 14 Forecast Sales of Beer by Category: % Total Volume Growth 2018-2023

% total volume growth

Table 15 Forecast Sales of Beer by Category: % Total Value Growth 2018-2023

% local currency, constant value growth

2018/2019 2018-23 CAGR 2018/23 Total

-- Premium Lager 10.4 8.8 52.5

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