Vietnam Beer Market- Trend Analysis & Forecasts

Market/ Product Overview

Vietnam holds one of the highest beer consumption rates in Asia, with over ** billion liters consumed in 2024, up **% from the previous year. The market has witnessed consistent growth owing to economic modernization, a youthful demographic, and strong urbanization. According to Vietnam’s General Statistics Office, beer accounted for 85% of all alcoholic beverage consumption in the country in 2023. The sector is currently dominated by large local and foreign brewers, with Sabeco (Saigon Beer) controlling around **% of market share, followed by Heineken Vietnam with **%, and Habeco with roughly **%.

Domestic consumption continues to flourish due to a strong culture of social drinking, supported by over 400,000 food and beverage outlets nationwide. Moreover, the premium segment is expanding rapidly. Premium and super-premium beer sales grew **% YoY in 2023 as urban consumers, particularly in Hanoi and Ho Chi Minh City, show increasing preference for international and craft beers. With the government allowing more liberal investment regulations in the alcohol sector, over US$ 1.2 billion in foreign capital has flowed into beer production facilities since 2019.

Significance of Vietnam in Global Beer Supply Chain

Vietnam is a critical node in the global beer supply chain, primarily serving as a fast-growing consumer market, a regional production hub, and an attractive destination for global brewers seeking ASEAN integration. With over 135 beer production plants operating across the country as of 2024, Vietnam is now Southeast Asia’s second-largest beer producer, trailing only Thailand.

The country’s strategic location, cost-effective labor, and abundant domestic ingredients (e.g., rice, water, and some hops) enable efficient production, making it an export base for premium and mid-range beers across Asia-Pacific. Major global firms like Heineken and Carlsberg have expanded operations in Vietnam to meet both domestic and regional demand. In 2023, Heineken Vietnam produced over 12 million hectoliters of beer, a sizable portion of which was routed to nearby markets like Cambodia, Laos, and Malaysia.

Vietnam Beer Supply & Demand Trend

Vietnam’s beer market exhibits strong and relatively stable supply-demand dynamics. On the supply side, the country produced over ** billion liters of beer in 2024, marking a **% increase from 2022. Supply growth is being bolstered by expansions in production capacity. Sabeco, for instance, announced in late 2023 a US$ ** million upgrade to its Bia Saigon plant to boost annual output by ** million liters.

Demand remains equally robust. As of 2024, per capita beer consumption stood at ** liters, one of the highest in Asia, and is projected to surpass ** liters by 2030. A key driver of demand is the growing millennial population, which now accounts for over **% of beer consumers. Additionally, the rise in female beer drinkers, now constituting **% of total beer consumers compared to **% in 2015, reflects shifting cultural norms.

Seasonal peaks during Lunar New Year and national holidays account for nearly **% of annual sales. Beer demand is also supported by an emerging trend in tourism-linked consumption. In 2023, foreign tourist arrivals surged to ** million, with coastal cities reporting a **% increase in beer sales from tourism-led consumption.

Vietnam Beer Market Growth Factors

Vietnam Beer Market Segmentation

Vietnam’s beer market can be segmented by product type, packaging, distribution channel, and region. In terms of product, lager dominates the category with over **% market share in 2024, driven by the popularity of local brands like 333 and Bia Saigon. Ale and craft beers are growing at a rapid pace, recording a CAGR of **% between 2019 and 2024, although their overall share remains under **%.

Packaging is another significant differentiator. Canned beer accounted for **% of volume in 2024, up from 36% in 2020, due to its portability and hygiene appeal. Glass bottles remained stable at **%, while draught beer lost some ground due to the pandemic’s impact on the hospitality sector.

In terms of distribution, off-trade sales (convenience stores, supermarkets, liquor outlets) formed **% of total sales in 2024, driven by modern retail penetration. On-trade sales (bars, restaurants, pubs) have seen a rebound post-COVID, with **% growth in 2023 alone, signaling renewed social consumption patterns.

Geographically, the Southern region, particularly Ho Chi Minh City, leads with over **% of national beer consumption. The North, including Hanoi and surrounding provinces, accounts for about **%, while Central Vietnam holds the remaining share.

Vietnam Beer Trade (Export & Import) Trend

Vietnam’s beer import volume reached over ** million liters in 2024, a **% increase YoY, with most of the supply coming from Belgium, Germany, the Netherlands, and South Korea. Thanks to trade liberalization, the average import tariff on beer has dropped from **% in 2016 to below **% in 2023 under EVFTA and CPTPP agreements.

Export performance, while smaller in scale, is growing. Vietnam exported ** million liters of beer in 2024, primarily to Cambodia, Laos, and Australia. Sabeco and Heineken Vietnam are increasingly exploring overseas markets, with Sabeco reporting a **% YoY increase in export sales in 2023 annual report.

Customs data indicates Vietnam’s beer trade value (imports + exports) crossed US$ ** million in 2024. Tariff incentives and strategic logistics agreements are encouraging beer transshipment to ASEAN neighbors. However, regulatory complexities and labeling requirements continue to pose challenges for smaller exporters.

Influence of Vietnam in Global Beer Price

Vietnam’s beer market has limited power over global commodity pricing of inputs like barley and hops, but it increasingly influences regional beer pricing trends. Wholesale prices in Vietnam for mid-tier beers averaged US$ 1.02 per liter in 2023, up from US$ 0.91 in 2021, partly due to higher logistics and energy costs. Retail prices for premium import brands range between US$ 2.8 to 4.5 per bottle, influenced by tariffs and brand equity.

Historical price trends show a consistent upward movement: the average price of imported beer rose 8.1% between 2021 and 2023, while domestic beer rose 5.6% in the same period. Due to its consumption scale, pricing changes in Vietnam often ripple across ASEAN, especially in price-sensitive cross-border trade.

Vietnam’s competitive production costs, averaging **% lower than Thailand and Malaysia, give it regional leverage in setting baseline prices for mid-range beer segments. However, currency fluctuations and rising energy tariffs in 2024 could alter price dynamics.

Market Competitive Landscape

Future Outlook

Vietnam’s beer market is forecasted to grow from US$ ** billion in 2024 to US$ ** billion by 2032, driven by a projected CAGR of **%. Rising incomes, evolving consumption patterns, and improved trade access are expected to expand both volume and value. Per capita consumption is anticipated to rise to ** liters by 2032.

The premiumization trend will continue to drive value growth, with premium and super-premium segments expected to make up **% of the market by 2032, up from **% in 2024. The craft beer segment is forecasted to grow at a CAGR of **%, especially in Tier-1 and Tier-2 urban clusters.

Government efforts to balance regulation and investment incentives will be crucial. New investments, coupled with the green transformation of production facilities, will likely enhance the market’s competitiveness in the global beer economy.