Social Affairs
Vietnam’s beer consumption on the upswing
In 2017, beer consumption in Vietnam was estimated to be over 4 billion liters, up 260,000 liters (6%) over the 2016 figure, according to the Vietnam Beer Alcohol and Beverage Association (VBA).
With the current population of 93.7 million, each Vietnamese person consumed an annual average of 42 liters of beer, 1.5 times higher than the figure of two years ago, said Nguyen Van Viet, Chairman of VBA at the Association meeting on March 9.
This number is close to the target of 4.1 billion liters by 2020 set in the master plan for the development of Vietnam’s alcohol beer and beverages sector approved by the Ministry of Industry & Trade, meaning each Vietnamese person will consume around 43 liters per year.
Saigon Alcohol Beer and Beverage (Sabeco), Vietnam’s largest brewer, has produced 1.77 billion beer liters alone, an increase of 6.6% year-on-year, while that of the domestic second largest brewer, Hanoi Alcohol Beer and Beverage (Habeco), stood at 657.6 million liters, down 6.5% over the last year period.
In 2017, brewers in Vietnam contributed VND50 trillion (US$2.2 billion) to the state budget, doubling the figure 3 years ago.
The beer industry expects to produce 4.1 billion beer liters in the next 4 years, and up to 4.6 billion beer liters in 2025, VBA said. By 2035, this number is expected to reach 5.6 billion liters. Accordingly, beer production in the next two decades will be 1.5 times higher the beer production in 2017.
Despite growing beer consumption, Viet stated, the beer market growth rate is only at two-thirds of that in 2016. However, its attraction to foreign investors remains the same.
This is evident in the successful acquisition of 53.59% Sabeco shares worth nearly US$4.8 billion on last December by Vietnam Beverage, a unit of Thai Beverage.
In a related development, Habeco also plans to start selling its shares to the public in the first quarter of 2018, while Danish brewer Carlsberg, currently Habeco’s strategic shareholder, is considering to acquire a majority holding in Habeco.
The beer industry expects to produce 4.1 billion beer liters in the next 4 years.
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Saigon Alcohol Beer and Beverage (Sabeco), Vietnam’s largest brewer, has produced 1.77 billion beer liters alone, an increase of 6.6% year-on-year, while that of the domestic second largest brewer, Hanoi Alcohol Beer and Beverage (Habeco), stood at 657.6 million liters, down 6.5% over the last year period.
In 2017, brewers in Vietnam contributed VND50 trillion (US$2.2 billion) to the state budget, doubling the figure 3 years ago.
The beer industry expects to produce 4.1 billion beer liters in the next 4 years, and up to 4.6 billion beer liters in 2025, VBA said. By 2035, this number is expected to reach 5.6 billion liters. Accordingly, beer production in the next two decades will be 1.5 times higher the beer production in 2017.
Despite growing beer consumption, Viet stated, the beer market growth rate is only at two-thirds of that in 2016. However, its attraction to foreign investors remains the same.
This is evident in the successful acquisition of 53.59% Sabeco shares worth nearly US$4.8 billion on last December by Vietnam Beverage, a unit of Thai Beverage.
In a related development, Habeco also plans to start selling its shares to the public in the first quarter of 2018, while Danish brewer Carlsberg, currently Habeco’s strategic shareholder, is considering to acquire a majority holding in Habeco.
