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May 21, 2024 / 09:38

Vietnam’s wine market to reach US$167B in 2027

Vietnam, a nation of 100 million people, has seen a rise in consumption due to the growing middle class, making it a potential market for international wine exporters.

Vietnam’s wine market is forecast to post a compound annual growth rate (CAGR) of 6.4% in 2021-2027, reaching US$167 billion in 2027 thanks to its rising middle class – the one driving consumption growth. 

 Vietnamese and foreign partners at the event held by the Australian Trade and Investment Commission. Photos: Austrade

The news was shared by Australian wine producers and exporters during the Australia Wine Promotion Roadshow 2024 in Northern Vietnam taking place in the northern economic corridor of Hanoi – Haiphong – Quang Ninh.

The event, in support of the Australian Trade and Investment Commission (Austrade), aims to expand awareness of Australian wine and strengthen trade partnerships in the northern economic corridor.

According to industry insiders, the Vietnamese wine market represents a significant opportunity for Australian exporters and producers. Currently, Australian trademarks account for one-fifth of the 1,000-plus wine brands in Vietnam. ​In 2023, Vietnam purchased AUD11.4 million (US$7.6 million) of wine from Australia, an increase of 152.8% from 2019 (pre-pandemic period).

As the 4th largest wine market in Southeast Asia, Vietnamese market growth is anticipated to progress at a CAGR of 10.93% in terms of revenue and 6.29% in terms of volume in the 2023-2030 period.

Notably, the country’s growing middle class, which makes up 15% of its 100 million people, will also spur increases in consumption. By 2026, the proportion of the middle class is predicted to have doubled, creating more opportunities for wine consumption to rise. 

 Chris Morley, Trade and Investment Commissioner, Austrade, and Vietnamese partners at the roadshow. 

Chris Morley, Trade and Investment Commissioner, Austrade, said Australia is one of the world’s largest wine exporters and is increasingly recognized as a world leader in producing premium quality wines. “We have witnessed the outstanding growth of Australian wine in Vietnam over recent years. The growing demand from the retail and food service sectors sees Vietnam attracting more Australian wineries,” he stressed.

In 2023, the Shine and Thrive regional showcase was hosted by Austrade in Hanoi, Danang, Hoi An, Ho Chi Minh, Cantho, and Nha Trang. The event connected more than 1,000 Vietnamese participants with 150 Australian food and beverage representatives, of which 27 were wine companies. To date, there have been a range of commercial outcomes including deals for Anderson Hill, Firsthand Vintners, Knappstein, Metala, and St Anne’s.

Building on this achievement, Austrade arranged the Australia Wine Promotion Roadshow 2024 in northern Vietnam, with an emphasis on the corridor of economic growth that stretches from Hanoi. Among the locations are Haiphong, the largest port city in Northern Vietnam, the third-largest city after Ho Chi Minh and Hanoi, and a major industrial hub. It has experienced some of Vietnam's fastest-growing cities in terms of GRDP over the last five years.

Ha Long, on the other hand, has long been a popular vacation spot due to its wealth of untapped tourist potential. Ha Long Bay has seen a sharp rise in visitors in the last several years, ranking among the most popular tourist destinations in the nation. 

Chef Tommy Pham introduces his take on Cha Ca La Vong, with Ambassador Andrew Goledzinowski.

The beverage industry has seen an increase in demand following two years of the pandemic thanks to events and entertainment venues. Tourism also contributes significantly to the economic recovery of the sector, particularly because travelers from North and Europe have drinking habits that are advantageous to the Vietnamese liquor industry.

In this regard, Austrade organized a series of events in these strategic cities to promote Australian wine to northern consumers and distributors, featuring five Australian wineries: Anderson Hill, De Bortoli, Grandeur Wellington, Killibinbin (wine brand of Metala), and Wakefield, Morley emphasized.

The B2B wine-tasting events in Ha Long and Haiphong attracted over 150 distributors, importers, retailers, and representatives from the food service and hospitality sectors.

The program also introduced Vietnamese consumers to the wide variety of wine selections and the well-balanced pairing of Australian wine with Vietnamese cuisine through events like the Wine Dinner at KOTO.

The event featured a special menu created by Australian Masterchef competitor Tommy Pham, and the exclusive Taste of Australia Wine Trail, which offers free tastings of five carefully chosen Australian wineries at five restaurants and bars in the Hoan Kiem District, Hanoi.