The Hanoitimes - Vietnam’s street beer and café market is on track to reach a growth rate of 6% in terms of revenue and establish 32,400 selling points nationwide by 2023.
The size of Vietnam's street beer and café market in 2018 is estimated at over VND88 trillion (US$3 billion), up 6% year-on-year, according to market research firm Euromonitor.
Such figure was generated from more than 30,180 sale points across the country, including revenue from chains of street beer restaurant and café with more than 10 venues and those run by households, VnExpress reported.
This year, the combined revenue is forecast to reach VND90.04 trillion (US$3.8 billion), of which street beer and café would make up more than VND78.82 trillion (US$3.3 billion).
Vietnam’s beer restaurant and café market is on track to reach a compound annual growth rate (CAGR) of 6% in terms of revenue and reach the number of 32,400 dealers by 2023.
According to Euromonitor, beer clubs and beer gardens are targeting the middle class segment, which is growing the fastest among other group of customers, as beer is a common drink in Vietnam and the country has one of the highest beer consumption volumes in Asia.
In 2017, around 305 million liters of spirits and nearly 4.1 billion liters of beer were consumed, which means each Vietnamese consumed an average of 42 liters of beer. Vietnam ranked third in Asia in terms of volume of beer consumed in 2017, only behind Japan and China, and was at the top in Southeast Asia.
Saigon Alcohol Beer and Beverage (Sabeco), Vietnam’s largest brewer, produced 1.77 billion liters of beer in 2017, 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% year-on-year.
In 2017, brewers in Vietnam contributed VND50 trillion (US$2.13 billion) to the state budget, doubling the figure 3 years earlier.
The beer industry expects to produce 4.1 billion liters in the next 4 years, and up to 4.6 billion liters in 2025, according to the Vietnam Beer Alcohol and Beverage Association (VBA). 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 output in 2017.