Vietnam’s beer market was valued at US$7.89 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 7.27 percent, surpassing US$14.85 billion by 2033, according to a report from Astute Analytica. This growth will be primarily driven by the country’s young and expanding population, rising disposable incomes, and a strong beer consumption culture, the report says.
It goes on to say that Vietnam’s youthful demographic plays a crucial role in beer market expansion, with over 60 percent of the population under 35 years old. Beer consumption is deeply tied to social gatherings, festivals, and casual outings. In 2024, Vietnam’s annual beer consumption reached 3.8 million kiloliters, making it one of the highest per capita consumers in Asia, with an average consumption of 43-46 liters per person per year.
Moreover, the report found that beer-related events and festivals, particularly in Hanoi and Ho Chi Minh City, continue to attract millions of young attendees, with over 50 such festivals held nationwide in 2023. Social media platforms like Instagram and TikTok are shaping beer consumption trends, with brands such as Heineken Vietnam reporting a 15 percent increase in social media engagement in 2023. The craft beer segment is also expanding rapidly, with more than 100 new craft beer establishments opening in urban areas over the past two years.
Despite the market’s growth potential, increasing excise taxes on alcoholic beverages pose a significant challenge. In 2023, the Vietnamese government raised the excise tax on beer from 55 percent to 65 percent as part of its public health and alcohol control measures. This resulted in a 10-15 percent rise in beer prices, with the cost of a 330ml can increasing from VND 15,000 in 2022 to VND 17,000 in 2024, making beer less affordable for many consumers, especially in rural areas.
See also: Vietnam Beer Industry: Overview