The global beverage market has so far been on a positive trend but with lots of unexplored potentials. Europe and Asia, especially China, currently are major development motivation, but in the future, the growth rate will be driven by the development of Africa and the Middle East. Beer market has a clear distinction and competition between two groups: multinational companies with advantages in capitals, brands, distribution channels and indigenous manufacturers with understanding and serving the needs of the local customers. Alcohol is witnessing the rapid growth, especially the high-quality wine. In particular, vine wine production is unstable due to the quality as well as the number of grapes that make alcohol change according to the change of weather. Malt wine is gaining market share of Wine and is expected to be the driving force of alcohol beverage. Beverage market in the first quarter of 2018 sharply decreased compared to 2017 due to difficulties in production.
Beer production in Vietnam depends on raw materials imported mainly from Australia, China and some countries in Europe. With large manufacture-size and stable growth rate, the domestic beer production industry has met the demand for consumption in the country, tended to reduce imports and increase exports, contributing to higher export turnover of the industry.
Soft beverage market is large and has a high growth rate, due to the advantage of domestic supply such as abundant mineral water reserves and a variety of fruit having good quality. Instant tea, bottled water and carbonated drinks account for the largest share of consumption. Most soft beverage products distributed through store channels are more efficient than on-site consumption channels. Competitive pressure in the beverage sector is huge because there are many product lines on the market and many companies are involved in the business.
The wine market is on small scale with falling production and unable to meet the domestic demand for high-quality wine and low export value. As a result, wine imports have been increased to offset the shortage of domestic supplies. The domestic wine market has potential to develop, mainly serving middle-class customers upwards and is increasingly favored by domestic and Asian markets. As estimated, the beer, wine and soft drink segment will revenue xxx billion, xx billion and xxx billion respectively by 2018.
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Ankur Gupta, Head Marketing & Communications