Vietnam Beverage Comprehensive Report Q3/2016
The beverage industry in Vietnam has existed for a long time, however it started developing significantly over a past decade, underpinned by several sectors:
However, the beer industry has showed signs of saturation due to the dependence on material import and the dominance on the premium segment of FDI Corporations. The soft drink industry has great developing potential with the advantage of both quantity and material quality, but it is still lacking stability. The market has seen the appearance of many foreign players with 4 in 5 largest enterprises in the market is FDI businesses, holding nearly 50% of market shares.
Alcohol market size is small, however the domestic wine market is full of potential as it is favoured by clients in middle-class. Domestic Spirits market is underdeveloped, dominated by premium Spirits from Europe and the America.
Among top enterprises in the industry, there are only a few domestic ones with large-scale and strong brands able to compete with FDI firms. The rest is considered insignificant with weak competitiveness. However, enterprises are generally maintained stable trade with revenue upslightly thanks to the increase in sales costs.
In the coming period, the potential of the industry is expected to be very significant due to the expanding of the market and the development of related sectors such as tourism and retails. Besides, by analysing the SWOT and 5-forces analysists, there are still existing the risks which threaten the success of businesses joining the market.
- The policy of innovation
- The participation in FTAs
- The recovery and remarkable development of the economy
- The growth of international tourism and FDI
However, the beer industry has showed signs of saturation due to the dependence on material import and the dominance on the premium segment of FDI Corporations. The soft drink industry has great developing potential with the advantage of both quantity and material quality, but it is still lacking stability. The market has seen the appearance of many foreign players with 4 in 5 largest enterprises in the market is FDI businesses, holding nearly 50% of market shares.
Alcohol market size is small, however the domestic wine market is full of potential as it is favoured by clients in middle-class. Domestic Spirits market is underdeveloped, dominated by premium Spirits from Europe and the America.
Among top enterprises in the industry, there are only a few domestic ones with large-scale and strong brands able to compete with FDI firms. The rest is considered insignificant with weak competitiveness. However, enterprises are generally maintained stable trade with revenue upslightly thanks to the increase in sales costs.
In the coming period, the potential of the industry is expected to be very significant due to the expanding of the market and the development of related sectors such as tourism and retails. Besides, by analysing the SWOT and 5-forces analysists, there are still existing the risks which threaten the success of businesses joining the market.
EXECUTIVE SUMMARY
1 BUSINESS ENVIRONMENT
1.1 Macroeconomy
Figure 1. GDP Growth, 2010-6 months/ 2016
Figure 2. Monthly CPI Fluctuations, 2014-6/2016
Figure 3. Consumer Confidence Index
Figure 4. VND/USD Exchange rates
Figure 5. Vietnam import-export turnover, 2010-6 months/2016e
Figure 6. Beverage industry contribution to GDP 2010-2015
Figure 7. CPI of Vietnam and Beverage & Tobacco industry, 2015
Figure 8. Population and working age structure in population, 2010-2015
Figure 9. Average disposable income and expenditure per capita of Vietnam, 2010-2015
Figure 10. Retail sales in Vietnam, 2011 – 2017F
1.2 Legal Barriers
Figure 11. Beverage export volume, 2010-2014
Figure 12. Enterprises in beer section 2010-2014
Figure 13. Profit before tax of Beverage industry
Figure 14. Production growth rate of Beer sector 2010-2014
Table 1. Special consumption taxes on alcohol and beer from 2016
1.3 Free Trade Agreements
Table 2. Vietnam’s commitments in TPP on import duty
2. INDUSTRY OVERVIEW
2.1 Global Market
2.1.1 Beer
Figure 15. Production and Consumption of Barley in the world, 10/11-15/16
Figure 16. Weekly Barley price in the UK from 2011 to 2016
Figure 17. Market share of 5 largest barley producers in the world 2015-2016
Figure 18. Barley export volume to produce Malt in the world
Figure 19. Weekly Barley (for Malt) price in the UK, 2011-2016
Figure 20. Malt capacity in Europe and the world, 2010-2015
Figure 21. Malt export in Europe and the world, 2010-2015
Figure 22. Cultivation area and production of Hops in the world, 2006-2015
Figure 23. Monthly hops price in Washington, D.C, 1981-2015
Figure 24. Market share of the 5 largest Hops producers, 2015
Figure 25. Global Hops export, 2010-2014
Figure 26. Market share of 5 largest hops exporters 2014
Table 3. Production and Growth Rate of Beer in seven regions of the world, 2014
Figure 27. Beer production and consumption in the world 2010-2014
Figure 28. Beer import export volume in the world, 2010-2014
Table 4. 10 countries with highest beer import and export value of Beer in the world
Table 5. Countries with the most rapid import and export growth of Beer 2010-2014
Figure 29. Production market share of five leading beer producers in the world 2014
Figure 30. Consumption market share of five leading beer producers in the world 2014
Table 6. 10 most valuable Beer brand in the world 2014-2015
2.1.2 Alcohol
Figure 31. Vineyard area for Wine production, 2005 – 2015
Table 7. Top 5 countries with highest vineyard are within EU
Table 8. Top 5 countries with highest vineyard are outside EU
Figure 32. Grape production for all purposes, 2010 - 2014
Table 9. Grape production by purpose, 2014
Figure 33. Production and Consumption of Wine in the world, 2010-2015
Figure 34. Market share of 5 largest Wine manufacturers in the world, 2015
Table 10. Top 5 largest Wine manufacturers in the world
Figure 35. Market shares of 5 largest wine consuming countries, 2015
Table 11. 5 largest Wine consuming countries, 2015
Figure 36. Export volume and value of Wine, 2000-2015
Table 12. Main Wine exporters
Table 13. Main Wine importers
Figure 37. Spirits consumption in the world, 2009-2015
Figure 38. Major Spirits importers in the world, 2015
Table 14. Popular types of Alcohol in the world, 2015
Table 15. Popular Alcohol brand name in the world, 2015
Table 16. Top 10 Alcohol trading companies in the world, 2015
Table 17. Top 10 Alcohol producing countries in the world, 2015
2.1.3 Soft Drink
Figure 39. Beverage revenue, 2010-2014
Figure 40. Soft Drink export value and volume, 2010-2014
Figure 41. Soft drinks revenue by categories 2014
Table 18. 10 most valuable beverage brands in the world 2014-2015
Figure 42. Carbonated Drinks
Figure 43. Energy Drinks and Sport Drinks
Figure 44. Juice
Figure 45. Bottled Water
2.2 Vietnam Market
Figure 46. Domestic production and consumption, 2010-2015
Figure 47. Export & Import of Beverage 2010-6 months/2016e
Figure 48. Structure of production value by sector, 2010-2015
2.2.1 Beer
Table 19. Table Malt and Hops import, 2010-2014
Figure 49. Malt supply for Vietnam, 2015
Figure 50. Malt import, 2010-2015
Figure 51. Hops import, 2010-2015
Figure 52. Hops supply for Vietnam by country, 2015
Figure 53. Production and Consumption of domestic Beer sector, 2010- 6 months/2016e
Figure 54. Consumption of Beer sector by category, 2015
Figure 55. Beer inventory, 2011-6 months/2016e
Figure 56. Beer inventories by category, 2011-2015
Figure 57. Revenue of domestic consumption by enterprises, 2015
Figure 58. Beer import-export 2010-6 months/2016e
Figure 59. Major beer export markets of Vietnam 2015
Figure 60. Major beer import markets of Vietnam 2015
Figure 61. 10 largest beer importers of Vietnam 6 months/2016
Figure 62. 10 largest beer exporters of Vietnam 6 months/2016
Figure 63. Conditions of transport for importing beer, 6 months/2016
Figure 64. Conditions of transport for exporting beer, 6 months/2016
2.2.2 Alcohol
Figure 65. Domestic production and consumption of Alcohol, 2010-2015e
Figure 66. Revenue structure of Wine and domestic Spirits, 2010-2015e
Figure 67. Inventory of Wine, Spirits and the Alcohol sector, 2010-2015e
Figure 68. Market share of Spirits consumption volume by leading enterprises, 2014
Figure 69. Market share of Spirits consumption volume by leading brands, 2014
Figure 70. Market share of consumption volume by manufacturers of Still Light Grape Wine, 2014
Figure 71. Market share of consumption volume by Wine manufactures (Wine fermented from other fruits than grape), 2014
Figure 72. Alcohol import export, 2010-6 months/2016e
Figure 73. Wine import and export, 2010-6 months/2016e
Figure 74. Spirits import and export, 2010-6 months/2016e
Figure 75. Wine supply for Vietnam by country, 2015e
Figure 76. Largest Wine importers of Vietnam 2015
Figure 77. Consumption markets of Vietnam spirits 2015
Figure 78. Supply market of Vietnam spirits 2015
Figure 79. 10 largest spirit impoters of Vietnam, 6 months/2016
Figure 80. 10 largest spirit expoters of Vietnam, 6 months/2016
Figure 81. Conditions of transport for importing spririt, 6 months/2016
Figure 82. Conditions of transport for exporting spririt, 6 months/2016
Figure 83. 10 largest winet impoters of Vietnam, 6 months/2016
Figure 84. 10 largest wine expoters of Vietnam, 6 months/2016
Figure 85. Conditions of transport for importing wine, 6 months/2016
Figure 86. Conditions of transport for exporting wine, 6 months/2016
2.2.3 Soft Drink
Figure 87. Production and consumption of domestic Soft Drinks, 2010-6 months/2016e
Figure 88. Revenue of Soft Drinks, 2015
Figure 89. Inventory of Soft Drinks, 2010-6 months/2016e
Figure 90. Proportion of Inventory of Soft drink, by category, 2010-2015
Figure 91. Import-export of Soft Drinks, 2010-6 months/2016e
Figure 92. Import export of Juice, 2010-6 months/2016e
Figure 93. Import export of Carbonated Drink, 2010-6 months/2016e
Figure 94. Consumption of Vietnam Juice by countries, 2015
Figure 95. Suppliers for Vietnam Juice by country, 2015
Figure 96. Consumption markets of Vietnam Soft Drink 2015
Figure 97. Market supplier of Vietnam Soft Drink 2015
Figure 98. 10 larges soft drinkt impoters of Vietnam, 6 months/2016
Figure 99. 10 largest soft drink expoters of Vietnam, 6 months/2016
Figure 100. Conditions of transport for importing soft drink, 6 months/2016
Figure 101. Conditions of transport for exporting soft drink, 6 months/2016
Figure 102. 10 larges juice impoters of Vietnam, 6 months/2016
Figure 103. 10 largest juice expoters of Vietnam, 6 months/2016
Figure 104. Conditions of transport for importing juice, 6 months/2016
Figure 105. Conditions of transport for exporting juice, 6 months/2016
Figure 106. The number of Soft Drinks enterprises, 2010-2015
2.3 Industry Development Planning
2.4 Prospects and Forecasts
2.4.1 Industry driving forces
2.4.2 Forecast
Table 20. Forecast of consumption value of sectors in Beverage industry (including domestic and imported products), 2015-2018
Table 21. Beer factories built and launched 2015
Table 22. Soft Drink factories under construction and launched in 2015
Table 23. Roadmap for FDI enterprises to access Vietnam market
Table 24. Projects and Planning on Retail sector has been doing by FDI enterprises in Vietnam
2.5 Industry Risks
2.5.1 SWOT Analysis
Table 27. SWOT analysis
2.5.2 5-forces Analysis
2.5.3 Business Risks in the Industry
3. ENTERPRISE ANALYSIS
Table 25. List of 13 typical enterprises in Vietnam Beverage industry, 2015
3.1 Revenue & Profit Analysis
Figure 107. The business situation of beverage enterprises, 2014-2015
Figure 108. Gross Profit and Gross Profit Margin of Beverage enterprises, 2015
3.2 Operating Ratios
Figure 109. Receivable Turnover of Beverage Enterprises, 2015
Figure 110. Inventory Turnover of Beverage Enterprises, 2015
Figure 111. Asset Management Ratio of Beverage Enterprises, 2015
3.3 Financial Strength
Figure 112. Liquidity of Beverage Enterprises, 2015
Figure 113. Solvency of Beverage Enterprise, 2015
3.4 Management Effectiveness
Figure 114. ROA and ROE of Beverage Enterprises, 2014-2015
4 APPENDIX
1 BUSINESS ENVIRONMENT
1.1 Macroeconomy
Figure 1. GDP Growth, 2010-6 months/ 2016
Figure 2. Monthly CPI Fluctuations, 2014-6/2016
Figure 3. Consumer Confidence Index
Figure 4. VND/USD Exchange rates
Figure 5. Vietnam import-export turnover, 2010-6 months/2016e
Figure 6. Beverage industry contribution to GDP 2010-2015
Figure 7. CPI of Vietnam and Beverage & Tobacco industry, 2015
Figure 8. Population and working age structure in population, 2010-2015
Figure 9. Average disposable income and expenditure per capita of Vietnam, 2010-2015
Figure 10. Retail sales in Vietnam, 2011 – 2017F
1.2 Legal Barriers
Figure 11. Beverage export volume, 2010-2014
Figure 12. Enterprises in beer section 2010-2014
Figure 13. Profit before tax of Beverage industry
Figure 14. Production growth rate of Beer sector 2010-2014
Table 1. Special consumption taxes on alcohol and beer from 2016
1.3 Free Trade Agreements
Table 2. Vietnam’s commitments in TPP on import duty
2. INDUSTRY OVERVIEW
2.1 Global Market
2.1.1 Beer
Figure 15. Production and Consumption of Barley in the world, 10/11-15/16
Figure 16. Weekly Barley price in the UK from 2011 to 2016
Figure 17. Market share of 5 largest barley producers in the world 2015-2016
Figure 18. Barley export volume to produce Malt in the world
Figure 19. Weekly Barley (for Malt) price in the UK, 2011-2016
Figure 20. Malt capacity in Europe and the world, 2010-2015
Figure 21. Malt export in Europe and the world, 2010-2015
Figure 22. Cultivation area and production of Hops in the world, 2006-2015
Figure 23. Monthly hops price in Washington, D.C, 1981-2015
Figure 24. Market share of the 5 largest Hops producers, 2015
Figure 25. Global Hops export, 2010-2014
Figure 26. Market share of 5 largest hops exporters 2014
Table 3. Production and Growth Rate of Beer in seven regions of the world, 2014
Figure 27. Beer production and consumption in the world 2010-2014
Figure 28. Beer import export volume in the world, 2010-2014
Table 4. 10 countries with highest beer import and export value of Beer in the world
Table 5. Countries with the most rapid import and export growth of Beer 2010-2014
Figure 29. Production market share of five leading beer producers in the world 2014
Figure 30. Consumption market share of five leading beer producers in the world 2014
Table 6. 10 most valuable Beer brand in the world 2014-2015
2.1.2 Alcohol
Figure 31. Vineyard area for Wine production, 2005 – 2015
Table 7. Top 5 countries with highest vineyard are within EU
Table 8. Top 5 countries with highest vineyard are outside EU
Figure 32. Grape production for all purposes, 2010 - 2014
Table 9. Grape production by purpose, 2014
Figure 33. Production and Consumption of Wine in the world, 2010-2015
Figure 34. Market share of 5 largest Wine manufacturers in the world, 2015
Table 10. Top 5 largest Wine manufacturers in the world
Figure 35. Market shares of 5 largest wine consuming countries, 2015
Table 11. 5 largest Wine consuming countries, 2015
Figure 36. Export volume and value of Wine, 2000-2015
Table 12. Main Wine exporters
Table 13. Main Wine importers
Figure 37. Spirits consumption in the world, 2009-2015
Figure 38. Major Spirits importers in the world, 2015
Table 14. Popular types of Alcohol in the world, 2015
Table 15. Popular Alcohol brand name in the world, 2015
Table 16. Top 10 Alcohol trading companies in the world, 2015
Table 17. Top 10 Alcohol producing countries in the world, 2015
2.1.3 Soft Drink
Figure 39. Beverage revenue, 2010-2014
Figure 40. Soft Drink export value and volume, 2010-2014
Figure 41. Soft drinks revenue by categories 2014
Table 18. 10 most valuable beverage brands in the world 2014-2015
Figure 42. Carbonated Drinks
Figure 43. Energy Drinks and Sport Drinks
Figure 44. Juice
Figure 45. Bottled Water
2.2 Vietnam Market
Figure 46. Domestic production and consumption, 2010-2015
Figure 47. Export & Import of Beverage 2010-6 months/2016e
Figure 48. Structure of production value by sector, 2010-2015
2.2.1 Beer
Table 19. Table Malt and Hops import, 2010-2014
Figure 49. Malt supply for Vietnam, 2015
Figure 50. Malt import, 2010-2015
Figure 51. Hops import, 2010-2015
Figure 52. Hops supply for Vietnam by country, 2015
Figure 53. Production and Consumption of domestic Beer sector, 2010- 6 months/2016e
Figure 54. Consumption of Beer sector by category, 2015
Figure 55. Beer inventory, 2011-6 months/2016e
Figure 56. Beer inventories by category, 2011-2015
Figure 57. Revenue of domestic consumption by enterprises, 2015
Figure 58. Beer import-export 2010-6 months/2016e
Figure 59. Major beer export markets of Vietnam 2015
Figure 60. Major beer import markets of Vietnam 2015
Figure 61. 10 largest beer importers of Vietnam 6 months/2016
Figure 62. 10 largest beer exporters of Vietnam 6 months/2016
Figure 63. Conditions of transport for importing beer, 6 months/2016
Figure 64. Conditions of transport for exporting beer, 6 months/2016
2.2.2 Alcohol
Figure 65. Domestic production and consumption of Alcohol, 2010-2015e
Figure 66. Revenue structure of Wine and domestic Spirits, 2010-2015e
Figure 67. Inventory of Wine, Spirits and the Alcohol sector, 2010-2015e
Figure 68. Market share of Spirits consumption volume by leading enterprises, 2014
Figure 69. Market share of Spirits consumption volume by leading brands, 2014
Figure 70. Market share of consumption volume by manufacturers of Still Light Grape Wine, 2014
Figure 71. Market share of consumption volume by Wine manufactures (Wine fermented from other fruits than grape), 2014
Figure 72. Alcohol import export, 2010-6 months/2016e
Figure 73. Wine import and export, 2010-6 months/2016e
Figure 74. Spirits import and export, 2010-6 months/2016e
Figure 75. Wine supply for Vietnam by country, 2015e
Figure 76. Largest Wine importers of Vietnam 2015
Figure 77. Consumption markets of Vietnam spirits 2015
Figure 78. Supply market of Vietnam spirits 2015
Figure 79. 10 largest spirit impoters of Vietnam, 6 months/2016
Figure 80. 10 largest spirit expoters of Vietnam, 6 months/2016
Figure 81. Conditions of transport for importing spririt, 6 months/2016
Figure 82. Conditions of transport for exporting spririt, 6 months/2016
Figure 83. 10 largest winet impoters of Vietnam, 6 months/2016
Figure 84. 10 largest wine expoters of Vietnam, 6 months/2016
Figure 85. Conditions of transport for importing wine, 6 months/2016
Figure 86. Conditions of transport for exporting wine, 6 months/2016
2.2.3 Soft Drink
Figure 87. Production and consumption of domestic Soft Drinks, 2010-6 months/2016e
Figure 88. Revenue of Soft Drinks, 2015
Figure 89. Inventory of Soft Drinks, 2010-6 months/2016e
Figure 90. Proportion of Inventory of Soft drink, by category, 2010-2015
Figure 91. Import-export of Soft Drinks, 2010-6 months/2016e
Figure 92. Import export of Juice, 2010-6 months/2016e
Figure 93. Import export of Carbonated Drink, 2010-6 months/2016e
Figure 94. Consumption of Vietnam Juice by countries, 2015
Figure 95. Suppliers for Vietnam Juice by country, 2015
Figure 96. Consumption markets of Vietnam Soft Drink 2015
Figure 97. Market supplier of Vietnam Soft Drink 2015
Figure 98. 10 larges soft drinkt impoters of Vietnam, 6 months/2016
Figure 99. 10 largest soft drink expoters of Vietnam, 6 months/2016
Figure 100. Conditions of transport for importing soft drink, 6 months/2016
Figure 101. Conditions of transport for exporting soft drink, 6 months/2016
Figure 102. 10 larges juice impoters of Vietnam, 6 months/2016
Figure 103. 10 largest juice expoters of Vietnam, 6 months/2016
Figure 104. Conditions of transport for importing juice, 6 months/2016
Figure 105. Conditions of transport for exporting juice, 6 months/2016
Figure 106. The number of Soft Drinks enterprises, 2010-2015
2.3 Industry Development Planning
2.4 Prospects and Forecasts
2.4.1 Industry driving forces
2.4.2 Forecast
Table 20. Forecast of consumption value of sectors in Beverage industry (including domestic and imported products), 2015-2018
Table 21. Beer factories built and launched 2015
Table 22. Soft Drink factories under construction and launched in 2015
Table 23. Roadmap for FDI enterprises to access Vietnam market
Table 24. Projects and Planning on Retail sector has been doing by FDI enterprises in Vietnam
2.5 Industry Risks
2.5.1 SWOT Analysis
Table 27. SWOT analysis
2.5.2 5-forces Analysis
2.5.3 Business Risks in the Industry
3. ENTERPRISE ANALYSIS
Table 25. List of 13 typical enterprises in Vietnam Beverage industry, 2015
3.1 Revenue & Profit Analysis
Figure 107. The business situation of beverage enterprises, 2014-2015
Figure 108. Gross Profit and Gross Profit Margin of Beverage enterprises, 2015
3.2 Operating Ratios
Figure 109. Receivable Turnover of Beverage Enterprises, 2015
Figure 110. Inventory Turnover of Beverage Enterprises, 2015
Figure 111. Asset Management Ratio of Beverage Enterprises, 2015
3.3 Financial Strength
Figure 112. Liquidity of Beverage Enterprises, 2015
Figure 113. Solvency of Beverage Enterprise, 2015
3.4 Management Effectiveness
Figure 114. ROA and ROE of Beverage Enterprises, 2014-2015
4 APPENDIX
