Consumption of premium and super-premium beers in Vietnam doubled between 2011 and 2016, according to a report by GlobalData.

Titled ‘Vietnam Beer and Cider Market Insights 2017’, the report noted that beer held a 95% share of the country’s total alcoholic beverage consumption in 2016.

Premium beer consumption in 2016 was ten million hectolitres, representing an increase of more than two-fold compared to four million hectolitres in 2011. The report attributes this increase to a rise in disposable income among Vietnamese citizens.

A significant rise in premium and super-premium beer intake resulted in a 14% drop of discounted beer consumption, which stood at three million hectolitres in 2016 compared to 3.5 million hectolitres in 2011.

“A total number of 60 established beer clubs were opened in Ho Chi Minh in 2016.”

The craft beer segment accounted for just 0.2% of the market, but reported strong growth of 40%. This was particularly prominent in urban areas such as Ho Chi Minh City and Hanoi.

Small brewers are setting up their own independent outlets for distribution to survive in the market dominated by major manufacturers. In addition, the market witnessed a rise in beer clubs and craft / microbreweries, notes consumer analyst at GlobalData Kevin Baker.

A total number of 60 established beer clubs were opened in Ho Chi Minh in 2016, which majorly focused on attracting women and premium beer consumers.

The report further states that the sudden rise in the craft beer segment and on-premise consumption will motivate small brewers to open their outlets in cities as traditional distribution channels are dominated by big brands.