Vietnam offers an attractive demographics profile for wine producers.
In 2020, approximately 72.8% (70.9 million people) of the Vietnamese population are aged over 18 (the legal drinking age in Vietnam). The 20-64 age group can be broken down into two sub groups, which each offer an important, albeit different, opportunity for wine majors.
With a population of approximately 97.0 million, Vietnam’s total wine consumption is relatively high, with the country offering the third largest wine market in the Association of Southeast Asian Nations (ASEAN) region, at 15.3 million liters in 2020. Only Thailand (103.3 million liters) and Malaysia (26.7 million liters) offer a larger market.
With the above-mentioned growth drivers and with demand stemming from a relatively low base Fitch Solutions forecast Vietnam’s wine consumption to grow by an average of 7.4% a year, one of the fastest in the region.
By 2024, the consumption level of wine in Vietnam is projected to reach 22.3 million liters, with per capita consumption of wine forecast to expand to 0.3 liters per adult.
Red wine dominates the wine market in Vietnam, accounting for approximately 76% of total wine consumed in 2020. Proportionally, Fitch Solutions foresees this remaining relatively constant over our medium-term forecast period. White wine accounts for a further 18% of total wine consumption, followed by sparkling wines (2.3%) and fortified wines (2.9%).