BEER INDUSTRY REPORT ON THE FIRST 9 MONTHS OF 2022
Evolution of the beer industry in the first 9 months of 2022
According to VIRAC‘s report, some key developments in the Vietnamese beer market in the first 9 months of 2022:
- Beer production in the first 9 months of 2022 is considered prosperous: production output will grow by about X% compared to the same period in 2021.
- The current situation of Vietnam’s beer industry: The cost of raw materials increased sharply: influenced by factors (1) geopolitical conflict between Russia and Ukraine, (2) high global inflation; causing the price of input factors of the industry to increase sharply: malt, aluminum, flavorings, plastic packaging, bottle caps, plastic packaging which increased by 40-50% over the same period in 2021.
- Compared to 9M/2021, the Covid-19 pandemic has been controlled, food and entertainment services … have been relaxed; restaurants, bars, and karaoke… come back into operation; Since March 15, 2022, international flights will be resumed, marking the return of the tourism industry and an opportunity for promoting consumption of beverage products in general and beer in particular.
- Many major sports and cultural events are taken place, for example, Sea Games 31
Below is the beer industry report on the first 9 months of 2022
Bright prospects for Vietnam’s beer industry in Q4/2022 and 2023
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Barley prices tend to decline in the fourth quarter of 2022 and affect both 2023 and 2024
The outlook for Vietnam’s beer industry in 2022 is positive as malt prices are expected to gradually decrease in 2023 and 2024 to $150/ton and $149/ton when barley supply increases by 1.9% y/y. 2021/22. However, the main source of barley for Vietnam is Australia, which is forecast to decrease by 11.9% in production compared to the previous crop year.
The market for the 2022 barley crop is fraught with difficulties, as farmers hold out in hopes of higher prices.
By the beer industry report 2022, the price will depend on the development of the world grain market and the quantity/quality of the actual harvest. There are no stocks from the 2021 barley crop to 2022. This means any crop problem, in any of the major major barley producing regions (UK + EU, Canada, Australia)., Argentina) will lead to a global shortage.
According to experts, the price of main input materials tends to decrease in the last 3 months of 2022, reducing pressure on manufacturers.
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The cost of other materials (packaging, aluminum shell, etc.) will also decrease in the future
Prices of other production costs are also estimated to decrease in 2023 when the world economy is likely to have a recession: due to rising inflation suppressing consumer demand as well as the FED has not shown any signs of decelerating its interest policy.
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Demand for beer rises again
Euromonitor forecasts that beer consumption in Vietnam will grow by 11% in the next 3 years when the Covid-19 epidemic is under control. In the short term, couples of signs show that the beer industry will continue to grow: (1) In the second half of 2021, social distancing is tight, and beer consumption is at a low level; the growth figure over the same period in the post-COVID situation can reach an impressive level (2) Trade channels are relatively recovered: restaurants, cafes fully reopen and the number of foreign tourists increases (Vietnam reopens in March 2022).
➔ The outlook for brewing businesses is considered to be positive.
Read more news about the beverage industry development in the first 6 months of 2022 here: https://viracresearch.com/nganh-do-uong-viet-nam-trong-nhung-thang-dau-nam-2022-2/
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Information on the market situation and prospects of Vietnam’s beer industry is compiled from the “Beverage INDUSTRY REPORT Q3/2022” made by VIRAC. The full report will provide customers with comprehensive macroeconomic analysis information and the situation of the beer – spirits – wine – beverage markets. In addition, VIRAC also offers some prospects, forecasts, and recommendations for beer businesses in the process of business and production.
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- Unilever Vietnam International Co., Ltd
- Olam International
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