10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Beer market of Vietnam: “Young tiger”Vietnam is one of the few big beer markets that continue to grow steadily. The beer popularity results from its low price, street consumption culture, and social motives. The outlooks of beer market as well as the Vietnamese economy inspire optimism, though the country is heavily dependent on export of goods. The state regulation can be called liberal, but the key risk for brewers is harbored in intensive rising of excise. Within TOP-4 there are two leaders, Sabeco and Heineken that grow at the fastest rates. The first company effectively employs its capacities, the second one focuses on marketing technologies. Almost 80% of the market belongs to century-old brands, yet the middle class and the youth are shifting their interest toward international premium that is growing taking share from the mainstream.
“Impressive” statistics and the “pride” of Vietnamese
However, that did not include alcohol and beer produced by tens of thousands of household-sized distilleries throughout the country.
Also, according to the VBA, in the past five years, the industry gained the average growth rate of over 7% a year, and by 2020, beer output will reach 4 to 4.25 billion liters a year and the alcohol output will be from 320-360 million liters per year.
The beverage industry last year paid VND30,000 billion to the state budget, accounting for about 3% of the total budget revenue. It is a significant source of revenue of the state budget, from a purely economic perspective.
If the volume of beer and alcohol had been mainly exported, the earnings for the country would have been high.
In mid-2015, a report by the VBA also showed that Vietnam ranked 5th out of 10 Asian countries in consumption of beer and wine, just behind Japan, South Korea, Thailand and China.
However, Vietnam’s GDP and per capita GDP are far behind Asian countries such as Japan, South Korea, China, and ranks only 8th out of 10 countries in the ASEAN community.
The Ministry of Health (MoH) recently reported that alcohol consumption in Vietnam doubled in the past 10 years.
Vietnam’s consumption of beer and wine is now among the world's Top 25. It is noteworthy that the amount of alcohol and beer consumption in the world did not increase in the past 10 years
17 Feb. 2016