Vietnam’s whisky market set to reach US$440 million by end of 2025

In contrast to some stagnation in traditional whisky markets, Vietnam is experiencing a surge, with projections estimating its value to hit $440 million by 2025, growing at an annual rate of 26%.  According to a recent Forbes article, the growth is being attributed by unique cultural factors. A primary driver is the burgeoning middle class, which has developed a strong appetite for luxury goods, including premium whisky brands. Additionally, a cultural tradition of collecting items associated with auspicious birth years has further fueled demand. The enthusiasm for whisky in Vietnam is further evidenced by the emergence of domestic distilleries. In February 2024, Hanoi-based Về Để Đi announced the release of private casks of the nation's first single malt whisky, marking a significant milestone in Vietnam's spirits industry. Co-founder Dr. Michael Rosen highlighted the potential of hot climate distilling, noting that the interaction between wood and whisky accelerates in warmer climates, leading to unique flavour profiles.

But what about elsewhere?

Vietnam’s whisky boom stands in contrast to the challenges facing the global whisky market. As reported by db at the end of last year, whisky sales have been declining in key markets, with economic pressures, shifting consumer preferences, and inflation impacting demand. Major producers have faced slowing growth, particularly in traditional strongholds such as the US and UK. However, emerging markets like Vietnam are bucking this trend, with rapid economic expansion and a growing middle class driving demand for premium spirits. Such divergence highlights the shifting dynamics of the global whisky industry, where Asia-Pacific is increasingly becoming a key growth region

Potential hurdles

However, Vietnam's rapid ascent faces potential hurdles. In July 2024, Vietnamese authorities proposed an alcohol tax hike to 100% by 2030, aiming to curb consumption and address health concerns. If implemented, this policy could significantly impact the affordability and accessibility of whisky in the country. Despite these challenges, the overall outlook for Vietnam's whisky market remains optimistic. The nation's growing appetite for premium spirits mirrors broader trends in the Asia-Pacific region. For instance, UK whisky exports to Malaysia saw a 43% increase, reflecting the rising demand for high-quality alcoholic beverages across Asia.