Enoteca Co., Ltd., the foremost wine retailer and wholesaler in Asia, is making strategic inroads into Vietnam’s burgeoning wine market. The company is pleased to announce the establishment of its wholly-owned subsidiary, “ENOTECA VIETNAM Co., Ltd.,” with operations set to commence in October 2024 in Ho Chi Minh City.
The subsidiary is poised to make a significant impact on the wine retail sector with dedicated wine shops while also venturing into the wholesale business. This expansion is a natural progression for Enoteca, following its successful establishment in key Asian markets such as Hong Kong, Singapore, mainland China, South Korea, Taiwan, and Thailand.
Vietnam, a nation that has sustained consistent economic growth since the 1990s and achieved middle-income status in the 2010s, stands out with one of the fastest-growing economies in the ASEAN region. The country’s active consumer base, primarily composed of individuals aged between their 20s and 40s, presents an enticing opportunity for businesses. Enoteca’s foray into the Vietnamese market aligns perfectly with the growing trend of wine consumption in the country, attracting the attention of this demography.
In 2020, Vietnam’s wine market reported sales of 1.3 million cases, amounting to a total value of US$171 million. This positioned Vietnam as the 46th largest wine market globally. Although the market faced a temporary setback in 2020 due to the pandemic, it is poised for a rebound. Projections from the International Wine and Spirits Research (IWSR) forecast a Compound Annual Growth Rate (CAGR) of 6% for wine from 2020 to 2025. Both commercial/value wines and premium segments are expected to witness robust growth rates of 6% and 7% per annum, respectively.
This growth holds particular significance, given Vietnam’s youthful demographic, which constitutes the largest segment of the population. As this demographic develops a taste for wines, it signifies a notable shift from traditional beverages to wine, reflecting broader cultural transformations in the country.
Enoteca’s strategic move into Vietnam underscores the company’s commitment to serving the evolving preferences and demands of Asian consumers while harnessing the immense potential presented by this vibrant market.
