Vietnam Coffee Market Size Booming at Healthy CAGR of 8.2% to Touch Hot Value of USD 1.13 Billion by 2030

Published | 11 July 2024

Vietnam Coffee Market is flourishing due to booming café culture, heightened awareness about coffee’s health benefits, the soaring disposable income, and rapid urbanization.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Vietnam Coffee Market size by value at USD 652.9 million in 2023. During the forecast period between 2024 and 2030, BlueWeave expects Vietnam Coffee Market size to expand at a CAGR of 8.2% reaching a value of USD 1,129.2 million by 2030. The Coffee Market in Vietnam is propelled by increasing development of a well-established coffee culture within the country. The growing influence of Western coffee culture is contributing to the expansion of coffee chains in Vietnam.

By volume, BlueWeave estimated Vietnam Coffee Market size at 30.9 million bags in 2023. During the forecast period between 2024 and 2030, BlueWeave expects Vietnam Coffee Market size by volume is projected to grow at a CAGR of 8% reaching the volume of 52.9 million bags by 2030. A rising level of consumer sophistication is driving demand for premium coffee experiences. This trend is evidenced by the increasing popularity of upscale establishments from both domestic and international brands, including Highland's Coffee, Starbucks Corporation, Phuc Long, and Trung Nguyen. Recognizing this shift in consumer preferences, coffee chains in Vietnam are strategically implementing new upscale store formats to cater to the demand for elevated coffee and culinary experiences. It, in turn, is expected to drive Vietnam Coffee Market during the period in analysis.

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Opportunity – Shift towards premium and organic coffee

Vietnam, the world’s second-largest coffee producer, is poised to capitalize on the global shift towards premium and organic coffee. Despite perceptions of robusta as inferior, Vietnam's robusta beans are gaining recognition for their strong mocha and nutty flavors, ideal for dark roasts and organic certification. Government incentives and growing consumer demand, especially in the United States, are driving Vietnamese farmers towards organic farming practices. This shift not only meets the rising global demand for organic coffee but also enhances sustainability and market competitiveness. With organic farming quadrupling since 2016 and robusta's resilience to climate change, Vietnam Coffee Market is well-positioned to gain from the country’s growing share in the lucrative premium and organic coffee landscape.

Impact of Escalating Geopolitical Tensions on Vietnam Coffee Market

Intensifying geopolitical tensions can have a multifaceted impact on Vietnam Coffee Market. Concerns over disrupted shipping routes and uncertainties challenge Vietnamese coffee market in maintaining supply chains and meeting international demand. The Vietnam Coffee-Cocoa Association highlights significant impacts on export logistics, with potential delays and increased costs threatening profitability. Despite these hurdles, Vietnam continues to leverage its robusta coffee production, expecting sustained high prices due to global supply constraints. Industry experts emphasize the need for adaptive strategies focusing on resilience and strategic planning to mitigate geopolitical instability's effects on the Coffee Market in Vietnam.

Instant Coffee Is Most Popular Type in Vietnam Coffee Market

Vietnam Coffee Market consists of major coffee type segments including Whole Bean, Ground Coffee, Instant Coffee, and Coffee Pods & Capsules. Among them, the instant coffee type is the largest segment, primarily due to fast-paced lifestyles. As tradition takes a backseat to convenience, consumers are increasingly opting for instant coffee mixes over the time-honored methods. Leading brands like TNI King Coffee and G-7 are catering to this demand with single-serve sachets and sticks, winning hearts (and mornings) with their effortless preparation and eco-friendly packaging. The surge in popularity is reflected in Vietnam's skyrocketing instant coffee production. According to the General Statistics Office of Vietnam, coffee production soared to a staggering 154,000 metric tons in 2022, a significant jump from 141.4 thousand metric tons just a year prior. With Vietnam boasting an abundance of Robusta beans, perfectly suited for instant coffee, Vietnam is poised to become a dominant force in the global instant Coffee Market. Major players in the market are already ramping up their production to capitalize on the growing popularity of instant coffee in Vietnam.

Competitive Landscape

Vietnam Coffee Market is fragmented, with numerous players serving the market. Key players dominating Vietnam Coffee Market include Nestle, Louis Dreyfus, NKG Vietnam Co., Phuc Sinh Corporation, Tuan Loc Commodities, Vinacafe, Highlands Coffee, Trung Nguyen Legend, and King Coffee. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge in the overall market.

Don’t miss the business opportunity of Vietnam Coffee Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and Vietnam Coffee Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Vietnam Coffee Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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