Report Overview

Vietnam Coffee Market – Industry Trends & Forecast Report, 2030

Vietnam Coffee Market size by value was estimated at USD 652.9 million in 2023. During the forecast period between 2024 and 2030, Vietnam Coffee Market size is projected to grow at a CAGR of 8.2% reaching a value of USD 1,129.2 million by 2030. Prominent drivers of the market include increasing development of a well-established coffee culture within the country. Vietnam hosts several companies involved not only in domestic coffee trade but also expanding their presence in international markets. Furthermore, the growing global exposure and influence of Western coffee culture are anticipated to drive the expansion of coffee chains in Vietnam. Concurrently, the rising sophistication of consumer tastes in the country is expected to bolster the growth of coffee market.

By volume, Vietnam Coffee Market size was estimated at 30.9 million bags in 2023. During the forecast period between 2024 and 2030, Vietnam Coffee Market size is projected to grow at a CAGR of 8% reaching the volume of 52.9 million bags by 2030. The growing acceptance of coffee is attributed to the increasing presence of premium establishments from companies like Highland's Coffee, Starbucks Corporation, Phuc Long, and Trung Nguyen, thereby fueling market growth. Also, coffee chains in Vietnam are focusing on establishing new 'upscale' store formats designed to meet the rising demand for elevated coffee and culinary experiences among Vietnamese consumers.

Coffee – Overview

Coffee is a globally beloved beverage brewed from roasted seeds of the Coffea plant's cherries, primarily Arabica and Robusta species. Grown in tropical regions, these beans undergo processes like drying, roasting, and grinding before being brewed into drinks ranging from espresso to cold brew. Renowned for its rich flavor and caffeine boost, coffee plays a pivotal role in social interactions, cultural rituals, and the global economy. While moderate consumption offers health benefits, it is crucial to balance intake. Sustainability efforts in coffee production are growing to address environmental impacts and promote fair trade practices, ensuring coffee's enduring presence worldwide and across Vietnam.

Vietnam Coffee Market

Growth Drivers

Growing Cafe Culture

Vietnam, a pivotal player in global coffee supply, exemplifies a burgeoning cafe culture with brands like Trung Nguyen Legend expanding globally. The country, known as the world's largest Robusta coffee exporter, highlights its robust coffee industry driven by strategic policies and cultural promotion efforts. Trung Nguyen Legend's international ventures, such as its Coffee World model in China and franchised spaces in the United States, underscore Vietnam's cultural influence on the global coffee stage. The expansion not only boosts economic growth but also enhances Vietnam's global stature in coffee culture. Through these initiatives, Vietnam aims to solidify its position as a leader in the Coffee Market, leveraging its rich coffee heritage to captivate international markets and coffee enthusiasts alike.

Challenges

Price Volatility

Price volatility poses a significant challenge to the growth of Vietnam's Coffee Market. Fluctuating global coffee prices, influenced by factors like weather conditions and market demand, create uncertainty for Vietnamese coffee growers and exporters. This instability makes it difficult for stakeholders to predict income and plan production effectively. Despite Vietnam's robust production capabilities and strategic market expansions, the unpredictable nature of coffee prices hinders sustainable growth and investment in the sector. Addressing these challenges requires resilient strategies and market interventions to mitigate the impact of price volatility on Vietnam Coffee Market.

Impact of Escalating Geopolitical Tensions on Vietnam Coffee Market

Escalating geopolitical tensions among countries across regions could have a significant impact on the growth of Vietnam Coffee Market, influencing both production and export dynamics. Concerns over disrupted shipping routes and uncertainties challenge Vietnam's coffee industry 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 country's coffee sector.

Vietnam Coffee Market

Segmental Coverage

Vietnam Coffee Market – By Type

By type, Vietnam Coffee Market is divided into Whole Bean, Ground Coffee, Instant Coffee, and Coffee Pods & Capsules segments. The instant coffee segment holds the highest share in Vietnam Coffee Market by type. As Vietnamese lifestyles become busier, convenience drives a shift towards instant coffee mixes over traditional options. Brands like TNI King Coffee and G-7 offer single-serve sachets and sticks, gaining popularity for their ease of use and eco-friendly packaging. Vietnam's instant coffee production surged in 2022 to about 154 thousand metric tons, up from 141.4 thousand metric tons in 2021, according to the General Statistics Office of Vietnam. With abundant Robusta resources, Vietnam is expected to dominate the global instant coffee market. Major industry players are expanding production capacities to leverage this advantage effectively.

Vietnam Coffee Market – By Distribution Channel

Based on distribution channel, Vietnam Coffee Market is bifurcated into Online and Offline segments. The online segment is expected to hold a higher share in Vietnam Coffee Market by distribution channel during the forecast period. Increasing internet penetration and consumer preferences for convenience have driven significant growth in online platforms. This trend highlights a shift in consumer behavior towards hassle-free shopping experiences. While traditional retail channels remain relevant, the rise of online coffee purchases reflects changing market dynamics. Coffee businesses can leverage digital platforms strategically to expand their market presence and improve customer engagement in this evolving landscape.

Competitive Landscape

Major players operating in 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. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2024 - Vietnam successfully exported its inaugural batch of organic coffee beans to Japan. Vinh Hiep Company Limited, based in Gia Lai province, shipped approximately 40 tons of organic coffee to meet the stringent standards of the Japanese market.

• In September 2023 - L’amant Café, Vietnam’s premier organic coffee brand, entered the Indian market with an announcement at the World Coffee Conference 2023 in Bengaluru. Partnering with Rayanssh Impex, L’amant Café aimed to introduce Vietnamese organic coffee to India. The brand planned to establish its own cafes and stores across the country by 2025. L’amant Café was recognized as Vietnam's first coffee brand with USDA organic-certified farms and adhered to international standards like 4C, UTZ, BRC, Japan Organic, and EU Organic. Founder Thai Nhu Hiep expressed confidence in capturing India's significant consumer base with their unique organic coffee offerings.

Scope of the Report

By Type

• Whole Bean

• Ground Coffee

• Instant Coffee

• Coffee Pods & Capsules

By Distribution Channel

• Online

• Offline

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Vietnam Coffee Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Disposable Income
         2. Growing Cafe Culture
         3. Increasing Urbanization
         4. Health Benefits
      2. Restraints
         1. Price Volatility
         2. Sustainability Concerns
      3. Opportunities
         1. Innovation in Product Offerings
         2. Shift Towards Premium and Organic Coffee
      4. Challenges
         1. Competition from Substitute Beverages
         2. Climate Change and Coffee Production
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Vietnam Coffee Market: Marketing Strategies
5. Vietnam Coffee Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Whole Bean
         2. Ground Coffee
         3. Instant Coffee
         4. Coffee Pods & Capsules
      2. By Distribution Channel
         1. Online
         2. Offline
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Vietnam Coffee Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of Escalating Geopolitical Tensions on Vietnam Coffee Market
8. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Nestle
   2. Louis Dreyfus
   3. NKG Vietnam Co.
   4. Phuc Sinh Corporation
   5. Tuan Loc Commodities
   6. Vinacafe
   7. Highlands Coffee
   8. Trung Nguyen Legend
   9. King Coffee
   10. Other Prominent Players
9. Key Strategic Recommendations
10. Research Methodology
    1. Qualitative Research
       1.  Primary & Secondary Research
    2.  Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4. Breakdown of Primary Research Respondents, By Country
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Vietnam Coffee Segmentation

Figure 2       Vietnam Coffee Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Vietnam Coffee Market Size, By Value (USD Million), 2019–2030

Figure 5       Vietnam Coffee Market Share, By Type, By Value, 2019–2030

Figure 6       Vietnam Coffee Market Share, By Distribution Channel, By Value, 2019–2030

List of Tables

Table 1        Vietnam Coffee Market Size, By Value (USD Million), 2019–2030

Table 2        Vietnam Coffee Market Size, By Type, By Value, 2019–2030

Table 3        Vietnam Coffee Market Size, By Distribution Channel, By Value, 2019–2030

Table 4        Nestle Company Overview

Table 5        Nestle Financial Overview

Table 6        Louis Dreyfus Company Overview

Table 7        Louis Dreyfus Financial Overview

Table 8        NKG Vietnam Co. Company Overview

Table 9        NKG Vietnam Co. Financial Overview

Table 10      Phuc Sinh Corporation Company Overview

Table 11      Phuc Sinh Corporation Financial Overview

Table 12      Tuan Loc Commodities Company Overview

Table 13      Tuan Loc Commodities Financial Overview

Table 14      Vinacafe Company Overview

Table 15      Vinacafe Financial Overview

Table 16      Highlands Coffee Company Overview

Table 17      Highlands Coffee Financial Overview

Table 18      Trung Nguyen Legend Company Overview

Table 19      Trung Nguyen Legend Financial Overview

Table 20      King Coffee Company Overview

Table 21      King Coffee Financial Overview