The Vietnam coffee market size is estimated to expand at a robust CAGR during the forecast period 2021-2028. The growth of market is attributed to increasing demand by consumers and food & beverage industry from local and international players.
Vietnam was a colony of France and coffee was first introduced by Frenchmen in year 1857, however the output since 1975 is quite small the industry took the pace after the end of Vietnam War in 1975 especially when East Germany signed a contact with Vietnam for the procurement of their coffee yield.
Since 1975 to 2010 the coffee plantation area of Vietnam has increased from 132,000 hectares to 510,000 hectares, approximately around 30 folds. For so many years Germany remains the hub of Vietnam for their export.
Southern Vietnam is known for its hot and humid climatic condition suitable for cultivating Robusta coffee whereas Northern part for Arabica. The total cultivation land occupied in Vietnam for coffee production is estimated to be around 653,000 hectare and provide 500,000 job opportunities for the farmers by producing commercial coffee.
According to one of the survey, Vietnamese coffee is acknowledged worldwide. The export volume and value present is growing hand in hand. From year 1991 to 1995 the total export volume of Vietnamese coffee is considered around 142.000 tons with and annual value of USD 200 million.
The report Vietnam coffee market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes |
Details |
Report Title |
Coffee Market– Vietnam Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year |
2020 |
Historic Data |
2018–2019 |
Forecast Period |
2021–2028 |
Segmentation |
Product Types (Instant Coffee, Ground Coffee, and Whole Bean), Distribution Channels (On-trade, and Off-trade [Supermarket/Hypermarket, Specialty Stores, Online Retailing, and Others]) |
Country |
Vietnam |
Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast |
Key Players Covered in the Report |
Nestle; Phuc Long Trading Production Company Limited; Len’s Coffeee LLC; Starbucks Coffee Company; Bien Hoa Vinacafe Joint Stock Company. |
On the basis of product types, the market is segregated into instant coffee, ground coffee, and whole bean. The instant coffee segment holds a large market share owing to premimuization trend, long working hours, and busy lifestyle of the population. However, the ground coffee segment is estimated to grow at a steady pace due to rising demand by specific group of people among the population still favors to make their own cup of coffee.
In the terms of distribution channels, the market is bifurcated into on-trade and off-trade. The off trade segment is further segregated into supermarket/hypermarket, specialty stores, online retailing, and others. The supermarket/hypermarket segment is expected to exhibit high CAGR owing to business growth and rising supermarket and hypermarket. On the other hand the online retail segment is estimated to rise at a rapid pace due to drastic increase of the e-commerce facilities.
The Vietnam coffee market has been bifurcated on the basis of
Key players competing in the Vietnam coffee market include Nestle; Phuc Long Trading Production Company Limited; Len’s Coffeee LLC; Starbucks Coffee Company; Bien Hoa Vinacafe Joint Stock Company.
Some of these players are targeting on business strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to increase their market shares. For instance
In March 2020, Nestle Vietnam launched Nescafe Aromatico and Nesacafe Excellente two new coffee products made from premium coffee beans yielded from Central Highland of Vietnam.
In August 2021, Netherland based LDC announced a strategic partnership with Polish provate label coffee company Instanta to build and operate a freexe dried instant coffee plant in Binh Duong province, Vietnam.
In March 2019, Tata Sons Private Limited Company wholly owned a subsidiary revealing its Freeze Dried Instant Coffee production plant in Binh Duong province, Vietnam.
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