Food & Beverage Market Research News

Research focused on the key findings of Vietnam's coffee market

Food & Beverage Market Research

The Vietnam coffee market value is expected to witness a growth rate of 8.2% during the forecast period with an average per capita coffee consumption of 1.1 Kg in 2018. In 2016, Nestle Vietnam Ltd. led the coffee sales, with a retail volume share of 27%.

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According to Vietnam Standards and Consumers Association, in July 2016 30% of coffee products sold in Vietnam contained very little or no caffeine.

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Changing Consumer Coffee Consumption Pattern

Increasingly busy lifestyles and longer working hours will continue to strengthen appreciation for the convenience of this product type, which should lead more consumers to switch from fresh ground coffee or instant standard coffee to instant coffee mixes.

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Moreover, the category should also benefit as manufacturers continue to introduce stronger-tasting products that suit the traditional preferences of Vietnamese consumers. Increasing number of cafes and coffee culture in Vietnam is also expected to boost the market during the forecast period.

The coffee cultivated in Vietnam are mainly Robusta and Arabica coffee. Southern Vietnam is humid and hot, suitable for growing Robusta whereas the northern part is suitable for Arabica.

In 2014, total coffee cultivation area in Vietnam was 653,000 hectare, increasing by 2.7% YOY.

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Instant Coffee Market to Grow at a Faster Rate

Domestic consumption for roasted and ground coffee was at 2.5 million bags MY2016/17, and the estimate for MY2017/18 is about 2.55 million bags due to the continuing growth of coffee shops and cafes. Vietnamese coffee drinkers prefer roasted and ground coffee because of its full-bodied and original flavors.

With the growth in the coffee market, instant coffee mix is expected to be the most dynamic coffee category in retail volume growth terms over the forecast period, with a CAGR of 7%.

The domestic coffee market remains fierce with strong competition coming from international players such as Dunkin Donuts, Coffee Beans and Tea Leaves including several Korean coffee chains like Coffee Bene and the Coffee House. However, local chains like Trung Nguyen, Phuc Long, Highlands and some new local players such as Passio, Thuc, Cong Café have their own traditional coffee drinks, which keep the chains afloat in a competitive market.

The domestic market experiences mild growth because the Vietnamese coffee market needs more value-added coffee products to expand.

Key Developments

  • January 2018: Starbucks has announced the return of Vietnam Da Lat coffee to Vietnam. The limited-quantity coffee is now available at all Starbucks stores in the country.
  • November 2017: The Vietnamese government has approved USD 7.5 million for a five-year coffee sector development project designed to improve quality, increase exports and develop a premium Vietnamese coffee brand.


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Reasons to Access this Report

  • Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
  • Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come
  • Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
  • Country level analysis integrating the demand and supply forces that are influencing the growth of the market
  • Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
  • 3 months analyst support along with the Market Estimate sheet (in excel).

Customization of the Report

  • Value chain analysis
  • Consumer behavior analysis in country level

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