Vietnam Coffee Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Vietnam Coffee Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Vietnam Coffee Market is projected to witness a CAGR 8.07% during the forecast period (2022-2027).

With the impact of Covid-19, the global supply of coffee is restrained drastically which impacted the relative coffee prices at consumer end. The consumption of coffee also increased with the work pressure and working population increase in the country in 2020, but with the supply chain disruptions, the market have seen halted growth in COVID situations.

Vietnam is the world’s second largest producer and exporter of coffee. The country’s coffee industry is expected to grow strongly over the forecast period, as the population continues to expand at a rate of about one million people a year.

High annual growth in sales of Vietnamese instant coffee paints a favorable picture for the future of the coffee industry as a whole. 74.8% of domestic coffee consumption is roast and ground coffee products, and 10.2% are instant coffee products. Increased demand for consumer products and foodservice industry from local and international players is another factor that is expected to fuel the market’s growth.

Key Market TrendsInstant Coffee likely to Gain Traction

Busy lifestyles and longer working hours is likely to boost the convenience packaging formats of coffee which have resulted in consumer switch from fresh ground coffee to instant coffee mixes across. According to International Coffee Orgnisation, Veitnam showed a steady per capita soluble coffee consumption among millinneal when compared to other Asian Countries over the last decade. Premimuization trends is expected to boost the growth of the market in the country. With the increase in busy lifestyles among millinneal and working population among the country, the coffee consumption among these age groups have increased drastically in the recent past.

Changing Lifestyle Highly Influencing Coffee Consumption

Increasingly busy lifestyles and longer working hours is likely 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. 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. For instace, in 2020, there were 1,106 coffee chain outlets in Vietnam. The increasing interest on coffee consumption among the local population due to changing lifestyle is highly benifitting the market.

Competitive Landscape

The Vietnam Coffee market witnesses high competition due to the presence of a considerable number of regional and global players. An advanced distribution network gives an upper edge to the manufacturers to expand their range of products, suitable for various consumer needs. Moreover, it is crucial for players to continuously innovate to operate and grow in the market due to the rapidly changing consumer demands and preferences. The Vietnam Coffee market includes the company profiles of Nestle, Bien Hoa Vinacafé Joint Stock Company, Len's Coffee LLC, Starbucks Coffee Company, Phuc Long Trading Production Company Limited, Anni Coffee

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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