Vietnam is the second-largest coffee producer in the world, primarily growing robusta coffee. Additionally, there are other types of coffee such as Arabica, Culi, Cherry, and Moka, each with its own unique flavor and characteristics. The main coffee-growing regions in Vietnam are concentrated in the Central Highlands, especially in Đắk Lắk, which is considered the "coffee capital" of Vietnam due to its largest area and production volume. In the 2023-2024 crop year, Vietnam exported about 1.45 million tons of coffee, valued at over 5.4 billion USD, the highest ever. Vietnamese coffee is now present in more than 80 countries and territories, with significant market shares in Europe (48%), Asia (21%), and the US (6%).
In 2023, Vietnam exported approximately 1.62 million tons of coffee, a decrease of 8.7% compared to 2022. However, the export turnover reached a record high of over 4.24 billion USD, up by 4.6% from the previous year. The average export price of coffee in 2023 was 2,614 USD/ton, up 14.5% compared to 2022. In 2024, Vietnam's coffee production continues to be negatively affected by climate change and rising production costs. According to the Vietnam Coffee-Cocoa Association (VICOFA), the coffee output for the 2023-2024 crop year is expected to decrease by 10% compared to the previous year, down to about 1.6 million tons, due to the impact of climate change and farmers switching to more economically viable crops.
The Vietnamese coffee market is seeing strong growth in coffee shop chains and the rising consumption of specialty coffee. According to data from Vietdata, the number of coffee shops in Vietnam increased from 816 in 2019 to 1,657 in 2023, reflecting the rapid expansion of domestic coffee chains. This trend reflects consumer demand for unique flavors and high-quality coffee. Moreover, takeaway coffee models and home brewing are becoming increasingly popular among the younger community due to their convenience and alignment with modern lifestyles.
Despite facing many challenges, the Vietnamese coffee industry still holds great growth potential. Firstly, domestic coffee demand is increasing rapidly, especially with the growing middle class and the economic recovery after the pandemic. Many domestic and international coffee chains continue to invest in expanding scale and improving products. Large businesses such as Trung Nguyên, Intimex, and Louis Dreyfus have invested in instant coffee production and specialty coffee to meet new consumer demands.
Vietnam also has the opportunity to develop a sustainable coffee industry, particularly in the Central Highlands – the country’s main coffee-growing region, through production linkages and high-tech supply chain management models. These initiatives aim to enhance the position of Vietnamese coffee in international markets and meet the quality standards of markets such as Japan and Europe.
The application of high-tech in coffee production and processing helps increase efficiency, ensure international quality standards, and enhance competitiveness in the global market. Vietnamese businesses are investing in automated production lines and expanding production scale to meet the export requirements for demanding markets, thus promoting sustainable development and adding value to Vietnam's coffee industry.
On the other hand, Vietnam also has the opportunity to develop a sustainable coffee industry with production linkages, especially in the Central Highlands – the coffee capital of the country. Sustainable coffee production and the application of high-tech in supply chain management are being increasingly promoted to strengthen the position of Vietnamese coffee in international markets.
It is clear that the Vietnamese coffee industry is currently in a phase of development with many opportunities and challenges. The increasing domestic demand for coffee, along with the presence of many international brands, creates enormous potential for Vietnam not only to strengthen its position as a leading coffee producer but also to build a high-quality coffee brand.