Overview of Vietnam’s Coffee Export Situation
Vietnam is currently the second-largest coffee exporter in the world, only behind Brazil, contributing approximately 15-20% of global coffee production. The majority of Vietnam’s coffee output is Robusta, which accounts for over 90% of its exports and is known for its high caffeine content and bold flavour. Vietnam is not only a major supplier in terms of volume but is also increasingly focusing on high-quality and speciality coffee products to meet the diverse demands of the international market.
Vietnam is a coffee powerhouse, ranking second globally with an annual export of 1.6 million tons. Only Brazil surpasses this volume, exporting 2.6 million tons. Vietnam’s exports far exceed those of competitors like Colombia (0.77 million tons) and Indonesia (0.63 million tons), solidifying its leadership in the global coffee market.
See detail the Vietnam Coffee Export Value 2011 – 2025
Vietnam’s Coffee Export Market
Europe (EU) – Europe is the largest market for Vietnamese coffee, capturing approximately 16% of the EU coffee import market:
- Germany: The largest importer, bringing in around 170,000 tons of Vietnamese coffee annually.
- Spain: The leading importer of unroasted and decaffeinated coffee from Vietnam.
- Italy: Another key market, importing over 100,000 tons of coffee.
- Russia: Primarily imports instant coffee from Vietnam, showing significant growth.
Japan: A rapidly growing market, importing 81,628 tons of coffee from Vietnam in the first 10 months of 2024.
United States: A potential growth market, with Vietnamese coffee exports ranging between 292-300 million USD annually despite fluctuations in recent years.
Varieties and quality of Vietnam’s Coffee
Vietnam is one of the world’s largest coffee exporters, primarily focusing on Robusta and Arabica beans, along with a growing share of processed coffee products. Here’s a breakdown of the key coffee types exported from Vietnam:
– Export Output: 830,000 tons
– Export Turnover: 2.81 billion USD
– Share in Total Coffee Export: 84.5% of output, 77.5% of turnover (first 7 months of 2024)
Vietnam is the world’s largest exporter of Robusta coffee, and this product plays a significant role in the country’s coffee export turnover. Robusta is particularly popular in markets like the EU, Japan, and Russia, where it is valued for its high quality and reasonable price.
– Export Output: 51,180 tons
– Export Turnover: 171.85 million USD
– Share in Total Coffee Export: Smaller than Robusta, but important for high-end markets.
Arabica coffee, though less abundant in terms of output, still holds an important position in Vietnam’s coffee exports. It is especially favoured in markets like Japan and the United States, where consumers prefer coffees that are less bitter and smoother than Robusta.
– Export Output: 890 – 1,000 tons
– Export Turnover: Around 2.2 million USD
Although Excelsa coffee has a relatively small share in total coffee exports, it still contributes to Vietnam’s export turnover. Excelsa is mainly popular in smaller markets across Asia.
Quality and flavour
Vietnamese coffee has made significant strides in international markets, overcoming initial challenges related to its strong flavour and high caffeine content. The rise of Fine Robusta, along with the country’s rich coffee culture, has led to a growing appreciation of Vietnamese coffee worldwide. Here are the main factors contributing to its global popularity:
- International Media Coverage: Vietnamese coffee has begun to capture attention globally through articles and recognition in major international publications:
- The Travel (2022): This Canadian travel magazine ranked Vietnamese coffee among the best in the world, highlighting the diversity and rich flavour profile that makes it stand out.
- CNN (2020): CNN’s article, “Why the World is waking up to Vietnamese Coffee,” focused on the unique brewing methods and special drinks like iced milk coffee and traditional filter coffee, increasing global awareness of Vietnam’s coffee culture.
- The New York Times (2020): The New York Times recognized Vietnamese coffee as an integral part of the nation’s culture, noting its growing prominence on the world stage as a national coffee brand.
- Global Coffee Rankings: Vietnamese iced milk coffee, often made with Robusta beans, was ranked 2nd in Taste Atlas’ Top 10 Most Favorite Coffee Drinks in the World. With a score of 4.6/5, it was just behind Italy’s Ristretto coffee, marking a significant milestone for the country’s coffee industry.
Certifications and Standards
Sustainable Production Certification: Vietnam has over 185,000 hectares of coffee certified for sustainable production. While this number is modest compared to other major coffee-producing countries, Vietnam’s high coffee productivity helps maintain and grow its market share in demanding markets like the EU.
As the largest coffee-growing region in Vietnam, Dak Lak has 45,674 hectares of certified sustainable coffee, accounting for 22.12% of the province’s coffee area. Key certifications in Dak Lak include:
- UTZ: 13,713 hectares, 49,979 tons
- 4C: 26,091 hectares, 94,357 tons
- RFA: 5,123 hectares, 12,719 tons
- Fairtrade: 747.2 hectares, 3,255.9 tons
Potential and Importance: Vietnam’s coffee productivity is 2.8 times higher than Indonesia’s, allowing it to remain competitive despite its relatively smaller certified area. With a commitment to sustainable production, Vietnam is strengthening its position in key international markets, including the EU and the United States.
What coffee products should be sourced from Vietnam?
Vietnam is renowned for its Robusta coffee beans, which are known for their strong flavour and high caffeine content. Over 90% of the country’s coffee production is Robusta, making it a leading supplier worldwide. You can also source Arabica beans, which are grown in smaller quantities, often in the highland regions like Lam Dong and Son La, offering a milder taste with higher acidity compared to Robusta.
Vietnam offers a wide range of roasted coffee, including both Robusta and Arabica varieties. Roasting levels can be customized from light to dark roast depending on your preference. Vietnamese roasted coffee is appreciated for its bold, rich flavours and is often used in espresso blends or traditional Vietnamese coffee, which features a strong, dark roast profile.
Vietnam is a major producer of instant coffee, widely used for its convenience and affordability. Vietnamese instant coffee is made primarily from Robusta beans, offering a quick preparation method without sacrificing a strong coffee taste. The country is one of the world’s top suppliers of instant coffee, catering to a growing global demand.
Blended coffee products from Vietnam typically combine Robusta and Arabica beans to create balanced flavours. Additionally, blends may include various additives like milk, sugar, and flavourings. One popular example is the 3-in-1 coffee mix, which contains coffee, sugar, and creamer, offering a convenient, ready-to-drink solution popular in many countries. Blended coffee is especially appealing to markets that prefer milder, sweeter coffee flavours.
Processing and supply capacity of Vietnam
Vietnam leads the world in coffee productivity, holding the top spot for the past decade. The country averages 2.6 tons per hectare for Robusta and 1.4 tons per hectare for Arabica. It ranks third globally in sustainable coffee certifications, following Brazil and Colombia, and is expected to rise to second place soon as cooperative and corporate initiatives, especially those with Nestlé, expand.
In the 2023-2024 crop year, the coffee-growing area reached 709,041 hectares. However, drought and pests in key regions reduced output by 20%, bringing total production down to 1.47 million tons.
The five main coffee-producing regions are the Central Highlands, Southeast, South Central, North Central, and Northern Midlands. The Central Highlands, the country’s largest coffee-growing area, accounts for 89% of the total, with around 577,000 hectares. Key provinces include Dak Lak, Lam Dong, Dak Nong, and Gia Lai.
Robusta, which makes up 93% of the area and 96% of the output, is grown mainly in Dak Lak, Lam Dong, Dak Nong, and Gia Lai. Arabica, grown primarily in Lam Dong and Son La in Vietnam’s highlands, represents 7% of the total area. However, its expansion is limited by challenges in transportation and storage in these remote, mountainous regions.
The scale of Coffee Processing Companies in Vietnam
Overview of Coffee Processing Facilities:
- Coffee Beans: 97 facilities with a total designed capacity of 1.5 million tons per year.
- Roasted Coffee: 160 facilities with a total capacity of 51.7 thousand tons per year.
- Instant Coffee: 8 facilities with a total capacity of 36.5 thousand tons per year.
- Blended Coffee: 11 facilities with a total capacity of 139.9 thousand tons per year.
Provinces and Coffee Processing Facilities:
- Central Highlands: Dominates the coffee processing industry, with 420 facilities, making up 67.74% of the total number in Vietnam. The region contributes to 91% of Vietnam’s coffee export market share (2023-2024).
- Key provinces: Dak Lak, Dak Nong, Gia Lai, and Lam Dong, all of which have significant coffee processing and deep processing facilities.
Why Should Consider Sourcing Coffee from Vietnam?
1. Competitive Pricing: Vietnamese coffee offers relatively lower prices compared to other producing countries, thanks to its high productivity and cost-effective production. This provides a significant advantage for companies looking to source coffee at reasonable prices while maintaining quality.
2. Stable Supply: Due to its large coffee-growing areas and efficient production processes, Vietnam ensures a stable supply of coffee, meeting the demands of importers worldwide.
3. Diverse Quality: In addition to its dominant Robusta coffee, Vietnam also produces Arabica and high-quality speciality coffee, catering to different market segments, from mainstream to premium.
4. Sustainability Potential: Vietnam is increasingly promoting sustainable coffee production practices, complying with international standards such as UTZ, Rainforest Alliance, and Organic certifications. This attracts international companies that prioritise environmentally friendly and socially responsible products.
Sourcing coffee from Vietnam offers advantages in terms of price, quality, and supply stability, while also supporting the growing demand for sustainable coffee products in the global market.
At VnCommEx, our mission is to support international businesses in sourcing high-quality coffee from Vietnam. We provide professional coffee-sourcing services that help you save costs and streamline the import process, ensuring you receive top-notch coffee at the best prices. We apply proven management models such as PDCA (Plan-Do-Check-Act) and SWOT analysis to ensure that every step of the sourcing process is effective and that the coffee you receive meets the highest quality standards.
Read more: Vietnam’s Coffee Industry: A Global Coffee Export Powerhouse
