Vietnam Coffee Market Size (2024 - 2029)

The market size of coffee in Vietnam is projected to expand significantly due to a well-established coffee culture and the presence of numerous companies engaged in both domestic and foreign trade of coffee. The growth is anticipated to be driven by increased global exposure, western influence, and the penetration of well-known coffee brands. The emergence of premium stores and more sophisticated tastes among the Vietnamese are also expected to support the coffee market's expansion. Coffee chains in the country are introducing new upscale store formats to cater to the growing demand for elevated coffee and culinary experiences, further boosting the market's penetration in the country.

Market Size of Vietnam Coffee Industry

Vietnam Coffee Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 511.03 Million
Market Size (2029) USD 763.46 Million
CAGR (2024 - 2029) 8.13 %
Market Concentration High

Major Players

Vietnam Coffee Market

*Disclaimer: Major Players sorted in no particular order

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Vietnam Coffee Market Analysis

The Vietnam Coffee Market size is estimated at USD 511.03 million in 2024, and is expected to reach USD 763.46 million by 2029, growing at a CAGR of 8.13% during the forecast period (2024-2029).

Vietnam has developed a well-established culture of coffee. The country hosts several companies engaged in not only the domestic trade of coffee but also have established their presence in foreign markets. Additionally, increasing global exposure, western culture, and penetration of established coffee brands are anticipated to be the key factors that drive the expansion of coffee chains in Vietnam. At the same time, more sophisticated tastes among people in the country are expected to support the country's coffee market. Moreover, the increased acceptance of coffee is attributed to the emergence of premium stores from companies such as Highland's Coffee, Starbucks Corporation, Phuc Long, and Trung Nguyen, among others, thereby fueling the market growth. For instance, in November 2022, the Coffee House operated more than 150 outlets across Vietnam. Moreover, these outlets have ushered in an experiential element to coffee drinking by creating attractive and relaxing ambiances, which is aiding them to raise their revenues. In November 2022, The Coffee House's parent company, Seedcom, announced that the coffee chain had achieved year-on-year sales growth of 53% to reach VND 564 billion (USD 22.7 million) in the nine months ended 30 September 2022.

Furthermore, the coffee chains in the country are focused on establishing new 'upscale' store formats that are being designed to meet the increasing demand for elevated coffee and culinary experiences among Vietnamese consumers. For instance, in January 2023, Vietnamese coffee chain The Coffee House launched its new 'exclusive and upscale' coffee shop brand, SIGNATURE by The Coffee House, at the Crescent Mall shopping center in Ho Chi Minh City to cater to increasing consumer appetite for premium products and experiences across the country. Such developments happening in the country are expected to further boost the market's penetration in the country.

Vietnam Coffee Industry Segmentation

Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain flowering plants in the Coffea genus. From the coffee fruit, the seeds are separated to produce a stable, raw product, unroasted green coffee.

Vietnam's coffee market is segmented by product type and distribution channel. By product type, the market is segmented into whole beans, ground coffee, and instant coffee. Based on distribution channels, the market is segmented into on-trade and off-trade. Off-trade is further sub-segmented into supermarkets/hypermarkets, specialty stores, online retail stores, and other distribution channels. The market sizing has been done in value terms in USD for all the abovementioned segments.

Product Type
Whole Bean
Ground Coffee
Instant Coffee
Distribution Channel
On-trade
Off-trade
Supermarket/Hypermarket
Specialty Stores
Online Retail Stores
Other Distribution Channels

Vietnam Coffee Market Size Summary

The Vietnam Coffee Market is projected to show significant growth in the coming years, driven by a well-established culture of coffee in the country. The presence of several companies engaged in both domestic and foreign coffee trade, increasing global exposure, western culture, and penetration of established coffee brands are key factors driving the expansion of coffee chains in Vietnam. The market is also supported by more sophisticated tastes among the Vietnamese people and the increased acceptance of coffee due to the emergence of premium stores from companies such as Highland's Coffee, Starbucks Corporation, Phuc Long, and Trung Nguyen. These outlets have introduced an experiential element to coffee drinking by creating attractive and relaxing ambiances, thereby fueling market growth. Moreover, coffee chains in Vietnam are focusing on establishing new 'upscale' store formats to meet the growing demand for elevated coffee and culinary experiences among Vietnamese consumers. Developments such as these are expected to further boost the market's penetration in the country. The trend of increasing demand for specialty, organic, and green coffee is also contributing to the growth of the Vietnam coffee market. This is due to changes in lifestyle patterns, increased expenditure on food and beverages, awareness about healthy foods, changes in meal patterns, and existing food habits, and the desire to taste new products. Sustainability and traceability in the value chain are becoming increasingly important for consumers and the industry. The production of coffee in Vietnam is being maintained high to meet consumers' demand, which is expected to boost sales in the country. The market is also seeing a growing demand for instant coffee due to increasingly busy lifestyles and longer working hours.

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Vietnam Coffee Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increasing Demand for Specialty, Organic, and Green Coffee

      2. 1.1.2 Growing In-House Production of Coffee in the Country

    2. 1.2 Market Restraints

      1. 1.2.1 Change in Climatic Conditions Impacting Coffee Plantations

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Product Type

      1. 2.1.1 Whole Bean

      2. 2.1.2 Ground Coffee

      3. 2.1.3 Instant Coffee

    2. 2.2 Distribution Channel

      1. 2.2.1 On-trade

      2. 2.2.2 Off-trade

        1. 2.2.2.1 Supermarket/Hypermarket

        2. 2.2.2.2 Specialty Stores

        3. 2.2.2.3 Online Retail Stores

        4. 2.2.2.4 Other Distribution Channels

Vietnam Coffee Market Size FAQs

The Vietnam Coffee Market size is expected to reach USD 511.03 million in 2024 and grow at a CAGR of 8.13% to reach USD 763.46 million by 2029.

In 2024, the Vietnam Coffee Market size is expected to reach USD 511.03 million.

Vietnam Coffee Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)