Vietnam, the world’s second-largest coffee exporter, reached a record-breaking export value of US$5.48 billion in 2024, marking the first time the country surpassed the US$5 billion milestone. As Vietnam’s coffee sector enters a new growth phase, businesses—both local and international—are taking a closer look at the market’s evolving landscape.
In this in-depth guide, we explore Vietnam’s coffee export performance, consumer behavior, market challenges, and key investment opportunities.
Vietnam’s Coffee Export Performance Hits All-Time High
Despite an 18.8% drop in export volume (1.32 million tonnes), Vietnam’s coffee export value surged 29.11% in 2024 compared to the previous year. The average export price reached US$4,151 per tonne, up 56.9% YoY. This upward trend has continued for five consecutive years—from US$2.66 billion in 2020 to US$5.48 billion in 2024.
The EU remained Vietnam’s largest coffee export market, led by Germany (11% market share), Italy (8.1%), and Spain (8%). Meanwhile, Malaysia and the Philippines posted the fastest growth, increasing 2.2x and 2.1x, respectively.
Why Coffee Prices Are Soaring
Vietnamese coffee prices surged in 2024 due to a combination of factors: a sharp decline in production, stable global demand, and record-high export prices (over USD 5,700/ton). Additionally, the U.S. reduced import tariffs on Vietnamese coffee to just 10%, boosting exports. Meanwhile, extreme weather in Brazil and global trade tensions tightened global supply, allowing Vietnamese coffee—especially Robusta—to rise strongly on the world stage. Vietnam’s coffee success in 2024 was driven largely by spiking global prices. In October, the export price reached US$5,720/tonne—the highest on record. Robusta prices even surpassed Arabica for the first time, with contracts exceeding US$5,000/tonne on the London Stock Exchange.
According to VICOFA, this price surge was unprecedented in both local and global coffee history.
Challenges for Foreign Coffee Brands in Vietnam
Despite strong export performance, entering the Vietnamese domestic coffee market presents unique challenges:
Distinct Consumer Preferences
Vietnamese consumers favor bold, bitter Robusta coffee with earthy aromas—contrasting with the mild, fruity profiles of most Western brands.
Price Sensitivity
According to iPOS’s 2024 F&B Market Report, most consumers prefer coffee priced between VND 41,000–71,000 (US$1.60–2.78). Premium brands like Starbucks and %Arabica have seen decreased interest, with only 1.7% of consumers willing to spend more than VND 100,000 (US$3.91) per cup.
Fierce Competition
With over 500,000 cafes nationwide, the market is saturated with affordable, quality local options. Brands like Trung Nguyên dominate the landscape, making it difficult for newcomers to differentiate.
High Operational Costs
Prime retail rent in Hanoi and HCMC ranges from US$178–273/sq.m/month, putting pressure on foreign brands trying to maintain profitability.
Investment Opportunities in Vietnam’s Coffee Industry
Instant Coffee Demand Soars
Vietnam’s instant coffee market is expected to grow 12.26% CAGR, reaching US$731.4 million by 2028. Global players like Nestlé and LDC are already investing in local production.
Coffee Processing & Manufacturing
Vietnam offers a skilled workforce, government incentives, and low labor costs. Companies like Nestlé purchase up to 25% of Vietnamese coffee annually. Government Decrees No. 57/2018 and No. 98/2018 support agri-business investments with subsidies up to US$625,000.
E-Commerce Coffee Sales
With rising internet penetration, Vietnam’s e-commerce market is projected to hit US$39 billion by 2025, second in Southeast Asia. Brands combining online + offline strategies stand to gain the most.
Market Outlook: What Lies Ahead?
Vietnam’s younger consumers (23–30) are more open to new coffee cultures, Arabica blends, and international trends. But success will depend on understanding local habits and providing a value-driven experience.
Foreign brands must:
Localize flavors
Price competitively
Embrace omnichannel sales
Build strong brand identity
Final Thoughts
Vietnam’s coffee industry is thriving—both in global exports and evolving domestic trends. However, to succeed in this complex but rewarding market, international brands must balance quality, pricing, and cultural relevance.
With the right strategy and local insight, Vietnam offers exceptional opportunities for innovation and growth in both specialty and instant coffee segments.
📌 Interested in entering the Vietnamese coffee market or sourcing green beans from Vietnam?
Helena Coffee Vietnam is your trusted partner—offering premium-grade Robusta & Arabica, OEM roasting solutions, and global logistics.
📞 Contact us: info@helenacoffee.vn
🌐 Visit: www.helenacoffee.vn
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