Vietnam Coffee Market

Vietnam Coffee Market Size and Share:

The Vietnam coffee market size was valued at 70.68 Thousand Tons in 2024. Looking forward, IMARC Group estimates the market to reach 101.47 Thousand Tons by 2033 exhibiting a CAGR of 3.70% during 2025-2033. The market is experiencing steady growth, driven by rising domestic consumption, increasing exports, and a shift toward value-added products. Technological advancements, evolving consumer preferences, and supportive trade policies are transforming the Vietnam coffee market share.

Vietnam is the world’s second-largest coffee exporter, with exports reaching 1.32 million tonnes valued at USD 5.48 Billion in 2024, a record high surpassing the USD 5 Billion milestone. The Vietnam coffee market is significantly driven by the increasing emphasis on value-added production and vertical integration across the supply chain. Local producers are investing in processing technologies to shift from raw bean exports to higher-margin products such as roasted, ground, and specialty coffee. This transition is supported by the emergence of domestic brands seeking to build a distinct identity in both local and global markets. Additionally, Vietnam's strategic trade partnerships and participation in free trade agreements have opened new avenues for coffee exports, reducing tariff barriers and enhancing competitiveness. The shift toward traceability and certification standards is also gaining momentum, driven by consumer demand for ethically sourced and environmentally sustainable products.

Another key driver in the Vietnam coffee market growth is the rising influence of digital platforms and technological innovation in the sector. From precision agriculture tools enhancing crop yields to digital marketplaces facilitating direct trade between farmers and buyers, technology is reshaping production and distribution. Moreover, the growing popularity of ready-to-drink (RTD) coffee beverages among younger consumers is prompting manufacturers to diversify product portfolios. Investments in cold brew, canned coffee, and functional beverages infused with ingredients like collagen and vitamins reflect this shift. These trends are further accelerated by changing consumer preferences and lifestyle patterns, particularly in urban areas.

Vietnam Coffee Market Trends:

Rising Domestic and International Demand Boosting Production Capacity

Vietnam’s coffee market is witnessing a surge in demand both locally and globally, prompting key industry players to expand operations. For instance, in January 2024, Nestlé Vietnam announced a USD 100 million investment to expand its coffee factory in Tri An, highlighting the escalating demand for premium Vietnamese coffee. This trend reflects an increasing appetite for high-quality, value-added coffee products from both domestic consumers and international markets. Furthermore, the country’s robust infrastructure and expertise in coffee cultivation, especially in the Robusta variety, provide a strong production foundation. Robusta’s higher caffeine content and distinct bitterness continue to appeal to global buyers, reinforcing Vietnam’s position as a key supplier. These developments collectively enhance production capabilities and support long-term growth, offering positive signals for Vietnam coffee market trends.

Technological Advancements and Sustainability Driving Market Modernization

Technological innovation and sustainability are playing pivotal roles in shaping Vietnam’s evolving coffee sector. Advanced harvesting equipment, improved storage solutions, and modern processing methods are significantly enhancing product quality and operational efficiency. In December 2024, the Vietnam Ministry of Agriculture and Rural Development, in collaboration with JDE Peet’s and IDH, launched a comprehensive Database System for Forest and Coffee Growing Areas. This initiative aims to align Vietnam’s coffee industry with the European Union’s Deforestation Regulation (EUDR), promoting traceability and environmental accountability. Concurrently, the growing shift toward sustainable and organic farming is helping farmers meet rising consumer expectations for ethically sourced coffee. These efforts are not only improving crop yield but also ensuring long-term ecological compliance, thereby fostering consumer trust and export growth.

Evolving Consumer Preferences and Strengthening Global Partnerships

Changing lifestyle patterns, increasing disposable incomes, and a burgeoning café culture are reshaping consumer preferences in Vietnam’s coffee landscape. There is a growing inclination toward premium, specialty, and health-conscious coffee choices, such as organic blends, cold brews, and coffee cocktails. This evolving taste is driving innovation in product offerings and brewing techniques. Simultaneously, e-commerce platforms are enabling coffee producers to reach wider markets with greater ease and efficiency. Strategic collaborations are also playing a critical role in market development. For instance, in October 2024, Bayer launched the Better Life Farming (BLF) Alliance in Vietnam to empower smallholder farmers with advanced tools and training. Such partnerships are fostering economic sustainability while diversifying product lines, making Vietnam’s coffee market more competitive and resilient—key elements in shaping the Vietnam coffee market outlook.

Vietnam Coffee Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Vietnam coffee market, along with forecasts at the regional and country levels from 2025-2033. The market has been categorized based on product type and distribution channel.

Analysis by Product Type:

• Whole Bean
• Ground Coffee
• Instant Coffee

Instant coffee stand as the largest product type in 2024, holding around 43.3% of the market. The instant coffee segment dominates the Vietnam coffee market due to its affordability, convenience, and strong cultural presence. Vietnamese consumers increasingly prefer instant coffee for its quick preparation, catering to busy urban lifestyles. Major domestic and international brands have also introduced a wide variety of flavors and quality options, appealing to diverse consumer tastes. Moreover, Vietnam’s expertise in Robusta coffee production, ideal for instant blends, ensures a steady, cost-effective supply of raw materials. The segment's popularity is further bolstered by aggressive marketing, growing demand for ready-to-drink formats, and its integration into modern retail and e-commerce channels, solidifying its market leadership.

Analysis by Distribution Channel:

• On-Trade
• Off-Trade
  • Supermarket and Hypermarket
  • Specialty Stores
  • Online Retail
  • Others

Off-trade leads the market with around 62.7% of market share in 2024. The off-trade segment dominates the Vietnam coffee market due to the widespread availability of packaged coffee products through supermarkets, convenience stores, and online platforms. This channel offers consumers greater accessibility, competitive pricing, and a wide range of product choices, including instant, ground, and specialty coffee. Rising urbanization and changing consumer lifestyles have increased demand for at-home coffee consumption, particularly among working professionals and younger demographics. The expansion of modern retail infrastructure and the rapid growth of e-commerce further support off-trade sales. Additionally, promotional campaigns and attractive packaging in retail outlets enhance product visibility, making the off-trade segment the preferred choice for everyday coffee purchases.

Regional Analysis:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

In 2024, Southern Vietnam accounted for the largest market share of over 35.7%. Southern Vietnam dominates the Vietnam coffee market due to its ideal climatic conditions, fertile soil, and well-established coffee plantations, particularly in the Central Highlands region. This area accounts for the majority of the country’s robusta production, benefiting from favorable weather and advanced agricultural practices. For instance, as per industry reports, Vietnam’s robust rainfall in late May 2025 significantly enhanced prospects for the upcoming 2025–26 coffee harvest in the Central Highlands, with precipitation in Dak Lak reaching 213 mm—more than twice the seasonal average. Additionally, Southern Vietnam has developed strong infrastructure and supply chains, including processing facilities and export ports, which facilitate efficient production and distribution. The presence of numerous experienced farmers and coffee cooperatives also supports high-quality yields. Consequently, the region’s capacity for large-scale, consistent production and export makes it the leading contributor to Vietnam’s coffee market share.

Competitive Landscape:

The competitive landscape of the Vietnam coffee market is characterized by a mix of well-established domestic producers and emerging international players, all vying for market share through innovation and expansion. For instance, in January 2025, Phuc Long Coffee & Tea reported a 5.6% increase in full-year 2024 revenue, reaching $64.6 million. This growth was fueled by the addition of 33 new outlets and store refurbishments, which led to a 13% rise in average daily sales. Following a strategic shift toward flagship locations and the closure of underperforming kiosks, the company plans continued store modernization and expanded marketing efforts. With a network exceeding 180 outlets across Vietnam, parent company Masan Group projects revenue growth of up to 36% in 2025. Companies focus on diversifying their product portfolios, emphasizing premium, organic, and specialty coffee varieties to meet evolving consumer preferences. Strategic partnerships with local farmers and investments in sustainable farming practices are increasingly common, enhancing supply chain efficiency and product quality. Additionally, expanding distribution networks, including modern retail and e-commerce platforms, play a crucial role in gaining competitive advantage. With rising demand both domestically and globally, the Vietnam coffee market forecast projects robust growth driven by technological advancements, enhanced production capacities, and a stronger focus on sustainability and traceability.

The report provides a comprehensive analysis of the competitive landscape in the Vietnam coffee market with detailed profiles of all major companies, including: 

• Anni Coffee
• Highlands Coffee
• Len's Coffee LLC
• Nestlé S.A.
• Starbucks Corporation
• Trung Nguyên
• Vinacafé Bien Hoa Joint Stock Company

Latest News and Developments:

• May 2025: Every Half, a Vietnamese specialty coffee company and roaster, successfully secured USD 3 Million in a pre-series A investment round. The business intends to utilize the additional funds to increase the number of its stores in Vietnam by 150% in 2025.
• April 2025: Highlands Coffee established a new USD 19 Million coffee roastery in the Ba Ria-Vung Tau province in southern Vietnam. The new plant can produce up to 75,000 Tons of coffee yearly, which will allow the company to export its roasted coffee products to Europe, East Asia, and the United States.
• April 2025: Nestlé confirmed an additional investment of USD 75 Million for the expansion of its Tri An coffee production facility in the province of Đồng Nai. With this investment, Nestlé has invested a total of nearly USD 904 Million in Vietnam, expanding its presence and boosting local production capacities through improved innovation and technology.
• March 2025: Vietnamese coffee manufacturer Trung Nguyen hosted a ceremony for its new coffee facility in Buôn Ma Thuột City, Đắk Lắk Province. This will be Trung Nguyen's second facility in Dak Lak and its fifth overall. With its cutting-edge German and Italian technology, the factory is anticipated to be the biggest coffee-producing facility in Asia.

Vietnam Coffee Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam coffee market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Vietnam coffee market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam coffee industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.