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Vietnam’s Deep-rooted Cà phê Culture

9 September 2021 by Mordor Intelligence


Is instant coffee evolving as a new trend?


The Vietnamese coffee market is expected to grow on the back of the rising demand for consumer products and the foodservice industry from local and international players.


The shift in consumer preference from fresh ground coffee to instant coffee can be attributed to busy lifestyles, longer working hours, and convenient packaging formats.


Roast and ground coffee constitutes 74.8% of domestic coffee consumption, whereas instant coffee constitutes only 10.2%. Despite a lower share, instant coffee recently witnessed a surge in demand as consumers display a higher interest in instant coffee.


Production and Consumption of Coffee


Globally, Vietnam is the second-largest producer and exporter of coffee. The coffee market in Vietnam showed a positive trend between 2010 and 2020, with coffee brands expanding their presence in the country.


Moreover, in 2018, Vietnam observed a stable per capita trend with 344% of soluble coffee consumption among millennials compared to other Asian countries (India: 143% and Indonesia: 204%).


Are Vital Players Targeting Market Domination?


Vinacafe developed 4 product lines, namely, Vinacafe 100 percent coffee, Vinacafe 2 in 1, Vinacafe 3 in 1, and Vinacafe 4 in 1, and holds 40% of the market share among other key players.


Major players focus on diversified coffee product offerings, brand imaging, and expansion strategies to dominate the market.


Learn more about coffee and its place in our future at our content sessions during the upcoming FHA Match: Drinks. On 15 September, Avinash Desamangalam, Research Manager, Food & Agriculture at Mordor Intelligence, together with experts from Specialty Coffee Association of Indonesia, EDE Consulting, Farmer Connect and ASEAN Coffee Federation will be part of a panel discussion titled ‘Towards a Sustainable Coffee Future in Asia: Climate Threads, Tech & Transparency’, on 15 September, 1100hrs, Day 1 of FHA Match: Drinks. Register and view the full program here.

This report was contributed by FHA Match: Drinks content partner: