Vietnam Instant Coffee Market - Forecasts from 2020 to 2025
Vietnam instant coffee market is estimated to grow at a CAGR of 14.76% over the forecast period. The increase in coffee production in addition to a surge in domestic coffee consumption is propelling the market growth in the forecast period. According to the USDA estimates, the total coffee production accounted for 30.5 million 60 kg bags in MY2019/2020, this is slightly greater than the total coffee production of 30.4 million bags in MY2018/2019. Moving on to the consumption statistics, in MY2019/2020, the overall domestic coffee consumption in Vietnam is projected to increase to a size of 3.4 million 60kg bags. The growing coffee shops and cafes from the international and local Vietnamese brands are driving the growth of coffee consumption in the country.
As per the USDA estimates, the country imports green coffee beans in low volume and imports roasted and instant coffee from Laos, Indonesia, Brazil, and the United States. The proliferating coffee retail industry is contributing to surging imports in order to satiate sufficient coffee consumption. The total coffee imports in MY2019/2020 is projected to increase to achieve a volume of around 50,000 bags to 1.21 million bags GBE.
The emergence of newcomers in instant coffee production is propelling market growth during the forecast period. For several years, the instant coffee market was dominated by the three key market players namely Vinacafe Bien Hoa, Nestle, and Trung Nguyen. Recently, with the emergence of new market players like Ajinomoto (Birdy) is contributing to surging coffee sales for domestic consumption.
The consumption of condensed milk is utilized in the form of a snack in order to dip bread in. This is also used in the form of an additive to hot beverages like coffee for reducing bitterness, further contributing to offer favourable market growth prospects for soluble coffee during the forecast period.
Furthermore, the instant coffee production in Vietnam is projected to soar over the next five years as the country is gearing towards increasing the number of processing facilities for improving the value of its coffee beans. Until now, the country has over 90 processing facilities, around 160 roasted coffee processing installations, around 8 instant coffee processing facilities, and 11 blended coffee processing units throughout the nation. The Trung Nguyen powder coffee and Vinacafe’s instant coffee are currently dominating the domestic market and are also consumed on a wide scale in the regional markets, contributing to the development of the Vietnamese coffee brand.
Significant government initiatives for the production of instant coffee is fueling the market growth in the forecast period. As per the Ministry of Agriculture and Rural Development, MARD, the ministry is providing assistance for the development of instant coffee in the future. As per the MARD target, by the end of 2020, around 25% of the coffee bean production and above is going to be processed into instant coffee products for direct consumption. The production of instant coffee will reach 2,55,000 tonnes every year. By the end of 2030, the production of instant coffee is poised to grow to around 3,50,000 tonnes every year.
The current novel coronavirus pandemic is projected to relatively slow down the market growth in 2020, due to the decreasing demand for powder or soluble coffee in many caf?s and restaurants in the country. The lockdown and self-quarantine measures have led to the closure of coffee shops, declining market growth in the current year.
Segmentation:
§ Food Services
As per the USDA estimates, the country imports green coffee beans in low volume and imports roasted and instant coffee from Laos, Indonesia, Brazil, and the United States. The proliferating coffee retail industry is contributing to surging imports in order to satiate sufficient coffee consumption. The total coffee imports in MY2019/2020 is projected to increase to achieve a volume of around 50,000 bags to 1.21 million bags GBE.
The emergence of newcomers in instant coffee production is propelling market growth during the forecast period. For several years, the instant coffee market was dominated by the three key market players namely Vinacafe Bien Hoa, Nestle, and Trung Nguyen. Recently, with the emergence of new market players like Ajinomoto (Birdy) is contributing to surging coffee sales for domestic consumption.
The consumption of condensed milk is utilized in the form of a snack in order to dip bread in. This is also used in the form of an additive to hot beverages like coffee for reducing bitterness, further contributing to offer favourable market growth prospects for soluble coffee during the forecast period.
Furthermore, the instant coffee production in Vietnam is projected to soar over the next five years as the country is gearing towards increasing the number of processing facilities for improving the value of its coffee beans. Until now, the country has over 90 processing facilities, around 160 roasted coffee processing installations, around 8 instant coffee processing facilities, and 11 blended coffee processing units throughout the nation. The Trung Nguyen powder coffee and Vinacafe’s instant coffee are currently dominating the domestic market and are also consumed on a wide scale in the regional markets, contributing to the development of the Vietnamese coffee brand.
Significant government initiatives for the production of instant coffee is fueling the market growth in the forecast period. As per the Ministry of Agriculture and Rural Development, MARD, the ministry is providing assistance for the development of instant coffee in the future. As per the MARD target, by the end of 2020, around 25% of the coffee bean production and above is going to be processed into instant coffee products for direct consumption. The production of instant coffee will reach 2,55,000 tonnes every year. By the end of 2030, the production of instant coffee is poised to grow to around 3,50,000 tonnes every year.
The current novel coronavirus pandemic is projected to relatively slow down the market growth in 2020, due to the decreasing demand for powder or soluble coffee in many caf?s and restaurants in the country. The lockdown and self-quarantine measures have led to the closure of coffee shops, declining market growth in the current year.
Segmentation:
- By Type
- Freeze-Dried Instant Coffee
- Spray-Dried Instant Coffee
- Others
- By Distribution Channel
- Offline
§ Food Services
- Online
- By Province
- Dak Lak
- Lam Dong
- Dak Nong
- Gia Lai
- Kon Tum
- Others
1. INTRODUCTION
1.1. Market Definition
1.2. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. VIETNAM INSTANT COFFEE MARKET ANALYSIS, BY TYPE
5.1. Introduction
5.2. Freeze-Dried Instant Coffee
5.3. Spray-Dried Instant Coffee
5.4. Others
6. VIETNAM INSTANT COFFEE MARKET ANALYSIS, BY DISTRIBUTION CHANNEL
6.1. Introduction
6.2. Offline
6.2.1. Retail
6.2.2. Food Services
6.3. Online
7. VIETNAM INSTANT COFFEE MARKET ANALYSIS, BY PROVINCE
7.1. Introduction
7.2. Dak Lak
7.3. Lam Dong
7.4. Dak Nong
7.5. Gia Lai
7.6. Kon Tum
7.7. Others
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.1. Nestle
9.2. Tata Coffee Vietnam Company Limited
9.3. Trung Nguyen
9.4. Vinacaf? Bien Hoa JSC
9.5. List is not Exhaustive*
1.1. Market Definition
1.2. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. VIETNAM INSTANT COFFEE MARKET ANALYSIS, BY TYPE
5.1. Introduction
5.2. Freeze-Dried Instant Coffee
5.3. Spray-Dried Instant Coffee
5.4. Others
6. VIETNAM INSTANT COFFEE MARKET ANALYSIS, BY DISTRIBUTION CHANNEL
6.1. Introduction
6.2. Offline
6.2.1. Retail
6.2.2. Food Services
6.3. Online
7. VIETNAM INSTANT COFFEE MARKET ANALYSIS, BY PROVINCE
7.1. Introduction
7.2. Dak Lak
7.3. Lam Dong
7.4. Dak Nong
7.5. Gia Lai
7.6. Kon Tum
7.7. Others
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.1. Nestle
9.2. Tata Coffee Vietnam Company Limited
9.3. Trung Nguyen
9.4. Vinacaf? Bien Hoa JSC
9.5. List is not Exhaustive*
