Coffee is one of the indispensable drinks in the cultural and social life of Vietnamese people. From fragrant filter coffees to modern espressos, coffee has become a symbol of everyday life, where people meet, socialize, and enjoy. With the abundance of types and processing methods, the trend of enjoying coffee in Vietnam is increasingly diverse and developing strongly, affirming the position of Vietnamese coffee on the world map. In recent years, the coffee consumption habits of Vietnamese people have changed a lot, from focusing on quality to the experience of drinking coffee. This trend not only creates great attraction for consumers but also opens up many opportunities for brands, including DQ Coffee, a new name in Vietnam’s coffee industry.
Popular types of coffee in Vietnam
Vietnam is known as one of the world’s leading coffee producing countries, with more than 90% of its output being Robusta coffee. However, not only Robusta, the Vietnamese coffee market also owns a variety of other rich coffees such as Arabica, Culi, Moka and Cherry Coffee, each of which offers its own unique flavors.
Robusta Coffee
Robusta coffee, also known as Voi coffee, is grown mainly in the Central Highlands region, where the climate is very suitable for growing this plant. It is worth noting that Robusta Coffee accounts for more than 90% of Vietnam’s coffee production, thanks to the strong properties of small coffee beans with up to 4% caffeine, providing a richer and slightly bitter taste than other coffees. Robusta coffee is not only popular in the country but also has a solid foothold in the export market. The strong, easy-to-combine flavor with other ingredients in processing has made it the first choice for instant coffee and espresso preparations.
Characteristics of Robusta coffee:
- Caffeine content: From 2% to 4%
- Taste characteristics: Rich, somewhat bitter
- Production Area: Mainly in the Central Highlands, the provinces of Dak Lak, Dak Nong, Gia Lai
- Consumption segment: Suitable for instant coffee and espresso
In addition, the combination of Robusta and Arabica in high-end coffee products is becoming a popular trend, helping to enrich the consumer experience. More and more people are loving coffee that is blended from these two, creating the perfect balance between richness and gentle aroma.
Arabica Coffee
Unlike Robusta, Arabica Coffee is grown mainly at an altitude of over 600m, especially in Lam Dong, where there is a cool climate and high humidity. Arabica stands out for its natural aroma and slight sourness, making for an exquisite coffee drinking experience. Famous Arabica coffee varieties in Vietnam include Moka and Catimor. Moka coffee has small and hard beans, with a very characteristic taste, which is often appreciated among connoisseurs. Catimor coffee, a hybrid between Timor and Catura, offers a cool, attractive sourness. Thanks to the richness of flavors, Arabica coffee is gradually becoming a popular choice not only in Vietnam but also in the international market.
Characteristics of Arabica coffee:
- Caffeine content: About 1% to 2%
- Taste characteristics: Gentle aroma, slight sourness
- Production area: Da Lat, southern highlands
- Consumption segment: Suitable for consumers who love premium coffee
Producers are constantly improving planting and processing techniques to improve the quality of Arabica coffee, thereby better meeting the increasing demand of the market.
Coffee Machine
The trend of consuming machine-brewed coffee is booming in Vietnam, especially in modern coffee shops and high-end coffee chains. Machine-made coffee product lines including espresso and cappuccino are very popular, not only because of the quality but also because of the convenience and interesting experience that it brings to consumers. Thanks to modern brewing technology, coffee flavors become richer, traditional hand-brewed coffee methods are also combined to create many new creations in the café’s menu. Machine-brewed coffee not only helps consumers save time but also enhances the enjoyment experience with beautiful and delicious coffee.
Advantages of coffee machine:
- Stable Quality: Ensure uniform taste through each glass
- Convenient: Fast dispensing time
- Variety: Wide range of machine-brewed coffee drinks
- Exciting experience: Consumers can discover many unique flavors
Machine-brewed coffee is gradually becoming an indispensable part of the coffee drinking habits of today’s young people.
Vietnam’s coffee market
The coffee market in Vietnam is growing strongly with a lot of potential, marking a new era in the coffee industry. Modern consumers are tending to look for the best quality products, promoting Vietnam’s coffee industry to develop not only in terms of output but also in terms of quality and brand. The rise of major coffee chains, as well as innovations in daily processing and enjoyment, have created a revolution in the coffee industry. Coffee products are not only diverse but also rich in taste, which contributes to attracting the attention of domestic and foreign consumers.
Coffee Market Size
In the context of the modern economy, it is forecasted that Vietnam’s coffee market will reach about 511.03 million USD by 2024 and continue to grow at a rate of 8.13% per year until 2029. The increase in domestic coffee consumption and the demand for high-quality coffee are the major factors driving this growth. As consumers are increasingly looking for quality and sustainable coffee products, Vietnamese coffee brands are having the opportunity to promote their products to the international market. Specialty coffee and organic coffee began to be popular, not only to meet domestic demand but also to export to the world.
Information about the size of Vietnam’s coffee market:
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| Time | Market size (million USD) | Growth Rate (%) |
|---|---|---|
| 2024 | 511.03 | 8,13 |
| 2029 | 763.46 | – |
This development not only opens up opportunities for domestic businesses but also attracts foreign investment in the coffee sector, creating a premise for sustainable development in the future.
Coffee export growth
Vietnam, one of the world’s leading coffee exporters, has witnessed strong growth in the coffee export sector. As of October 2024, the value of coffee exports reached about 5.5 billion USD, up 40.1% year-on-year, although the export volume decreased by 10.8%. The main reason for this growth is the record high export price, reaching an average of 3,981 USD/ton, up 57% compared to 2023. This shows a strong transformation in the approach to the export market of Vietnam’s coffee industry.
Information about Vietnam’s coffee exports:
- Export value (2024): Approximately $5.5 billion
- Growth compared to the previous year: 40.1%
- Average export price: 3,981 USD/ton (up 57% compared to 2023)
The trend of specialty coffee is currently facing a great opportunity, especially with products that meet high standards, promising to bring a great source of income to Vietnamese farmers and businesses.
Major companies in the coffee industry
Vietnam’s coffee industry has a positive contribution from many large companies such as Trung Nguyen, Nestlé SA, Jollibee Foods Corporation, Metrang Coffee and Masan Group. Among them, Trung Nguyen stands out with the G7 coffee brand, winning the trust of consumers through quality and characteristic taste. Competition between brands is not only taking place in the domestic market but also in the international market, where many companies are trying to expand the market through developing high-quality products and diversifying product lines to meet the needs of consumers.
List of leading companies in the coffee industry in Vietnam:
- Trung Nguyen: Stand out with the G7 brand.
- Nestlé SA: Bringing instant coffee to many markets.
- Jollibee Foods Corporation: One of the major brands in the food and beverage industry.
- Metrang Coffee: Specializing in providing high-quality coffee.
- Masan Group: Promoting instant coffee products.
The development of these companies not only boosts the economy but also improves the quality of coffee products in Vietnam.
Characteristics of coffee consumption in Vietnam
Vietnamese consumers are increasingly focusing on the quality of coffee, which is not merely a daily drink but also an enjoyable experience. From traditional filter cups to modern machine-brewed coffees, the trend of enjoying coffee is changing strongly. Coffee is not only a drink but also a place to connect between friends and family in conversations, work or simply relax. In particular, with the development of high-end coffee shops, the space to enjoy coffee is becoming more and more luxurious.
The trend of consuming high-quality coffee
The trend of consuming high-quality coffee is increasing in Vietnam, especially among young people and coffee connoisseurs. Not only are they looking for good taste, but they are also nostalgic for the story behind the coffee beans, from cultivation to processing. Many coffee brands are constantly striving to develop organic products and specialty coffees, in order to meet the increasingly diverse needs of the market. In particular, when many people are looking for products with clear origins, specialty coffees become a more popular choice.
Some trends in the consumption of high-quality coffee:
- Specialty coffee: There is an increasing demand for high-quality, artisanal coffee products.
- Organic coffee: Chemical-free coffee products are in demand.
- Mellan Connection: Consumers look for brands that have a story and want to learn about the origin of the product.
This development has created a potential market for Vietnamese coffee producers.
Coffee experience in big cities
In big cities such as Ho Chi Minh City. Ho Chi Minh City, Hanoi, coffee experiences are becoming more and more rich and diverse. Consumers not only enjoy coffee but also participate in the process of learning about coffee through bartending classes, tasting events, and tours at coffee farms. The trend of coffee experience not only helps consumers improve their knowledge of coffee, but also creates a connection with the origin of the product, and increases the value of a cup of coffee. This motivates creative cafes to create their own spaces and service models, helping to attract more customers.
Popular coffee experience models today:
- Bartending Class: Helping consumers master dispensing techniques.
- Farm Tour: Provides hands-on experience of the coffee growing and harvesting process.
- Event Enjoyment: Creating opportunities for consumers to learn and enjoy different types of coffee.
This development not only contributes to the development of the coffee industry but also creates a growing coffee-loving community.
The development of the coffee chain
The development of large coffee chains cannot fail to mention in the overall picture of Vietnam’s coffee market. Chains such as Highlands Coffee, Starbucks and The Coffee House have created a new whirlwind, bringing not only products but also a modern lifestyle to consumers. Not only in terms of the number of stores, these chains also improve their business models and provide a variety of products from traditional coffee to modern versions such as cold brew or machine-brewed coffee. They are also constantly expanding to the international market, promoting the image of Vietnamese coffee to the world.
Outstanding factors of coffee chain development:
- Modernity and comfort: Provide modern and comfortable spaces for customers.
- Product quality: Ensure consistent taste through each product.
- Franchise model: Help to expand quickly to the market.
The fierce competition between coffee chains has created a motivation for domestic coffee brands and socialized the coffee industry, providing more choices for Vietnamese consumers.
Factors influencing coffee trends
The development of Vietnam’s coffee industry faces many challenges and opportunities, mainly coming from the characteristics of coffee consumption in Vietnam. Changes in consumption habits are accompanied by a series of factors affecting this trend, including weather, climate change, production costs and the impact of the epidemic. In particular, with consumers increasingly focusing on health, the environment and product quality, the trend of consuming high-quality coffee is becoming stronger. This provides an opportunity for coffee brands to improve product quality while also exploring more sustainable options.
Weather and climate change
Weather and climate change are the leading factors affecting coffee production and quality in Vietnam. The climate is increasingly abnormal with extreme conditions such as drought and floods causing negative effects on the traditional coffee growing region. Not only does the output decrease, but the quality also goes down when the coffee plants are not grown in a favorable environment. According to statistics, Vietnam’s coffee production in the 2022-2023 crop year is expected to decrease by about 20% due to the severe drought situation, especially in the Central Highlands. This not only causes difficulties for the agricultural industry but also leads to an increase in coffee prices in the international market.
Specific impacts from climate change:
- Reduced productivity: Some coffee-growing regions are no longer suitable for the new climatic conditions.
- Reduced product quality: The coffee taste becomes more bitter and difficult to control.
- Competition from other countries: Coffee-producing countries such as Peru and Uganda can increase production to meet market demand.
To deal with these challenges, the coffee industry needs to adopt sustainable solutions in the production process to ensure long-term development.
Production costs and prices
The cost of coffee production in Vietnam is under pressure from many factors, including the rising price of input materials such as fertilizers and pesticides. Producers also face inflation and erratic transportation costs, which directly affect coffee prices in the market. This price increase has forced many producers to adjust the prices of their coffee products, thereby increasing the level of competition. World coffee prices tend to increase while domestic prices are still unstable, which leads to concerns for exporters as well as consumers.
How costs affect the coffee industry:
- Increased production costs: High raw material prices reduce profits for farmers.
- Unstable selling price: Fluctuating prices make it difficult for consumers to access quality products.
- Fierce competition: Domestic brands have not been able to increase prices and want to improve product quality.
Stability in prices and production costs is essential to protect the interests of both producers and consumers.
Impact of the epidemic
The Covid-19 epidemic has left serious impacts on Vietnam’s coffee industry, especially in terms of supply chain and production. The period of social distancing has made harvesting and transporting goods difficult, thus greatly affecting coffee exports. Many coffee-growing regions have seen a decline in yields, not only by restrictions on movement but also by the pressure of epidemics such as mealybugs. This has forced many farmers and businesses to adjust their production methods to suit the new situation.
Specific challenges brought by the epidemic:
- Difficulties in harvesting: Shortage of human resources reduces output.
- Disrupted supply chains: Errors in the distribution and supply of raw materials.
- Market Volatility: Prices tend to be erratic and difficult to forecast.
The recovery of the coffee industry after the epidemic requires cooperation from many parties and the application of effective remedial measures.
DQ Coffee and its role in the coffee market
In the big picture of Vietnam’s coffee industry, DQ Coffee has emerged as a brand with a clear vision and strategy to improve the quality of Vietnamese coffee. Established with the intention of providing high-quality coffee products, DQ Coffee not only creates products for domestic consumption but also with the goal of bringing Vietnamese coffee to the world market. DQ Coffee focuses on the use of Robusta and Arabica coffee from famous growing regions such as Dak Lak and Lam Dong, thereby developing products that are unique in taste and processing style. In the context of the coffee industry’s increasing focus on quality and sustainability, DQ Coffee is asserting its position through continuous innovation.
History of DQ Coffee
DQ Coffee was established in the context that Vietnam’s coffee industry is witnessing many fluctuations and opportunities. With the mission of bringing high-quality coffee products, DQ Coffee has been constantly looking for the best coffee raw materials from famous growing regions. Each product of DQ Coffee has a story, from the process of selecting beans, processing to mixing. By applying modern technologies and strict quality control processes, DQ Coffee has gradually affirmed its position in the hearts of consumers.
- Eyesight: To become the leading coffee brand in the domestic and international markets.
- Mission: Providing high-quality coffee products to serve consumers.
- Core Values: Commitment to quality and sustainable development.
DQ Coffee is not only a coffee brand but also a movement that seeks perfection in every cup of coffee.
DQ Coffee’s development strategy
DQ Coffee has developed a comprehensive business strategy to maintain quality and increase brand value. In the context of increasingly fierce competition in the market, the development of characteristic products has become more necessary than ever. In addition to focusing on developing roasted and instant coffee product lines, DQ Coffee also focuses on building a wide distribution network. Not only stopping at the domestic market, the brand is also aiming to export and participate in international coffee fairs, in order to promote the image of Vietnamese coffee to the world.
Some outstanding strategies of DQ Coffee:
- Improve product quality: Ensure that each product reaches the highest standards in the hands of consumers.
- Building a distribution network: Organize a modern and complete distribution system.
- Participate in international fairs: Strengthen your position and build trust with your customers.
DQ Coffee’s synchronous development strategy not only helps build the brand but also helps develop the entire Vietnamese coffee industry in the coming time.
DQ Coffee’s products and services
DQ Coffee is constantly expanding its product portfolio with a variety of services to meet the increasing needs of consumers. DQ Coffee’s products are not only delicious but also attractive in taste, allowing consumers to experience coffee from many different regions. Featured products include pure roasted coffee, high-quality instant coffee lines, and special products for those looking for something new, from espresso to special versions such as cold brew. DQ Coffee also focuses on packaging design and conveys the message of product quality and origin, creating a strong connection with consumers.
Outstanding products of DQ Coffee:
- Pure Roasted Coffee: Ensures a rich and pure flavor.
- Instant Coffee: Suitable for busy lifestyles.
- Specialty coffee: Deliver a differentiated experience for consumers.
DQ Coffee aims to create not only a product but also an experience for customers, helping them better understand the value of quality coffee.
Future trends in the coffee industry
In the future, Vietnam’s coffee industry still has many opportunities to develop and explore new potentials. Combined with the increase in demand for high-quality coffee, DQ Coffee and other brands will continue to expand their products and improve quality to better serve consumers. The strong transformation of consumers, from the search for taste to the desire to better understand the origin of the product, will motivate coffee brands like DQ Coffee to look for more innovative solutions to meet market demand. The importance of sustainable development along with environmental protection will become a key factor in the coffee industry in the future.
Technological innovation in coffee processing
In order to improve the quality of coffee and keep up with the increasing demand of the market, the application of technology to the processing process is extremely necessary. Currently, many coffee processing facilities in Vietnam have begun to explore modern machinery technologies to improve product quality. The introduction of highly automated machines helps to rapidly improve the roasting and processing process, thereby ensuring that each coffee bean retains its original taste and the best quality. This not only improves productivity but also minimizes waste and errors in the production process.
Some new technologies are being applied to coffee processing:
- Automatic roaster: Ensure uniformity during roasting.
- Automatic Dispensing Machine: Helps produce high-quality coffee dishes quickly.
- Modern preservation technology: Keeps the freshness of coffee for a long time.
Technological innovation in the coffee industry not only makes a difference in product quality but also creates new experiences for consumers.
Sustainable coffee market growth
In recent years, the demand for sustainable coffee is increasing not only in Vietnam but also globally. Consumers are increasingly focusing on organic and specialty coffee products, which, in turn, opens up great opportunities for domestic coffee producers. With a vision of sustainable development, Vietnam’s coffee industry needs to focus on improving product quality as well as production processes. This not only helps to increase trust with consumers but also expands export opportunities to the world market.
Some of the factors driving the sustainable coffee market:
- High Demand: Consumers prioritize products with clear origin and environmental friendliness.
- Support Policy: Regulations from the Government and organizations on sustainable coffee production.
- Innovation of production methods: From cultivation to coffee processing, this helps to increase the quality and value of the product.
Sustainable coffee market growth not only ensures benefits for the coffee industry but also contributes to environmental protection and the development of the farmer community.
Global consumption demand and opportunities for Vietnam
The global demand for coffee is on the rise, creating a great opportunity for Vietnam to export quality coffee. Vietnam, with its advantages in taste and quality of coffee, is increasingly becoming an attractive destination for importers around the world. To take advantage of this potential, domestic coffee producers need to improve product quality, and at the same time promote marketing activities to promote the image of Vietnamese coffee. This transformation not only helps to improve product value but also promotes a sustainable economy for Vietnam’s coffee industry.
Benefits from global coffee demand:
- Market expansion: Great export opportunities to major consumer countries such as the EU and the US.
- Product value growth: International consumers are increasingly focusing on quality.
- The image of Vietnamese coffee is enhanced: Recognition and love from the international market.
Making good use of these opportunities will be an important stepping stone to help Vietnam’s coffee industry develop more strongly in the future.
Conclude
Vietnam’s coffee industry is witnessing interesting and potential changes. From the increase in demand for high-quality coffee to significant export opportunities, the coffee market is gradually asserting its position not only in the domestic market but also in the international market. DQ Coffee, with its sustainability commitments and clear development strategy, will certainly make a significant contribution to the development of the country’s coffee industry. In the immediate future, manufacturers need to continue to research and improve the processing process, and build a reputable brand to create competition in the market. With factors such as modern technology, product quality and attention from consumers, Vietnam’s coffee industry promises to make many new strides in the near future.
Contact information:
DQ AGRI Import-Export Joint Stock Company
Address: 5th Floor, Pax Sky Building, 34A Pham Ngoc Thach, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam Phone: 0979 112 997
Email: dqcoffee@dqagri.com.vn
Website: https://dqcoffee.vn/