Unprecedented Rise In Global Coffee Prices Provides Opportunity For Vietnam – CoffeeTalk

The Trung Nguyen Legend coffee energy plant is set to open in Buon Ma Thuot, Vietnam, on March 10. The plant will be the fifth for the group, focusing mainly on processing and exporting roasted coffee. With a total investment of over $80 million, it will become the largest plant for such activities in Southeast Asia, with a processing capacity of over 30,000 tonnes of green coffee beans. This will drive deep processing and elevate the value of Vietnamese coffee on the export map. Trung Nguyen Group is also aiming to attract more international investors to Vietnam’s coffee sector.

According to the Vietnam Coffee Cocoa Association (VICOFA), Vietnam exported over 150,000 tonnes of coffee with an export turnover of nearly $800 million in January. The average export price of coffee reached $5,450 per tonne, a 78.5% increase compared to the same period in 2024. Processed coffee for export reached about 17,000 tonnes in January, with an export turnover of $104 million. This continues the achievements of 2024, when Vietnam exported nearly 1.35 million tonnes of coffee, earning a record turnover of $5.62 billion.

Nguyen Nam Hai, chairman of the VICOFA, said various coffee growers would continue to have opportunities to expand their export market in the 2024-2025 crop year. Fluctuations in major coffee-producing countries such as Brazil, Colombia, and Peru, along with the US decision to impose tariffs on goods from South America, will push coffee prices up, benefiting Vietnam, the leading producer of robusta coffee worldwide. Vietnam’s robusta coffee exports account for 40% of global Robusta production, and it is forecasted that in the 2024-2025 crop year, the country’s robusta coffee production will reach around 1.67 million tonnes.

My Viet International Group, a leading coffee exporter in Vietnam, has been investing in modern technology to cater to the growing demand for instant coffee due to its convenience and the development of processing tech. The company has adopted two coffee refining technologies: spray drying and freeze drying, which help preserve the aroma, rich flavor, and important nutrients in coffee beans. Freeze-dried coffee offers a similar taste experience to pure coffee but retains beneficial components for health, such as chlorogenic acid, which supports weight loss, improves cardiovascular health, stabilizes blood pressure, and enhances brain function.

In 2022-2023, Vietnam exported over 89,900 tonnes of processed coffee, raking in $511 million. The former MARD forecasts that by the end of this year, Vietnam’s coffee exports could reach 1.46 million tonnes, an increase of about 8% compared to 2024, setting a record with export turnover reaching approximately $7 billion.

The average coffee consumption worldwide is around 5.5kg per person per year, with Finland topping the list at an average of about 12kg per person per year. Vietnam is the world’s second-largest coffee exporter, but coffee consumption per capita is relatively low compared to the global average. The majority of Vietnamese people consume inexpensive instant coffee instead of high-quality coffee, reducing overall coffee consumption. Additionally, the culture of speciality coffee and premium coffee brewing has not been strongly developed in Vietnam.

By 2030, the target for domestic coffee consumption is three kg per person per year, accounting for only 18% of the total production of 1.6 million tonnes. In contrast, Brazil, the largest coffee producer, also has the highest domestic consumption rate at around 30%.

To maintain its position as the number one robusta producer and elevate its value on the international market, the coffee industry must break free from the mindset of exporting raw materials and focus on quality, branding, deep processing, and technology. Phuc Sinh Group has been pursuing this strategy by investing in coffee-growing regions that meet international criteria, such as developing Arabica and Cascara coffee farms in Son La province according to Rainforest Alliance standards.

The Vietnamese coffee industry has harvested a bumper crop in 2024 amid rising export prices, setting the stage for a promising 2025. Cross-border e-commerce is playing an increasingly vital role in economic expansion, especially for major export sectors like coffee.

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