Sharp increase in processed coffee exports

According to data from the General Department of Customs, in 2024, processed coffee exports increased by 35% compared to 2023 to reach 1.18 billion USD, accounting for 21% of the country’s total coffee export value. Thus, this is the first time processed coffee export value has surpassed the 1 billion USD mark.

Among various types of coffee exports, processed coffee is currently second only to Robusta coffee. Specifically, in 2024, Robusta coffee exports reached more than 1 million tonnes, worth 4.185 billion USD; while the export value of processed coffee was 1.18 billion USD; followed by Arabica coffee at 65,000 tonnes and 240 million USD; and Excelsa coffee 2,246 tonnes, 10 million USD.

In 2024, Vietnam’s processed coffee exports reached 1.18 billion USD, accounting for 21% of the country’s total coffee export value - photo: Simexco Daklak

In recent years, green coffee exports have been on a downward trend. In 2024, the volume of exported green coffee decreased sharply to only 1.345 million tonnes, down 17% compared to 2023, of which the amount of Robusta coffee decreased by 22%.

The drop in the output due to the adverse effects of weather and climate change was the first reason for the sharp decrease in coffee exports. Meanwhile, domestic coffee consumption is increasing, and especially the increase in the number of coffee processing factories has also contributed significantly to reducing the green coffee export volume and increasing the value of processed coffee exports. According to the Vietnam Coffee - Cocoa Association, many coffee enterprises, especially the FDI ones, are investing in the construction of coffee processing factories in Vietnam.

EU largest market for Vietnamese processed coffee

The world coffee market is increasingly open to Vietnamese processed coffee, including the EU - the largest market for Vietnamese products.

According to the European - American Market Department under the Ministry of Industry and Trade (MoIT), Eurostat statistics show that in the 2015-2023 period, Vietnam’s processed coffee exports to the EU market tended to increase.

Especially from 2020 to 2023, despite impacts from the COVID-19 pandemic, the volume of Vietnamese processed coffee to the EU market witnessed rapid growth in both volume and value. Specifically, by 2023, the volume of processed coffee exported to the EU had reached a record of 31,000 tonnes, nearly three times higher than that in 2015.

In terms of value, the export turnover of Vietnam’s processed coffee to the EU in the 2015-2023 period has grown continuously year-on-year from 45.6 million euros in 2015 to 153 million euros in 2023 (an increase of 107%).

Despite continuous growth in recent years and surpassing the 1 billion USD mark for the first time, Vietnam’s processed coffee exports are still facing many challenges.

Specifically, Vietnam is still mainly exporting green coffee to the EU, while the intensively processed coffee products account for only about 12% (as of 2023). Therefore, although Vietnam’s coffee export output is high, the Vietnamese coffee brand remains widely unknown in the EU market. Therefore, Vietnamese coffee processing enterprises are facing difficulties in developing their brands and exporting directly to the EU market.

The coffee brands that have become popular in the international market currently mainly comes from foreign brands having factories in Vietnam. Foreign enterprises import raw coffee from Vietnam, grind and process it into high quality coffee products with unique flavors to serve domestic demand as well as export to other countries.