May 18, 2025 | 15:27 GMT +7

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Wednesday- 22:15, 12/02/2025

Processed coffee turns into billion dollar product

(VAN) In addition to Robusta coffee, processed coffee is another product of the sector that has exceeded the landmark of 1 billion USD in exportation.
For the first time, Vietnam’s processed coffee exports have exceeded the USD 1 billion mark. 

For the first time, Vietnam’s processed coffee exports have exceeded the USD 1 billion mark. 

In 2024, processed coffee exports increased by 35% compared to 2023, reaching USD 1.18 billion and accounting for 21% of the country's total coffee export value for the year, according to the General Department of Customs. This is the initial occasion on which processed coffee exports have exceeded the USD 1 billion threshold.

Processed coffee is the second most popular variety of exported coffee, following Robusta coffee. In 2024, Robusta coffee exports exceeded 1 million tons and were valued at USD 4.185 billion. Processed coffee exports were USD 1.18 billion, Arabica coffee exports were 65,000 tons and valued at USD 240 million, and Excelsa coffee exports were 2,246 tons and valued at USD 10 million.

In recent years, there has been a decrease in the export of unprocessed coffee. In 2024, the total coffee export volume decreased considerably, reaching only 1.345 million tons, a 17% decrease from 2023, despite the fact that the total coffee export revenue exceeded USD 5 billion for the first time due to high prices. Exports of Robusta coffee dropped by 22%, in particular.

Unfavorable weather conditions and climate change are the primary causes of the decrease in export volume. Moreover, the number of coffee processing plants has increased, which has substantially reduced raw coffee exports and boosted processed coffee export revenue. Domestic coffee consumption is also on the rise. Many coffee enterprises, particularly foreign direct investment (FDI) companies, are currently investing in the construction of coffee processing facilities in Vietnam, according to Mr. Đỗ Hà Nam, Vice Chairman of the Vietnam Coffee and Cocoa Association.

The EU is the largest market for Vietnamese coffee, and the global coffee market is becoming more receptive to Vietnamese processed coffee.

The European-American Market Department of the Ministry of Industry and Trade has reported that Vietnam's processed coffee exports to the EU market have been increasing from 2015 to 2023, as indicated by Eurostat statistics.

It is important to note that the volume of Vietnamese processed coffee exported to the EU experienced accelerated growth in both quantity and value from 2020 to 2023, despite the impact of the COVID-19 pandemic. As of 2023, the volume of processed coffee exported to the EU had nearly tripled from 2015, reaching a record high of 31,000 tons.

Vietnam's processed coffee export revenue to the EU increased consistently from €45.6 million in 2015 to €153 million in 2023, representing a 107% increase in value.

Although Vietnam's processed coffee exports have experienced consistent growth in recent years and have now surpassed USD 1 billion for the first time, they continue to encounter a variety of obstacles.

For instance, Vietnam exports raw coffee to the EU market in the majority, with thoroughly processed coffee products comprising only approximately 12% of the market as of 2023. Consequently, Vietnamese coffee brands are comparatively unknown in the EU market, despite the fact that Vietnam has a high volume of coffee exports. As a result, Vietnamese processed coffee enterprises encounter challenges in establishing brand recognition and exporting directly to the EU.

At present, foreign brands with facilities in Vietnam are the primary source of branded coffee products that make a significant impact in international markets. Foreign companies import Vietnam's unprocessed coffee, blend, and process it into high-quality, specialty coffee products to satisfy domestic demand and export to other countries.

This is the reason the European-American Market Department maintains that it is imperative to establish a robust brand for Vietnamese coffee. In addition to safeguarding businesses from superfluous disputes, the establishment of a brand also increases the value of processed coffee in both domestic and international markets.

The category of decaffeinated, unroasted coffee consistently dominated Vietnam's processed coffee exports to the EU from 2015 to 2023, comprising more than 60% of the total processed coffee exports to this market. The category of instant coffee, extracts, essences, and concentrates followed, with an average share of 37.1%. Roasted, decaffeinated coffee accounted for a negligible 0.02%, while the remaining three categories of processed coffee held only a marginal proportion, each around 1%.

(Source: European-American Market Department, Ministry of Industry and Trade)

Author: Son Trang

Translated by Linh Linh

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