Vietnam's Coffee Prices Surge by 71.3% Despite Lower Export Volumes

Vietnam's coffee market is experiencing a sharp increase in export prices, rising by 71.3% compared to the same period last year. This significant price surge has led to higher export revenues even as export volumes declined by 28.4%. The country exported 284,000 tonnes of coffee in the first two months of 2025, generating USD 1.58 billion in revenue.

Market Performance in Key Regions

Germany, Italy, and Japan remain Vietnam's top three coffee-consuming markets, with market shares of 16.6%, 9.4%, and 8.2%, respectively. Poland showed the highest growth, with coffee exports increasing 2.9 times, while exports to Algeria fell the most, declining by 22%.

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Reasons Behind the Coffee Price Surge

The Vietnam Coffee and Cocoa Association (VICOFA) highlighted that the price surge was mainly driven by Arabica coffee, as Brazil's production declined by 16%. The lower production in Brazil, a major coffee producer, contributed to the global supply shortage, benefiting Vietnamese coffee prices.

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Vietnam's Coffee Export Revenue Could Exceed USD 6 Billion in 2025

Deputy Minister of Agriculture and Environment Phung Duc Tien stated that at the current export growth rate, Vietnam's coffee export revenue might surpass USD 6 billion this year. Global market fluctuations, such as potential impacts from La Niña on Brazil's coffee production, present both challenges and opportunities for Vietnam's coffee sector.

Impact of Foreign Direct Investment on Coffee Exports

Foreign Direct Investment (FDI) companies play a crucial role in Vietnam's coffee industry:

FDI enterprises dominate the coffee processing segment, accounting for 86% of the total export revenue in this category. Their strong presence underscores their influence on Vietnam's export strategies and market share, particularly in the processed coffee sector.

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Future Trends in Vietnam's Coffee Market

With the expected rise in export revenue, Vietnam aims to maintain its strong position in the global coffee market. The country is likely to benefit from sustained high prices, but it will need to navigate potential challenges in global production and demand dynamics.