Price Of Coffee In Vietnam That Importers Can Not Ignore

It is essential for any coffee traders to be completely knowledgeable of the price of coffee in Vietnam in the present and in the future. This utterly comprehend will help them in getting high-quality Vietnamese coffee at a fair price.

1. Recent and future trend of price of coffee in Vietnam

First of all, let’s take a closer look at the recent trend and the future trend of the cost of coffee in Vietnam, which is utterly essential for coffee importers to answer the question “How much is coffee in Vietnam?”

1.1. Recent trend of price of coffee in Vietnam

To give a better sense of the historical trend of price of coffee in Vietnam and the recent rebound, here are some data: In 2018, the average cost of coffee in Vietnam was around 1900 USD per ton. In 2019, the average coffee price was around 1700 USD per ton. In 2020, the average price of coffee in Vietnam was around 1600 USD per ton. In the first half of 2021, the price rebounded and increased by 10-15% compared to the same period in 2020, reaching an average of around 1870 USD to 1910 USD per ton.

The cost of coffee in Vietnam has been relatively stable in recent years, with some minor fluctuations due to changes in global market conditions. In 2020, the coffee in Vietnam price experienced a slight decline due to a decrease in global demand for coffee as a result of the COVID-19 pandemic. However, in the first half of 2021, the price of coffee in Vietnam rebounded and increased by 10-15% compared to the same period in 2020. This was driven by a recovery in global demand for coffee as well as weather-related issues affecting coffee crops in other major producing countries.

Recent trend of Vietnamese coffee

1.2. Future trend of price of coffee in Vietnam 

Looking ahead, there will be an increase in the price of coffee in Vietnam, particularly for high-quality beans. There are several factors that could impact the future trend of the coffee in Vietnam price.

• The increasing focus on high-quality specialty coffee in the country: Coffee in Vietnam has traditionally been associated with Robusta beans, which are often used in blends and instant coffee. However, in recent years, there has been a growing interest in arabica and specialty coffee varieties, which typically command a higher price point. This shift could lead to an overall increase in the price of coffee in Vietnam.
• The changing global supply and demand dynamics of the coffee market: As a major player in the global coffee industry, Vietnam is sensitive to changes in global supply and demand. Weather-related issues and climate change, in particular, could have a significant impact on the coffee in Vietnam price and around the world.

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2. Average price of coffee in Vietnam

Below are some main coffee products from Vietnam and their detailed prices. 

2.1. How much is coffee in Vietnam

The average price of coffee in Vietnam for each offee type reflect their quality, rarity, and demand. Robusta coffee is the most common and affordable, while Arabica coffee is of higher quality and price. Excelsa, Catimor, and Liberica are rarer and more unique, with distinct flavor profiles that add complexity to blends.

Average price of coffee in Vietnam

2.2. Comparison of price of coffee in Vietnam and other coffee exporting countries

When it comes to the price of coffee, Vietnam is considered a major player in the global coffee market, and its prices can be compared to those of other major coffee exporting countries. Compared to countries like Brazil and Colombia, which are known for their high-quality Arabica coffee beans, price of coffee in Vietnam is generally lower. This is because Vietnam is primarily known for its Robusta coffee, which is less expensive to produce and typically sells at a lower price point than Arabica. On average, in 2021, the price of Robusta coffee in Vietnam was around $1,420 per ton, compared to $2,250 per ton for Brazilian Arabica coffee and $1,910 per ton for Colombian Arabica coffee. 

While Vietnam’s coffee prices may be lower, the country is still a major coffee exporter, and its coffee production has been increasing steadily in recent years.

2.3. Factors affecting the price of coffee in Vietnam

The price of coffee in Vietnam is affected by a complex set of factors such as quality, location, season, government policy or logistic cost:

• Quality: One of the biggest factors that affects the price of coffee in Vietnam is the quality of the beans. Higher quality beans typically sell for a higher price, while lower quality beans may be sold at a discount.
• Location: Coffee grown in certain regions of Vietnam, such as the Central Highlands, may be more valuable than coffee grown in other areas due to factors such as soil quality and altitude.
• Season: The season during which coffee is harvested can also impact its price. In Vietnam, the coffee harvest typically takes place from October to January, and prices may fluctuate during this period.
• Supplier reputation: Higher reputation can lead to higher prices by Vietnamese coffee supplier. This is because a supplier’s reputation is a reflection of their quality, reliability, and consistency in delivering high-quality coffee beans. As a supplier’s reputation grows, so does the demand for their beans, which allows them to charge higher prices.
• Government policy: Government policies, such as tariffs or subsidies, can also have an impact on the price of coffee in Vietnam. For example, a government subsidy may help to lower the price of coffee for farmers, while a tariff on coffee exports may increase the price for buyers.
• Logistic cost: The cost of transporting coffee from farms to ports or markets can also impact its price. If transportation costs are high due to poor infrastructure or long distances, it may increase the price of coffee.

When compared to other coffee-producing countries, some of these factors may impact the price of coffee in Vietnam differently. For example, while Brazil is known for producing high-quality Arabica coffee, Vietnam’s focus on Robusta coffee means that quality may not be as big of a factor in pricing. Additionally, the location and logistical challenges of getting coffee to market may be different in different countries, which can also impact the final price.

Factors affecting the price of coffee in Vietnam

2.4. Global coffee market trends affects the price of coffee in Vietnam

The global coffee market is constantly changing, with new trends emerging all the time. One of the most significant trends in recent years has been the rise of Robusta coffee, which is a major variety of coffee produced in Vietnam. Here is an overview of the current global coffee market trends that can influence the price of coffee in Vietnam. 

• Increased demand for Robusta coffee: Robusta coffee has gained popularity in recent years due to its strong, bitter flavor and lower price point compared to Arabica coffee. This has led to increased demand for Robusta coffee, particularly in emerging markets such as Asia and Africa.
• Sustainability and ethical sourcing: There has been a growing focus on sustainability and ethical sourcing in the coffee industry, with consumers and coffee companies alike demanding more transparency and accountability in the supply chain, including the price of coffee in Vietnam. This has led to the development of certifications such as Fairtrade and Rainforest Alliance, which aim to ensure that coffee is produced in an environmentally and socially responsible way.
• COVID-19 pandemic: The COVID-19 pandemic has had a significant impact on the global coffee market, with disruptions to supply chains and changes in consumer behavior. Many coffee shops and cafes were closed or limited in capacity, leading to a shift in consumption towards at-home coffee consumption.
• Climate change: Climate change is a growing concern in the coffee industry, as rising temperatures and changing weather patterns can have a significant impact on coffee production. This could lead to changes in the availability and price of coffee in the future.

These global market trends can have a significant impact on the price of coffee in Vietnam, particularly for Robusta coffee. For example, increased demand for Robusta coffee could lead to higher prices for Vietnamese farmers, while a shift towards more sustainable and ethical sourcing could result in additional costs that may be passed on to buyers. Additionally, disruptions to the supply chain caused by the pandemic or changes in weather patterns could also impact the availability and coffee in Vietnam price. Overall, understanding global coffee market trends is essential for anyone involved in the coffee industry, as it can help to anticipate changes and plan for the future.