Vietnam’s coffee sector has been making headlines. Despite a 16.5% drop in export volume in 2024, earnings hit a record $5.2 billion. Farmers are now aiming for sustainable farming to keep quality high and protect the soil after drought hurt the previous crop. Global consumer trends show rising demand for premium coffee, and Vietnam is shifting to roasted and instant powders.
By mid-December 2024, roughly 1.26 million tons had already left the ports. High prices near $5,600 per ton more than compensated for fewer bags. In the initial three months of this year, revenue leapt 73.9% to over $2.8 billion even though volume stayed flat. Sellers expect $4.2 billion from 736,000 tons shipped in the primary five months. The country remains the next-largest coffee exporter on Earth.
Weather in the Central Highlands has turned kinder. Officials forecast output at 31 million bags for the 2025/26 season, up about 7% from last year. Robusta will make up 30 million bags, while Arabica will stay near one million. Higher pay at the farmgate helps growers afford more fertiliser and new trees. Expansion plans supported by WASI are enhancing yields.
Another change is the move up the value chain. Soluble and roasted coffee exports could reach 3.3 million bags, driven mostly by fellow Asian buyers. Ninety percent of shipments are still green beans, but that share is shrinking. A 27% drop in processed volumes earlier has nearly recovered, and plants are running faster. Continued high bean prices encourage factories to roast in-country instead of simply shipping raw bags.
At home, Vietnam drinks more of its own brew. Consumption is set to jump to 4.9 million bags as the middle class travels and cafes expand. Out-of-home spending already grabs 78% of cash spent on coffee. Shop numbers doubled from 816 in 2019 to 1,657 in 2023. Urban youths want Instagram-worthy drinks, showing a clear move toward better flavours and experiences.
