Vietnam's Coffee Prices Drop But A Possible Wave Of Demand Might Curb Impact

17 March 2023

Vietnam is among the top coffee-producing countries in the world. After Brazil as the top producer of coffee, Vietnam’s coffee production ranks second-highest in the world, with a contribution to about 20% of the global coffee market. However, the year 2023 is proving to be a tough year for Vietnamese coffee exporters facing losses. Despite high export volumes, falling coffee prices are contributing to the falling revenue for Vietnamese coffee exporters.

Vietnam’s Coffee Exports Since Pandemic

Vietnam’s coffee exports in the past four years have been shown in Vietnam’s export data below. The data represents the export before and after the COVID-19 pandemic that caused an unprecedented halt in the trading activities of the countries, starting in the year 2020.

In 2019, the values stood at a total amount of exports of $309.3 billion, followed by a more demanding year, in 2020 the exports amounted to $345.3 billion, $413.2 billion in 2021, and $405.2 billion in 2022. The exports in 2022 declined following continuous growth previously.

Vietnam’s Coffee Demand Among Partners

According to Vietnam export data 2022, the countries that demand Vietnamese coffee the most are - the USA (21.3%), Vietnam (17.6%), China (12.2%), South Korea (7.7%), Japan (5.3%), Hong Kong (3.5%), the Netherlands (2.1%), Germany (1.8%), Taiwan (1.7%), and Singapore (1.6%).

Vietnamese Coffee Export Trends In 2022

Vietnamese coffee exports in 2022 is shown in trade data below as trends to trace the current market status of Vietnamese coffee. The prices were 22% lower than in August last year and 5.3% lower than the figures recorded in late 2021.

The fall in prices of Vietnamese coffee is linked with the issue of falling demand in the global economy and rising number of supplies in the domestic market. As is observed in the above data, the exports have increased, and it will be due to observing what the trend will be in 2023.