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Get to know Vietnamese coffee supplier in the Philippines with K-Agriculture

With a desire to distribute Vietnamese coffee worldwide, every Vietnamese coffee supplier in the Philippines has begun to enter this market with their signature and high-quality products, along with stable output and good customer services.

Background information of Vietnamese coffee supplier in the Philippines

In the blooming coffee market, Vietnamese coffee supplier in the Philippines contribute greatly to the coffee industry by bringing Vietnam’s famous coffee products to international friends and partners.

The overview of the coffee market in the Philippines

It is important to understand the current setting of the Philippines’ coffee market.

  • Coffee production

The Philippines, a country that lies on the “world coffee belt,” began their coffee production in 1740 with the introduction of the coffee plants by the Spanish. This nation is considered to have ideal climatic conditions to grow all four coffee varieties: Robusta (accounting for 90% of their coffee production), Arabica, Excelsa, and Liberica, with Mindanao – Soccsksargen, the Autonomous Region in Muslim Mindanao, and Davao remain their largest coffee producing regions. However, by 2014, this country only produced 25,000 metric tons of coffee, ranked 110th in the world in terms of coffee output. With the support of the government and the efforts of the farmers, the total green coffee beans output has reached 62,062 metric tons of coffee in 2019. Currently, this nation is aiming to be one of the most prominent producers of top-grade coffee in the world, starting with the Philippines Coffee Industry Roadmap 2017-2022. This is considered a very competitive and promising market for Vietnamese coffee supplier in the Philippines.

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Coffee production – Vietnamese coffee supplier in the Philippines

  • Coffee demand

The Filipinos have long been known for their love for coffee. According to the USDA, the Philippines is now the fourth biggest coffee importer in the world at 370.800 in MY 2020/21, slightly higher than their previous year. One unique feature of this coffee market is that the local people especially love instant/soluble coffee. In 4 consecutive years, the Philippines remains the number one country regarding the consumption of instant coffee, at 330.000 MT in MY 2020/21. To make a quick comparison, these figures are 4 to 5 times higher than the world’s second biggest instant coffee consumer – China, at 108.000 metric tons in MY 2019/20.

(Unit: thousand tons)

MY 2017/18 MY 2018/19 MY 2019/20 MY 2020/21
Instant coffee imports 330 330 300 330
Total coffee imports 366 366 340.2 370.8

It is easy to see that the coffee production in the Philippines, while rising through the years, is currently unable to meet the demand of the people. Therefore, this market is very promising and full of opportunities to thrive for the Vietnamese coffee supplier in the Philippines.

Definition of Vietnamese coffee supplier in the Philippines

A Vietnamese coffee supplier in the Philippines is an individual or a company that has the responsibility to introduce and bring Vietnamese coffee products to this country through their headquarters and branches in the Philippines. They contribute greatly to the promotion of Vietnamese coffee in this country in particular and in the international market in general.

Reasons for the existence of Vietnamese coffee supplier in the Philippines

This country has offered many great benefits for the long-term business of a Vietnamese coffee supplier in the Philippines.

  • Easier to export to nearby countries

In terms of geographical proximity, the Philippines is closer to several coffee-loving markets such as Japan, Korea or Papua New Guinea, which means that every Vietnamese coffee supplier in the Philippines gets a chance to provide their coffee products to not just the domestic market but also export them to these nearby countries with lower transportation fees. They can choose various transportation methods but the two most common ones are air and sea freight.

  • Benefits from the strong relations between the two countries

The Philippines is currently the 5th largest trading partner of Vietnam in ASEAN. With the signing of many regional deals that are beneficial for the import/export activities between nations, every Vietnamese coffee supplier in the Philippines has the opportunity to bring their products to this promising market. In the first 5 months of 2021, Vietnam exported about $63-million worth of coffee value to the Philippines, which is 9.54% lower than last year due to the Covid-19 pandemic. This value accounted for 3.67% of Vietnam’s total export value to the Philippines.

  • The Philippines’ love for coffee

Currently, this country is among the top coffee importing markets in the world with the total coffee consumed in the Philippines in 2020 was about 198,000 MT of coffee while producing only 30,000 MT, showing that in the Philippines, the demand for coffee is much greater than the local supply. Additionally, the Philippines is among the few countries that produces all four varieties of coffee: Arabica, Robusta, Liberica (or Barako/Baraco), and Excelsa.

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Reasons for the existence of Vietnamese coffee supplier in the Philippines

These aforementioned advantages have encouraged the participation of more Vietnamese coffee suppliers in the Philippines to enter this market.

Main features of Vietnamese coffee supplier in the Philippines

For smooth cooperation with a Vietnamese coffee supplier in the Philippines, here is some general information and advantages that coffee buyers should know about.

  • Have headquarters and branches in the Philippines

Every Vietnamese coffee supplier in the Philippines has their own headquarters and branches in the Philippines to manage and promote sales contracts with local business partners, search and develop potential customers for Vietnamese coffee products. The main advantage of having their own offices in the local country is that these Vietnamese coffee suppliers have a chance to deeply and thoroughly understand the people’s practices, cultures and demands, therefore those suppliers can research and produce goods that are specifically tailored to the local people’s requirements.

  • The majority are intermediary companies

In general, a Vietnamese coffee supplier in the Philippines is an intermediary partner, connecting the Vietnamese coffee producers and international coffee buyers. They act as a conjunction in the coffee world, bringing the famous Vietnamese coffee to consumers in this neighboring market.

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Main features of Vietnamese coffee supplier in the Philippines

  • Higher prices come with higher quality

Since in most cases, a Vietnamese coffee supplier in the Philippines is an intermediary firm without lands for coffee production, they tend to focus on the selective quality to be able to compete with domestic coffee suppliers in the Philippines. And because they have to bear additional fees such as transportation fees, custom papers or marketing in foreign environment, it is likely that the prices offered by a Vietnamese coffee supplier in the Philippines are higher than other competitors. However, Vietnamese coffee companies’ main competitive advantages of high-quality products and long-standing reputation in the coffee world are what makes them attractive in the eyes of coffee buyers.

  • Facing fierce competition from domestic companies

The current competition in the Philippines’s coffee industry is fierce with the participation of both domestic (such as Kalsada or SDG) and foreign brands (e.g. Nestle and PT Mayora Indah). Specifically regarding PT Mayora Indah from Indonesia, they recently announced a $80-million investment in the Philippines market over the next five years with the construction of a processing coffee factory to produce its famous Kopiko instant coffee. Therefore, in order to thrive in this country, a Vietnamese coffee supplier in the Philippines must constantly improve their quality and sales strategy.

Products of Vietnamese coffee supplier in the Philippines

Despite having perfect conditions for coffee-growing, the Philippines is still the fifth biggest coffee consumer globally of instant, roasted and green coffee beans, following Europe, the U.S., Brazil, and Japan.

Instant coffee

Filipinos love instant coffee because it is cheaper than specialty coffee and easier to prepare. With more than 100 million people consuming it, this type of coffee accounts for 90% of the country’s coffee consumption. According to the 2017 Policy Summary of the Philippines’ Ministry of Trade and Industry, the country was one of the top 5 instant coffee consumers in the world. Every famous Vietnamese coffee supplier in the Philippines such as Trung Nguyen or Vinacafe has jumped into this very promising market with their signature instant coffee products.

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Instant coffee

Roasted coffee

Roasted coffee beans are made from green coffee beans. In the Philippines, this roasted coffee sector of the coffee market is expected to thrive despite the pandemic. According to statista.com, the roast coffee market in the Philippines is expected to see a volume growth of 13.7% in 2022, as well as a 0.1kg growth in 2021 regarding the average volume per person in the roast coffee segment. This means that beside instant or green coffee beans, Vietnamese coffee supplier in the Philippines can also promote the sales of roasted coffee beans in accordance with the people’s rising demand.

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Roasted coffee

Green coffee beans

Even though the Philippines have the ideal conditions for coffee production, many domestic coffee farmers have shifted to farming crops that yield more frequent harvests. This stems from the inconsistency of coffee harvests and the instability of profit that the Philippines’ coffee farmers have to endure. Therefore, the Philippines still imports instant and green coffee beans, mainly from Vietnam, to satisfy people’s demands.

  • The two most consumed types of coffee beans in the Philippines are Arabica and Robusta.
  • In terms of wholesale coffee bean price, Robusta’s prices on the market range from 150 to 230 pesos per kilo and Arabica’s are much higher, between 350-700 pesos per kilo.
  • While Arabica is preferable to make specialty coffee, Robusta is the most commercialized and is often used to make instant coffee products.

Due to the country’s love for instant coffee, Robusta is the most imported and consumed type of coffee on the market. A Vietnamese coffee supplier in the Philippines often gets their sources of Robusta green coffee beans from the Central Highlands – an area with the production of 500,000 tons of Robusta per year and a long history of growing and manufacturing coffee beans. This ensures the finest quality of the coffee products provided by a Vietnamese coffee supplier in the Philippines.

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Green coffee beans

What can affect the price and output of Vietnamese coffee supplier in the Philippines

There are several factors that interfere with the business of a Vietnamese coffee supplier in the Philippines.

  • Supply

The coffee sources of a Vietnamese coffee supplier in the Philippines may be unstable in accordance with external factors such as the floods and droughts in Vietnam in May 2020 or the Covid-19. These events caused the coffee crop to be harvested later, thereby lowering the coffee quantities (1.8 millions ton of coffee output in MY 2019-20, which was 5% lower than in MY 2018-19) and forcing the Vietnamese coffee supplier in the Philippines to increase their prices due to insufficient supply.

  • High demand for instant coffee

While Vietnam is excellent regarding green coffee beans exports, instant coffee is what Filipinos prefer, which can be an incentive for every Vietnamese coffee supplier in the Philippines to step up the game and focus on providing more instant coffee products to this market. Additionally, even though the Philippines have a very high demand for coffee, foreign companies such as a Vietnamese coffee supplier in the Philippines still need to watch out since its government is making more efforts in the promotion of coffee consumption of domestic brands. This means that Vietnamese coffee supplier in the Philippines need to do more research and come up with a price solution that is both beneficial to themselves and the consumers.

  • Shipping situation

Since most agricultural products are transported by sea, the security issues in the sea (e.g. pirates, bad weather, delayed custom services) may directly affect the delivery time. These can add up the logistics cost that every Vietnamese coffee supplier in the Philippines need to bear and also higher the products’ prices on the market.

Guideline to find Vietnamese coffee supplier in the Philippines

It is crucial to understand how to find a reliable Vietnamese coffee supplier in the Philippines. Here are several ways to do so:

  • On the Internet

The advancement of technology allows buyers to easily find what and who they need on the Internet. Simply type the phrase “Vietnamese coffee supplier in the Philippines” or “where to buy Vietnamese coffee in the Philippines”, etc. and the most reliable brands and companies appear on the 1st result page.

  • Via E-commercial platforms

Foreign suppliers consider E-commercial platforms as a very useful way to promote their brands and products to potential international customers. To buy retail products from the Vietnamese coffee supplier in the Philippines, Lazada, Shopee or Ubuy are the perfect choices for you. However, for wholesale coffee buyers, it is recommended to visit Alibaba or Go4World or Tridge.

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Guideline to find Vietnamese coffee supplier in the Philippines

  • Agricultural fairs

These fairs are a great chance for the Vietnamese coffee supplier in the Philippines to promote and introduce their products to customers, so it is reasonable to go to these agricultural fairs to try their product samples directly and get their contact information.

  • Vietnamese Embassy in the Philippines

With an aim to promote Vietnamese coffee export to the Philippines, our Embassy may be willing to provide contact information of the reputable Vietnamese coffee supplier in the Philippines. Most suppliers that have informed their contact information via the Vietnamese Embassy in the Philippines are reliable. However, it is still recommended that you do your own research to ensure long-term and sustainable cooperation with a Vietnamese coffee supplier in the Philippines.

Top 4 Vietnamese coffee supplier in the Philippines

Here are our top 4 best Vietnamese coffee supplier in the Philippines

Highlands coffee – Vietnamese coffee supplier in the Philippines

Highlands Coffee was first founded by Mr. David Thai as a coffee shop in Hoan Kiem Lake. In 2011, Jollibee Group – Philippines acquired 49% of shares of Viet Thai at a price of 25 million USD. At this time, the Highlands Coffee chain alone has 50 stores. However, after being transferred to the Philippine croup, within only 6 years, this coffee chain has reached the milestone of 240 stores. In Manila alone, there are 4 retail Highlands Coffee shops among 39 shops across this country.

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Highlands coffee – Vietnamese coffee supplier in the Philippines

Trung Nguyen – Vietnamese coffee supplier in the Philippines

Trung Nguyen is one of Vietnam’s biggest coffee suppliers and also a famous Vietnam coffee beans exporter. This coffee company expands its position and value in the Philippines through its appearance on many E-commerce platforms such as Lazada, Shopee or Ubuy with their signature instant coffee products, namely Trung Nguyen G7 Gourmet Instant Coffee Black, Noshers Trung Nguyen Ground Coffee Creative Sang Tao, Trung Nguyen Buon Me Thuot Special Ground Coffee Blend from Vietnam, etc.

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Trung Nguyen – Vietnamese coffee supplier in the Philippines

K-Agriculture – Vietnamese coffee supplier in the Philippines

For wholesale coffee beans, K-Agriculture with 25 years of development is the perfect choice for customers. This company is currently one of the leading agricultural product suppliers in Vietnam. With an aim to bring Vietnamese agriculture to the world, K-Agriculture has reached over 80 countries, the Philippines included, in fields such as coffee, rice, and spices.

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K-Agriculture – Vietnamese coffee supplier in the Philippines

Contact information:
Website: k-agriculture.com
Email: info@k-agriculture.com
Phone: +84855 555 837 (Whatsapp available)

Vinacafe – Vietnamese coffee supplier in the Philippines

Belonging to Vinacafé Bien Hoa Joint Stock Company, Vinacafe is a brand that focus on supplying all types of instant coffee from reasonably-priced to premium products. Similar to Trung Nguyen, this company made its debut to the Philippines’ market through E-commerce platforms such as Lazada, Shopee or Ubuy.

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Vinacafe – Vietnamese coffee supplier in the Philippines

CONCLUSION
If you want to know more interesting stories and news about the coffee industry, please visit the website k-agriculture.com or contact us via +84855 555 837 (Whatsapp available)

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