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Vietnamese coffee powder suppliers: A vibrant trading market

Vietnamese coffee powder suppliers have a significant impact on encouraging bulk coffee consumption in the domestic market as well as across the world, accelerating the consumption process, and delivering coffee closer to the point of consumption

Vietnamese coffee powder suppliers general information

Vietnamese coffee powder suppliers are well-known and diversified in the global coffee trade business.

Vietnamese coffee powder suppliers definition

Vietnamese individuals or businesses who offer coffee powder in quantity to other wholesale or retail purchasers are known as Vietnamese coffee powder suppliers. To put it another way, coffee powder suppliers function as a middleman between processors and consumers.

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Vietnamese coffee powder suppliers definition

Vietnamese coffee powder suppliers characteristics

  • Stable and reputable supply

Instead of visiting the actual farms, Vietnamese coffee powder suppliers are a great option for novice coffee powder consumers. Because Vietnamese coffee powder providers assist their customers in selecting high-quality items from reliable producers at the most reasonable costs.

  • Market understanding

Furthermore, Vietnamese coffee powder suppliers are well-versed in the requirements of customers. They assist producers in approaching the consumer market and tailoring product specs to purchasers’ desires.

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Vietnamese coffee powder suppliers characteristics

Vietnamese coffee powder suppliers, producers, and exporters distinguish

  • Coffee powder suppliers operate as go-betweens for manufacturers and local and international purchasers.
  • Those who process, pack, and store coffee are known as coffee producers. In Vietnam, some coffee powder suppliers can also be producers if they have the financial means to build their own facilities and distribute huge volumes of coffee such as Trung Nguyen JSC., and Vinacafe.
  • Exporters are coffee suppliers that sell their products internationally.
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Vietnamese coffee powder suppliers, producers, and exporters distinguish

Vietnamese coffee powder overview

Vietnamese coffee powder suppliers’ strong rise in the world coffee market has surprised many researchers. Overcoming many famous coffee exporting countries such as Colombia, Indonesia, Vietnam becomes the second largest coffee export country in the world.

Top players in Vietnamese coffee powder suppliers market

Coffee is one of the highly attractive industries in Vietnam. That is reflected from the competition to buy green coffee, roasted coffee, and coffee powder from FDI enterprises to the competition for a market share of three big coffee companies Nestlé, Trung Nguyen, Vinacafe Bien Hoa. More so, the presence of foreign countries’ high-end coffee shop chains in Vietnam is increasing considerably.
Nestle’s Nescafe, Trung Nguyen’s G7, Vinacafe Bien Hoa’s Vinacafe and Wakeup, and Food Empire Singapore’s Cafe Pho are the five instant coffee brands with the highest level of recognition. Specifically, Nestle leads with 35%, Vinacafe with 20.3%, Trung Nguyen with 18.7%, and Food Empire with 3.6%.

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Vietnam’s coffee powder market share

More than 22% of the remaining market share belongs to other coffee brands. This shows that the coffee market in Vietnam has been shaped very well, and there are hardly any opportunities for new players.

Vietnamese coffee powder supply settings

Currently, the whole country has 97 green coffee processing establishments, 160 roasting coffee processing establishments, 8 instant coffee processing establishments, and 11 blended coffee processing establishments.

Specifically, the country owns:

  • 97 green coffee processing establishments – with a total design capacity of 1,503 million tons of product per year, in which total actual capacity reaches 83.6%;
  • 160 roasting coffee processing establishments – with a total design capacity of 51.7 thousand tons of products per year, in which total actual capacity reaches 89.7%;
  • 8 instant coffee processing establishments – with a total design capacity of 36.5 thousand tons of products per year, in which total actual capacity reaches 97.9%;
  • 11 blended coffee processing establishments – with a total design capacity of 139.9 thousand tons of products per year, in which total actual capacity reaches 81.6%.
Establishments Designed capacity (MT) Actual capacity (MT)
Green coffee processing 1,503,000,000 1,256,500,000
Roasting coffee processing 51,700 46,400
Instant coffee processing 36,500 35,700
Blended coffee processing 139,900 114,200

Trung Nguyen’s powdered coffee, Vinacafe’s instant coffee, and Trung Nguyen’s instant coffee not only dominate the domestic market but are also welcomed in many regional markets, and at the same time have initially built Vietnamese coffee brands.

Vietnamese coffee powder consumption

In recent years, with the development of coffee shops and the coffee supply system, Vietnamese domestic coffee demand, as well as consumption, has increased rapidly (in which roasted powdered coffee accounted for 65% and that in instant coffee is 35%).

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The domestic consumption of coffee powder products in Vietnam has increased steadily year by year. This partly reflects the Vietnamese people’s habit of using coffee.

Vietnamese coffee instant has a short preparation time due to its fast dissolve capability, as well as low shipping weight and volume, and lengthy expiration date. Furthermore, because there are no coffee grounds in Vietnamese coffee instant packages, clean-up time is reduced. Office employees love instant Vietnamese coffee because of its convenience and wonderful taste that isn’t too dissimilar to ordinary coffee. Many Vietnamese women prefer instant coffee over other forms of coffee because it has a suitable amount of caffeine and has a milder flavor.

Vietnamese coffee powder export

In terms of export markets, Germany and the United States continue to be the two largest coffee-consuming markets of Vietnam with market shares of 14.83% and 10.71% respectively.

The EU is the biggest consumer of Vietnamese coffee, accounting for 42.8% of the total volume and 42.7% of the country’s total coffee export turnover.

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Vietnamese coffee powder export share in 2020

The EU-Vietnam Free Trade Agreement (EVFTA) took effect from August 1, 2020, after the Agreement came into effect, the EU removed the tax rate of 7.5 – 9% immediately for Vietnamese coffee and 9 – 11.5% within 3 years for some products from coffee beans including instant coffee, essence containing coffee. This means that the output of Vietnamese coffee exported to the EU market will continue to increase steadily in the coming years.

Factors affecting the development of Vietnamese coffee powder suppliers

Environmental, economic, and policy factors can have a substantial influence on coffee powder output and costs, which has a direct impact on Vietnamese coffee powder suppliers and purchasers.

Effect of demand

Despite the fact that the Covid-19 pandemic is still difficult, coffee demand in many nations has not fallen significantly due to home consumption. The Christmas and New Year vacations, as well as the reopening of the European economy following the Covid-19 vaccination campaign, all contributed to an increase in coffee consumption in these nations. For Vietnamese coffee powder suppliers, this is an ideal opportunity.

Effect of supply

The crisis of oversupply caused coffee prices to fall for 4 consecutive years. This leads to the fact that Vietnamese farmers are gradually switching from growing coffee to other more profitable crops such as pepper, mango, durian, etc. This situation will lead to long-term consequences in the future of Vietnamese coffee powder suppliers.

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Factors affecting the development of Vietnamese coffee powder suppliers

Effect of logistics

Every country’s customs clearance and export process has been slowed as a result of the Covid-19 pandemic. Furthermore, ship rates have risen 3-7 times above usual, making it difficult for many Vietnamese coffee powder suppliers to decide whether to raise product pricing, cancel orders, or incur losses in order to retain business connections.

Natural condition

In fact, only a few weather variations can have an impact on coffee supply throughout many coffee years, particularly in major and significant markets like Vietnam. In the MY2020/21, Vietnam witnessed many catastrophic floods and prolonged droughts, which greatly affected the harvest time and coffee output of Vietnamese coffee powder suppliers. In addition, hired laborers who have to stay in their hometown to overcome the consequences of natural disasters also seriously delay the progress of coffee production.

Way to work with Vietnamese coffee powder suppliers

To operate effectively with Vietnamese coffee powder suppliers, purchasers must first grasp the five essential steps in the agricultural product importation process.

Step 1: Buyers send Vietnamese providers a Letter of Intent (LOI) outlining their requirements, including quantity, quality, and pricing.

Step 2: Based on the buyers’ LOI, Vietnamese coffee powder suppliers will respond with an FCO. Following that, the two parties will negotiate to reach an agreement on the final FCO.

Step 3: After a fundamental agreement has been reached, providers will give samples to purchasers so that they may evaluate the quality of their commodities.

Step 4: The two parties will sign and execute the contract based on the discussed conditions. After signing the contract, buyers will almost always be required to pay a deposit to the seller.

Step 5: Vietnamese coffee powder suppliers will adhere to the contract’s Incoterm conditions and have 2-4 weeks to provide the goods. Sellers are required to transmit the Bill of Lading to buyers once the goods have been loaded onto the ship. Depending on the means of transport, the delivery time might range from 7 to 40 days.

Step 6: Once the goods have been received, buyers must inspect them for quality and quantity, and provide feedback to the sellers as quickly as feasible.

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Way to work with Vietnamese coffee powder suppliers

Top 5 best Vietnamese coffee powder suppliers

Coffee powder is one of Vietnam’s most desirable export commodities. In terms of delivering top-grade Vietnamese coffee powder, here are five well-known names.

Vina Cafe – Vietnam Coffee Corporation – One Member Co., Ltd

Vina Cafe has a full system for producing high-quality coffee powder, as well as a system of import and export trading organizations. The Corporation is a major coffee powder supplier in Vietnam, with a 20 percent share of the country’s export market.

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Contact information

WhatsApp: +84 855555837

K-Agriculture Factory – best Vietnamese coffee powder supplier

K-Agriculture is the loyal vendor of thousands of B2B partners all around the world. 25 years history of delivering Vietnamese agricultural products to the world has let it deeply understand the entire market and support partners with adequate quality.

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K-Agriculture Factory

Contact information

Email: info@k-agriculture.com

Website: https://k-agriculture.com/

WhatsApp: +84 855555837

Trung Nguyen Legend – Trung Nguyen Coffee JSC

Trung Nguyen Legend is a Vietnamese coffee powder supplier that specializes in coffee production, processing, and trade, as well as franchising, distribution, modern retail, and tourism. Trung Nguyen Coffee is one of Vietnam’s most well-known brands, with distribution in more than 60 countries.

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Trung Nguyen Factory

Contact information

WhatsApp: +84 855555837

AVC HEMERA Co., Ltd

AVC HEMERA Co., Ltd. is recognized for producing and distributing high-quality Vietnam coffee powder that is pure, diverse, and high-quality.

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AVC HEMERA Co., Ltd

Contact information

WhatsApp: +84 855555837

Son Duong Coffee Co., Ltd

Son Duong Coffee Co., Ltd. is well-known for delivering high-quality coffee powder from locations with abundant raw materials, such as Nam Ban, Buon Ho, Dak-Nia, Tram Hanh – Da Lat, and the LangBiang plateau.

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Son Duong Coffee Co., Ltd

Contact information

WhatsApp: +84 855555837

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