Many positive signals for Vietnamese coffee in 2022

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In 2022, Vietnamese coffee has many prospects to export. In the first month of 2022, Vietnam’s coffee exports increased compared to the same period last year. Some major coffee consuming markets are Germany, followed by Belgium and Japan. In addition, the Algerian market emerges with many opportunities for Vietnamese coffee. In the United States, although Vietnam’s coffee market share has decreased in 2021, there is still a lot of potential.

Vietnamese coffee has many prospects thanks to increased export prices

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Coffee exports from Vietnam in 2022 are forecast to have an upward trend.

Struggling to hit the $3 billion mark at the last minute of 2021, coffee exports from Vietnam in 2022 are forecast to have an upward trend.

– From August 2021, coffee exports have prospered again. For the whole year of 2021, the average export price of coffee reached 1,966 USD/ton, up 12.3% compared to 2020. 

– The reason is mainly due to the high price of coffee globally; thereby positively affecting the price of Vietnam’s coffee exports.The sharp increase in export coffee prices is continuing to have a positive impact on coffee exports.

– From a market research report, in the period 2021-2025, the global coffee market will grow by an average of 7.6%.  According to the latest report of the International Coffee Organization (ICO), in 2021, we had seen a sharp increase in world coffee prices; with an average price of 152.2 US cents/pound (1 pound) = 0.45kg), up 41% from 107.9 US cents/pound in 2020.

– The factors driving the coffee market to develop such as population growth outside of home consumption, rapid urbanization, increase in e-commerce retail sales; increase in Generation Z income, increase in preferences Instant coffee; growing demand for specialty coffees and increased consumption of green coffee in emerging economies are expected to drive the market. 

– Consumption is up while output is falling, and global coffee stocks for the 2021-2022 crop are forecast to fall by 6.3 million bags to 30 million bags Global coffee production is forecast to decrease, making coffee prices to continue to be at a good level this year. 

Vietnam’s coffee exports in January 2022 increased compared to the same period last year

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Vietnam’s average export coffee price reached $2,269 per ton

– According to data from the General Department of Vietnam Customs, coffee exports in January reached more than 163 million tons; earning more than $370 million, down 3.6% in volume and 2.2% in value compared to December 2021. The reason is that the long Lunar New Year holiday in Vietnam has had certain effects on coffee exports. 

– In January 2022, Vietnam’s average export coffee price reached $2,269 per ton, an increase of 1.4% compared to December 2021. In which, the average export price of Vietnam’s coffee to some main markets increased compared to December 2021. It included: Italy (up 7.8%); Japan (up 9.2%); America (up 10.4%); Philippines (up 5.4%); South Korea (up 0.4%).

– For export markets, in January 2021, Vietnam’s coffee exports to many markets increased sharply compared to December 2021, including: Germany, Belgium, Italy, UK, Russia, Spain and the Philippines. In contrast, coffee exports to some markets decreased, such as: Japan, the US, Algeria, Malaysia and China.

– However, in the long term, Vietnam’s coffee industry is still benefiting from free trade agreements with other countries, especially in Europe. In addition, the recovery of major economies around the world also helps boost coffee consumption again.

Germany leads in coffee consumption of Vietnam, followed by Belgium and Japan

In January 2022, Germany still led in terms of coffee consumption of Vietnam, accounting for 18.4% of the total volume and 17.5% of the total coffee export turnover of the country.

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Germany still led in terms of coffee consumption of Vietnam

– According to statistics of the General Department of Customs, Vietnam’s coffee exports to foreign markets in January 2022 reached 163,324 tons, equivalent to 370.57 million USD, the average price was 2,269 USD/ton, down 3.6% in volume, down 2.2% in turnover but up 1.4% in price compared to December 2021.

– In January 2022, Germany still led in terms of coffee consumption of Vietnam, accounting for 18.4% of the total volume; 17.5% of the total coffee export turnover of the country, with 30,086 tons, equivalent to 64.71 million USD. The average price of 2,151 USD/ton, a sharp increase of 69.4% in volume, up 56.2% in turnover but down 7.8% in price compared to December 2021. 

– The Belgian market ranked second in terms of turnover, accounting for 14.6% o

f the total volume. It accounted for 12.5% ​​of the country’s total coffee export turnover, with 23,877 tons, equivalent to USD 46.18 million.

– The Japanese market ranked third, accounting for nearly 8% of the country’s total coffee export volume and turnover; reaching 12,186 tons, equivalent to USD 29.14 million, down 11.2% in volume and 3% in turnover but up 9.2% in price compared to December 2021.

Vietnamese  coffee is very popular and occupies a large market share in many countries. Prominent among them is Algeria, where Vietnamese coffee occupies the No. 1 market share in imported coffee.

Algerian market emerges with many opportunities for Vietnamese coffee

– For years, coffee is always Vietnam’s No. 1 export product to Algeria. Vietnam’s coffee market share in this market is often maintained at the highest level, accounting for over 50%. In 2018, our country’s green coffee exports to this market amounted to 74,120 tons, with a turnover of 99.68 million USD, accounting for 65% of Vietnam’s total export turnover to Algeria. To Algeria, coffee still is Vietnam’s main product, accounting for 65% of the total export value.

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Coffee is always Vietnam’s No. 1 export product to Algeria

– The representative of the Vietnamese trade in Algeria said that this country is not a member of the WTO, so the import tax is quite high. Algeria’s tariff barriers are still very high, with obvious protectionism. The average import tax is 30%, VAT 19%, solidarity tax 2%, not to mention many items subject to 30% domestic consumption tax and additional defense tax with the rate from 30 – 100%.

– According to the assessment of the Vietnam Trade Office in Algeria, this is still a market with a lot of opportunities for Vietnamese coffee and in the near future, coffee will still be our country’s No. 1 export item to this market. In addition to raw coffee beans, Vietnamese enterprises can promote the export of processed and instant coffee with higher added value.

– In the long term, Vietnamese enterprises wishing to export coffee will face many difficulties when competing with similar products of Ivory Coast, Uganda, Ethiopia, Tanzania and Madagascar due to the fact that Coffee of these countries is tax-advantaged.

Vietnamese coffee market share in the United States decreases

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Vietnamese coffee still has many opportunities

The United States reduces coffee imports from Vietnam in 2021 with a decrease of 9.0% in volume and 4.3% in value compared to 2020.

– The United States is a large coffee consuming market in the world. According to statistics from the United States International Trade Commission, coffee imports in 2021 will reach 1.58 million tons, worth 6.75 billion USD, up 3.6% in volume and 22.0% in value compared to 2020. 

– In 2021, the United States increased coffee imports from most of the main sources, except for Vietnam. In 2021, the US imported coffee from Vietnam reached 144.1 thousand tons, worth USD 267.65 million, down 9.0% in volume and 4.3% in value compared to 2020. Vietnam’s coffee market share in total US imports fell from 10.38% in 2020, to 9.12% in 2021.

– However, Vietnam still has many opportunities to increase exports to this market. Because increasingly hectic lifestyles and long working hours have made coffee chains in the United States more popular among customers. The requirement for coffee imported into the United States to be traceable in the value chain. The coffee industry needs to focus on traceability and improve production capacity.

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