World Coffee News
The Coffee Market Flourishes in the “Tea-Drinking Nation”
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China, traditionally known for its tea culture, has rapidly become one of the top coffee-consuming countries in recent years.
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A survey of 4,000 coffee shop consumers in China revealed that over 90% drink hot coffee weekly, while 64% indulge in iced coffee at least once a week.
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Surprisingly, China has overtaken the U.S.—a renowned coffee market—in having the largest number of branded coffee chains globally.
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Local Chinese coffee chains like Luckin Coffee and Cotti Coffee have expanded swiftly, with Luckin opening 5,059 new stores (out of 13,273 total) and Cotti opening 6,004 new stores (out of a total of 60,060).
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Despite entering the billion-people market in 1999, Starbucks, with 6,806 stores, faces threats not just from these strong competitors but also from local brands.
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Notably, as the world’s second-largest coffee exporter, Vietnamese coffee chains, including Trung Nguyen Legend Group of Dang Le Nguyen Vu, are tapping into this lucrative Chinese market. With the “Trung Nguyen Legend World of Coffee” business model, this brand has planned to open 1,000 stores across various Chinese provinces.
Domestic Coffee News
Domestic Coffee Prices Break Through the 80,000 VND/kg Mark, Exports Expected to Reach New Highs (01/02/2024)
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Due to limited supply and contractual delivery pressures, coffee purchasing enterprises are continuously raising prices, with offers ranging from 80,500 to 80,700 VND.
- Specifically, coffee prices in Lam Dong increased by 1,500 VND/kg to 79,500 VND/kg—the lowest among surveyed localities.
- In Gia Lai, prices rose by 1,400 VND/kg to 80,100 VND/kg; Dak Lak saw an increase of 1,400 VND/kg to 80,200 VND/kg.
- Meanwhile, Dak Nong experienced a 1,400 VND/kg hike, reaching 80,600 VND/kg—the highest among the regions.
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Compared to last year, current domestic coffee prices have more than doubled from the February 2023 rate of 39,000 VND/kg.
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By 2030, the Vietnamese Ministry of Agriculture and Rural Development aims for a national coffee area of 640-660 thousand hectares, with 600 thousand hectares in the Central Highlands and 40-60 thousand hectares in provinces like Binh Phuoc, Dong Nai, Ba Ria-Vung Tau, Son La, and Quang Tri.
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Globally, Robusta coffee prices have also surged by about 80% from $1,900 per ton at the beginning of 2023. Arabica prices in the Brazilian market for May, July, and September delivery increased by 0.85 - 0.95 cents/lb.
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In January 2024, Vietnam’s coffee exports reached 210,000 tons, a 48% increase in volume, with revenue surpassing 621 million USD, a 99.6% rise compared to the same period in 2023. Despite the strong supply from Vietnam, traders mainly deliver directly to consumer markets without going through exchanges.
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With the market’s strong fluctuations in recent years, participating in commodity exchanges is becoming a profitable activity for businesses.
References
- https://vneconomy.vn/con-khat-ca-phe-o-quoc-gia-uong-tra-mo-co-hoi-cho-cac-chuoi-do-uong.htm
- https://vneconomy.vn/gia-ca-phe-trong-nuoc-xuyen-thung-moc-80-000-dong-kg-xuat-khau-ky-vong-lap-dinh-moi.htm
- https://thanhnien.vn/gia-ca-phe-tay-nguyen-dat-moc-lich-su-80000-dong-kg-185240201073718509.htm
- https://vneconomy.vn/san-giao-dich-hang-hoa-the-gioi-vang-bong-nong-san-viet.htm
- https://tapchicongthuong.vn/bai-viet/gia-ca-phe-hom-nay-172-tiep-tuc-tang-manh-nhieu-noi-vuot-moc-80000-dongkg-116953.htm
