27
OCT 2017 FOOD FOCUS THAILAND
SURF THE
AEC
Vietnam’sCaffeineThirst
Puts It inWorld’sTop
GrowingCoffeeMarkets
เอกสารอ้
างอิ
ง/Reference
coffee-markets-3549858.html
“The global coffee industry continues to experience healthy
growth, driven byAsianmarkets in particular,” said Jonny Forsyth,
Global DrinksAnalyst atMintel. “Asiahas farmoregrowthpotential
as traditionally tea drinking consumers are converted slowly but
surely into coffee drinkers.”
The International Coffee Organization estimated the CAGR of
Vietnam’s coffee consumption at 8 percent for the four-year period
ending in 2015/2016, the second-fastest growth rate among the
world’scoffeeexportingnationsafter thePhilippines.Thecropyear
lasts betweenOctober andSeptember.
TheLondon-based ICOestimatedVietnam’scoffeeconsumption
at around 140,000 tons in the 2015/2016 season, or 8 percent of
output,upslightly from130,000 tonsuseddomestically theprevious
season.
VietnamCoffeeMarket Dynamics
Vietnam, theworld’ssecond-largestproducerandexporterofcoffee
after Brazil, is looking at a decline in the production of itsRobusta
beans, due to factors like inclement weather, aging trees, lack of
moisture,andplantdiseases.Many farmershavealsobeenholding
back their crops from themarket to increaseprices.With theglobal
demand for coffee set to rise, the need for greater production
becomes inevitable.
Most of the coffeeproduced inVietnam is intended for exports;
only 10% of the coffee produced is consumed domestically. With
90% exported as raw coffee, the coffee industry is now looking to
increase theoutput of instant and roastedcoffee to25%of the total
coffee production by 2022. It is expected that the total coffee
productionandconsumptionwill increaseby8%perannumby2022.
A substantial demand for cheap
coffee has been witnessed in the
emergingmarketsofAsia, especially in
the large markets of China and India,
where theconsumer isshifting from the
traditionalbeverage, tea. SinceRobusta
beans are used for cheap coffee, the
industry officials expect a rise in the
market shareofRobustabeans from its
current level of 40% to over 50% by
2021.
Vietnamaccounts for95%of theRobustacoffeeproductionand
5% of theArabica coffee production. However, it is trying tomake
a production shift by increasing itsArabica coffee plantation. The
government isaimingat increasing theproductionofArabicacoffee
to 8%by 2021.
Foreign industries account for 65% of Vietnam’s total coffee
trade. Since 2012, the government has been trying to protect the
interestof the local coffee tradersbycompletelybanning the foreign
industry and promoting direct buying from the farmers. Coffee
tradersarenowalsoprovidingexilesupport to farmersbycreating
a network of input and seedling providers, fertilizer and plant
protection sellers.
Coffee, top5 fastest growingmarketsby retail value (CAGR%), 2012-2016
Compound annual growth rate (Average value growth over past 5 years,%)
Source: Mintel
Indonesia
Turkey
India
Vietnam
Chile
19.6% 17.5% 15.1%
14.9%
12.9%
