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Potentials for Vietnamese coffee industry from UKVFTA

According to data from the International Trade Center (ITC), in 2021, total coffee imports from the world market into the UK will reach 203.38 thousand tons, worth $945.56 million. Also in 2021, the average import price of coffee in the UK reached $4,649/ton, up 7.5% compared to 2020.


Coffee market in the UK

According to data from the International Trade Center (ITC), in 2021, total coffee imports from the world market into the UK will reach 203.38 thousand tons, worth $945.56 million. Also in 2021, the average import price of coffee in the UK reached $4,649/ton, up 7.5% compared to 2020.

Statistics show the EU is still the largest coffee supplier to the UK market, while Asia (including Vietnam) only supplies about 90 million tons/year. However, it should be noted that coffee from Vietnam and some other suppliers has also been purchased, packaged, and exported by international roasters to the UK market with their own labels, including many EU roasters.


Source: Vietnam Investment Review

According to Statista, the UK coffee market revenue is estimated to reach $8.81 billion by 2022. The market is expected to grow 10.98% annually (CAGR 2022-2025). Thus, the UK market's revenue is currently about 1/10 of that of the US market ($85.16 billion). Revenue per capita is 128.70 USD in 2022. By 2025, 83% of spending and 29% of coffee consumption in the UK market will be for non-family consumption activities ( e.g. at cafes, hotels, bars and restaurants).

UK consumers traditionally drink more instant coffee than European countries do. However, the reality also shows that sales of ground coffee and specialty coffee are increasing. Certification is highly important for UK consumers, especially regarding quality, labour and environmental factors.

Situation of Vietnam's coffee exports to the UK Coffee is one of 13 key agricultural products of Vietnam. The coffee industry contributes 3% of the country's GDP, creating jobs and stable incomes for over 600,000 farming households. According to the General Department of Customs, in April 2022, Vietnam exported 2137 tons of coffee to the UK market, with an average monthly export price of 2137 USD/ton, worth 4.56 million USD. In the first 4 months of 2022, Vietnam's coffee exports to the UK reached 50.3 million USD, up 145.84% in volume and 196.67% in value over the same period in 2021.

The UKVFTA agreement opens up opportunities for Vietnam's coffee industry to better access the UK market, contributing to improving its value and stabilizing exports in difficult conditions of the COVID-19 pandemic.


(Multilateral Trade Policy Department)


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