Vietnam Coffee Market Standard Report Q2/2018: Ken Research

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World coffee production in the 2014/2015 season decreased by 2.29% over the 2013/2014 season. This was the first time that coffee consumption decreased after reaching a sharp growth rate since the 2010/2011 season. Coffee production output in the 2017/2018 season was estimated at 159.66 million bags, up 1.2% compared to 2016/2017 season due to the forecast recovery in major producer countries.

The world coffee demand has been increasing, the total output of world coffee in the 2017/2018 season was estimated to be xxx.xx million bags. Global inventories for 2017/2018 season were xx.xx million bags, down 8.61% over 2016/2017 season due to a sharp increase in world coffee exports and consumption, while output increased slowly.

Vietnam Coffee Market currently planted two main types of coffee: Arabica and Robusta. The coffee production output in the past years of Vietnam has many fluctuations. In the 2016/17 season, according to USDA, coffee production was estimated to have dropped to xx.x million bags (60kg/bag), the lowest level since the 2012/2013 season. However, in the 2017/18 season, coffee production was expected to recover strongly and reach about xx.x million bags.

Domestic consumption of coffee in the period 2012-2018e with CARG of 7.9%, 2017/2018 estimated consumption volume of about x.xx million bags (60kg/bag), in which consumption of ground roasted coffee accounts for about two-thirds of output, the remaining one third is instant coffee.

In the 2017/18 season, the total quantity of imported coffee was estimated of Vietnam at 1.06 million bags. In the first quarter of 2018, the quantity of exported coffee was estimated at xxx thousand tons, an increase of 17% compared to the same period last year. In general, large enterprises in the industry have gross sales and gross profit rate grown in comparison with 2015, the average revenue growth of the industry in 2016 reached 20%, the average gross profit margin was 12.7%.

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