Vietnam Instant Coffee Market Size, Share, Opportunities, And Trends By Type (Freeze-Dried Instant Coffee, Spray-Dried Instant Coffee, Others), By Distribution Channel (Offline (Retail, Food service), Online), And By Province - Forecasts From 2025 To 2030

Description

Vietnam's Instant Coffee Market Size:

Vietnam's Instant Coffee Market is expected to grow at a CAGR of 12.27% during the forecast period, from USD 287.345 million in 2025 to USD 914.332 million in 2030.

Vietnam Instant Coffee Market Introduction:

Instant coffee is a type of coffee made from dried coffee extract and is one of the most popular beverages worldwide. Being the world's second-largest coffee producer, Vietnam holds significant importance as a pivotal trading point in the global coffee market. According to the World Bank, the growing population of the country, with a population nearing 99.46 million in 2022, along with the influence of French colonialism, is a key driver behind the growth of the instant coffee market in Vietnam.

Vietnam Instant Coffee Market Overview:

The Vietnamese instant coffee market is robust and dynamic, driven primarily by rising domestic consumption and strong export demand. Coffee remains one of the largest product segments in Vietnam within the overall coffee market, accounting for around 17% of the global coffee production. This growth is fueled by the convenience and affordability of instant coffee, which aligns well with busy urban lifestyles, especially among younger consumers like millennials and Gen Z. The country’s leading role in global robusta coffee production provides a steady and cost-effective raw material supply, reinforcing Vietnam's competitive advantage in this segment. Additionally, innovation in product formats such as freeze-dried and microground coffee, as well as ready-to-drink options, helps meet evolving consumer preferences and expands market appeal both domestically and internationally.

Urbanization and rising disposable incomes also play significant roles in market expansion. Modern retail formats, including supermarkets, convenience stores, and e-commerce platforms, dominate distribution channels. This widespread availability enhances accessibility and promotes consumer trial and loyalty to instant coffee brands. As urbanization in Vietnam has been accelerating recently, a UN projection suggests that the urban population will surpass the rural population by 2040, leading to a corresponding increase in demand for convenient coffee consumption formats. Furthermore, the growing café culture and proliferation of local and international coffee chains increase coffee visibility and consumption occasions, further stimulating instant coffee market expansion.

The rapid growth of coffee shop chains and rising interest in specialty coffee in Vietnam significantly influence the instant coffee market. With over 500,000 coffee shops ranging from small cafés to upscale chains, consumer demand for unique flavors and high-quality brews is increasing. This evolving coffee culture encourages instant coffee brands to innovate by offering premium blends and convenient formats that cater to younger consumers seeking both quality and personalization. While the expansion of coffee shops primarily drives the fresh-brewed segment, it indirectly boosts instant coffee consumption by promoting overall coffee awareness and preference for diverse coffee experiences. Consequently, the dynamic coffee retail sector plays a key role in shaping the growth and product development within Vietnam’s instant coffee market.

Apart from this, supportive government policies and trade agreements also foster the market’s competitive landscape. Enhanced traceability, certification standards for ethical sourcing, and sustainability initiatives respond to increasing consumer consciousness about product quality and environmental impact. Major players, including Nestlé, Trung Nguyên, Vinacafé Bien Hoa, King Coffee, and others, are investing in capacity expansion, technology upgrades, and brand innovation to capitalize on this momentum. Aligning with this, in September 2023, Louis Dreyfus Company (LDC) and Instanta Sp. z o.o. (Instanta) inaugurated ILD Coffee Vietnam, a joint venture freeze-dried instant coffee facility located in Binh Duong province, Vietnam, with an annual production capacity of 5,600 metric tons of freeze-dried instant coffee.

This robust market infrastructure and favorable macroeconomic environment collectively position Vietnam as a key global hub for instant coffee production and consumption through 2025 and beyond.

The Vietnamese instant coffee market during the projected period is shaped by intense competition anchored in product innovation, brand differentiation, and expansive distribution networks. Key competitive factors include the development of premium instant coffee products, such as freeze-dried and microground variants, which cater to evolving consumer tastes focused on quality and convenience. Companies aggressively leverage multiple channels, with offline retail, including supermarkets and convenience stores, remaining dominant, while e-commerce is rapidly growing, especially among younger consumers. These competitive dynamics enable firms to differentiate and expand market share both domestically and internationally.

Leading players employ distinct strategies to consolidate their positions and drive market growth. Nestlé capitalizes on its global scale and invests heavily in technology and local consumer insights to customize offerings. Trung Nguyên aggressively markets its flagship G7 brand, expanding both product lines and export reach. Vinacafé Bien Hoa leverages strong domestic brand loyalty while scaling export operations. King Coffee focuses on rapid domestic expansion and international branding linked to Vietnam’s coffee heritage. Moreover, emerging companies like Metrang Coffee and Phuc Sinh emphasize innovation and quality improvements. These concerted strategies around innovation, marketing, sustainability, and channel expansion underpin the competitive landscape and position Vietnam's instant coffee market for robust growth through 2030.

Vietnam Instant Coffee Market Growth Drivers:

• Changing Lifestyle of the Population

According to the World Bank, Vietnam’s GDP has reached a value of USD 408.8 billion in 2022. The country depends mainly on its agricultural sector, with recent shifts to the secondary and tertiary factors of the economy. Rapid digitization has also furthered the development of the country.

Cumulatively, these factors have led to the adoption of a fast-paced life in the country, and this changing lifestyle has expanded the instant coffee market in recent times. The coffee culture in Vietnam has a rich historical background, with its roots dating back to the 19th century when coffee was introduced by the French. Following the Vietnam War, the government implemented a large-scale coffee production initiative, further solidifying the country's deep connection with this beloved beverage. As people are advancing, there has been a shift to instant coffee powders like Nestle, Trung Nguyen, etc.

• Presence of International Coffee Chains

The proliferation of both local and international coffee chains in Vietnam's urban centers has attracted a diverse crowd of busy professionals, students, and tourists, resulting in a surge in demand and driving the market forward. Additionally, the rising popularity of instant coffee in the country can be attributed to the growing number of young consumers, further contributing to the market's growth. According to the World Bank, the median age in Vietnam is 27.6 years, which is one of the youngest in the world. This young population is increasingly demanding convenient and easy-to-prepare beverages and instant coffee fits the bill perfectly.

• Increasing Urban Population

The rapid growth in Vietnam's urban population from 35.213% in 2017 to 38.766% in 2022 has significant implications for the country's instant coffee market. As urbanization accelerates, it fosters a burgeoning consumer base with changing lifestyle patterns and an increasing demand for convenience products like instant coffee. The expanding urban population creates a favorable environment for the growth of the instant coffee market, as these areas tend to exhibit higher disposable incomes and modern retail infrastructure.

Moreover, Urban dwellers, who often have fast-paced lifestyles, prefer easily accessible and time-efficient beverages like instant coffee. Trung Nguyen's marketing campaigns target young, urban consumers. The company sponsors a number of popular music festivals and television shows.

• Increasing Production of Free-Dried Instant Coffee

Freeze-drying involves freezing coffee extract to about –40°C, and then cutting it into crystals. Once the granules are frozen, they are then dried at a low temperature using a vacuum. Vietnam is one of the top two coffee-producing countries in the world, according to statistics from the International Coffee Organization. As per the report published by USDA Foreign Agricultural Services, the production of robusta, which is essentially used in freeze-dried instant coffee, was 28,740 thousand 60 kg bags in the year 2022/23 to 30,230 thousand 60 kg bags in the forecast period 2023/24, this growth is anticipated to significantly impact the regional market.

• Increasing Accessibility Due to Online Presence

Rising internet penetration, as well as the constantly improving customer experience of online retail channels, is expected to be the major factor contributing to the growth of the online retail industry, which subsequently, is also expected to open up new sales avenues for emerging product categories such as that of instant coffee in the country. The shift of consumer preference to online channels is evident from the e-Conomy SEA 2022 report, which states that e-commerce has been witnessing significant growth at 53%, alongside strong growth across most sectors except for travel. Looking at 2025, the overall e-commerce value will likely reach $104 billion in value, re-accelerating to around a 32% compound annual growth rate.

In addition to giving producers an affordable means of product distribution, this expanding digital ecosystem opens doors for specialty, premium, and niche instant coffee varieties to reach a devoted customer base without being constrained by physical store shelf space.

• Leading Global Coffee Producer Status

A steady, high-volume supply of coffee beans has been guaranteed for decades by the nation's ideal climate, extensive cultivation areas in provinces like ??k L?k, Lâm ??ng, and Gia Lai, and well-established farming expertise. Instant coffee producers can control quality from farm to final product, secure consistent procurement without relying heavily on imports, and maintain cost efficiency due to this plentiful base of raw materials. Furthermore, Vietnam produces plenty of robusta beans, which are ideal for making instant coffee due to their strong flavor, potent aroma, and higher caffeine content qualities that are valued in many Asian, Middle Eastern, and Eastern European markets.

Vietnamese instant coffee brands have a growing export market, with their products being shipped to more than 80 countries, due to the steady surplus in production, which also supports domestic consumption. Local supply chains, ranging from large-scale processing facilities to farming cooperatives, are integrated to further streamline production, allowing manufacturers to test premium variations, value-added products, and a variety of blends while maintaining competitive prices.

This resource advantage has also prompted foreign companies and local behemoths like Trung Nguyên to invest in Vietnam's state-of-the-art instant coffee processing facilities, boosting product innovation and satisfying the growing demand for convenient, premium coffee solutions worldwide. Moreover, Vietnam's unparalleled standing in the global coffee supply chain supports the rapid expansion and fierce competition of its instant coffee sector.

Vietnam's total coffee production is expected to reach 31 million bags green bean equivalent (GBE) in 2025–2026, according to the U.S. Department of Agriculture, as farmers boost output in response to rising prices. Arabica production is expected to reach one million bags, while robusta production is expected to reach 30 million bags GBE. U.S. Department of Agriculture keeps its projected 2024–2025 coffee production at 29 million bags GBE, which includes 28 million bags of Robusta. Favorable weather and rising coffee prices have encouraged increased production and yields.

Vietnam Instant Coffee Market Segmentation Analysis:

• The online distribution channel is gaining traction

The rapid digitization of retail, rising internet penetration, and changing consumer buying habits have made the online distribution channel one of the most significant and fastest-growing sales channels in the Vietnamese instant coffee market. With numerous instant coffee brands available to consumers at competitive prices with regular promotions, including international names like Nescafé and Moccona, as well as well-known domestic brands like Trung Nguyên, G7, and Vinacafé, platforms like Shopee, Lazada, Tiki, and Sendo have emerged as major players.

Urban and semi-urban consumers accustomed to the time-saving advantages of e-commerce find the ease of browsing, evaluating, and purchasing coffee products from home, along with nationwide delivery services, to be very appealing. Additionally, brands can effectively expand their market coverage by using online platforms to reach smaller cities and rural areas where physical retail access may be limited. Additionally, digital channels facilitate targeted marketing via influencer partnerships, social media, and customized promotions, all of which have been successful in attracting younger, tech-savvy customers.

Customer review platforms, subscription services, flash sales, and package discounts all promote recurring business and brand loyalty. It is anticipated that the online channel will increase its share of Vietnam's instant coffee sales as payment infrastructure advances and cashless transactions proliferate. This is particularly true as brands make investments in specialized e-commerce storefronts, livestreaming, and AI-driven customer engagement to improve the shopping experience. In 2021, Vietnam's internet economy was valued at USD 21 billion, or 5% of its GDP. By 2025, it is expected to have grown to USD 43 billion, according to the International Trade Administration, U.S. Department of Commerce.

In addition to giving producers an affordable means of product distribution, this expanding digital ecosystem opens doors for specialty, premium, and niche instant coffee varieties to reach a devoted customer base without being constrained by physical store shelf space.

Vietnam Instant Coffee Market Geographical Outlook:

• Lam Dong is Expected to Grow Significantly

The prime reason driving the market products in this province is supportive government policy and reduced production in Dak Lak province, which has highlighted the potential of this region. Data from the USDA shows that with a reduction in Dak Lak province to enhance coffee production, the central government is focusing on production in the Central Highlands, of which Lam Dong is a major area. The government implemented the MARD policy in 2025 to stabilize coffee cultivation in the Central Highland region, covering Lam Dong province at 600,000 hectares, which supported the market growth in the province. Da Lat City, Lam Dong province, cultivates 3,000 hectares of coffee and produces 9,000 tons of green coffee. Furthermore, the increasing cultivation of Robusta coffee is another prime factor driving growth in the market.

Vietnam Instant Coffee Market Developments:

• In January 2023, CCL Products India Ltd anticipates that by the December quarter of 2024–25, its recently announced $50 million freeze-dried coffee factory in Vietnam will be operational. The firm currently produces 30,000 tons of freeze-dried items in Vietnam each year, and it is currently building a new facility there to increase that capacity by 6,000 tons.
• In February 2023, Nestlé Vietnam disclosed an extra $132 million investment. The firm plans to treble the number of premium coffee lines it can handle while still servicing the local market and exporting its goods to more than 25 nations, including discerning markets like Europe, Japan, and the US.

Vietnam Instant Coffee Market Segmentation:

• By Type
• Freeze-Dried Instant Coffee
• Spray-Dried Instant Coffee
• Others
• By Distribution Channel
• Offline
• Retail
• Food service
• Online
• By Province
• Dak Lak
• Lam Dong
• Dak Nong
• Gia Lai
• Kon Tum
• Others

Table Of Contents

Companies Profiled

Nestlé S.A.

Tata Coffee Vietnam Company Limited

Trung Nguyen

Vinacafé Bien Hoa Joint Stock Company

King Coffee

Highlands Coffee

Me Trang Coffee

Phuc Sinh Corporation

Related Reports