Domestic coffee “wakes up” to Starbucks

June 17, 2013 | 09:53

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Following the appearance of Starbucks in Vietnam in February this year, the race for market share in the domestic coffee industry is hotter than ever.

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Recognising that boosting domestic consumption is one way to raise their products’ added values, domestic coffee makers have tried to outdo one another by introducing their own new products.

In late April, G7-X2, the latest product from Trung Nguyen coffee made its debut.

Also in April, the Passio Coffee chain opened another shop in Ho Chi Minh City , raising its total shops nationwide to 11.

Even retailer Saigon Co.op has released a new three-in-one instant coffee under the Co.op Mart brand. Co.op Mart Deputy General Director Nguyen Thanh Nhan said the demand for instant coffee is increasing and Co.op Mart had a chance to cooperate with the supplier to launch its own brand.

Experts predict that domestic coffee consumption will increase sharply, contributing to gradually reducing raw material export and promoting coffee processing, therefore raising the value of domestic coffee.

Statistics from the International Coffee Organisation (ICO) show that Vietnam ’s coffee consumption continues to increase, from 48,000 tonnes in 2005 to 94,980 tonnes in 2011.

The increase is the result of European-styled coffee brands’ marketing strategies and users’ positive response.

However, according to ICO, Vietnam ’s annual coffee consumption per capita of 1.08 kg remains low, compared to that of Brazil (5.2 kg), the EU (4.83 kg) and the US (4.13 kg). This means big opportunities remain for Vietnamese coffee producers.

VNA

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