Since the signing of the UK-Vietnam Free Trade Agreement (UKVFTA), the average export price of Vietnamese coffee to the United Kingdom has seen remarkable growth, reflecting Vietnam’s strengthening position in the international coffee market.

Significant price increase and export trends

According to the Ministry of Industry and Trade’s Export and Import Department and Vietnam Customs, the average export price of Vietnamese coffee to the UK reached $3,941 per ton in 2024, a 68.4% increase compared to the previous year.

In June 2024 alone, Vietnam exported 2,180 tons of coffee to the UK, valued at $9.1 million. This marked a monthly increase of 24.4% in volume and 15.1% in value. However, compared to June 2023, export volume declined by 44.6%, and value dropped by 17.5%. Despite lower volumes, the substantial price increase per ton offset these decreases, demonstrating the rising value of Vietnamese coffee.

First-half performance in 2024

In the first half of 2024, Vietnam exported 16,540 tons of coffee to the UK, generating $65.2 million in revenue. While export volume fell by 22.8% year-over-year, the value surged by 29.9%, underlining the growing international recognition of Vietnamese coffee's quality and competitiveness.

According to the International Trade Centre (ITC), the UK imported 94,210 tons of coffee globally in the first five months of 2024, valued at $553 million. This represented an 8.1% growth in volume and a 2.6% increase in value compared to the same period last year.

Vietnam’s coffee stood out with a 45.4% increase in average import price, reaching $3,378 per ton. This contrasted with declining coffee prices from other major suppliers such as Brazil, Germany, and Colombia.

Competitive landscape

Brazil maintained its position as the UK’s largest coffee supplier, exporting 37,470 tons worth $128.81 million in the first five months of 2024. Brazil’s export volume surged by 93.8%, while its export value rose by 45.1%, presenting stiff competition for Vietnamese exporters.

Vietnam remained the second-largest coffee supplier to the UK, exporting 15,330 tons valued at $51.79 million during the same period. Although export volume declined, the value of Vietnamese coffee increased by 12.2% year-over-year.

Challenges and opportunities

Vietnam’s market share in the UK coffee market decreased from 22.8% to 16.27% in the first five months of 2024, while Brazil’s share expanded significantly.

This shift highlights the dual challenge and opportunity for Vietnamese coffee exporters. To sustain and grow their presence in the UK, they must focus on improving quality, diversifying product offerings, and enhancing marketing strategies to compete more effectively with other global suppliers.

Tam An