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 into 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 into the UK reached $4,649/ton, up 7.5% compared to 2020.
Statistics show that 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.
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. However, the reality also shows that sales of ground coffee and specialty coffee are increasing. Certification is highly important for UK consumers, especially with regard to 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 a total of 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, thereby contributing to improving its value and stabilizing exports in difficult conditions of the COVID-19 pandemic.
