Vietnam's coffee chain market witnessed robust growth

DNHN - According to statistics from Mibrand, Vietnam's coffee chain market is currently led by five major brands: Highland Coffee, Trung Nguyên e-coffee, The Coffee House, Phúc Long, and Katinat.

Data from Mibrand reveals that there are currently over 500,000 coffee shops across the country, ranging from small, local establishments in alleyways to modern coffee chains, catering to the diverse preferences of consumers.

With Vietnam's population standing at 99,554,838 (as of August 4, 2024, according to the latest data from the United Nations), there is approximately one coffee shop for every 200 people.

This not only reflects the popularity of coffee in Vietnamese life but also highlights the diversification in coffee business models, from traditional to modern. One of the notable features of Vietnam's coffee market is the variety of coffee shop types.

In addition to traditional street-style coffee shops, the market has also seen the increasing presence of independent branded coffee shops with impressive designs and high-quality beverages.

As of August 14, Highland Coffee leads the market with approximately 800 stores nationwide, showcasing its relentless efforts to expand its scale and market presence. Trung Nguyên e-coffee, with its franchising model, ranks second with 676 stores, actively expanding its network. Phúc Long follows with 174 stores and an additional 62 kiosks. Despite scaling back compared to 2023, The Coffee House still boasts a sizable network with 115 stores.

It is evident that the leading names in the market are all domestic brands, reflecting the strong local presence in Vietnam's beverage industry. Even Starbucks, which dominates globally, has not been able to outshine local brands after more than 10 years in Vietnam.

Beyond the major brands, independent coffee shops are also dynamic, constantly introducing creative ideas in design, space, and customer experience. Shop owners continuously experiment with diverse architectural styles, from classic and retro to modern and industrial.

They also focus on creating unique, experience-driven concepts. Models like "dining with animals," "book cafes," and "technology cafes" have garnered significant interest from customers.

A customer survey by Mibrand shows that 45% of young consumers prefer traditional coffee, while 39% opt for machine-brewed coffee. Coffee shops remain ideal spots for studying and working, maintaining a strong demand for coffee products to keep customers alert.

In addition, bubble tea is the most popular choice, with 49% of consumers favoring it, and tea-based products also enjoy high popularity. This trend reflects the young consumer group's preference for sweet, flavorful drinks with the refreshing quality of tea.

Vietnam's coffee market is estimated to reach USD 511.03 million in 2024 and is projected to grow to USD 763.46 million by 2029, with a compound annual growth rate (CAGR) of 8.13% during the forecast period (2024-2029).

Thu Trang