AsemconnectVietnam - The EVFTA has created strong momentum for Vietnam’s coffee exports to the EU-27. Along with a reduction of tariffs to 0%, Buon Ma Thuot coffee is among the 39 Vietnamese geographical indications protected by the EU, giving Vietnam a major competitive advantage over rivals in the EU market.

According to Vietnam Customs, in the first four months of 2025, Vietnam exported over 302 thousand tonnes of coffee to the EU, worth USD1.7485 billion, up only 0.25% in volume but +69.7% in value YoY. The EU accounted for 45.1% of Vietnam’s coffee exports in April, and 45.6% in the first four months, compared to 39% in 2024.
In April 2025, exports reached 76,000 tonnes, valued at USD436 million, down 6% in volume and 8% in value from March, but up 28% in volume and 91% in value YoY.
• Average export price in April: USD5,676/tonne, down 2.21% MoM but up 49.3% YoY.
• Average price in Jan–Apr: USD5,644/tonne, up 69.17% YoY.
EU Market Structure
In April 2025, exports to many EU countries declined compared with March. For instance:
• Ireland: -94% MoM
• Sweden: -91% MoM
• Czech Republic: -35.2% MoM
Meanwhile, exports surged to:
• Slovenia: +107% MoM
• Latvia: +89.4% MoM
Top markets:
• Germany: USD153.4 million (27.8k tonnes), -21.56% in value and -18.61% in volume MoM, but +15.7% in volume and +50% in value YoY. Average price: USD5,504/tonne. Jan–Apr: 112.8k tonnes, USD628 million (+16.96% in volume, +97.6% in value).
• Spain: USD87.5 million (14.9k tonnes), -1% in value MoM, +38.63% in volume and +105.3% in value YoY. Average price: USD5,881/tonne. Jan–Apr: 50.1k tonnes, USD292.5 million (-9.43% in volume, +51.36% in value).
• Italy: USD72.2 million (13.4k tonnes), +12.3% in value and +13.7% in volume MoM, +44.4% in volume and +115% in value YoY. Average price: USD5,387/tonne. Jan–Apr: 57.8k tonnes, USD307.6 million (-21.8% in volume, +33.84% in value).
EVFTA Impact
Since EVFTA came into effect (Aug 2020), Vietnam’s coffee exports to the EU have jumped from USD64 million to a peak of USD466 million in Mar 2025 (+7.2 times).
The export structure has shifted, but Germany, Italy, and Spain remain the top three buyers, with Germany’s share rising from 35% to 38%.
Export prices to the EU also surged nearly 3 times from ~USD2,000/tonne (2020) to nearly USD6,000/tonne (2025).
Factors Affecting Coffee Exports under EVFTA
Domestic factors (Vietnam):
• Output down 10–15% in 2024/25 due to El Niño and prolonged drought in the Central Highlands.
• Domestic Robusta prices hit record highs (over VND110,000/kg in early 2025), boosting export value but raising pressure on processors/exporters.
• Labor shortage and higher costs (wages, inputs, logistics).
• Slow transition to sustainable coffee despite EU demand for certified products. Small firms face difficulties with traceability and compliance with EUDR (EU Deforestation Regulation).
• EVFTA tax incentives support exports, especially processed coffee, but value-added processing and branding remain limited.
International factors (global & EU):
• Demand in EU recovering modestly, especially mid- and high-end segments; strong preference for certified and specialty coffee.
• Stricter EU import standards: EUDR (effective end-2025) requires deforestation-free sourcing and full traceability.
• Competition from Brazil, Indonesia (Robusta) and African suppliers (Uganda, Ethiopia).
• Higher shipping costs due to Red Sea/Suez disruptions.
• Global Robusta prices hit record highs in early 2025, lifting export revenue but prompting EU buyers to diversify suppliers.
EU Coffee Consumption Trends
• Growing demand for sustainable certified coffee (Rainforest, Fairtrade, UTZ, Organic).
• Rising popularity of roasted and specialty coffee, especially in Germany, Netherlands, France, Italy.
• Strong consumer interest in organic and health-friendly coffee (low-acid, low-caffeine, decaf).
• Expansion of convenience products (pods, capsules, RTD coffee), particularly in Germany, France, Belgium, Switzerland.
• More selective consumption: willingness to pay more for quality/sustainable products, cutting back on generic mass-market coffee.
• ESG factors influencing supply chains (deforestation-free, no forced labor, fair farmer prices).
Outlook
The EU is the world’s largest coffee market, accounting for ~30% of global imports. Vietnam is the second-largest supplier after Brazil. Demand for certified coffee continues to grow, with high interest in quality Robusta – Vietnam’s strength.
Challenges remain: stricter EU rules (residues, traceability, sustainability, EUDR), limited deep processing, and competition from Brazil, Colombia, Ethiopia. Most Vietnamese exports are still green beans, offering low added value.
T.Huong
Source:Vitic