Top exporter in the world but the market share of Vietnamese coffee in Singapore is very modest

Despite achieving quite good export growth in recent years, the market share of Vietnamese coffee in Singapore is very modest compared to other partners in the region. Notably, coffee import turnover from Singapore tends to increase.

Vietnamese coffee accounts for 2.22% of the market share

According to the Vietnam Trade Office in Singapore, data from the Singapore Business Administration shows that in 2023, Singapore imported coffee from eighty four countries and territories with a total turnover of about SG $142.4 million, down 5.57% over the same period in 2022.

Among the top fifteen coffee exporting countries to the Singapore market, Malaysia and Indonesia are the two countries with the highest market shares, followed by Switzerland ranked 3rd, Germany ranked 4th, and Brazil ranked 5th.

Although there have been disturbances in market share over the years, the three partners, Malaysia, Indonesia and Switzerland, always hold the top three positions, with nearly 50% of the total market share in Singapore. Malaysia currently dominates the majority of the Arabica coffee market share while Indonesia completely dominates Robusta coffee types. For roasted and ground coffee in general, Switzerland is currently the partner holding the highest market share. Vietnam is the 9th coffee export partner in the Singapore market with a relatively small market share, only about 2.22%.

The Vietnam Trade Office in Singapore said that despite achieving quite good export growth in recent years, the market share of Vietnamese coffee in Singapore is very modest compared to other partners in the region. Notably, coffee import turnover from Singapore tends to increase, even exceeding Vietnam's export value in 2023, showing that Vietnamese coffee businesses are not really interested in the Singapore market. Meanwhile, domestic demand for some types of coffee that are not Vietnam's strengths (such as Arabica) is increasing, forcing Vietnam to import these types of coffee from other markets, including Singapore, having strengths in importing, processing, packaging and then re-exporting to third countries.

Having lots of export potential

Analyzing market potential, the Vietnam Trade Office in Singapore informed that despite the small population size, Singapore's coffee import value is relatively high (140-150 million SGD/year), equivalent to the size of Singapore's coffee imports.

Vietnam's coffee exports to Thailand or Indonesia. Meanwhile, Vietnamese coffee products exported directly to Singapore only account for about 2.2% of the market share, this figure shows that the potential of the Singapore market for Vietnamese coffee is still quite large. In addition to domestic consumption demand, Singapore is the region's leading transshipment trade center. If it is exploited well, it will help Vietnamese coffee exports to third countries.

Currently, the Vietnam Trade Office in Singapore is actively connecting with Vietnamese coffee businesses to provide product information that Singapore importers are looking for; Connecting with Singapore's industry and trade associations to support connections with Vietnamese businesses. Support businesses to participate in exhibitions and fairs, increasing the presence of Vietnamese goods in the area.

However, to promote the export of coffee products to the Singapore market in particular and the world market in general, it requires the attention and support of ministries, localities, and the cooperation of industry and commodity associations. businesses. In particular, Vietnamese coffee businesses deploying trade promotion activities and directly participating in international exhibitions in Singapore is considered one of the best ways to access the area.
The Vietnam Trade Office in Singapore said that in June 2024, it is expected that there will be Vietnamese booths at some exhibitions in Singapore.

As a province with strengths in agricultural production of industrial crop products, including coffee, Dak Lak province is focusing on improving technology content, preservation, preliminary processing, and processing stages to increasing product value to meet market standards, trade promotion, propaganda and advertising to potential markets are emphasized. Through trade promotion activities to expand consumption markets for products of the Central Highlands region in general and Dak Lak province in particular. Creating favorable conditions for businesses in the region to link and cooperate with each other, forming effective and competitive supply chains.

In Buon Me Thuot, a highlight in the Buon Ma Thuot city development policy is building a project to develop the Buon Ma Thuot city brand to become a "coffee city of the world"; developing ecological tourism and exploit local cultural values associated with national monuments. Buon Ma Thuot City is striving to create a global reputation as a place that attracts not only coffee lovers but also followers of culture and sustainable tourism, which are important steps in this journey. Buon Ma Thuot city development program - the world's coffee destination.

Source:Custom News