Many financial analysts expect a recovery in the agro-market in 2021, including the coffee sector.

The year 2020 challenged the courage of owners of cafes and lemon tea shops who struggled to survive the pandemic, lockdowns and consumers’ fastening their purse strings.

Covid-19 has forced coffee chain owners to change their approach. Like small shops on the pavement, they now have to attract different segments of customers.

Based on what Vinamilk, Nestle and Nutifood are currently doing, analysts believe the three big companies will focus on the mid- and low-end market, especially the takeaway food segment.

After HCM City decided to temporarily close restaurants and catering services with the capacity of more than 30 customers, they began selling online and delivering food.

Coffee prices have fallen dramatically, and some farmers are giving up because of problems because of price fluctuations and supply-demand imbalances.

Highlands Coffee has been expanding its chain at a lightening speed, while Trung Nguyen has opened E-Coffee and Cong is exporting products.

Entering the food and beverage sector in 2012 and opening a series of cafes, Phuc Long once caught the special attention when stating that it would compete with Starbucks, which set foot in Vietnam in 2013.

Many foreign coffee chains have failed to secure their positions in the market, but Vietnamese owned chains have reported revenue growth in recent years. But not all of them have made high profits.

For the last half month, visitors to Coffee Bean and Tea Leaf at Dong Khoi Street located near the Metropolitan building in the central district 1 of HCMC can see only closed green doors.

Both Vietnamese and foreign investors are rushing to pour money into coffee farms and coffee house chains as the market is very promising. But not all of them will succeed.

VietNamNet Bridge - More and more milk tea shops have opened recently, even though the selling price is relatively high for the majority of Vietnamese.

Vietnamese coffee companies are trying to export processed products instead of raw materials, while in the domestic market, they are attempting to change consumer habits with the message ‘clean coffee’.

VietNamNet Bridge - While gaining success in other markets, many foreign coffee brands have had to leave the Vietnamese market.

VietNamNet Bridge - Coffee chains in Vietnam have been developing rapidly in recent years with annual revenue growth rate of 32 percent, according to Euromonitor.

VietNamNet Bridge - With the cost price accounting for only 20-25 percent, high-end coffee chains are making big profits selling coffee at VND40-90,000 per cup. 

VietNamNet Bridge - Some foreign cafe chains, with powerful financial capability and strong brands, have left Vietnam, but many Vietnamese chains have been prospering. 

VietNamNet Bridge - Trung Nguyen coffee giant and Vinacafe, a big instant-coffee maker, are facing business difficulties after reporting losses. 

VietNamNet Bridge - Coffee chains require long-term capital, but profits can be unpredictable as some chains have found.