Vietnam’s Coffee Exports to Belgium Skyrocket in Q1 of 2022

Published 2022년 5월 10일

Vietnam, the second largest exporter of coffee, recorded a YoY increase of 59.4% in its earnings from coffee exports during Q1 of 2022. The high value was driven by rising global coffee prices and firm demand from European countries. Vietnam also managed to tap into the buzzing coffee market of Belgium, which is the largest re-exporter of coffee in Europe. Exports to Belgium increased by 446.8% in volume and 580% in value over the same period in 2021. If Belgium's coffee industry retains the buzz, it is likely that the popularity of Vietnamese coffee will only increase in the coming months and contribute to Vietnam’s thriving coffee industry.

The global coffee market continues to rage with high prices for both Arabica and Robusta coffee. Accordingly, the London future price of robusta coffee delivered in May 2022 was priced at USD 2,104 per mt, a YoY increase of 1.45% to roughly about USD 30. A similar increase in Arabica coffee futures prices were seen, which was delivered in May 2022, recording a YoY increase of 2.13%. Amid these growing prices, Vietnam, one of the largest coffee producing countries, made the most out of such circumstances by exporting large volumes of coffee in the global market and by tapping into new markets. Overall, Vietnamese coffee exports in the first quarter of 2022 touched USD 1.7 billion, which is a YoY increase of 59.4%. While the country usually exports coffee to Germany, ASEAN countries, the U.S., Italy, and Japan, in Q1 of 2022, Vietnam tapped into the Belgian market.

Belgium managed to become Vietnam’s second-largest coffee export market in Q1 of 2022, accounting for 11.3% of total export volume and 10.4% of total export value. This is a significant increase compared to 2021, during which Belgium was the 7th largest market in terms of volume and the 9th in export value of Vietnamese coffee. According to the Import-Export Department (Ministry of Industry and Trade), Vietnam’s coffee exports to Belgium in March 2022 reached 29.2 thousand tons, worth about USD 61.7 million. In Q1 of 2022, Vietnam’s coffee exports to Belgium reached 65.7 thousand tons, worth USD 135.3 million. Over the same period last year, coffee exports increased by 446.8% in volume and 580% in value.

Belgium has emerged as the main coffee hub in Europe, which is one of the major reasons for the high demand for coffee from Vietnam. A large portion of globally-traded coffee arrives at the port of Antwerp which is located in Belgium. The country is currently the largest re-exporter of green coffee in Europe and exports high volumes to its neighbouring countries. The Netherlands, France, and Germany are among the largest markets for coffee re-exports. If the current trend continues in Belgium, it is likely that the demand for Vietnamese coffee will only increase in the coming months. This is forecast to boost the thriving coffee industry of Vietnam and expand its reach in the global market.