Famers harvest coffee (Photo: VNA)Hanoi (VNA) – Vietnam’s coffee exports to the UK market have decreased significantly as its products fail to meet stricter requirements in terms of quality and consumption trends of British people, according to the Agency of Foreign Trade under the Ministry of Industry and Trade.
Statistics released by the International Trade Centre showed that the UK's coffee imports in the first six months of this year reached 100,300 tonnes worth 424.62 million USD, representing a year-on-year fall of 13.8 percent in volume and a drop of 10.9 percent in value, the agency said.
Notably, the UK increased coffee imports from most of the main supplying markets during the first half of the year, except Vietnam and Honduras.
The UK imported 16,400 tonnes of coffee worth 29 million USD from Vietnam, year on year decreases of 48.4 percent in volume and 49.3 percent in value.
The Vietnamese share of the coffee market as part of the UK’s total imports decreased from 27.32 percent during the first six months of last year to 16.35 percent this year.
Vietnam’s coffee exports are in the form of raw or semi-processed beans, while the UK’s coffee consumption is mainly instant coffee, accounting for 41 percent of the overall market share, a far higher figure compared to the average figure of 17 percent in Europe.
The UK's coffee imports are forecast to bounce back in the long term with an average growth rate of around 2.4 percent between 2020 and 2024 regarding coffee shops which is considered to have a good recovery in the post-COVID-19 period.
According to the Agency of Foreign Trade, the UK is the second largest economy in Europe, has a free trade policy and has a great demand for agricultural products.
Following the signing of the UK-Vietnam FTA (UKVFTA) last year, Vietnamese agricultural products enjoy competitive advantages in the UK market compared to similar products originating from other countries.
Last year, the UK imported coffee products worth approximately 1 billion USD from Vietnam. However, local businesses are advised to meet stringent requirements set by this demanding market by complying with Global GAP standards in production to access the high-end market.
Businesses are recommended to produce products that suit British consumer tastes, while also devising proper strategies aimed at establishing long-term relationships with partners in the UK market./.
