According to a report by market research firm Mintel, three out of five fastest-growing coffee markets are currently based in Asia: Indonesia, India, and Vietnam. Specifically, Indonesia tops the chart with a compound annual growth rate (CAGR) of 19.6% in the last five years. For India and Vietnam, these figures are 15.1% and 14.9%, respectively.
The report also reveals the types of products that are popular among coffee lovers around the world. In Asia-Pacific countries, 29% of all new coffee launches were ready-to-drink cold coffee products. This figure is only 10% in Europe.
Moreover, Asia-Pacific dwellers were the most receptive to instant coffee: over two in five (42%) of the region’s coffee launches were instant coffee, while only one in five (20%) product launches were in Europe were instant coffees.
In related news, Vietnam National Coffee Corp., the country’s top coffee producer, is reportedly working on an initial public offering (IPO) next year after the government announced initiatives to reduce its involvement in the company, according to Bloomberg. Deputy Director General Nguyen Van Minh from the company told the news source that the IPO will include Vinacafe and 18 other units. The government also intends to cut down its stake in seven other subsidiaries by 35% in other IPOs later.
Vietnam is the world’s top exporter of robusta coffee beans, the main ingredient in instant coffee. The country’s annual exports usually range from US$2.5 billion to US$3 billion.