Vietnam is the second largest coffee exporter to Japan and has the opportunity to dominate this "difficult" market because Vietnamese coffee is increasingly becoming more and more popular with consumers.

According to the Vietnam Trade Office in Japan, coffee drinking culture from Europe has recently positively influenced hot beverage consumption habits here, leading to an increase in demand for coffee among young people.

Currently, the two most popular types of coffee beans in Japan are arabica and robusta. Arabica is the superior coffee in terms of overall quality and is used at most cafes and restaurants. Because of the COVID-19 pandemic, the Japanese Government's repeatedly declared a state of emergency, causing cafes and restaurants across the country to close, dealing a blow to the demand for arabica coffee.

For 2 consecutive years 2020 and 2021, Japan's coffee imports recorded a low level due to the negative impact of the COVID-19 pandemic. However, the popularity of coffee is gradually increasing and spreading globally, leading to an increase in demand for this commodity in Japan in the coming years.

The Import-Export Department (Ministry of Industry and Trade) cited data from the International Trade Center (ITC) showing that, in 2021, Japan will import 409.8 thousand tons of coffee, worth approximately USD 1.32 billion, an increase of 2.7%  in volume and an increase of 11.6% in value compared to 2020.

In particular, in 2021, Japan increased coffee imports from Brazil and Vietnam, but reduced imports from main supplying markets such as Colombia, Guatemala, and Ethiopia.

According to statistics, Japan's coffee imports from Vietnam in 2021 reached approximately 101 thousand tons, worth USD 182.9 million, increased by 0.2% in volume and 7.7% in value compared to 2020. Vietnam's coffee market share in Japan's total imports will decrease from 25.25% in 2020 to 24.62% in 2021.

According to experts, Vietnam and Japan are members of three bilateral and multilateral free trade agreements (FTAs). Therefore, the two countries' participation in these agreements creates many opportunities and favorable conditions for the expansion of bilateral trade cooperation in many fields, especially import and export goods between Vietnam and Japan.

Kylie Nguyen