Taking into account global and national chains, small brands, independent cafes and street vendors, a recent report estimates that Vietnam is home to more than 500,000 coffee shops that generate US$1.46 billion in revenue in total.
According to data from consultancy group Mibrand Việt Nam, the nation's coffee shop industry has a compounded growth rate (CAGR) of up to 7.56%. A separate report published by iPos.vn claims that by the end of 2023, Vietnam only had 317,299 coffee shops, representing a 1.26% increase over the previous year.
Regardless of the precise number, anyone in Vietnam can attest to the thriving of coffee shops of all sizes, shapes and operation models. While there have been several high-profile downsizes and market adjustments including Starbucks announcing the closing of its only Reserve location in Saigon this week, and The Coffee House pulling out of Đà Nẵng and Cần Thơ entirely, there is visible growth as well. Phin Deli, Katinat and Phúc Long have all opened many new locations in the past year.
When it comes to chains in Vietnam, Highlands Coffee leads the way with 721 outlets, followed by Trung Nguyên e-coffee with 542 and then Phúc Long and The Coffee House both in the mid-100s. Notable recent international arrivals to Vietnam include Amazon Cafe, the most numerous chain in Thailand, and Japan's %Arabica. Cotti Coffee, a popular Chinese chain, has also started its ambitious expansion plans for Vietnam beginning with 10 locations in Saigon.
Inside Saigon's Cỏ Café. Photo by Kevin Lee.
In addition to the proliferation of homegrown and global brands, the nation's independent coffee shop scene is undergoing perpetual shifts in product. Aesthetic segmentation continues with shops devoting themselves to easily recognizable and trendy interior designs. From retro to garden to industrial minimalism to audiophilic, Saigoneers have a wide variety of vibes to choose from.
Meanwhile, new flavors and preparations are entering the market across price tiers, including the recent popularity of salt coffee beyond its native Huế. The domestic industry's strength is helping to fuel expansion abroad as well as exemplified by Cộng Cafe's expansion to Canada, following Phúc Long's arrival in the US 2021.
[Top photo: Young Vietnamese hang out at Cafe Yên in Hanoi]
