Arabica price hike creates window for Vietnamese Robusta in Nordic markets

Arabica coffee prices are forecast to increase by at least $1.5 per package in Sweden within the next few months, presenting a unique opportunity for Vietnam to enhance Robusta coffee exports to this market.

The Vietnam Trade Office in Sweden, which also oversees Denmark and Iceland, reported that according to warnings from the global coffee industry, extreme weather conditions are driving coffee prices to their highest levels in decades. Predictions indicate an increase of $1-1.5 per package this spring.

In Sweden, coffee prices are expected to rise sharply at least twice this year. This is primarily due to extreme weather conditions in Brazil—the world's largest coffee producer—leading to increasingly poor harvest yields.

The Vietnam Trade Office recognized this as a significant opportunity for Vietnamese Robusta. While Sweden primarily consumes Arabica coffee, Vietnam—the world's second-largest coffee producer—is renowned for its Robusta beans.

Robusta is less expensive and more climate-resilient than Arabica and is often used in instant coffee. The global increase in Arabica prices creates a major opportunity for Vietnamese exporters, as demand shifts toward more economical alternatives.

In light of this opportunity, the Trade Office believes that while Sweden and other Nordic countries prioritize Arabica, the rising Arabica prices may encourage importers to seek out more affordable sources of Robusta.

Therefore, Vietnamese businesses should intensify their promotion of Robusta as a high-quality, lower-cost alternative.