Minh-Ngoc Nguyen
Research Expert covering Vietnam
Tea market in Vietnam - statistics & facts
Despite being the second-largest coffee exporter globally, Vietnam also boasts a deep-rooted tea culture. Tea began as a formal affair among the nobility in imperial Vietnam, but it was only until the end of the nineteenth century that the tea industry picked up with the support of French colonists. Today, tea cultivation remains a vital agricultural sector, positioning Vietnam among the leading tea markets worldwide.
Beyond domestic consumption, Vietnamese tea is an important export commodity. In 2023, tea exports generated 119.7 million U.S. dollars, solidifying Vietnam's position among the world’s top tea exporters. Green tea, which requires minimal processing and, hence, modestly priced, was the most exported variety. Meanwhile, more intricately produced and higher-valued teas, such as scented tea and Oolong tea, are gaining popularity both domestically and internationally. As a result, Vietnamese tea producers are working to enhance product quality and processing technology to secure higher export prices.
While traditional tea is less popular among younger Vietnamese, bubble tea has become one of the most favored beverages among this demographic. In 2023, more than half of the most popular food and beverage trends in Vietnam were varieties of iced or bubble tea. Socializing over these drinks has been a key aspect of Vietnamese youth culture, so much so that over half of the consumers in the country claimed to frequent coffee or bubble tea shops at least twice weekly. To meet this growing demand, many well-known franchises from China and Taiwan, such as Mixue and KOI Thé, alongside local brands like Toco Toco and Phê La, are rapidly expanding across Vietnam. These franchises, emphasizing the use of local ingredients, help promote domestic tea consumption and connect it with the next generation of consumers.
Tea cultivation, production, and trade
In 2023, around 1.1 million metric tons of fresh tea was produced in Vietnam. Tea is cultivated across the entire country despite the contrast in the semi-tropical climate of the north and the tropical climate of the south. These differences in climate, along with the unique features of each tea-growing area, contribute to the diversity of Vietnamese tea. For instance, the northern province of Thai Nguyen, Vietnam’s largest tea-producing region, is renowned for its aromatic Tan Cuong green tea, while the southern central highlands of Lam Dong are famous for their floral Oolong tea. However, the scale of tea farming remains small in Vietnam, especially when compared to the expansive tea-growing regions of neighboring China.Beyond domestic consumption, Vietnamese tea is an important export commodity. In 2023, tea exports generated 119.7 million U.S. dollars, solidifying Vietnam's position among the world’s top tea exporters. Green tea, which requires minimal processing and, hence, modestly priced, was the most exported variety. Meanwhile, more intricately produced and higher-valued teas, such as scented tea and Oolong tea, are gaining popularity both domestically and internationally. As a result, Vietnamese tea producers are working to enhance product quality and processing technology to secure higher export prices.
Tea consumption in Vietnam: traditional versus bubble tea
Tea is deeply embedded in Vietnamese culture. Iced tea is an affordable and readily available drink found at street stalls across the country. Additionally, tea ceremonies play an important role in formal events, symbolizing hospitality and respect, especially among the older generations.While traditional tea is less popular among younger Vietnamese, bubble tea has become one of the most favored beverages among this demographic. In 2023, more than half of the most popular food and beverage trends in Vietnam were varieties of iced or bubble tea. Socializing over these drinks has been a key aspect of Vietnamese youth culture, so much so that over half of the consumers in the country claimed to frequent coffee or bubble tea shops at least twice weekly. To meet this growing demand, many well-known franchises from China and Taiwan, such as Mixue and KOI Thé, alongside local brands like Toco Toco and Phê La, are rapidly expanding across Vietnam. These franchises, emphasizing the use of local ingredients, help promote domestic tea consumption and connect it with the next generation of consumers.
