Vietnam’s instant coffee market is entering a new phase of development, where quality and experience have become paramount. Consumers, particularly the younger generation and the middle class, are not only seeking convenience but also demanding a “perfectly tailored taste” comparable to handcrafted coffee. This trend towards “premiumization” is reshaping the instant coffee segment, compelling businesses to invest more deeply in technology, ingredients, and product experience.
Simultaneously, the market is heavily impacted by inflation, soaring raw material and logistics costs, especially with Robusta coffee prices fluctuating at their highest levels in years. Rising packaging and transportation costs have made Total Cost of Ownership (TCO) a significant challenge. In this context, balancing “quality” with “reasonable costs” is no longer an option but a necessity for businesses to maintain competitiveness.
The Challenge of Cost Optimization While Ensuring Quality
A 2024 Statista survey reveals that 63% of Vietnamese aged 18–35 drink coffee at least three times a week, but only one-third still engage in manual brewing. Instead, instant coffee in tin cans, plastic bottles, and especially paper cartons has become a preferred choice due to its convenience. According to a recent Tetra Pak survey on coffee consumption behavior in Vietnam, instant coffee, though a recent development, is rapidly growing, accounting for 60-70% of total beverage sales.
Instant coffee has become a popular choice among consumers for its convenience.
Unlike a decade ago, today’s Vietnamese consumers are well-informed and willing to pay for a better coffee experience. According to 2025 data from Vietnam Briefing, over 70% of urban consumers are open to trying new instant coffee flavors with appealing packaging, even at higher prices, if they perceive “real quality.” However, while consumer preferences are increasingly premium, financial pressures on businesses are mounting. Costs of raw coffee, energy, operations, and interest rates are all at high levels. To survive, businesses must restructure their production models, focusing on optimizing TCO across the entire supply chain, from processing to packaging and distribution.
Solutions for the Dual Challenge
According to a representative from Tetra Pak Vietnam – a leading global company in food and beverage processing and packaging from Sweden: “For businesses looking to quickly test the market or those not yet ready for significant investment, partnering with a Co-manufacturer is an ideal solution. This approach reduces initial investment costs, shortens product launch times, and ensures international quality standards.”
Collaborating with a co-manufacturer helps businesses reduce initial investment costs, quickly test the market, flexibly experiment with new flavors, and optimize TCO. This strategy is widely adopted by companies in Vietnam and Asia to solve the dual challenge of “quality and cost,” enabling growth without compromising quality.
With its global expertise in the food and beverage industry, Tetra Pak not only provides processing and packaging solutions but also connects businesses with certified co-manufacturers. Instead of heavy investment in infrastructure and equipment, companies can leverage existing production capabilities from co-manufacturers to bring products to market faster, validate ideas, and minimize financial risks.
Tetra Pak’s modern and convenient packaging for instant coffee is trusted globally.
At Bloom – Tetra Pak’s Research & Development Center, businesses can collaborate with international experts to co-create new instant coffee ideas tailored to the increasingly diverse consumer preferences. This model allows for flexible small-batch testing, gathering real-market feedback, and refining formulas before large-scale production, thereby reducing risks and optimizing investment efficiency.
Tetra Pak’s specialized filling machines, combined with automated and digitized processing technology, optimize mixing, brewing, and heat treatment stages – reducing waste, cutting production costs, and enhancing operational efficiency. Tetra Pak also supports upgrading existing production lines, improving equipment utilization, and provides Lifecycle Management Services to optimize costs and profit margins across the value chain.
The representative from Tetra Pak Vietnam further emphasizes that cost optimization does not mean compromising quality. The key lies in smart TCO management and leveraging collaborative strengths. When businesses combine modern processing technology with flexible co-manufacturing models, quality can coexist with financial efficiency – enabling Vietnamese companies to conquer the promising instant coffee market.
Beyond cost optimization, to stand out in the competitive instant coffee market, businesses must continuously innovate, keeping pace with consumer trends in convenience, quality, health, and drinking experiences. Leveraging expertise in formula development, flexible testing at R&D centers, and advanced packaging solutions made from recyclable and sustainable materials, along with customizable designs, will elevate products while meeting the growing demand for sustainability and environmental compliance.
In the journey of developing the instant coffee industry, the dual challenge of “quality and cost” is no longer a barrier but an opportunity for businesses to redefine their strategies. With the support of technology partners like Tetra Pak – from processing and packaging to co-manufacturing and product innovation – Vietnamese businesses can proactively innovate, optimize efficiency, and enhance competitiveness, making instant coffee a new symbol of quality and differentiation.
From October 30 to November 1, 2025, Tetra Pak will participate in Coffee Expo Vietnam 2025 at Booth H09-12, Hall A2, Saigon Exhibition and Convention Center (SECC), Ho Chi Minh City, under the theme “Sustainable Growth with Carton.”
Register now to not miss these three “hot” activities:
– Explore the comprehensive E2E solution – from processing technology and paper-based packaging to operational and marketing support, helping businesses keep up with new consumer trends.
– Chat with Đinh Tiến Đạt (Mr. Dee) – artist and coffee brand owner, about his creative journey and coffee development on Tetra Pak’s Fanpage at 10:30 AM on October 31, 2025.
– Enjoy trending instant coffee and tea flavors from around the world and Vietnam in convenient, premium paper packaging at the Barista Show (October 30–31) with Quyên Nam Station.
Participate in interactive games at the booth for attractive gifts!
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