New York — The global coffee industry is a dynamic and diverse sector, offering a rich variety of coffee products that have become a cherished part of many people’s daily routines. Whether enjoyed piping hot or refreshingly cold, coffee holds a prominent place in global consumer diets. With two primary coffee varieties, Arabica and robusta, there’s a coffee for every palate.
The Global Coffee Market is anticipated to reach US$ 51.33 Billion by 2028. Coffee has garnered immense global popularity, becoming one of the most consumed beverages worldwide, with billions of cups savored daily. It holds a significant place in modern urban lifestyles, adored for its versatility, whether served hot or cold, and prepared in various ways. The market features two predominant coffee types, Arabica and robusta, catering to diverse consumer preferences.
Moreover, the health benefits of coffee consumption are increasingly recognized, with studies showing potential advantages, including enhanced lifespan, pain reduction, protection against various health conditions, and even potential decreases in the risk of diseases like Type 2 diabetes, Alzheimer’s, depression, and heart disease.
The journey of coffee from bean to cup is a fascinating process. It all begins with the careful harvesting of coffee berries as they transition from green to vibrant red, signaling their ripeness. These precious beans, which are the seeds of specific coffee species, are then collected, processed, and meticulously dried. The magic of coffee lies in its caffeine content, known for its stimulating properties.
For consumers seeking assurance of product reliability and ethical sourcing, the Universal Trade Zone (UTZ) accreditation program has been implemented in the coffee industry. This certification offers peace of mind to coffee enthusiasts, confirming that the coffee they purchase adheres to high ethical and quality standards.
In terms of coffee consumption, several countries take the lead, with the European Union (EU) standing as a significant market. Within the EU, coffee culture is deeply ingrained, offering a diverse array of options, from traditional espresso to trendy specialty blends. The EU’s coffee industry has also been proactive in supporting sustainable sourcing practices and fair trade initiatives. The increasing emphasis on organic and artisanal coffees has garnered the attention of discerning palates.
On the production side, Brazil is the undisputed leader in Arabica coffee production. Known for its favorable climate and extensive agricultural lands, Brazil dominates the global market, supplying a significant portion of the world’s Arabica coffee beans. The country’s commitment to quality and efficiency has solidified its position as a leading producer. Through advanced cultivation techniques and a skilled workforce, Brazil consistently delivers high-quality Arabica beans, highly sought after by coffee connoisseurs worldwide.
In contrast, Vietnam plays a pivotal role in the robusta coffee market. The country’s ideal climate, abundant rainfall, and extensive plantations create the perfect environment for robusta cultivation. Vietnam’s dedicated coffee farmers, equipped with traditional expertise and modern farming techniques, consistently produce high-quality robusta beans. The nation’s robust coffee infrastructure further supports its dominant position.
When it comes to coffee imports, Europe holds a substantial share of the global market. The European Union relies on imports to meet the demand for high-quality coffee beans, focusing on sustainability and specialty beans. In the United Kingdom, there is a thriving market for importing roast and ground coffee. British consumers enjoy a wide variety of premium roasted and ground coffee from different origins. Meanwhile, in the Philippines, there’s a notable market for importing soluble coffee products, catering to the increasing demand for convenient and instant coffee options.
On the export side, Brazil stands out as the world’s largest coffee exporter, thanks to its rich heritage, vast plantations, favorable climate, and advanced production practices. Brazil’s coffee industry is renowned for its commitment to quality control and sustainability, earning a stellar reputation for delivering exceptional coffee to global markets.
Top 10 Arabica Producing Country
1. Brazil
2. Colombia
3. Ethiopia
4. Honduras
5. Peru
6. Guatemala
7. Mexico
8. Nicaragua
9. China
10. Costa Rica
Top 10 Robusta Producing Country
1. Vietnam
2. Brazil
3. Indonesia
4. Uganda
5. India
6. Malaysia
7. Cote d’Ivoire
8. Tanzania
9. Mexico
10. Thailand
Top 10 Bean Exporting Country
1. Brazil
2. Vietnam
3. Colombia
4. Indonesia
5. Honduras
6. Uganda
7. Peru
8. Ethiopia
9. Guatemala
10. India
The Brazilian Institute of Geography and Statistics (IBGE) forecasts that Brazilian coffee production will reach R$ 48 billion (US$9.79 billion) in 2023, with arabica accounting for 77% of this amount, generating R$ 37 billion(US$7.54 billion) in revenue. However, this represents an 8% drop compared to the previous year. Meanwhile, robusta coffee, which generated R$ 12.7 billion (US$2.59 billion) in revenue in 2022, is predicted to decline by 12%, yielding R$ 11 billion (US$2.24 billion) in 2023.
According to a Global Agricultural Information Network report from the United States Department of Agriculture’s Foreign Agricultural Service (FAS), Indonesia’s coffee production for the market year (MY) 2023/2024 has been forecasted at 9.7 million bags, a decrease of 18 per cent from last year. This decline is attributed to weather-related disruptions during the cherry development stage.
Additionally, Indonesia’s coffee consumption is forecasted at 4.79 million bags in 2023/24, representing a slight increase of 20,000 bags from the previous year. The domestic consumption slowdown observed in 2022 is expected to persist into 2023 due to rising fuel and commodity prices. As a consequence, the higher costs may lead consumers to shift towards more affordable coffee products, such as bottled ready-to-drink (RTD) coffee. Despite these challenges, coffeehouse chains continue to dominate the coffee market, catering to both low and high-end consumer groups.
The USDA Foreign Agricultural Service forecasted in its June biannual report, released on June 22, that world coffee production in 2023/24 will increase +2.5% y/y to 174.3 million bags, with a +6.9% increase in arabica production to 96.3 million bags, and a -2.4% decline in robusta production to 78.0 million bags. USDA FAS forecasts that 2023/24 Brazilian coffee production will rise by +14.5% to 67.9 million bags, while Vietnam’s 2023/24 production will fall -3.5% to 30.2 million bags. USDA FAS forecasts that 2023/24 ending stocks will edge higher by +0.8% to 31.8 million bags from 31.6 million bags in 2022-23.
The global coffee industry is divided into three primary categories: bean, roast & ground, and soluble coffees. Each of these categories caters to diverse market demands, ensuring that coffee lovers worldwide have access to a wide range of options to suit their preferences. The global coffee industry is a vibrant and ever-evolving sector, deeply rooted in tradition yet continually embracing innovation. From the coffee farms of Brazil and Vietnam to the coffee cups of Europe and beyond, coffee remains a cherished and versatile beverage enjoyed worldwide. With a diverse range of products, coffee lovers can explore a world of flavors, making the global coffee industry a fascinating and essential part of our daily lives. (GT)
