The global raw coffee beans market is projected to register a CAGR of 4.1% during the forecast period (2021-2026).
Coffee beans are a global agricultural product that is shipped across the world, acting as a source of livelihood to millions of coffee growers and producers. The pandemic outbreak has resulted in a demand shortage due to the shutting down of restaurants and cafes. The coronavirus restrictions have led to delay in shipments, an increase in freight prices and overland transportation has become difficult. Covid-19 has become a potential threat to coffee producers across the world.
Globally, Europe is the largest consumer and exporter of raw coffee beans in the world, accounting for more than 28.0% of global consumption. The growth of the global market for coffee beans is driven by a rise in consumer coffee consumption. Moreover, health benefits associated with coffee and retail market expansion make the purchasing process easy for consumers, which boosts the global market for coffee beans. For many years, Europe has been the world’s consumer of raw coffee beans. The demand for coffee beans in Asia-Pacific has grown significantly over the years, owing to the increase in its consumption. Japan, India, and the Philippines are the major contributors to its growth.
Key Market Trends
Increasing Demand for Certified Coffee
Due to rising consumer concerns regarding the sourcing and quality of coffee, the demand for certified coffee is increasing globally. Certified coffee is an assurance to the consumer about the reliability of the product. These certifications offer various third-party assurances to the consumer regarding environmentally friendly farming practices and the quality involved during the production of coffee. Due to rising consumer concerns regarding the sourcing and quality of the coffee. Some of the coffee certification organizations are engaged in keeping a check upon the production procedures and supply chain of coffee. Some of them are Fair Trade Certification, Rainforest Alliance Certification, UTZ Certification, and USDA Organic Certification. These certifications help to improve the quality of life of workers and helps to gain adequate market access through increased trade of certified coffee.
Among all the certifications, UTZ Certification or the rainforest alliance is an important certification that allows the farmers to grow coffee professionally with care for local communities and the environment. The most important aspect of the UTZ certification program is traceability, which means that consumers can know exactly where their coffee comes from and how it was produced. This makes the consumers more inclined towards purchasing certified coffee, thereby fueling the growth of the market studied in the forecast period.
Brazil dominates the Export Market in terms of Value
Brazil holds a share of 35.0% of the coffee production, worldwide, followed by Vietnam and Colombia with 16.0% and 7.0% in 2019. The crop first arrived in Brazil in the 18th century and had become the dominant producer of coffee beans. Coffee plantation in Brazil covers about 10,000 square miles. Brazil is the largest producer and exporter of coffee beans in the world. It has produced 3,558,000.0 metric ton and has exported 2,379,069.0 metric ton. The major countries that import raw coffee beans from Brazil in terms of values, as of 2020, are Germany (USD 965,867.0 thousand), United States (USD 932,212.0 thousand), Belgium (USD 467,444.0 thousand), and Italy (USD 417,445.0 thousand) among others. Brazil is also the second-largest consumer of coffee.
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