Raw Coffee Beans Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Raw Coffee Beans Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The raw coffee beans market is projected to register a CAGR of 4.1% during the forecast period (2022-2027).

Coffee beans are a global agricultural product that is shipped across the world, acting as a source of livelihood for 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 delays in shipments and an increase in freight prices, and overland transportation has become difficult. The COVID-19 pandemic 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 the 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 largest consumer of raw coffee beans. The demand for coffee beans in Asia-Pacific has grown significantly over the years due to the increase in its consumption. Japan, India, and the Philippines are the major contributors to its growth.

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 environment-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 on 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 improve the quality of life of workers and help them 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 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 toward purchasing certified coffee, thereby fueling the growth of the market during the forecast period.​

Brazil holds a share of 35.0% of the coffee production worldwide, followed by Vietnam and Colombia, with 16.0% and 7.0%, respectively, in 2019. The crop first arrived in Brazil in the 18th century, and the country became 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. The main coffee-producing regions are Minas Gerais, Espirito Santo, São Paulo, and Parana. It has produced 3,700.0 thousand metric ton of coffee, of which it exported 2,379.1 thousand metric ton in 2020. The major countries that import raw coffee beans from Brazil 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. The major green bean export destinations for Brazil include Germany, United States, Italy, Belgium, and Japan. Other key exporters of coffee beans include Vietnam, Colombia, Germany, Indonesia, and Honduras.

Increased coffee consumption in Brazilian households has offset the losses of consumption outside the country, with the temporary and intermittent closure of Brazilian coffee shops, hotels, bars, and restaurants imposed due to the COVID-19 pandemic.

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