Ethiopia Coffee Market Size (2024 - 2029)

Ethiopian Coffee Market Analysis

Over the next few years, the Ethiopian Coffee Market is expected to register a CAGR of 5.67 percent.

Arabica coffee has its origins in Ethiopia. Ethiopia is one of the largest coffee producers in Africa and the fifth-largest producer in the world. According to the USDA Foreign Agricultural Service, more than 15 million smallholder farmers and other industry participants depend on coffee businesses across the region for their livelihoods, which is Ethiopia's primary export product. In Ethiopia, consumers belonging to the medium-income group are more inclined towards ground coffee, due to its strong aroma and the availability of quality brands. This trend has led to ground coffee becoming the most consumed variety, followed by instant coffee. The convenient availability of this product leads to its vast consumption by people belonging to all demographic groups. Convenience is the foremost factor driving the instant coffee segment, as it can be easily prepared. The fast-moving lifestyle of most consumers is aiding the market for convenient food and beverages. The growing preference for healthy beverages lures amateur coffee drinkers to opt for instant coffee.

Furthermore, in 2021, the Ethiopian Coffee and Tea Authority announced its plans to establish the Ethiopian Coffee Association. The authority had signed a joint agreement with several regional Ethiopian coffee associations. Once established, the Ethiopian Coffee Association's goal is to promote Ethiopian coffee consumption both domestically and globally, as well as to represent all stakeholders in the Ethiopian coffee supply chain in order to boost the market. Health consciousness is also driving the ground coffee market, as consumers prefer green ground coffee because of its chlorogenic acid content, which slows down the absorption of carbohydrates and helps break down fat. Such factors are driving the Ethiopian coffee market.

Ethiopian Coffee Industry Segmentation

Coffee is a brewed drink prepared from roasted coffee beans, which are the seeds of berries from certain coffee species. Roasted beans are ground and then brewed with near-boiling water to produce the beverage known as coffee. The Ethiopian coffee market is segmented by product type and distribution channel. Based on product type, the market is segmented into whole-bean, ground coffee, and instant coffee. Based on the distribution channel, the market is segmented into on-trade and off-trade. Off-trade is further classified into supermarkets and hypermarkets, convenience stores, online retail stores, and other off-trade channels. The market sizing has been done in value terms in USD for all the abovementioned segments.