Raw Coffee Beans Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 35.33 Billion |
| Market Size (2029) | USD 47.28 Billion |
| CAGR (2024 - 2029) | 6.00 % |
| Fastest Growing Market | Latin America |
| Largest Market | Latin America |
Raw Coffee Beans Market Analysis
The Raw Coffee Beans Market size is estimated at USD 35.33 billion in 2024, and is expected to reach USD 47.28 billion by 2029, growing at a CAGR of 6% during the forecast period (2024-2029).
- Coffee beans, a globally traded agricultural commodity, are shipped worldwide, sustaining the livelihoods of millions of growers and producers. While production predominantly occurs in developing nations, consumption is primarily concentrated in developed and emerging economies. Europe stands out as the world's largest consumer and exporter of raw coffee beans. According to ITC Trade Map, Europe's exports of raw coffee beans surged from USD 21.62 billion in 2021 to USD 30.36 billion in 2022. Brazil, a major player in the coffee industry, reported a coffee production revenue of USD 11.81 billion in 2022, according to the National Supply Company (Companhia Nacional do Abastecimento - CONAB). Coffee is more than just a commodity in Brazil; it is a cultural cornerstone, leading to a strong domestic demand for coffee beverages.
- The market for coffee beans thrives primarily due to their palatable appeal as a beverage. With a rising focus on health and wellness, many consumers in developed nations are gravitating toward coffee as a healthier substitute for sugary sodas. In response, coffee manufacturers are diversifying their offerings and introducing innovative flavors, including floral and other natural notes, to captivate younger audiences seeking novel taste experiences. Such innovations have spurred growth in the raw coffee beans market, as consumers increasingly favor these over heavily processed alternatives.
- In Indonesia, coffee farming communities grapple with intertwined challenges: market volatility, climate change, and gender inequity. Recognizing these hurdles, the US Government, via the US Agency for International Development (USAID), unveiled the Indonesia Coffee Enterprise Resilience Initiative (Resilient Coffee) in 2022. In collaboration with Keurig Dr. Pepper and Root Capital, a US NGO, this initiative aims to extend credit to rural agricultural enterprises. Targeting 14 coffee enterprises in Aceh, East Java, and North Sumatra, Resilient Coffee aspires to uplift 14,000 smallholder farmers, championing a growth model that harmonizes economic and environmental sustainability. Such initiatives are poised to support the coffee bean market's production in the future.
Raw Coffee Beans Market Trends
Increasing Demand for Certified Coffee Drive the Production
Surging global demand for certified coffee is driving the production of coffee beans, largely due to rising consumer concerns over sourcing and quality. According to FAOSTAT, the production of coffee was 10.4 million metric tons in 2019, which increased by 10.8 million metric tons in 2022. Certified coffee gives the consumer assurance 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. As a result, some of the coffee certification organizations, such as Fairtrade Certification, Rainforest Alliance Certification, UTZ Certification, and USDA Organic Certification, are engaged in checking the production procedures and supply chain of coffee. These certifications help improve the quality of life of workers and help them gain adequate market access through increased trade of certified coffee.
Many Fairtrade coffee growers also hold organic certifications, ensuring environmentally sustainable production. Approximately 25 coffee cooperatives in Indonesia are Fairtrade-certified, with 98% having organic certifications. These certifications create more market opportunities for coffee growers, allowing them to command higher prices from consumers willing to pay extra for sustainable coffee.
One of the most important certifications is the UTZ Certification or the Rainforest Alliance, which enables farmers to grow coffee while professionally supporting local communities and the environment. A key aspect of the UTZ certification program is traceability, meaning consumers can know exactly where their coffee comes from and how it was produced. This transparency makes consumers more likely to purchase certified coffee, driving market growth during the forecast period.
South America Dominates the Market
South America Dominates the Market
Brazil is the world's largest coffee producer and exporter in South America. According to FAOSTAT, coffee bean production was 3.0 million metric tons in 2021, which increased to 3.2 million metric tons in 2022. Due to its major production and exportation role in the global coffee market, Brazil has also been recognized for its commitment to quality and social sustainability parameters based on voluntary sustainability standards (VSS) and geographic identification (GI).
In 2022, Brazil held 29.4% of the coffee production worldwide, followed by Vietnam and Indonesia, with 18.1% and 7.4%, respectively. According to the Food and Agriculture Organization (FAO), coffee plantations in Brazil covered about 1,872,511 hectares in 2022. Minas Gerais, Espirito Santo, São Paulo, and Parana are the main coffee-producing regions. Brazil is the leading producer and exporter of coffee, growing over one-third of the world's coffee supply. Good weather conditions have generally prevailed in most parts of the Brazilian coffee regions, supporting fruit setting, development, and filling, thus resulting in likely high yields. In addition, the majority of producing areas are in the on-year of the biennial production cycle. Major producing states were favored by abundant rainfall volumes, improved use of good crop management practices, and clonal seedlings.
Brazil's major green bean export destinations include Germany, the United States, Italy, Belgium, and Japan. Other key exporters of coffee beans include Vietnam, Colombia, Germany, Indonesia, and Honduras. However, economic and social barriers play salient challenges for farmers to meet the quality standards and GI protocols among other market compliance tools, in addition to the correct value appropriation arising for quality sustainable adopted strategies by coffee farmers in Brazil.
Raw Coffee Beans Market News
- March 2023: The Brazilian government allocated resources from the Coffee Economy Defense Fund (FUNCAFE) for the 2024 harvest. For the 2024 financial year, FUNCAFE is set to provide an unprecedented USD 6.38 billion to coffee growers. Of this total, USD 2.35 billion is earmarked for marketing financing, while USD 1.62 billion is designated for crop management. Additionally, the council planned to allocate USD 1.48 billion to the Financing for the Acquisition of Coffee (FAC), USD 883 million for working capital, and USD 30 million to recover damaged coffee plantations.
- July 2022: The Ethiopian Coffee and Tea Authority (ECTA) released a new, comprehensive strategy for the country's coffee industry, which was developed with the Ethiopian Institute of Agriculture Research (EIAR) and international non-profit TechnoServe to increase coffee production by three times within next 10 years.
- July 2022: The Indian government planned to repeal the existing 80-year-old Coffee Act and proposed a new 'Coffee Promotion and Development Bill, 2022' to promote the development of the Indian coffee industry. Through a new law, the government aims to modernize the functioning of the Coffee Board of India, which is responsible for boosting production and the quality of Indian coffee, pushing exports, and supporting the development of the domestic market.
Raw Coffee Beans Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 An Expanding Workforce Is Boosting the Prominence of Coffee Houses
4.2.2 There's A Rising Demand for Certified Coffee
4.2.3 Growing Demand for Coffee as A Functional Beverage
4.3 Market Restraints
4.3.1 Climate Changes Are Affecting Coffee Plantations
4.3.2 Tea Is Gaining Traction as A Healthier Drink Alternative
4.4 Value Chain/Supply Chain Analysis
5. MARKET SEGMENTATION
5.1 Geography (Production Analysis by Volume, Consumption Analysis by Value and Volume, Import Analysis by Value and Volume, Export Analysis by Value and Volume, and Price Trend Analysis)
5.1.1 North America
5.1.1.1 United States
5.1.1.2 Canada
5.1.1.3 Mexico
5.1.2 Europe
5.1.2.1 Germany
5.1.2.2 United Kingdom
5.1.2.3 Spain
5.1.2.4 France
5.1.2.5 Italy
5.1.2.6 Belgium
5.1.2.7 Russia
5.1.3 Asia-Pacific
5.1.3.1 China
5.1.3.2 Vietnam
5.1.3.3 Indonesia
5.1.3.4 India
5.1.3.5 Japan
5.1.4 South America
5.1.4.1 Brazil
5.1.4.2 Colombia
5.1.5 Middle East and Africa
5.1.5.1 Uganda
5.1.5.2 Ethiopia
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
Raw Coffee Beans Industry Segmentation
Raw coffee beans are the seeds of the coffee plant, which are roasted and processed to make coffee powders, granules, and other beverage forms. The raw coffee beans market is segmented by geography into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. The report offers elaborated production (volume), consumption (value and volume), import (value and volume), export (value and volume), and price trend analysis of the market. The report offers the market size and forecasts in terms of value (USD) and volume (metric tons) for all the above segments.
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Raw Coffee Beans Market Research FAQs
How big is the Raw Coffee Beans Market?
The Raw Coffee Beans Market size is expected to reach USD 35.33 billion in 2024 and grow at a CAGR of 6% to reach USD 47.28 billion by 2029.
What is the current Raw Coffee Beans Market size?
In 2024, the Raw Coffee Beans Market size is expected to reach USD 35.33 billion.
Which is the fastest growing region in Raw Coffee Beans Market?
Latin America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Raw Coffee Beans Market?
In 2024, the Latin America accounts for the largest market share in Raw Coffee Beans Market.
What years does this Raw Coffee Beans Market cover, and what was the market size in 2023?
In 2023, the Raw Coffee Beans Market size was estimated at USD 33.21 billion. The report covers the Raw Coffee Beans Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Raw Coffee Beans Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Raw Coffee Bean Industry Report
Statistics for the 2024 Raw Coffee Bean market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Raw Coffee Bean analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
