Market Trends of Single Origin Coffee Industry
This section covers the major market trends shaping the Single Origin Coffee Market according to our research experts:
Rising Demand for Sustainable, Organic and Certified Coffee Products
The demand for sustainable and ethical production of different agricultural products is rising across the world. People have become more environment conscious and prefer sustainable agricultural practices more than conventional methods. The demand for sustainable and organic coffee is growing in line with this trend in the market. Consequently, consumers are interested in knowing the origin of coffee beans, and the traceability of their production process. To ensure the customers and build their trust in the company, various players in the market are launching single origin coffee, having fair trade and organic certifications, and gathering customers' interest further. The fair trade certification certifies the social, environmental, as well as economic aspects of production, thereby, monitoring the purchase and selling of the product, along with its packaging and labeling. For instance, in May 2022, Roastelier by Nescafé launched a new single origin coffee namely, Ethiopia Sidamo. This product launched by the company is fair trade as well as organically certified, ensuring the confidence of the customers in the sourcing of the product.
South America Emerges as the Fastest Growing Region in the Market
South America is the fastest growing region, with respect to both production and consumption of coffee in the world. The demand for Brazilian coffee is prominent all over the world, and single origin Brazilian coffee is most sought after. A large portion of the world's coffee is produced in Brazil and Colombia. According to the International Coffee Association, South America produced 88.205 million 60-kg bags of coffee in 2020, out of which 69 million 60-kg bags were produced in Brazil alone. Moreover, coffee production in South America increased by 14.0% in 2020 as compared to 2019. Along with the increase in production, the exports of coffee from South America also increased, owing to the expanding demand for Robusta and Arabica coffee beans. As per the statistics of the International Coffee Association, in February 2021, the export of coffee from South America increased by 15.5% to 23.26 million bags. This was in accordance with the increase in coffee shipments from Brazil, owing to a rise in export by 24.3% to 16.77 million bags. Thus, the growing demand for single origin coffee from the South American region is driving the growth of the single origin coffee market globally.
