Coffee Trade Analysis - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Coffee Trade Analysis - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The coffee market is projected to register a CAGR of 2.0% during the forecast period, 2021-2026.

Despite the incredibly challenging working environment imposed by COVID-19 restrictions, consumers have still been able to get access to markets, largely owing to the resilience of coffee producers and supply chains. The impact of COVID-19 on coffee production is relatively minor. According to the European Union's Ministry of Foreign Affairs, lockdown and social distancing measures have caused a reduction in consumption. This particularly affects small coffee roasters and roasters that mainly supply hotels, restaurants, and cafés (HORECA).

Additionally, the coffee industry witnesses various issues from farms to markets like poor labor practices combined with unfair wages, deforestation, air pollution from roasting plants, and irregular pricing of coffee. According to a survey conducted by the Institute for Scientific Information on Coffee (ISIC), 68% of the respondents stated that they often consume coffee while working. This trend is leading to a huge demand for coffee in European countries, like Germany, Italy, Spain, the United Kingdom, and others, as consumers are becoming increasingly conscious about the quality of their coffee.

Key Market TrendsIncreased Consumer Demand

Coffee provides a revitalizing effect as it contains caffeine. It is one of the most consumed and popular drinks worldwide. It is prepared and presented in different ways. Usually served hot, it can also be served as iced coffee. As per some clinical studies, modest coffee consumption is gentle or slightly beneficial for healthy adults. The shifting work culture, specifically in the corporate industry, along with enhancing living standards, is further anticipated to boost the demand in the global market. Companies overhauling their strategies in terms of service and emerging contemporary brands to enhance customer satisfaction and gain loyalty is another factor improving the coffee market all around the world. This is supported by the emergence of various cafes and increased expendable income levels of consumers. All these factors are anticipated to bolster the market growth.

Brazil Dominates the Market

The global demand for coffee heavily contributed to the early phase of Brazil's modern economic expansion and industrialization. Brazil currently exports the majority of its coffee to the United States and Germany. The United States is the world’s largest single buyer of coffee, with the North American coffee market accounting for over one-quarter of the global coffee imports in value. The coffee trade helps Brazil remain one of the ten major trading partners of the United States. According to the International Coffee Organization, Brazil is the major producer and exporter of coffee in the global market. According to the Council of Coffee Exporters of Brazil (Cecafé), the main destination markets for Brazil's coffee exports have been the United States, Germany, Belgium, Italy, Japan, Turkey, Russia, Mexico, Spain, and Canada.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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