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The raw coffee beans market size is forecast to increase by USD 9.37 billion at a CAGR of 4.45% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends. The increasing number of cafes worldwide, fueled by the growing popularity of coffee culture, is a major growth factor. Additionally, there is a rising demand for sustainable and ethically sourced coffee beans, as consumers become more conscious of the environmental and social impact of their consumption. However, the market is also challenged by the volatility in prices of raw coffee beans due to various factors such as weather conditions, political instability, and supply chain disruptions in coffee-producing countries. These trends and challenges create a complex and dynamic market environment for raw coffee beans.
Coffee beans are the seeds of the coffee plant, which are roasted and ground to make coffee. The market is a significant sector in the global food and beverage industry, with coffee growers supplying raw beans to roasters and manufacturers of coffee beverages. Overland transportation plays a crucial role in ensuring the timely delivery of raw coffee beans from smallholder farmers to processing facilities. The taste and quality of raw coffee beans are essential factors that influence the market. Certified coffee and organic certifications are becoming increasingly popular, with coffee certification organizations playing a key role in ensuring the authenticity and sustainability of the beans.
Green coffee, which is unroasted coffee beans, contains various health benefits, including weight loss, blood pressure control, cholesterol level regulation, and diabetes management. Specialty coffee, which is made from high-quality raw beans, is popular among consumers due to its unique taste and aroma. Raw coffee beans contain chlorogenic acid, a powerful antioxidant that helps prevent diseases. They are also rich in antioxidants and caffeine, which provide energy and boost metabolism. Arabica and stronga are the two main types of coffee beans, with Arabica beans being more expensive due to their superior taste and lower caffeine content. The market is expected to grow in the coming years due to the increasing popularity of plant-based dietary choices and the health benefits associated with coffee consumption.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Arabica segment is estimated to witness significant growth during the forecast period. Raw coffee beans, specifically Arabica beans, are highly valued in the global market for their distinctive taste, aroma, and lower caffeine content. Arabica beans are the preferred choice for consumers seeking a smoother and milder flavor profile in their coffee. The increasing trend towards specialty coffee and gourmet coffee shops and cafes has fueled the demand for high-quality Arabica beans. Major coffee-producing regions, such as Latin America, are renowned for their Arabica coffee production, with Brazil being the world's largest producer. Smallholder farmers and coffee growers in these regions rely on the livelihoods generated from coffee production. The certification of coffee as organic or sustainable adds to its appeal, as consumers become increasingly conscious of health benefits and the environmental impact of their food and beverage choices.
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The Arabica segment accounted for USD 18.69 billion in 2018 and showed a gradual increase during the forecast period. Arabica coffee is rich in chlorogenic acid, a powerful antioxidant, and is linked to weight loss, blood pressure control, and cholesterol level regulation. Additionally, it is a plant-based source of energy and can help regulate blood sugar levels, making it beneficial for individuals with diabetes. The logistics of overland transportation and storage of raw coffee beans are crucial to maintaining their quality. Organic farming practices, such as the use of natural fertilizers and shade-grown cultivation, are essential for producing high-quality Arabica beans. Droughts and other environmental challenges can significantly impact coffee production, making sustainable farming practices even more critical.
The demand for raw coffee beans extends beyond the food and beverage industry, with applications in personal care and cosmetics. The health benefits of coffee, including its antioxidant properties and caffeine content, make it a valuable ingredient in various industries. Overall, the market for raw coffee beans is expected to continue growing, driven by increasing consumer demand for high-quality, sustainably produced Arabica beans.
South America is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The South American market is witnessing significant expansion due to several factors. The region's favorable climate, characterized by adequate rainfall and suitable altitude, makes it an ideal location for coffee cultivation. South America's extensive coffee-growing regions and diverse coffee varieties contribute to its leading position in The market. Both Arabica and stronga beans are produced, catering to various market segments and preferences. Advancements in technology, such as irrigation systems, AI, IoT, and 5G, are revolutionizing coffee farming in South America. These technologies enhance crop focus, ensuring optimal water usage and soil health. However, challenges like deforestation, pesticide pollution, and habitat destruction pose threats to sustainable coffee production.
South American coffee culture is deeply rooted, with coffee being a significant contributor to mental alertness and pain relief. Ready-to-drink, instant coffee, and drip bag coffee have gained popularity, offering convenience and accessibility. Coffee is also known to provide benefits like improved collagen levels, acne-fighting properties, and anti-aging effects. Brazil, as the largest producer and exporter of raw coffee beans, significantly influences the growth of the South American market.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing number of cafes worldwide is the key driver of the market. The global market for raw coffee beans is experiencing significant growth due to the increasing popularity of coffee culture and the shifting consumer preference towards this beverage. Coffee growers, particularly smallholder farmers, are seeing an uptick in demand for their high-quality green coffee beans as cafes continue to expand, particularly in urban areas. This trend is driven by the growing number of people moving to cities and the increasing number of employees in service industries, leading to an increase in the number of cafes and coffee shops. The demand for specialty coffee, certified organic, and sustainable coffee is on the rise, as consumers seek out beans with unique tastes and health benefits.
Coffee is rich in antioxidants, including chlorogenic acid, which has been linked to weight loss, blood pressure control, cholesterol level regulation, and diabetes management. These benefits, along with its role in a plant-based dietary lifestyle, make coffee an attractive choice for many. Logistics and storage play a crucial role in ensuring the quality of raw coffee beans. Proper handling, transportation using overland methods, and storage conditions are essential to maintaining the taste and aroma of the beans. Organic farming practices, which prioritize sustainability and the health of the coffee plants, are also gaining popularity among coffee producers. Coffee beans are used not only as a beverage but also in various food and beverage, personal care, and cosmetics applications. However, droughts and other environmental challenges can impact the availability and quality of coffee beans, making it essential to ensure a reliable and sustainable supply chain.
Growing demand for sustainable and ethically sourced coffee beans is the upcoming trend in the market. The market is witnessing significant growth due to the increasing demand for certified, sustainable, and ethically produced coffee. Coffee growers, particularly smallholder farmers, are gaining importance in the industry as consumers become more conscious of the environmental and social impact of their purchases. Overland transportation and logistics are crucial in ensuring the timely delivery of green coffee beans from plantations to roasters, while proper storage is essential to maintain their taste and quality. Certifications such as Fair Trade, Rainforest Alliance, and Organic play a vital role in assuring consumers that their coffee is grown using sustainable farming practices and that farmers receive fair wages and safe working conditions.
The health benefits associated with coffee, including weight loss, blood pressure control, and cholesterol level regulation, make it a popular choice for those following a plant-based dietary lifestyle. Specialty coffee, rich in chlorogenic acid and antioxidants, is gaining popularity for its potential to combat diseases such as obesity, cardiovascular diseases, and diabetes. Coffee producer countries, including those in Latin America and Africa, are focusing on organic farming to cater to this growing demand. The use of organic farming methods not only benefits the environment but also enhances the taste and quality of the coffee beans. Coffee is not just a beverage; it is a livelihood for millions of people around the world. Ensuring the sustainability of the coffee industry is essential for the well-being of these communities and the planet.
Volatility in prices of raw coffee beans is a key challenge affecting market growth. Coffee beans are a vital commodity for smallholder farmers and coffee producers worldwide. However, the price volatility of raw coffee beans poses significant challenges for these farmers, impacting their livelihoods and ability to invest in sustainable practices. Fluctuations in coffee prices can make it difficult for farmers to plan for the future, as they may struggle to predict revenue generation and secure a stable income. This uncertainty can discourage farmers from expanding their coffee cultivation or implementing quality improvement initiatives, limiting overall production capacity and supply. Price instability also affects the profitability and financial stability of coffee traders, exporters, and roasters throughout the supply chain.
Rapid changes in coffee prices can disrupt business planning and budgeting, increasing financial risks, and eroding profit margins. Consequently, market participants may be reluctant to engage in long-term contracts or investments, leading to reduced market liquidity and efficiency. Coffee beans are not only a primary ingredient in the popular beverage but also have numerous health benefits. They are rich in antioxidants, chlorogenic acid, and other essential nutrients that contribute to weight loss, blood pressure control, cholesterol level regulation, and diabetes management. Consumption of coffee is often associated with a plant-based dietary pattern, making it a popular choice for those following a healthy lifestyle.
The coffee industry is also concerned with sustainability, with many coffee plantations adopting organic farming practices and obtaining organic certifications. These initiatives ensure the production of certified coffee, which appeals to consumers seeking healthier and more environmentally friendly options. Green coffee beans, which undergo minimal processing, are also gaining popularity due to their higher antioxidant content and potential health benefits. Logistics and storage are crucial aspects of the coffee supply chain. Ensuring proper handling and storage conditions is essential to maintain the taste and quality of raw coffee beans. Droughts and other environmental factors can impact coffee production, making it necessary to have strong logistics and storage systems in place to mitigate risks and ensure a consistent supply of coffee beans to the market.
Coffee's versatility extends beyond the food and beverage industry. Its antioxidant properties make it a valuable ingredient in personal care and cosmetics products. The demand for coffee in various applications, coupled with its health benefits, makes it a lucrative market. However, the price volatility and production challenges necessitate a resilient and adaptive approach to ensure a sustainable and reliable supply of coffee beans.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Belco - The company provides a selection of raw coffee beans, including strong beans that have undergone the washed process, honey-processed beans, and naturally processed varieties.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Raw coffee beans are the unroasted seeds of the coffee plant, which are the primary source of our beloved beverage. Coffee growers, particularly smallholder farmers, play a vital role in the production of these beans. Overland transportation is crucial in ensuring the beans reach the coffee producer efficiently, preserving their taste and quality. Raw coffee beans are not just a commodity; they are a livelihood for millions of farmers worldwide. The market for raw coffee beans is vast and diverse, extending beyond beverages to food and beverage, personal care, cosmetics, and even industrial applications.
Certified coffee, with organic certifications and sustainable farming practices, is increasingly popular. Consumers are drawn to the health benefits of raw coffee beans, including weight loss, blood pressure control, cholesterol level regulation, and disease prevention. These benefits are attributed to the presence of chlorogenic acid, antioxidants, and caffeine. Arabica and stronga are the two primary types of raw coffee beans. Arabica beans are known for their subtle taste and higher antioxidant content, while stronga beans are prized for their strength and resistance to pests. Green coffee beans, an unroasted variant, are gaining popularity due to their potential health benefits.
Logistics and storage are essential aspects of the market. Proper handling ensures the beans maintain their quality and taste until they reach the consumer. The market for raw coffee beans is influenced by various factors, including droughts, diseases, and market trends. In conclusion, the market is a dynamic and thriving industry that offers opportunities for coffee growers and consumers alike. With a focus on sustainability, health benefits, and diverse applications, the future of raw coffee beans looks promising.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.45% |
Market growth 2024-2028 |
USD 9.37 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.84 |
Regional analysis |
South America, APAC, Middle East and Africa, North America, and Europe |
Performing market contribution |
South America at 43% |
Key countries |
Ethiopia, Vietnam, Indonesia, Brazil, and Colombia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Belco, Coffee Bean Corral, Dongsuh Companies Inc., FRINJ Coffee, GMT GREEN, Illycaffe Spa, jacobs DOUWE EGBERTS B.V., Jollibee Foods Corp., La Colombe Coffee Roasters., LUIGI LAVAZZA S.p.A., Mayorga Coffee, Naivo Cafe, Neumann Gruppe GmbH, Phyto Planet, RAW Coffee Co. LLC, Sangameshwar Coffee Estates Ltd., Strauss Group Ltd., Sweet Marias, The Green Coffee Co., and wscafe co. ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Method
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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