Enjoy complimentary customisation on priority with our Enterprise License!
The raw coffee beans market size is projected to increase by USD 9.37 billion, at a CAGR of 4.45% between 2023 and 2028
Furthermore, The South American market is witnessing growth propelled by various factors, including favorable climatic conditions ideal for coffee cultivation. The region's prominence in the market is attributed to its vast coffee-growing areas and the diverse range of coffee varieties cultivated. These factors contribute to the region's dynamic market trends, forecasted growth, and significant presence in the global coffee market landscape. Additionally, Belco company offers raw coffee beans such as Robusta washed, honey processed beans, and naturally processed beans.
The market shows an accelerated CAGR during the forecast period.
To get additional information about the market report, Request Free Sample
Increasing demand for premium coffee is the key factor driving the market. Rising consumer discernment prompts a shift towards specialty Arabica beans processed meticulously to enhance flavor complexity. The demand for premium, single-origin, and organic coffee varieties surges, driven by changing lifestyles and increased disposable income, especially in emerging economies. Overland transportation is crucial for smallholder farmers, facilitating their livelihood by transporting goods like certified coffee to market.
Moreover, certification organizations ensure organic standards, promoting health benefits such as weight loss and blood pressure control attributed to chlorogenic acid and antioxidants in coffee. This aligns with plant-based dietary trends and supports disease prevention, energy, and pharmaceutical applications. Specialty coffee shops proliferate globally, offering artisanal coffee experiences and highlighting unique flavor profiles. Increased awareness of coffee's health benefits further boosts demand. This trend is expected to drive investments in high-quality raw coffee beans production, processing, and marketing, fostering market growth during the forecast period.
Increasing adoption of precision agriculture techniques is the primary trend shaping the market. Precision agriculture involves the use of advanced technologies and data analytics to optimize farming practices, improve crop yields, and enhance overall efficiency in agricultural operations. One key aspect of precision agriculture in coffee cultivation is the use of remote sensing technologies such as drones and satellite imagery to monitor crop health, detect pest and disease outbreaks, and assess soil conditions. These technologies enable farmers to make data-driven decisions and implement targeted interventions, such as precision irrigation and targeted application of fertilizers and pesticides, thereby improving crop health and productivity.
Furthermore, the integration of precision agriculture with digital farm management platforms and decision support systems enables farmers to streamline farm operations, improve resource allocation, and enhance overall productivity. These technological advancements empower coffee growers to overcome challenges such as labor shortages, input costs, and coffee beans market volatility, driving efficiency and profitability. Overall, the growing adoption of precision agriculture techniques will represent a significant opportunity for the market during the forecast period.
Volatility in prices is the major challenge that affects market expansion. Fluctuations in prices can lead to uncertainty regarding revenue generation, making it difficult for farmers to plan investments, adopt sustainable practices, and improve their livelihoods. This uncertainty may discourage farmers from expanding their cultivation or investing in quality improvement initiatives, thereby limiting overall production capacity and supply. Price volatility affects the profitability and financial stability of traders, exporters, and roasters across the supply chain. Rapid changes in prices can disrupt business planning and budgeting, increase financial risks, and erode profit margins.
As a result, market participants may hesitate to engage in long-term contracts or investments, leading to reduced market liquidity and efficiency. Moreover, price volatility can influence consumer behavior and demand patterns. Sharp increases in prices may prompt consumers to seek alternative beverages or lower-priced coffee products, leading to decreased demand for premium or specialty coffee beans. Conversely, sudden price drops may create opportunities for stockpiling or speculation, distorting market dynamics and exacerbating price volatility further. Thus, such factors may impede the growth of the market during the forecast period.
The wet/Washed process segment will account for the largest share of this segment.?The wet/washed extraction method, though more intricate than the Natural Dry Process, involves de-pulping ripe cherries, washing away the mucilage, and air drying the beans. This method enhances bean quality and flavor, particularly favored for specialty coffee production. Suited for Arabica beans, it preserves delicate flavors and acidity, yielding a cleaner cup profile. Regions like Colombia and Ethiopia utilize this method, benefiting from ample water resources. The segment is expected to grow alongside the demand for specialty coffee during the forecast period.
The market share growth by the arabica segment will be significant during the forecast period. Arabica beans are prized for their superior taste, aroma, and lower caffeine content, making them highly sought after by consumers who prefer a smoother flavor profile. The increasing preference for specialty coffee has led to a surge in demand for high-quality Arabica beans, particularly in developed countries.
The Arabica segment was valued at USD 18.69 billion in 2018.
For a detailed summary of the market segments Request for Sample Report
Further, Latin American countries like Brazil and Colombia, as well as African nations like Ethiopia and Kenya, are renowned for producing premium Arabica beans. Growing awareness of ethical sourcing and the popularity of gourmet coffee culture further bolster demand for Arabica beans globally during the forecast period.
South America is estimated to contribute 43% to the growth of the global market during the forecast period
Get a glance at the market share of various regions View the PDF Sample
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. South American nations like Brazil, Colombia, and Peru produce both Arabica and robusta coffee beans, with Brazil leading as the largest exporter. Brazil exported around 28-29 million bags of Arabica coffee in 2022-2023, valued at USD 9 billion, making it the world's top coffee exporter. Colombia, the third-largest producer globally, is projected to produce 11.6 million bags of green coffee beans in 2023-2024. Investments in production infrastructure and e-commerce adoption further bolster the South American market during the forecast period.
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 forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Coffee Bean Corral, FRINJ Coffee, GMT GREEN, 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.
The market analysis and report of 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.
The market research and growth report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market continues to evolve with a focus on sustainability and health, driven by Beverage trends and initiatives from Coffee certification organizations advocating for Organic certifications and Sustainable coffee practices. Coffee producers are increasingly embracing Voluntary sustainability standards (VSS) recommended by organizations like the Food and Agriculture Organization (FAO), ensuring responsible practices at Coffee plantations. Beyond its stimulating properties, coffee consumption is associated with benefits like Cholesterol level regulation and reduced risk of Diabetes, Obesity, and Cardiovascular diseases, endorsed by the International Diabetic Federation (IDF).
Additionally, technological advancements like AI, IoT, and 5G are optimizing Logistics and Storage, while also aiding in Droughts management and Irrigation systems efficiency. With the growing demand for Organic and sustainable coffee, the industry is witnessing a shift towards Organic farming methods, addressing concerns related to Deforestation, Pesticide pollution, and Habitat destruction highlighted by organizations such as the International Coffee Organization (ICO).
Furthermore, various product formats like Ready-to-drink and Instant coffee cater to diverse consumer preferences, promoting benefits such as Mental alertness, Painkillers, and Premature aging prevention, further expanding its reach into sectors like Pharmaceuticals, Food and beverage, Personal care, and Cosmetics. Further, coffee producers maintain a strong crop focus, leveraging machine learning to enhance yields while combating soil degradation and water degradation. Consumers enjoy convenience with drip bag coffee, seeking relief from migraine headaches and improving collagen levels with acne-fighting scrub infused coffee products.
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, 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 report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
BUY NOW Full Report and Discover more
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.