The global coffee industry continues to grow in 2018, driven by the steady and strong coffee consumptions around the world, while the top coffee producing countries – namely Brazil, Vietnam, and Colombia etc – still remain in dominance of the global coffee production and coffee exports over the recent years. As the fact that coffee is currently the third most consumed drinks in the world (after water and tea), and the second most traded commodity (after oil), the demand of coffee beans is in high demand across the globe. With such significant demand from the global market, coffee industry is expected to flourish further, while the top coffee producing countries are also projected to lead the coffee production in the world over the near future.
According the latest coffee industry statistics reported by the International Coffee Organization (ICO), the global coffee market is forecast to achieve over US$34 billion revenues by the end of 2022, registering a healthy CAGR of over 5.5% during 2017-2022. The global coffee consumption has witnessed a steady growth over the recent years, mainly driven by the rising demand in emerging markets such as China, Japan and Brazil. The production of coffee around the world is also expected to witness more lucrative incentives provided by governments towards promotion of cash crop farming. Currently, there are two main types of coffee beans: Arabica, which accounts for 70% of the world’s coffee production, and the Robusta, which is cheaper and easier to grow.
Read more: Top 10 Tea Producing Countries in the World 2018
As reported by ICO, the global coffee bean production in 2017 -2018 reached 158.78 million bags (60kg bag). Total production of Arabica was estimated to decrease by 1.1% to 97.32 million bags compared to 98.42 million bags last year, as lower production of Colombian Milds and Brazilian Naturals are only partially offset by increases in Other Milds. An increase of 3.7% is expected in Robusta, due largely to a rebound in Vietnam, who are also the world’s largest Robusta producer.
When it comes to the coffee prices, the ICO’s composite indicator price decreased by 2.9% to an average of 107.20 US cents/lb in July 2018, which is the lowest monthly average for July since 2007, when the monthly composite indicator reached 106.20 US cents/lb. Prices for all coffee groups fell in July 2018, though the largest month-on-month decrease occurred for Brazilian Naturals, which declined by 4% to 110.54 US cents/lb.
So far, some of the largest coffee companies or coffee manufacturers in the world include Nestlé S.A., Starbucks Corp., Jacobs, Douwe Egberts, Unilever Plc, Tata Global Beverages, Strauss Group Ltd., Matthew, Algie & Co. Ltd., The Kraft Heinz Co., Tchibo coffee, and Keurig Green Mountain.
|Rank||Country||2017-18 Production (million 60kg bags)|
Brazil has been the world’s largest producer of coffee for over 150 years. Today, Brazil is also the number 1 coffee exporter, contributing to one-third of the world’s total coffee production every year. There are 4 main coffee varieties found in Brazil: Typica, Bourbon, Caturra, and Mundo Novo. While the largest coffee producing states in Brazil are Paraná, São Paulo, Espirito Santos, Minas Gerais, and Bahia. The coffee growing industry in Brazil currently generates gross revenue of over R$22.5 billion a year.
Connect with the Most Reputable Coffee Suppliers in Brazil
Vietnam remains the second in the list of the top coffee producing countries 2018. Coffee industry has long been one of the most important parts of Vietnamese economy. Today, Coffee is the second most exported commodities in Vietnam after rice. In 2017-18 season, Vietnam produced over 29.5 million bags of coffee beans.
Colombia has dropped from the second to the third place in the world’s top coffee producers list since 2010, mainly cased by the rising temperatures in the climate that has brought negative effect in its coffee bean outputs over the recent years. Despite of that, Colombia still remains as one of the largest coffee producing countries in the world.
Read more: Top 5 Things to Know About the Colombian Coffee Industry
Coffee industry in Indonesia were initially established during Dutch colonization and continues grow since then. The climate and soil condition in Indonesia are particularly suitable for growing Robusta beans, which are less valued than the Arabica beans that mainly grow in nations like Brazil and Colombia, but still making Indonesia one of the top producers of coffee in the world.
Honduras is the largest coffee producer in Central America and the third largest in Latin America. Honduras ranks sixth globally in coffee exports by volume. Honduran coffee production reached 8.5 million 60-kilogram bags, a four percent increase over previous year. In early 2017, Lempira variety coffee, previously resistant to coffee leaf rust, was found to have rust in Honduras. In April 2017, the Honduran Coffee Institute confirmed the loss of resistance of the Lempira variety against the coffee leaf rust.
Other world’s top coffee producing countries include Ethiopia, India, Uganda, Mexico, and Guatemala, who are also some of the world’s largest coffee exporters supplying huge amount of quality coffee beans to the global coffee market.
The global coffee market is expected to continue its strong and steady growth, mainly due to the rising coffee consuming population, rising urban population, increasing e-commerce retail sales and rising disposable income around the world. Key trends of the global coffee market include increasing penetration of premium coffee shops, rising preference of gourmet coffee around the world. As the demand of coffee continues to increase, the world’s top coffee producing countries are expected to further develop their coffee industries to achieve higher coffee productions over the near future.
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