Market Overview for the Coffee Industry

by Global Market Research Analyst

Coffee is one of the most popular beverages in the world. Coffee is a beverage produced from roasted coffee beans from the Coffea Arabica shrub. Caffeine is present in coffee. Caffeine stimulates the central nervous system (CNS), the heart, and the muscles. It is a beverage which is widely consumed to alleviate mental and physical versatility as well as alertness.

Coffee grows best in areas between the Tropics of Cancer and Capricorn, popularly known as the “coffee belt” or “bean belt.” Coffee plants do not generate adequate amount of produce in extreme hot or cold temperatures. The average annual temperature should ideally be around 21.1°C (70°F). Coffee plants thrive in rich, well-drained, organic soil, particularly in areas where volcanic ash has decomposed.

Coffee is grown around 60 countries. Brazil, Colombia, Vietnam, Indonesia, and India are the top coffee-producing countries. Coffee accounts for a key export commodity in most nations. Approximately 99 percent of the coffee consumed today is derived from two delectable African species, i.e. Arabica and Robusta. Arabica accounts for around 65 percent of global output, whereas Robusta accounts for 35 percent. Arabica has a gentler, more nuanced flavor than Robusta.

The production of a coffee plant varies depending on a variety of factors. These include genetics, the ever-increasing effects of climate change, agricultural methods, soil management, as well as the production environment (soil, precipitation, height, latitude, shadow, and so on).

Regional Competitive Mapping for the Coffee Industry

Brazil is the world’s largest producer of coffee, with nearly limitless output potential. Both Arabica and Robusta are grown on Brazilian farms. Colombia is the most well-known coffee producer in the world, ranking second in terms of yearly output. Vietnam, a relative newcomer to the world coffee trade, has swiftly established itself as one of the leading producers. Vietnam is the world’s leading producer of Robusta coffee, accounting for more than 40% of worldwide output.

With revenues above 80 billion dollars, the United States is by far the largest coffee market in the world. The coffee experiment is just getting started in Florida. Researchers at the University of Florida have been experimenting with Arabica coffee plants intermingled among citrus trees, which provide shade and protection for the smaller coffee trees. Hawaii-grown coffee is the second most valuable commodity produced in the state of Hawaii, with an annual production value of more than USD 48 million and 900 coffee plantations spread over the islands.

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