Economics of the Coffee Industry
Market Overview
The global raw coffee beans consumption has grown at a rate of 4.08% and expected to grow further during 2019-2024. Europe is the largest consumer and exporters of raw coffee beans in the world, accounting for more than 28% of the global consumption. For many years, Europe has been the world’s consumer of raw coffee beans. However, in recent years, raw coffee beans consumption has increased dramatically in China and the Philippines at the rate of 15% and 6%, during the period 2014-2018. (Mordor Intelligence Report)
Prices and Producers
Commodity pricing for green coffee beans on a global average have experienced wild swings over the past several decades. The graphs shown below demonstrate the volatility of prices as well as the top producers by country below. Note the average is only about a $1 per pound yet when you review the intensive farming required to harvest the beans this price is relatively inexpensive.
The global raw coffee beans consumption has grown at a rate of 4.08% and expected to grow further during 2019-2024. Europe is the largest consumer and exporters of raw coffee beans in the world, accounting for more than 28% of the global consumption. For many years, Europe has been the world’s consumer of raw coffee beans. However, in recent years, raw coffee beans consumption has increased dramatically in China and the Philippines at the rate of 15% and 6%, during the period 2014-2018. (Mordor Intelligence Report)
Prices and Producers
Commodity pricing for green coffee beans on a global average have experienced wild swings over the past several decades. The graphs shown below demonstrate the volatility of prices as well as the top producers by country below. Note the average is only about a $1 per pound yet when you review the intensive farming required to harvest the beans this price is relatively inexpensive.
Green Coffee Bean Commodity Prices 1979-2021
Coffee Growing Countries by Rank and Production (2021)
Brazil holds the biggest share of the coffee production, worldwide. This is as much as the next four countries combined from Vietnam, Colombia and Indonesia (see graph below). The crop first arrived in Brazil in the 18th century and had become the dominant producer of coffee beans. Coffee plantation in Brazil covers about 10,000 square miles. It monopolized the international coffee market and accounts for 80% of the market, it has exported between 32 million and 33 million bags in 2014. Brazil is the largest producer and exporter of coffee beans in the world. It has produced 3,090,000 metric ton and has exported 1,649,487 metric ton. The major countries that import raw coffee beans from Brazil in terms of values, as of 2017, are United States (USD 921,697), Germany (USD 879,183), Italy (USD 491,040), Japan (USD 323,977) among others. The share in the value of the United States in 2015 is 21.3% and it got reduced to 20% in 2017, Germany has 19% in 2015, and 19.1% in 2017. Brazil is also the second largest consumer of coffee.
Where Does the Money Go?
Brokers who deal in "fair trade" are deal directly with the farmers to ensure they get better pricing for their labor in order to help them sustain their business as well as having greater quality control of the bean. You can see from an FT analysis that for a 2.50 (British Pound) cost for a cup of coffee, only 0.01 goes to the grower. This price breakout is illustrated in the graph below. Support Fair Trade.
Associations and Organizations
Please visit the following coffee trade organizations and associations to learn more about coffee.

International Coffee Organization - The International Coffee Organization (ICO) is the main intergovernmental organization for coffee, bringing together exporting and importing Governments to tackle the challenges facing the world coffee sector through international cooperation. Its Member Governments represent 94% of world coffee production and over 75% of world consumption.

Specialty Coffee Association of America, SCAA - Established in 1982 by a small group of coffee professionals seeking a common forum to discuss issues and set quality standards for the specialty coffee trade, the SCAA is now the world's largest coffee trade association with nearly 3,000 company members.

Speciality Coffee Association of Europe, SCAE - The SCAE was formed to represent the specialty coffee community and enthusiasts. Members are in more than 70 countries around the world with national chapters in 35 countries. SCAE lobbies strongly with governments and international organizations for the cause of quality coffee and to ensure a fair deal for everyone. Together with the SCAA, we represent the specialty sector on the International Coffee Organization's Private Sector Consultative Board.

National Coffee Association - The NCA, founded in 1911, is one of the earliest trade associations formed in the United States and the first trade association for the U.S. coffee industry.

CoffeeResearch.org - Our intention is to improve coffee quality through education and research. This 300 page coffee Web site was developed as a platform to share our passion for specialty coffee.