Market Trends of Coffee Industry
Demand for Certified Coffee
- Coffee consumers are increasingly looking for ethical products from a social and ecological point of view. Organic certification in coffee is gaining popularity in world consumer markets, especially in Asia and Europe. The common belief among consumers about organically produced products being less exposed to synthetic chemicals and pesticides is boosting the trend for organic certified coffee.
- Increased awareness about healthy eating habits has spurred a significant shift in meal patterns and dietary preferences, leading to a heightened demand for specialty and organic coffee products, particularly coffee pods and capsules. A prime example is Blue Tokai coffee roasters. This Indian coffee brand introduced biodegradable specialty coffee capsules in 2022, catering to the growing consumer interest in sustainable and eco-friendly options in the coffee industry.
- Over the last few years, consumers have become more aware of the manufacturing of products they buy and where their purchases are coming from. Consumers are looking for certified coffee products to ensure the credibility of their coffee purchases.
- Coffee that meets specific social, environmental, and economic criteria, independently verified by accredited third parties, falls under "sustainable coffee." Various certification bodies, such as UTZ Certification, Fair Trade Certification, Rainforest Alliance Certification, and USDA Organic Certification, scrutinize production methods and supply chains. As a result, the demand for certified coffee is expected to soar substantially in the foreseeable future due to these influential factors.
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Asia Pacific Dominates the Market
- Many countries in the Asia-Pacific region have been traditional consumers of tea. However, the increased penetration of instant coffee in markets such as India has boosted the overall sales of the coffee category. Japan is the fifth-largest importer of coffee and coffee products.
- For instance, as per the International Coffee Organization, in 2020-21, Japan imported 6,751 bags ( in thousand 60 kg bags) of green coffee beans. Similar to imports, Japan consumed 7,479 bags (in thousand 60 kg bags) in 2021. Also, coffee has become a part of the culture in Mainland China. For instance, according to the US Department of Agriculture (USDA), from 2018–19 to 2020–21, coffee consumption in China increased by 140%. In addition, the growing affinity for drinking coffee and the surge in willingness to try new aromas have boosted the demand for coffee in the region.
- Coffee manufacturers are opening new stores and expanding their geographical footprints in China to expand their market share further. For instance, in 2022, Vietnamese coffee chain Trung Nguyen began the international expansion of its premium café brand Trung Nguyen Legend and its instant coffee range by opening its first store in Shanghai.
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