Coffee Value Chain Analysis Market Size

Coffee Value Chain Market Analysis

The Coffee Market size is estimated at USD 522.57 billion in 2024, and is expected to reach USD 689.48 billion by 2029, growing at a CAGR of 5.70% during the forecast period (2024-2029).

• Coffee is produced in more than 50 developing countries in South America, Africa, and Asia and is an essential source of income for more than 20-25 million families worldwide. The initial production of coffee beans is highly labor intensive. It involves several labor-intensive activities, such as farming, collecting, and processing. Hence, these activities are performed in labor-abundant countries. However, roasting and branding are capital-intensive activities in the coffee supply chain and are therefore situated in the northern industrialized countries. The structure of the value chain is very similar to producing as well as consuming countries. The coffee value chain comprises four main phases: cultivation, processing, roasting, and consumption. Each step in the process has environmental, social, economic, and governance issues that affect the future sustainability of extracting coffee beans.
• On the consumer front, the promotion of coffee by the government, coupled with investment in R&D by major companies, is expected to stimulate the market's growth during the forecast period. For instance, In April 2022, Lulu Hypermarket in the Kingdom of Saudi Arabia, in cooperation with the Ministry of Culture, launched the Year of Saudi Coffee 2022, a great promotion meant to draw attention to the culinary and cultural significance of Saudi-grown coffee beans and it's unique traditional and symbolism as a marker of Saudi hospitality.
• However, the coffee industry has various issues, from farms to markets, such as poor labor practices, unfair wages, deforestation, air pollution from roasting plants, and irregular pricing of coffee, acting as a barrier to the market.