Ethiopia Coffee Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Ethiopia Coffee Market is segmented by Product Type (Whole-bean, Ground Coffee, and Instant Coffee) and Distribution Channel (On-trade and Off-trade). The report offers the market size and forecasts for the coffee market in value (USD million) for all the above segments.

Ethiopia Coffee Market Size

Ethiopia Coffee Market Size
Study Period: 2018 - 2028
CAGR: 5.67 %

Major Players

Ethiopia Coffee Market Key players

*Disclaimer: Major Players sorted in no particular order


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Ethiopia Coffee Market Analysis

The Ethiopian coffee market is projected to register a CAGR of 5.67% during the forecast period (2022- 2027).

As a consequence of the COVID-19 pandemic, the Ethiopian government enforced strict lockdowns and followed social distancing norms. This resulted in the closure of restaurants, cafes, micro-roasters, and out-of-home outlets. Owing to this factor, the demand for coffee products such as instant coffee and ground coffee moved to off-trade, which resulted in enhanced coffee sales in the retail sector. The pandemic resulted in disruptions in import and export activities in Ethiopia. For instance, according to Ethiopian Monitor, in April 2020, the coffee trade on the Ethiopian Coffee Exchange (ECX) declined by 30% compared to the previous year.

Arabica coffee has its origin in Ethiopia. Ethiopia is the largest coffee producer in Africa and the fifth-largest producer in the world.

Ethiopians are among the largest coffee consumers in Africa, and the coffee consumption trend in Ethiopia is growing at a steady pace. Almost 50% of the country’s coffee production is consumed domestically.

Ethiopia Coffee Industry Segmentation

Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain coffee species. Roasted beans are ground and then brewed with near-boiling water to produce the beverage known as coffee. The Ethiopian coffee market is segmented by product type and distribution channel. On the basis of product type, the market is segmented into whole-bean, ground coffee, and instant coffee. On the basis of the distribution channel, the market is segmented into on-trade and off-trade. Off-trade is further classified into supermarkets/hypermarkets, convenience stores, and other off-trade channels. The report offers the market size and forecasts in value (USD million) for all the above segments.

Product Type
Ground Coffee
Instant Coffee
Distribution Channel
On-trade (Cafes and Foodservice)
Convenience Stores
Other Off-trade Channels

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Ethiopia Coffee Market Trends

This section covers the major market trends shaping the Ethiopia Coffee Market according to our research experts:

Strong Production Base in the Country

In Ethiopia, Arabica coffee is mostly grown in the forest areas of the southwestern highlands of the Kaffa and Buno districts. In Ethiopia, coffee is cultivated across around 400,000 hectares of area. The country produces almost 200,000 metric ton of coffee every year. 95% of the coffee is produced in the forest area and is claimed to be organic. A major share of Ethiopian coffee is exported in green coffee beans form to the rest of the world. This factor gives a key advantage to Ethiopian coffee in the international market. According to the United States Department of Agriculture, the production of coffee increased from 7055 thousand 60 kg bags in 2017 to 7620 thousand 60 kg bags in 2021.

Ethiopia Coffee Market trends

Rising Demand for Instant Coffee

The instant coffee segment held a significant market share due to its convenience as it is easily prepared compared to fresh coffee, thereby driving the instant coffee market. The haste lifestyles of consumers are aiding the market for convenient food. The distribution of the product is equipped by the majority of the retail channels. The instant coffee market is highly fragmented due to the presence of global players. Companies are competing with other companies through joint ventures, partnerships, and product launches to stay in the market. For instance, Nescafé Gold sachets were introduced in June 2019. The popular instant coffee brands in the region include Nescafe, Lavazza, Moccona, and Robert Timms. Online retailing has remained a minor distribution channel for instant coffee in Ethiopia for the past few years. However, it is likely to gain prominence in the market during the forecast period due to its convenience for consumers.

Ethiopia Coffee Market share

Ethiopia Coffee Industry Overview

The Ethiopian coffee market is fragmented and highly competitive, with the presence of local and global players operating across the country. Thus, in order to sustain their positions in the market, the active players are bringing innovations in packaging and product offerings to cater
to consumers' increasing demand for coffee. Some of the key players in the Ethiopian coffee market are Cooper's Cask Coffee Company, Starbucks Corporation, Nestle SA, Klatch Coffee, and Kalbe International. Key players are now focusing on social media platforms and online marketing and branding of their products to attract more customers. Also, major players such as Starbucks have mainly focused on partnerships and collaborations with other emerging players and new product launches.

Ethiopia Coffee Market Leaders

  1. Starbucks Corporation

  2. Cooper's Cask Coffee Company

  3. Klatch Coffee

  4. Nestle SA

  5. Kalbe International

*Disclaimer: Major Players sorted in no particular order

Starbucks Corporation, Cooper's Cask Coffee Company, Klatch Coffee, Nestle SA, Kalbe International

Ethiopia Coffee Market News

In March 2022, Death Wish Water Co. launched a new limited edition blend called "Run the day" that combines Ethiopian Yirgacheffe coffee beans with Indian Robusta to create first-of-its-kind bold, complex, medium roast coffee, which will support the Girls Gotta Run Foundation, a non-profit organization that empowers Ethiopian girls through the sport of running.

In January 2022, Ethiopia sold more than 11,200 bags of coffee online during the Ethiopian Coffee Brands launch on China's largest e-commerce platform, Alibaba (Tmall Global), as part of a joint effort with the United Nations Economic Commission for Africa (ECA) and the Ethiopian government.

In June 2021, Ethiopia launched a state-of-the-art coffee training center to deliver modular and practice-based training that aims to enhance the sustainability and value chain in the country's coffee sector located on the premises of the Ethiopian Coffee and Tea Authority (ECTA) in Addis Ababa. The center provides training programs on the fundamentals of coffee processing, drying and storage, trade, and maintenance of equipment.

Ethiopia Coffee Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Product Type

      1. 5.1.1 Whole-bean

      2. 5.1.2 Ground Coffee

      3. 5.1.3 Instant Coffee

    2. 5.2 Distribution Channel

      1. 5.2.1 On-trade (Cafes and Foodservice)

      2. 5.2.2 Off-trade

        1. Supermarkets/Hypermarkets

        2. Convenience Stores

        3. Other Off-trade Channels


    1. 6.1 Market Share Analysis

    2. 6.2 Most Adopted Strategies

    3. 6.3 Company Profiles

      1. 6.3.1 Cooper's Cask Coffee Company

      2. 6.3.2 Starbucks Corporation

      3. 6.3.3 Nestlé SA

      4. 6.3.4 Kalbe International

      5. 6.3.5 Forest Coffee

      6. 6.3.6 Ethiopian Yirgacheffe Coffee

      7. 6.3.7 Klatch Coffee

      8. 6.3.8 Square One Coffee

      9. 6.3.9 Original Beans

      10. 6.3.10 Medd Cafe and Roastery

    4. *List Not Exhaustive


**Subject to Availability
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Ethiopia Coffee Market Research FAQs

The Ethiopia Coffee Market is studied from 2018 - 2028.

The Ethiopia Coffee Market is growing at a CAGR of 5.67% over the next 5 years.

Starbucks Corporation, Cooper's Cask Coffee Company, Klatch Coffee, Nestle SA, Kalbe International are the major companies operating in Ethiopia Coffee Market.

Ethiopia Coffee Industry Report

Statistics for the 2023 Ethiopia Coffee market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Ethiopia Coffee analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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