Coffee Market in Ethiopia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Ethiopian Coffee Market Report Covers Coffee Production in Ethiopia and 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 in value terms in USD for all the abovementioned segments.

Ethiopian Coffee Market Size

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Ethiopia Coffee Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 5.67 %
Market Concentration Low

Major Players

Ethiopia Coffee Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Ethiopian Coffee Market Analysis

Over the next few years, the Ethiopian Coffee Market is expected to register a CAGR of 5.67 percent.

Arabica coffee has its origins in Ethiopia. Ethiopia is one of the largest coffee producers in Africa and the fifth-largest producer in the world. According to the USDA Foreign Agricultural Service, more than 15 million smallholder farmers and other industry participants depend on coffee businesses across the region for their livelihoods, which is Ethiopia's primary export product. In Ethiopia, consumers belonging to the medium-income group are more inclined towards ground coffee, due to its strong aroma and the availability of quality brands. This trend has led to ground coffee becoming the most consumed variety, followed by instant coffee. The convenient availability of this product leads to its vast consumption by people belonging to all demographic groups. Convenience is the foremost factor driving the instant coffee segment, as it can be easily prepared. The fast-moving lifestyle of most consumers is aiding the market for convenient food and beverages. The growing preference for healthy beverages lures amateur coffee drinkers to opt for instant coffee.

Furthermore, in 2021, the Ethiopian Coffee and Tea Authority announced its plans to establish the Ethiopian Coffee Association. The authority had signed a joint agreement with several regional Ethiopian coffee associations. Once established, the Ethiopian Coffee Association's goal is to promote Ethiopian coffee consumption both domestically and globally, as well as to represent all stakeholders in the Ethiopian coffee supply chain in order to boost the market. Health consciousness is also driving the ground coffee market, as consumers prefer green ground coffee because of its chlorogenic acid content, which slows down the absorption of carbohydrates and helps break down fat. Such factors are driving the Ethiopian coffee market.

Ethiopian Coffee Market Trends

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. According to the USDA Foreign Agricultural Service, Ethiopia, coffee was cultivated in around 540,000 hectares of the area during 2020-21. 95% of the coffee is produced in the Ethiopian forest area and is claimed to be organic. According to the United States Department of Agriculture, for the year 2022-23 (Oct-Sep), Ethiopia is expected to produce 8.25 million 60-kilogram bags of coffee (495,000 MT). Forecasts indicate that exports will hit a record 4.72 million bags (280,560 MT). During the year 2021/22, exports totaled 4.70 million bags (282,000 MT). The ample production of coffee leads to a reduction in the price of the commodity, in turn driving the market.

Additionally, a major share of Ethiopian coffee is exported in green coffee bean form to the rest of the world. This factor gives a key advantage to Ethiopian coffee in the international market as well. According to the United States Department of Agriculture, the production of coffee increased from 7,055 thousand 60-kg bags in 2017 to 7,620 thousand 60-kg bags in 2021. Such factors are driving the coffee market in Ethiopia.

Ethiopia Coffee Market: Production Volume of Coffee, in Thousand Tons, Ethiopia, 2018-19 to 2021-22

Increased Internet Penetration Driving the Market

The Ethiopian coffee market is booming with the increasing penetration of the internet. According to the International Telecommunication Union (ITU), approximately 25% of households will have access to the internet in the year 2021. The rising domestic demand for coffee among younger individuals, along with the demand for flavored and blended instant coffee, has been driving the coffee market across the region. The increased internet penetration is influencing coffee consumption across the country. The customers are exposed to various campaigns, advertisements, trends, etc., which affect their buying decisions. Additionally, the development in e-commerce also encourages customers to purchase coffee with convenience, and discounts in turn drive the market. According to Ethio Telecom, social media accounted for 80-90% of internet usage in Ethiopia, while the use of digital gateways was still in its infancy and growing gradually. Social media has been one of the crucial platforms propelling the growth of the market studied.

Ethiopia Coffee Market: Number of Social Media Users, in 1,000s, By Platform, Ethiopia, 2022

Ethiopian Coffee Industry Overview

The Ethiopian coffee market is fragmented and highly competitive, with local and global players operating across the country. To maintain their market positions, active players are introducing innovations in packaging and product offerings to meet consumers' growing demand for coffee. Some of the key players in the Ethiopian coffee market are Klatch Coffee, Nestle SA, Enjoy Better Coffee (Mokate), Wild Coffee Company, and Hadero Coffee. To attract more customers, key players are now focusing on social media platforms, online marketing, and product branding. Also, major players such as Starbucks have mainly focused on partnerships and collaborations with other emerging players and new product launches.

Ethiopian Coffee Market Leaders

  1. Klatch Coffee

  2. Nestle SA

  3. Enjoy Better Coffee (Mokate)

  4. Wild Coffee Company

  5. Hadero Coffee

*Disclaimer: Major Players sorted in no particular order

Ethiopia Coffee Market Concentration
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Ethiopian Coffee Market News

  • August 2022: World Coffee Research (WCR) announced its plans to work with Ethiopia. In order to support their efforts to provide farmers with better varieties of coffee, WCR inked an agreement (MOU) with the Ethiopian Institute of Agricultural Research (EIAR) and the Jimma Agricultural Research Center (JARC).
  • July 2022: A 15-year coffee development strategy was developed by the Ethiopian Coffee and Tea Authority (ECTA) with the goal of maximizing the nation's coffee production potential. The plan was created in cooperation with the Ethiopian Institute of Agriculture Research (EIAR) and the international NGO TechnoServe.
  • 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. The center is located on the premises of the Ethiopian Coffee and Tea Authority (ECTA) in Addis Ababa. The center has classes that teach the basics of how to process, dry, and store coffee, as well as how to trade and take care of equipment.

Ethiopian 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. Online Retail Stores

        4. 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 Belco Coffee

      2. 6.3.2 Ya Coffee

      3. 6.3.3 Nestle SA

      4. 6.3.4 Kalbe International

      5. 6.3.5 Square One Coffee

      6. 6.3.6 Klatch Coffee

      7. 6.3.7 Enjoy Better Coffee (Mokate)

      8. 6.3.8 Hadero Coffee

      9. 6.3.9 Wild Coffee Company

      10. 6.3.10 Oromia Coffee Farmers Cooperative Union

    4. *List Not Exhaustive

**Subject to Availability
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Ethiopian Coffee Industry Segmentation

Coffee is a brewed drink prepared from roasted coffee beans, which are 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. Based on product type, the market is segmented into whole-bean, ground coffee, and instant coffee. Based on the distribution channel, the market is segmented into on-trade and off-trade. Off-trade is further classified into supermarkets and hypermarkets, convenience stores, online retail stores, and other off-trade channels. The market sizing has been done in value terms in USD for all the abovementioned segments.

Product Type
Ground Coffee
Instant Coffee
Distribution Channel
On-trade (Cafes and Foodservice)
Convenience Stores
Online Retail Stores
Other Off-trade Channels
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Ethiopian Coffee Market Research FAQs

The Ethiopia Coffee Market is projected to register a CAGR of 5.67% during the forecast period (2024-2029)

Klatch Coffee, Nestle SA, Enjoy Better Coffee (Mokate), Wild Coffee Company and Hadero Coffee are the major companies operating in the Ethiopia Coffee Market.

The report covers the Ethiopia Coffee Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ethiopia Coffee Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Technology is impacting the Ethiopian Coffee Industry through a) Blockchain technology b) Improved market access for farmers c) Transparent pricing models

Coffee in Ethiopia Industry Report

The Ethiopia coffee industry, deeply embedded within the nation’s culture, is crucial to the global coffee sector, primarily due to its historical status as the origin of coffee. Offering unique Arabica varieties such as Sidamo, Yirgacheffe, and Harrar, Ethiopia is celebrated for its specialty coffees that feature distinct floral, fruity, and wine-like notes. These beans not only bolster the national economy but also preserve Ethiopia's rich coffee traditions. The global demand for gourmet coffee enhances the appeal of Ethiopian coffee, marked by unique flavors and sustainable practices. Consumer appreciation for high-quality specialty coffee aligns well with coffee production in Ethiopia, which is facing the dual challenges of infrastructure limitations and climate change. Despite these hurdles, opportunities for market growth and diversification are supported by governmental efforts to improve coffee quality and expand market reach. Overall, Ethiopia's coffee market continues to prosper due to its profound historical relevance, diverse coffee offerings, and cultural significance, maintaining its esteemed position on the global platform. For a detailed forecast and market share analysis of the Ethiopia coffee industry, extensive industry reports are available for further insights. Get a sample of this industry analysis as a free report PDF download.

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Coffee Market in Ethiopia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)