Coffee Bean – Procurement Best Practices & Sourcing Strategies

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Coffee Bean Market Global Size:

ELINT Market Research’s procurement analysis says that the global coffee bean market production reached 172,750 thousand 60 kg bags in 2022-2023 and is expected to rise at 4-5 percent CAGR by volume. Also, in the previous year’s 2021-2022, the size was calculated at 166,174 thousand bags. This upsurge happened because coffee has been considered one of the most favored hot or cold beverages in the whole world. Further, in 2023, the two major types of coffee beans emerged as dominant segments and maintained fundamental price dynamics such as arabica at $5.7/Kg cost and robusta at $2.16/Kg expense.

Additionally, coffee bean cultivation and exporting activities have been encountered in varied countries that possess significant percent shares. In this context, in 2022-30, key nations that emerged as coffee exporters include Brazil at 27.0 percent, Vietnam at 20.0 percent, and Colombia at 9.0 percent.

Moreover, when these figures are compared to the earlier years 2020-2021 period, Brazil again dominated the global coffee market by holding 27.5 percent stakes. On the flip side, Vietnam and Colombia owned stakes of 19 percent and 13.5 percent, respectively. These trade share numbers highlight the highly competitive nature of the worldwide coffee sector, which can change depending on weather variations, harvest rates, and consumer demands.

Market Definition:

Two types of coffee beans are primarily utilized by manufacturing businesses to derive coffee. Coffee goods comprise multiple health-related benefits due to the presence of anti-oxidant and caffeine properties that help in reducing inflammation, preventing particular diseases, and enhancing energy and mindset.

Coffee Bean Market Drivers:

1. Rising Popularity of Coffee –

Coffee holds the highest popularity among all age groups, which causes coffee manufacturing firms to employ different technologies to produce coffee. Hence, the optimistic demand for coffee from the food and beverage industry drives growth in the international coffee bean market.

2. Expansion in Online E-Commerce Platforms –

Expansion in online e-commerce platforms and stores made buying coffee efficient for people since they don’t need to go out of their homes to purchase coffee. Thus, it is another major driving factor for the global coffee bean industry.

Coffee Bean Market Challenges:

1. Adverse Weather Conditions –

Coffee bean cultivation mainly needs favorable weather conditions. Thus, in case of adverse weather situations, coffee manufacturing companies can face difficulties.

2. Shifts in Market Dynamics-

Shifts in market dynamics due to key factors like weather conditions, economic matters, and raw material price volatility can pose significant challenges in the global coffee bean industry.

Coffee Bean Market Opportunities:

1. Maximum Demands from Asian Countries –

This procurement market research analysis states that during the last five years, coffee demands have been witnessed in primary regions of Asia Pacific like India, China, etc., which causes great opportunities for the global coffee bean market.

2. Adoption of Specialty Coffee Products –

People are adopting specialty coffee goods like espresso, americano, long black, cappuccino, flat white, and many more causing great opportunities for coffee market players.

Coffee Bean Market Segmentation:

1. Various Types of Cofee Beans –

Prominent types of coffee beans include arabica, robusta, and others, which help provide unique flavor profiles and quotes to coffee goods. Thus, it is an essential segmentation factor for the global coffee bean market.

2. Major End User Sectors –

Pharmaceuticals, food, beverage, personal care goods, cosmetics, etc. are known as major end-user sectors for coffee bean products.

Regional Outlook of the Coffee Bean Market:

This report witnessed notable countries that execute the production of coffee beans by type and hold significant shares. These nations include Brazil with 63.6 percent total production, among which arabica and robusta combined accounted for 36.4 percent. Further, Vietnam calculated at 3.4 percent stakes in which arabica and robusta combined were considered for 96.6 percent. Moreover, when it comes to coffee importing activities, the major countries with their percent stakes include the European Union at 39.9%, the US at 22.2%, Japan at 6.0%, and Switzerland at 3.0%. Additionally, exporting nations that are fulfilling worldwide coffee bean goods demands include Brazil at 29 percent, Switzerland at 9.2 percent, and Germany at 8.4 percent.

Moreover, the best price lock months for Asia are April–May, and for LATAM are March–April. Thus, these purchasers operating in these provinces can choose these time frames to buy coffee bean goods and mitigate the risk of price shifts.

Engagement Models in the Coffee Bean Market:

The global coffee bean procurement intelligence market comprises a pivotal contract model that stays for 2–4 years and helps stakeholders streamline trading activities and handle price risk effectively. Thus, in this model, buyers and suppliers get predictability, security, long-term partnerships, and profitability. Moreover, benchmark price FOB (Free on Board) is included in contract models that help worldwide businesses bargain pricing structures. Also, this benchmark ensures secure and timely delivery of coffee products. Therefore, with all factors considered, engagement models in the worldwide coffee bean industry are vital in forming commercial partnerships, controlling hazards, and guaranteeing the seamless operation of the coffee supply network.

Key Suppliers in the Coffee Bean Market:

Leading companies that hold a large proportion of the global coffee beans market include Nestlé, Starbucks Corporation, Tchibo (Matthew Algie & Company Ltd.), The Kraft Heinz Company, Jacobs Douwe Egberts B.V. These companies are progressively concentrating on introducing and supplying innovative tastes, appearances, and aromas in coffee products to achieve new heights in the coffee market and meet diverse consumer demands.