The coffee market - Brazil

Coffee consumption originated in the 15th century in Yemen, spreading to the Arab-Ottoman cultural area and quickly to Europe. The second most traded commodity in the world after oil, coffee is also the most consumed beverage in the world after water. Global consumption was estimated at 170.3 million 60kg bags by the International Coffee Organization, a growth of 3.3% compared to 2022 and corresponding to more than 2 billion cups or cups consumed per day (BBC). Brazil, the United States, Japan, Western and Northern European countries and the United States are the largest consumers of coffee, while most of the world's production is in Brazil, Vietnam, Colombia and Indonesia, in the form of small farms of less than 5 hectares. The coffee market has undergone a major transformation with the increase in consumption in the form of individual doses (capsules and shots) to the detriment of ground or bean coffee sold in supermarkets. This trend has paved the way for many innovations in response to an increasing demand for coffee in terms of origin, production methods and taste According to the Brazilian Coffee Industry Association (ABIC),Brazil ranks second in the world market of consumers of the drink and the world's largest producer, corresponding to one third of world production. In addition, the country represents 13% of the world consumption of the product with 21.3 million bags per year. A result that is not surprising, since 95% of the population consumes this product. With an estimated growth of 3.5% per year between 2019 and 2021, Brazil has a great reputation internationally, being the largest supplier of unroasted coffee to Germany, the United States and Italy, and the largest supplier of roasted coffee to the United States, Argentina and Japan. The fastest growing segment is currently the premium coffee market (15% per year), which corresponds to somewhere between 5% and 10% of total consumption in the sector (Euromonitor consultancy).