Global Market Report: Coffee
Summary
This report analyzes the global coffee market, focusing on the growth and impact of voluntary sustainability standards (VSSs). It examines production and consumption trends, the role of Low Human Development Countries (LHDCs), and the risks posed by price volatility and climate change to the sector's sustainability goals.
Key insights
- The global coffee sector is a massive economic driver, with a retail market value of USD 83 billion in 2017, supporting 125 million jobs and 12.5 million farms. In 2017, 70 per cent of total production was exported, valued at USD 19 billion.
- Voluntary sustainability standards (VSSs) have seen significant growth, with VSS-compliant coffee experiencing a compound annual growth rate (CAGR) of approximately 24 per cent from 2008 to 2016. By 2016, VSS-compliant coffee accounted for at least 34 per cent of total production, valued at USD 7.2 billion, with 4C, UTZ Certified, Rainforest Alliance, Fairtrade, and Organic being the primary standards.
- There is a supply-demand imbalance for sustainable coffee; while production is growing, demand is concentrated in traditional markets like the United States and Europe, leaving it lower than supply. However, growth is expected from non-traditional importers and emerging economies, including China, Indonesia, and Brazil.
- Low Human Development Countries (LHDCs) represent a significant opportunity for sustainable expansion. In 2016, 22 of 82 coffee-growing countries were LHDCs, and 11 of these produced VSS-compliant coffee. VSS-compliant production in LHDCs grew at a CAGR of about 19 per cent between 2008 and 2016, with Ethiopia and Uganda identified as having the most potential for growth.
- The coffee sector faces critical risks from climate change and economic instability. Unpredictable weather patterns and pests like coffee rust threaten yields, while long-term price declines and volatility make it difficult for farmers to invest, potentially disincentivizing them from remaining in the sector.
- Major roasting companies are implementing sustainable sourcing commitments. In 2016, the 10 largest roasters sourced 3.31 million metric tonnes of coffee, of which 1.14 million metric tonnes were VSS- or corporate-initiative-compliant. Companies like Starbucks and Keurig Green Mountain set goals for 100% sustainable sourcing by 2020.
Cite the original document
- APA
- Voora, V., Bermúdez, S., Larrea, C., & Baliño, S. (2019). Global Market Report: Coffee. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/ssi-global-market-report-coffee.pdf
- Chicago
- Voora, Vivek, Steffany Bermúdez, Cristina Larrea, and Sofia Baliño. Global Market Report: Coffee. International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/publications/ssi-global-market-report-coffee.pdf.
- Wikipedia
- {{cite report |last1=Voora |first1=Vivek |last2=Bermúdez |first2=Steffany |last3=Larrea |first3=Cristina |last4=Baliño |first4=Sofia |title=Global Market Report: Coffee |publisher=International Institute for Sustainable Development |date=2019 |url=https://www.iisd.org/system/files/publications/ssi-global-market-report-coffee.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{voora2019global, author = {Voora, Vivek and Bermúdez, Steffany and Larrea, Cristina and Baliño, Sofia}, title = {{Global Market Report: Coffee}}, institution = {International Institute for Sustainable Development}, year = {2019}, url = {https://www.iisd.org/system/files/publications/ssi-global-market-report-coffee.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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