GLOBAL MARKET REPORT

The report examines the global coffee market, highlighting the vulnerability of smallholder farmers to climate change and price volatility. It analyzes the impact of voluntary sustainability standards (VSSs), noting that while VSS-compliant production grew significantly between 2008 and 2019, it has recently faced a decline due to oversupply and a shift toward corporate sustainability programs. The document argues that sustaining the sector requires internalizing environmental costs, increasing demand for sustainable coffee in producing countries, and implementing living income reference prices to ensure fair compensation for farmers.

• Global coffee production increased from approximately 8.5 million tonnes in 2008 to 10.7 million tonnes in 2020, with 80% of production exported in 2021/2022.
• Climate change poses a severe threat to Arabica coffee; models suggest that highly and moderately suitable growing environments for Arabica could decrease by 50% and 30% respectively by 2050.
• The coffee sector is dominated by smallholder farmers, with 95% of farms spanning 5 hectares or less and 84% spanning less than 2 hectares.
• VSS-compliant coffee production grew at a compound annual growth rate (CAGR) of 13% to 19% between 2008 and 2019, representing 21% to 45% of total global production in 2019.
• Recent trends show a contraction in VSS-compliant production, with the CAGR dropping to between 1% and 7% from 2014 to 2019, largely due to a decline in 4C coffee production.
• There is a significant power asymmetry in the value chain; while input costs rose 8% annually between 2015 and 2020, prices for farmers advanced only 1% in the same period.
• VSSs can provide higher prices; farmers certified under Fairtrade and Organic may receive prices 20%–30% higher than non-certified farmers over a year.
• The report predicts VSS-compliant production will rebound to almost 2 million tonnes by 2025, though estimates range from 950,000 to 3.31 million tonnes.
• Regenerative practices and agroforestry offer mitigation potential, such as the use of the UN REDD+ programme in Peru's Alto Mayo Protected Forest to generate carbon credit revenues.

APA

Bermudez, S., Voora, V., & Larrea, C. (2022). GLOBAL MARKET REPORT. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-09/2022-global-market-report-coffee.pdf

Chicago

Bermudez, Steffany, Vivek Voora, and Cristina Larrea. GLOBAL MARKET REPORT. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-09/2022-global-market-report-coffee.pdf.

Wikipedia

{{cite report |last1=Bermudez |first1=Steffany |last2=Voora |first2=Vivek |last3=Larrea |first3=Cristina |title=GLOBAL MARKET REPORT |publisher=International Institute for Sustainable Development |date=September 2022 |url=https://www.iisd.org/system/files/2022-09/2022-global-market-report-coffee.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bermudez2022global, author = {Bermudez, Steffany and Voora, Vivek and Larrea, Cristina}, title = {{GLOBAL MARKET REPORT}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = sep, url = {https://www.iisd.org/system/files/2022-09/2022-global-market-report-coffee.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }