Coffee is big business, and like all big business, it is a driver for economic growth and it affects communities worldwide. Millions of workers are involved in the journey of the bean to the cup, and around the world, coffee lovers enjoy more than 2 billion cups every day!
From farmers to truck drivers, shipping companies, packaging manufacturers, cafe owners, coffee machine manufacturers and baristas, all the way to the coffee connoisseur at home who chooses to have their beans delivered to the door by a local courier, market dynamics play a role in the global supply of coffee.
Recent research by Mordor Intelligence indicated that the size of the global coffee market is set to exceed 166.39 Billion USD dollars by 2029, up from a rate of 132.13 billion USD in 2024. This indicates that the sector is growing at a Compound Annual Growth Rate (CAGR) of 4.72% – which is significant growth.
Here, we will break down a few elements that can affect global coffee market trends and discuss how these points might affect coffee supply and prices. We certainly don’t want it to dry up, so let’s get educated!
Supply Chain Disruptions
When supply chains get disrupted, costs rise. Coffee is now grown and exported from around 70 countries worldwide, so the potential for disruptions at various stages in the supply chain is huge. The increase in volatile weather in recent times can affect the coffee industry; political unrest can present difficulties for farmers and workers at processing facilities, and transport lines and storage facilities in emerging markets may run into difficulties as they work at the inevitable kinks of a burgeoning trade in a new region.
To avoid being affected by supply chain disruptions, it pays to choose your bean delivery from a company that knows the ropes, has been around for many years and has a hand in the entire process from cultivation to the cup. This way, you can be certain they have a robust supply chain and contingencies in place for when the unexpected occurs.
Volatility in Pricing
In the global coffee market, pricing can fluctuate for a number of reasons. The simple combination of supply and demand will dictate costs to some degree, and as demand seems to show no signs of slowing down, it pays for suppliers to ensure they have robust relationships with growers and processing facilities so that they are cushioned with firm fixed-term contracts. Ideally, your supplier should have people on the ground at every point in the supply chain to monitor how market trends are affected. Price volatility can be driven by currency exchange rates, changes in demand, weather conditions, and fuel and shipping costs.
Advancing Technology
If your coffee supplier has their finger on the pulse of emerging industry technology, you may find their processes are more streamlined. Alongside experience, an investment in every stage of production, starting at the cultivation point, and moving through robust supply chains, suppliers that utilise the most current technology are likely to be able to speed up processes and reduce costs, which should be reflected in pricing.
This may mean that prices stay the same while other companies are raising theirs, or it could mean that while other factors may be driving prices up, your supplier only needs to apply an incremental uptick while increasing the service value they are able to offer you.
The Global Economy
The overall state of the global economy affects the supply of coffee. The economic impact on local, national and export communities can be driven by taxation structures, particularly tariffs related to imports and exports. Trade relationships between countries are sometimes affected by concerns about labour practices, and it pays to avoid these kinds of concerns by looking for a supplier that understands the importance of fair trade initiatives at the ground level.
Millions of people are employed by the coffee industry around the world and the global economy becomes more robust if workers at every level are fairly treated and properly paid. Economic downturns or growth spurts in major coffee-consuming regions influence overall demand and purchasing power, impacting suppliers’ pricing and, ultimately, what you will pay at your local cafe for your flat white.
Choose an Established Supplier
Whether you are looking for 30 kilos a week for a busy cafe or you just want a reliable blend for home, the key to satisfaction in your cup is to choose a coffee supplier that knows the ropes. At Segafredo Zanneti, we are the only coffee company in the world that ensures consistent quality and supply by controlling the entire journey from plant to cup. We lead processes at plantations in established coffee-growing regions, and our roasting facilities are equipped with the latest technology to consistently produce the very best roasts for our valued customers.
Contact Us Now
If you are looking for a perfectly crafted roast from a company that cares about fair trade and understands how to ride global market trends and continue to bring you an exceptional product on time at an affordable price point, shop the range now, or get in touch to discuss commercial supply for your hospitality business.
