Best Brazilian coffee beans 2022
Brazilian coffee beans: In 2019, the global coffee market was worth $ 24.39 billion. Experts suggest that this share would rise to US$ 30.222 billion by 2025. One of the main factors behind this is the rising demand for coffee among the young population. This trend is significantly visible in India, the Philippines, and many other countries.
Further, there has been growing awareness among people about the health benefits of coffee beans. As a result, its consumption as a supplementary diet has increased. Consequently, this has added to the growth of this market. Another important factor in its growth is the expansion of distribution channels.
Distribution of Global Coffee Market
Based on the types of coffee beans, it can have two segments of Arabica and Robusta. Among the two qualities of coffee beans, Arabica has much more market share. This is prominent because of the increased popularity of specialty cafes. Among the consumers, Europe has the highest percentage. This is because of the dominance of coffee in Spain, Germany, and similar countries.
Based on end-users, it can have three segments. These are food and beverages, pharmaceuticals, and personal care. Further, based on channels of distribution, it can have segments such as online and offline channels. Based on Geography, the global coffee market has a wide reach. These are the USA, Brazil, and India to name a few.
Brazilian coffee beans exports
The United States has seen significant growth in the import of Arabica coffee. Further, its consumption in Brazil has also increased. The rise in the demand for coffee in these countries has also led to an increase in the number of independent specialty roasters. Being the premium quality of bean, Arabica has a growing demand in the specialty roaster market.
Impact of climate change on coffee production
Climate change has led to an increase in global temperature. This has severely affected the growth of coffee. This is because of the requirement of a mild temperature for coffee production. The result is a decreased production and increased price for coffee. Also, this impacts the quality of coffee grown.
The coffee trees grow ideally within a temperature of 18-21degree Celsius. Further, perfect rain is also important. If these conditions are not present, the fruits, as well as plants, may not survive. The drought in Indonesia and coffee leaf rust in South America is an example of such adverse impact of climate change.
Impact of technology on Coffee production
One of the methods farmers adopt to save the fruits from Climate change is the development of a new variety of coffee beans. These are resistant to climate change. The Arabica beans are very much susceptible to the coffee leaf fungus. If a leaf gets affected by this fungus, it may affect the entire tree. Further, even the entire farm may get affected. The fungus severely damages the plant and beans. In this situation, the beans that are resistant to coffee leaf rust can be very helpful.
The introduction of Artificial Intelligence in coffee production is yet another great use of technology. It helps farmers in the analysis of soil fertility. As a result, they can estimate the yield of plants in that soil.
Problems in the coffee-producing sector
Coffee is labor-intensive farming. Further, around 70% of the world’s coffee comes from small farmers. On the other hand, there are very few large companies that control the world for coffee products. As a result, they often manipulate the coffee industry to their advantage.
The large roasters often buy a significant amount of coffee beans from the producers. While the growers are unorganized and less informed, these roasters generally take advantage of the lower bargaining power of the growers.
Brazil focuses on low-cost production. As a result, the prices of this coffee are low. Hence, in coffee bean exports Brazil has a comparatively low share in terms of value. The company faces competition from China, Vietnam, and other similar countries. In coffee bean exports Brazil faces the biggest competition from Vietnam. This country has increasingly grown its production of Robusta in recent years. This has also brought Vietnam as the second-largest exporter of Robusta coffee beans.
Brazilian coffee has successfully managed to remain the largest producer and exporter of coffee. However, it needs to pay attention to the quality aspect of what is being produced. Further, challenges like climate change and awareness among the growers should also be addressed.
