A global overview of the wholesale coffee bean market

The wholesale coffee bean market is always active and profitable, which is why many coffee exporting countries target it. The price of wholesale coffee beans is heavily influenced by modest variations in supply, consumption, or external factors such as the environment, economics, and politics, as it is a price-sensitive commodity.

Definition of wholesale coffee beans

Wholesale coffee beans are those that are sold in large volume to exporters, corporations, distributors, resellers, and occasionally bulk buyers for a business or café.

The setting of wholesale coffee beans market around the world

• Worldwide coffee prices

The price of Arabica coffee has risen steadily over the last three MYs, but the price of Robusta coffee fell in MY 2019/20 before rising in MY 2020/21.

• Worldwide coffee production

South America produces 48.8% of the world’s coffee, with Brazil and Colombia accounting for the majority of it. Asia, which is dominated by Vietnam and Indonesia, came in second in terms of output.

Because of various climate-related shocks in Brazil and the tighter lockdown of the Covid-19 pandemic in Asia, the coffee output is expected to decline dramatically in MY 2021/22, while coffee prices are expected to continue to rise, creating concerns about rising logistics costs.

• Worldwide coffee consumption

With the lifting of pandemic limitations and the expectation of further economic recovery, global coffee consumption is expected to rise by 1.9 percent to 10.02 million tons in MY 2020/21.

• Worldwide coffee export situation

High coffee prices provide wholesale coffee bean suppliers with an opportunity to increase their revenues. Despite the Covid-19 outbreak delaying shipment, global coffee exports have remained constant over the last three MYs, averaging around 8 million tons every MY.

Top of the world’s largest wholesale coffee beans countries

Europe is the world’s greatest exporter of finished coffee, accounting for 35% of total exports, whereas South America and Asia are the world’s two largest coffee-growing regions.

• Brazilian wholesale coffee bean suppliers: With a $4.6 billion export value, Brazil has been the world’s largest coffee producing country for about 200 years. Brazilian coffee accounted for 80% of the market at one point in the past. Brazil now produces around a third of the world’s coffee.
• Vietnamese wholesale coffee bean suppliers: Due to its advantageous natural and economic conditions, Vietnam is the world’s second-largest coffee exporter after Brazil, with the world’s largest Robusta output.
• Colombian wholesale coffee bean suppliers: Coffee was first grown as a commercial crop in Colombia in 1723. Coffee accounted for over half of Colombia’s exports by 1912. Colombia’s coffee exports are currently valued at $2.58 billion.
• German and Swiss wholesale coffee bean suppliers: Germany and Switzerland are two markets with substantial export volumes despite not producing coffee. Because they buy green coffee beans from developing countries, roast them, and transport them all over the world. Roasting and flavoring coffee necessitates a significant amount of electricity and water, which are generally in short supply in developing nations.

The reason why wholesale coffee beans are grown in Southeast Asia

Southeast Asia’s climate and terrain are suitable for growing coffee. Furthermore, the region’s history, coffee culture, and competence in coffee production have all contributed to the region’s growing coffee business.

Natural conditions

• The tropical environment is hot and humid, with temperatures exceeding 24°C, plentiful light, humid heat over 80%, and heavy rainfall of 1500-2000mm, making it ideal for the development of tropical industrial crops like coffee.
• The fertile basalt red soil in volcanically damaged locations, especially in the hilly feralit soil, is ideal for the development of huge industrial crop areas.
• Many river systems with large water supplies, such as the Mekong River, as well as rich subsurface water, aid in the water supply for industrial agriculture areas.

Social and economic conditions

• Southeast Asia has a vast population and a skilled workforce that has grown tropical industrial crops before. As a result, coffee has become a valuable export commodity for Southeast Asian countries, accounting for 6.2 billion USD in exports, or 16 percent of global coffee output.

Famous types of wholesale coffee beans

• Arabica: Arabica is native to Ethiopia’s southwestern highlands and is the world’s most popular coffee, accounting for 60 percent or more of global production. Arabica coffee is currently farmed in nations such as Brazil, Colombia, Mexico, Peru, and India, with Brazil being the leading producer.
• Robusta: Robusta coffee is manufactured from the Coffea Canephora plant’s beans. Robusta coffee accounts for up to 90% of coffee production in Vietnam, leading the country to dominate the global coffee export market. Robusta coffee is mostly farmed in the Central Highlands, specifically in the Dak Lak, Dak Nong, and Kon Tum regions.

Factors affecting wholesale coffee beans suppliers

Impacts from the environment and the economy can have a considerable impact on output and wholesale coffee bean pricing.

Influence of natural conditions

Coffee trees require favorable weather conditions in order to produce high-quality cherries. Only a few weather variations can have a long-term impact on coffee supply, especially in key markets like Brazil, Vietnam, and Colombia.

Thousands of coffee trees were damaged by frost in Brazil last July, and the world price of coffee is expected to rise in the next 2-3 market years.

Influence of socio-economic situation 

In the last two years, the Covid-19 epidemic has had a significant impact on the economy’s trade flows. Many countries’ closures to combat the outbreak have made transporting bulk coffee beans to other countries extremely difficult and costly.

Conclusion