GLOBAL COFFEE MARKET
Table of Contents
Global Coffee Production and Consumption
Coffee traded on the world market is usually a combination of roasted beans from two plants: Arabica and Robusta. The main difference lies in flavor and caffeine content. Arabica beans, more expensive on the global market, have a milder taste and lower caffeine content compared to Robusta beans.
Subtropical and equatorial regions provide ideal conditions for coffee growth. Therefore, leading global producers are in South America, Africa, and Southeast Asia.
Coffee is a commodity traded on major exchanges, most importantly in London (UK) and New York (USA).
Below are two tables listing the world’s largest coffee-producing countries for both Arabica and Robusta. Indonesia ranks among the largest Arabica producers (though outside the top 10) and is the third-largest Robusta producer worldwide.
Top Arabica Coffee Producing Countries (2023)
(Source: Index Mundi)
Country |
Production (60kg bags) |
|---|---|
| 1. Brazil | 44,700,000 |
| 2. Colombia | 11,600,000 |
| 3. Ethiopia | 8,350,000 |
| 4. Honduras | 5,500,000 |
| 5. Peru | 4,200,000 |
| 6. Mexico | 3,545,000 |
| 7. Guatemala | 3,305,000 |
| 8. Nicaragua | 2,500,000 |
| 9. China | 1,800,000 |
| 11. Indonesia | 1,300,000 |
Top Robusta Coffee Producing Countries (2023)
(Source: Index Mundi)
Country |
Production (60kg bags) |
|---|---|
| 1. Vietnam | 30,230,000 |
| 2. Brazil | 21,700,000 |
| 3. Indonesia | 8,400,000 |
| 4. Uganda | 5,850,000 |
| 5. India | 4,580,000 |
| 6. Malaysia | 1,500,000 |
| 7. Ivory Coast | 1,350,000 |
| 8. Thailand | 750,000 |
| 9. Tanzania | 600,000 |
| 10. Mexico | 545,000 |
Global Trends
-
Brazil remains the largest global player and is expected to expand Robusta production further.
-
Global consumption keeps rising (despite COVID-19 disruptions), fueled by growing middle classes in China and Indonesia.
-
Demand in Asia is gradually shifting from Robusta to higher-quality Arabica as GDP per capita rises.
-
Recent years show a global supply deficit due to poor weather in Brazil and Vietnam (in Vietnam, many farmers shifted to durian due to Chinese demand).
World Coffee Market Balance (million 60kg bags)
(Source: ICO)
Coffee Year |
Production |
Consumption |
Balance |
|---|---|---|---|
| 2018/19 | 169.8 | 171.2 | -1.3 |
| 2019/20 | 168.4 | 168.6 | -0.2 |
| 2020/21 | 170.8 | 169.9 | +0.9 |
| 2021/22 | 168.0 | 176.6 | -8.6 |
| 2022/23 | 168.2 | 173.1 | -4.9 |
| 2023/24* | 178.0 | 177.0 | +1.0 |
| * ICO forecast |
COFFEE IN INDONESIA
Production, Export, and Domestic Consumption
-
Indonesia is a leading coffee producer and exporter.
-
80–90% of production is Robusta, with some famous specialty coffees like kopi luwak and kopi Mandailing.
-
Coffee is Indonesia’s 4th largest agricultural export earner (after palm oil, rubber, cocoa).
-
Provides income to over 1 million farmers and inputs to local industries.
-
Domestic coffee consumption is growing fast, with rapid expansion of cafés (Starbucks, Coffee Bean, local brands).
Historical Background
-
Coffee was introduced by the Dutch in the 17th century around Batavia (Jakarta), later expanded to West Java, Sumatra, Sulawesi.
-
Today plantations exist also in Bali, Flores, Papua.
-
By end of 2023, Indonesia’s coffee plantations covered 1.27 million ha:
-
Robusta: ~933,000 ha
-
Arabica: ~307,000 ha
-
Largest Coffee-Producing Provinces (2023)
(Source: BPS – Statistics Indonesia)
Province |
Area (ha) |
Production (tons) |
|---|---|---|
| South Sumatra | 267,200 | 198,000 |
| Lampung | 155,200 | 108,100 |
| Aceh | 114,000 | 71,100 |
| North Sumatra | 98,600 | 87,900 |
| Bengkulu | 91,200 | 55,000 |
| Total Indonesia | 1,268,900 | 760,200 |
Key Characteristics
-
Smallholder farmers control 98% of planted area, 99% of production.
-
Large private/state plantations play a minor role (unlike Vietnam).
-
Smallholders often lack modern farming techniques and capital for replanting/fertilizers → unstable supply & quality.
-
Area declined slightly over 20 years (from 1.30m ha in 2004 to 1.27m ha in 2023). Many estates converted to palm oil.
Indonesia Coffee Production & Export
Recent Years (1,000 tons)
Year |
Production |
Exports (1,000 tons) |
Exports (USD million) |
|---|---|---|---|
| 2020 | 762.4 | 379.3 | 821.9 |
| 2021 | 786.2 | 387.3 | 858.5 |
| 2022 | 775.0 | 437.5 | 1,148.4 |
| 2023 | 760.2* | n.a. | n.a. |
| * preliminary |
Exports
-
Around 60% of production exported.
-
Top destinations: USA, India, Egypt, Germany, Malaysia.
-
Dominated by unroasted, non-decaffeinated Robusta.
-
Robusta exports nearly 8x higher than Arabica (by volume).
-
Processed coffee exports remain minimal.
Domestic Consumption (Statista)
Year |
Consumption (1,000 60kg bags) |
|---|---|
| 2000/01 | 1,676 |
| 2005/06 | 2,500 |
| 2010/11 | 3,333 |
| 2015/16 | 4,550 |
| 2019/20 | 4,806 |
Trend: steady growth driven by population, middle-class expansion, café culture.
INDONESIAN SPECIALTY COFFEE
Kopi Luwak
-
Produced from beans eaten & digested by Asian palm civets.
-
Unique fermentation process → richer flavor.
-
Extremely rare, labor-intensive → most expensive coffee in the world.
Famous Arabica & Robusta Origins
Sumatra (Aceh Gayo, Sidikalang, Mandheling, Kerinci, Lintong, Lampung) – rich, earthy, chocolate, nutty, caramel flavors.
Java (Ciwidey, Temanggung, Ijen, etc.) – floral, caramel, citrus, sweet finish.
Bali (Kintamani, Pupuan, Tambora) – chocolate, nutty, fruity.
Sulawesi (Toraja, Pinogu) – complex, chocolate, berry, citrus.
FUTURE OUTLOOK
-
Rising global & domestic consumption supports growth.
-
Government programs aim to improve productivity, replanting, and downstream value chains.
-
Productivity remains low: 817 kg/ha (2021) vs. 3–4 tons/ha in Vietnam, Malaysia, China.
-
Improving yields is key for Indonesia’s competitiveness in the global market.