Back
In recent years, growing coffee demand in emerging markets has been a key trend in the global industry, with China and India leading the way. This sharp acceleration raises questions about whether supply can keep up with increasing demand and the potential implications for prices.
China and India have emerged as increasingly relevant markets in the coffee industry. Consumption is rising sharply, driven by new habits and the expansion of coffee chains. Monitoring this evolution is essential to understanding the future dynamics of the global coffee market.
Naturally, we cannot compare Europe's numbers with those of emerging markets.
In terms of per capita consumption, European countries record significantly higher values than China and India. In Italy, per capita consumption is approximately 5.9 kg per year, while in Finland, it reaches 12 kg—one of the highest in the world. In contrast, in China and India, per capita consumption is just 0.15 kg and 0.2 kg, respectively. (beverfood.com)
However, these figures highlight the growth potential in emerging markets, where consumption remains low compared to European standards but is rapidly increasing. Let’s take a closer look at this evolving scenario.
In China, coffee consumption increased by 15% in 2024, driven by younger generations and the expansion of coffee chains. Ready-to-drink (RTD) products have gained popularity, accounting for 25% of the country's coffee market.
However similarly, India’s coffee market grew by 10%, with a notable increase in demand for specialty coffee in major cities, particularly among younger consumers.
Certainly this growing demand, combined with adverse climatic conditions in key producing regions (such as Brazil and Vietnam—see our blog article), has raised concerns about whether supply can keep up.
In 2024, Arabica production in Brazil fell by 12%, reaching 38 million bags, while Robusta prices hit a record $5,694 per ton in Europe.
These dynamics have led to a surge in global coffee prices (read more about this in our article). In December 2024, Arabica prices reached record levels not seen since 1977, with a 70% increase since the beginning of the year.
Monitoring the growing coffee demand in emerging markets is essential to remain competitive. In this evolving scenario, Qahwa is committed to closely monitoring global coffee market trends. In conclusion, thanks to our adaptability and constant market presence, we can implement innovative strategies to ensure our customers get the best possible supply while maintaining high standards of quality and sustainability.