Coffee is world's most favourite beverage with 2.5 billion cups consumed every day. Coffee is produced in about 70 countries most of them belonging to the developing world from Africa, Latin America and Asia. In contrast, coffee is mostly consumed in developed world in America and Europe, thus making it the world's highest traded commodity after petroleum. This beloved drink is categorized into two varieties namely Robusta and Arabica.
Brazil is the largest producer of coffee accounting for approximately 25% of the total world produce. This makes the price of coffee, sensitive to weather conditions in Brazil.
In recent years, coffee has also become one of Vietnam's key agricultural export products, India is the sixth largest producer of coffee in the world, accounting for about 5% of world coffee production followed by Indonesia. As a result, Asia has become a key coffee producing region.
The area under coffee plantations in India has increased by more than three times over the last 50 years. With the bulk of all production in India taking place in its Southern states. However Coffee plantation in Karnataka is characterized by predominant 70% of small holders possessing five hectares of land and below.
India, like many other Asian and African countries is primarily a tea drinking nation. As a result, almost 80% of Indian Coffee is exported contributing to a major share of inflow of US Dollars to the Indian exchequer. Things are however changing rapidly. Asian markets like Vietnam, Indonesia, China, Korea, Thailand and India are finding significant traction in the domestic market as well where coffee consumption is growing fast anywhere between 6% to 15% as against world's average of under 2% growth YoY.
This has led to the setting up of a number of international and Indian coffee retail chains in the country in recent years. Apart from this, a number of homegrown entrepreneurs are emerging to help spread the coffee culture and transform the entire coffee experience in homes through provision of freshly roasted coffee beans, a range of distinguished varieties of coffee as well as coffee brewing equipment.
All in all, global coffee industry is looking up to Asia and particularly India as the next growth drivers for the coffee Industry and on this backdrop, World Coffee Conference & Expo of International Coffee Organisation in India in the year 2020 assumes special significance.