The Ethiopia coffee market was valued at USD XX Billion in 2022 and is anticipated to reach USD XX Billion by 2031, expanding at a CAGR of 5.67% during the forecast period, 2023–2031. Coffee is grown in Ethiopia is usually called Coffea arabica. Ethiopia accounts for around 3% of the global coffee market. It is estimated that 15 million population of Ethiopia rely on coffee production for some aspect of their livelihood. About 60% of Ethiopia's earnings comes from coffee. In 2006, 34% of the total exports were the result of coffee exports, which brought in USD 350 million.
In 2006, 260,000 metric tons of coffee was produced in the country, which placed them seventh in the rank of largest coffee producer in the world, and first in Africa. Africa's biggest consumer of coffee is Ethiopia, as the country consumes half of its own production. With the majority of labor still being manually, including cultivating and drying, nothing much has changed in recent years.
In Ethiopia, Arabica coffee is mostly grown in the forest areas of the southwestern highlands of the Kaffa and Buno districts. Around 400,000 hectares’ area of Ethiopia is under coffee cultivation. The country produces almost 200,000 metric tons of coffee every year. Around 95% of the coffee is produced in the forest area and is claimed to be organic. A major part of the Ethiopia-based coffee is exported in green coffee beans form to the rest of the world. This factor provides a key advantage to the Ethiopia coffee market.
Coffee is mostly perceived as an artisanal product, rather than just an energy drink. Therefore, most of the coffee drinkers prefer locally-owned coffee shops and high-quality and specialized coffee products such as flavored coffee. Moreover, people are ready to pay more for a unique coffee experience that impact all senses. As a result, coffee roasters and baristas incorporate new techniques by exploring the properties of coffee; for instance, brewing coffee with nitrogen.
According to the Ethiopia Tea and Coffee Authority, Ethiopia exported 86,000 tons of coffee in period of three months till October 2021, generating around USD 327 Million, which is almost 77% more than the estimation.
Ethiopia Coffee Market Trends, Drivers, Restraints, and Opportunities
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Rising income, rapid urbanization, and increase in the population is estimated to fuel the market growth.
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Recent changes in legislature have given the commodity market and government-approved cooperatives the authority to grade all the coffee by quality and trade it accordingly. This has curbed the interaction between hundreds of small local cherry-processing stations with foreigners, which in turn, has negatively influenced the market growth.
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Increasing preference for coffee due to changing customer lifestyle is estimated to spur the market growth.
Scope of Ethiopia Coffee Market Report
The report on Ethiopia coffee market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
Attributes
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Details
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Report Title
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Ethiopia Coffee Market - Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016 & 2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Whole-bean, Ground Coffee, and Instant Coffee), Distribution Channels (On-trade and Off-trade)
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Regional Scope
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Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
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Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
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Key Players Covered in the Report
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Cooper's Cask Coffee Company, Forest Coffee, Ethiopian Yirgacheffe Coffee, Square One Coffee
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Ethiopia Coffee Market Segment Insights
Instant coffee segment is projected to hold a significant market share
In the terms of types, the Ethiopia coffee market can be divided into whole-bean, ground coffee and instant coffee. The instant coffee segment is estimated to grow at a steady rate in the projected timeline. Convenience is the foremost factor driving the segment growth. The hectic lifestyle of the consumers and the wide distribution of the product in retail outlets are key factors driving the market segment growth.
The instant coffee market is extremely fragmented due to the presence of global players in the market. Companies are competing with other companies through joint ventures, partnerships, and product launches in order to stay in the market. For instance, Nescafé Gold sachets were introduced in June 2019. Instant coffee brands in the country includes the Nescafe, Lavazza, Moccona, and Robert Timms.
Off-trade segment is anticipated to account for a substantial share
Based on distribution channels, the Ethiopia coffee market is bifurcated into on-trade and off-trade. The COVID-19 pandemic and the resultant lockdowns imposed in different countries across the world are encouraging people to prepare coffee home and growing consumer dependence on online retail sales channels to buy coffee are major factors spurring the market segment.
Segments
By Types
- Whole-bean
- Ground Coffee
- Instant Coffee
By Distribution Channels
By Country
By Key Players
- Cooper's Cask Coffee Company
- Forest Coffee
- Ethiopian Yirgacheffe Coffee
- Square One Coffee
Competitive Landscape
Key players in the Ethiopia coffee market are Cooper's Cask Coffee Company, Forest Coffee, Ethiopian Yirgacheffe Coffee, Square One Coffee, among others. Major players, such as Starbucks have mainly focused on partnerships and collaborations with other emerging players in the market and new product launches. These players engage in mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.
