Africa and Central America are the main sources of production for the coffee industry. Africa, which is not very strong with the local economic rates and the level of GDP, tries to use the maximum perspectives from the coffee business, to increase the quality of level for locals as well as for African companies.
The African coffee bean market is considered one of the fastest-growing markets and has a huge potential because of the higher demand. Experts think that 2022 and the near future should be the main point for the African coffee industry because, after the Covid-19 regulations, the markets have a chance to increase their production and size of the market significantly.
The researchers think that because of the current background of the global industry, the market share of the coffee business in Africa will be enormously increased by 2026. It includes increasing the number of registered coffee companies over the continent and getting more commercial offices, distribution channels, and jobs for locals.
Before we talk about the main expectations and predictions, let’s see the main features and trends in the African coffee industry before 2020. The main types of coffee beans that are produced in Africa are Arabica and Robusta. Each type has a high demand worldwide, which was the result why in 2018, Africa produced more than 14 million coffee bags, where each of them was 60 kg. The main countries where this coffee was produced were Ethiopia with 51%; Uganda with 34%, and Tanzania and Kenya.
This is the eastern side of Africa where are registered 313 different coffee business companies. With the earnings, the leader is Ethiopia with more than 861 million USD annual income. Then comes Uganda, which in 2018 earned more than 436 million USD. And the final leader is Kenya, with 232 million USD annual revenue.
The results are better compared to the results of Brazil. Experts think that the main reason why African Arabic coffee is in higher demand is that the taste is different and unique compared to the Latin American Arabica beans. The same is true with the nicest coffee that comes from Malawi which is unique-featured and in high demand.
In Africa, the most common is centralized business horizons and auctions. More specifically in Kenya, Ethiopia, and other countries, the sales are under auction. The only expectation is Uganda, where the sales are directly undertaken.
Because of this structural situation, local governments are improving the relevant standards to increase the interest of foreign investors. In 2019, most of the coffee producer countries changed their standards and that had a great impact on the new investments.
Here we have to mention that the level of local consumption is not very high and the market of Middle-East Africa is dependent on foreign investments. Because of the unique features and fewer costs compared to the Latic American countries, the market size is step-by-step growing. Even in 2020, when consumption, as well as production, was significantly increased, the market size was 7.2 billion USD in total.
After the 2020 strict regulations of pandemics, the situation in the African coffee market was not very critical. Very soon, after the canceling of main safety regulations, the demand immediately increased and the interest rate caused high pressure on production. Because the resources were less and higher revenues were needed, many investments were implemented in 2021. This ensures the experts that the predictions for the near future which includes the period until 2027, can be very positive for the African coffee industry.
More specifically, they think that the market size will increase and include a total cost of 12.34 billion USD, which is significantly greater than the data from 2020. Firstly, the main reason is that the main player in the coffee global market is with the high demand from customers and needs a new source to supply the relevant service. The younger generation plays a huge role in increasing the level of demand for coffee.
The main players in the African market are Starbuck, Coca-Cola, Dunkin and Medd Cafe, and Roastery. Their higher interest in the African coffee market will increase production in four main countries which are Ethiopia, Tanzania, Kenya, and Uganda. They have already started increasing manufacturing in Africa to create better and more innovative products.
In addition, it is predicted that the popularity of local coffee cafe culture will be increased. This trend has already begun and many local coffee businesses are very popular with tourists as well as locals.
This increased the variations of coffee which created many special stores in different regions of Africa. The trend of exploring new coffee alternatives will make the mentioned predictions close to reality. Experts also think Ethiopia will still be the leader in the coffee market.