Chapter 1: Introduction

By Joe Maginnis

This report is the first of several standard reports that will be released as part of the World Coffee Analytics Project. In it, we introduce a number of important aspects of the coffee industry, such as cooperatives, varieties, roasters, and brewing methods. We also review some  trends that have shaped the industry in the past decades. We will continue to develop our understanding of these concepts as we follow up with new reports and explore different verticals in the space. Some of our key findings from this report are:

  • The coffee that we drink is actually the seed of a fruit called a coffee cherry.
  • Coffee is believed to have been discovered in 850 AD. Since then, there have been three waves that have defined the industry.
  • There are two main varieties of coffee: Arabica (60% of global production) and Robusta (40% of global production).
  • Brazil is by far the largest producer of coffee in the world, followed by Vietnam, Colombia and Indonesia.
  • High volumes of mergers and acquisitions are re-shaping the coffee roasting industry.
  • Consumption growth has been highest in producing countries, where new demand for specialty coffee, spurred by rising incomes, has added new competition to markets that are traditionally dominated by the US and Europe.
  • Climate change and coffee rust pose new challenges to coffee producers, who are already struggling in a competitive industry. There is a danger that producers looking to expand production will be incentivized to remove forestland, potentially destroying biodiversity.