info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
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In many parts of the world, coffee has been regarded as a daily necessity, and demand does not seem to fall quickly. In fact, it is predicted that by 2030, the annual coffee consumption will reach 200 million bags.
The countries that currently produce the most coffee are Brazil, Colombia, and Vietnam, but there are other rising stars among the top ten: African countries like Ethiopia and Uganda. Amidst forecasts that Africa will eventually dominate the coffee industry, excitement has been high among investors.
Is Africa's coffee industry really worth investing in? Here's what you should know:
Africa's Coffee Industry
Out of the regions of Africa, East Africa is a standout when it comes to coffee production. In particular, East Africa is one of the world's most prolific producers of coffee. Its coffee industry has been growing in recent years, and it's likely to go through 7.5% market growth from 2019 to 2024. There have also been speculations that it will be at the top of the global market within the next five years, ranking above South America.
The largest coffee producer in the region is Ethiopia. It's also the birthplace of Arabica coffee, the most popular type of coffee around the world. Other prominent countries include Kenya, which is known for bright, acidic coffee, and Uganda with its robusta coffee. South Africa's coffee industry is also thriving, with 13.3% increase in coffee consumption from 2014-15 to 2017-18.
Historically, Africa was focused on oil. But with the drastic drop in oil prices in 2014 and a major shift in the global economy, it was forced to diversify. More resources were channeled into agricultural industries like coffee, which became a source of economic growth for the region. Some top coffee companies in Africa today are Nestle, Starbucks, Jacobs Douwe Egberts, and Dunkin' Brands.
Preference for Specialty Coffee
People aren't satisfied with only instant coffee anymore. From artisanal coffee shops to Starbucks tumblers and accessories like HotShot Coffee Sleeves, coffee-drinking has become an experience, and there's a marked preference for premium or specialty coffee. 50% of the coffee consumed in Europe and America is already premium coffee. Since Africa is home to plenty of excellent coffee beans that aren't found anywhere else, it has already built up a loyal customer base globally.
