Coffee has been always been one of the favorite commodities for imports and exports. Countries like Brazil have one of the primary commodities of export as coffee. As more and more importers from different countries look for importing coffee from Brazil, you must also know what the coffee types and their markets are, if you want to earn good profit.
Today, supermarkets play a more important role than ever in coffee retail, and supermarket private labels now account for a large proportion of coffee retail. Roasted coffee is sold ground or whole and is packaged in cans and packages of various types and sizes. Soluble coffee is generally sold in cans, although sachets are becoming increasingly popular, especially in emerging markets.
So, if you are looking to learn how to import coffee from Brazil, learn these facts to know what types of coffee will be the best for your business.
Coffee Market Trends
The coffee consumption market generally accounts for 70% to 80% of the whole market for coffee. There are exceptions, especially in countries where the restaurant industry is well established, where eating out is part of the tradition of that country, such as in Italy, Spain and Greece. Each market segment accepts a wide range of products, and their quality and taste largely depend on the type of coffee that constitutes the blended coffee, the degree of roasting and the type of grinding.
Most small roasters tend to focus on a certain segment of the market, and large roasters (especially multinational roasters) tend to service these two types. However, most of the retail market is controlled by a few large multinational roasters, and it is increasing. While this trend was temporarily halted due to the growth of specialty trade, this trend has again accelerated with the rapid acquisition of small specialty roasters by multinational companies.
Market for Different Coffee Types
Different coffee types have different market and here is a quick glance at the coffee types and consumption facts and figures:
Roasted and Ground Coffee
Blending improves roaster flexibility, reducing dependence on a single source of supply. It also allows them to compensate for seasonal changes in the taste of coffee beans and switch to other coffees when there is a supply or price issue. Roasting adds flavor and aroma to coffee; the higher the roast, the stronger the flavor. Lightly roasted beans produce a thin, almost straw-colored liquid that has almost no flavor other than acidity, although there is less weight loss. A darker roast will produce a dark liquid, although more weight will be lost, dark liquid may lose acidity but will add body and enhances a stronger flavor.
The deeper the bake, the greater the destruction and fragmentation of the cells. This helps to extract the solubles, but a too deep roast will only leave a burnt smell. The shelf life of roast and ground coffee is shorter than that of soluble coffee. The longer the exposure to air, the lower the quality, which is why it is often vacuum packed or in blown packages.
Instant Coffee or Soluble Coffee
The term “instant coffee” or “soluble coffee” encompasses spray-dried powders, lyophilized powders, and coffee in liquid form, such as concentrates. All of these processing methods involve dehydration of the brewed roast and ground coffee. The lyophilization method produces a high quality but more expensive product.
The recent increase in soluble coffee consumption can be attributed to increased demand in Eastern Europe and East Asia and Southeast Asia, which have higher market shares for soluble coffee. In East Asia and Southeast Asia, there has been a huge increase in demand for this so-called “three in one” product, which combines the convenience of soluble coffee with non-dairy creamer and sugar, usually a single product.
In the Philippines and Thailand, instant coffee accounts for about 95% of coffee consumption. In Brazil, the largest soluble coffee exporter, domestic consumption of instant coffee only represents 5% of total coffee consumption. In India, most soluble coffee is also exported, although it accounts for around 35% of local consumption. In Mexico, this figure is around 47%.
Decaffeinated coffee was developed in Europe, but first gained a large market in the United States in the 1950s. Since many importing countries lack separate data on decaffeinated coffee, it is difficult to measure the consumption of decaffeinated coffee in the world. In the United States, from 2000 to 2005, decaffeinated coffee consumption remained relatively stable, accounting for between 8% and 9% of top sales and 20% of specialty coffee sales. Since then, sales have increased significantly. Since 2000, consumption of decaffeinated coffee in elsewhere it has been stable, and in many countries/regions, decaffeinated coffee products have now become part of manufacturers’ product lines. These products are not caffeine-free, but rather a blend of regular coffee and decaffeinated coffee, or a blend of coffee with a naturally lower caffeine content.
These are the market trends for different types of coffee. If you are new in the importing business, apart from knowing how to import coffee from Brazil, you should also know which type of coffee you must choose for importing. And the facts presented above should help you decide.