Coffee is the fourth most consumed beverage in the world (after water, tea and fruit juice). (Followed by soft drinks, beer, wine).
The coffee industry has a rich history, dating back to its discovery in Ethiopia.
Volume
Coffee production FY25: 10.440 billion kgs. (10.3 million tonnes)
Following is the visual map of the key coffee production regions of the world: Brazil being by far the largest producer followed by Vietnam. Between them they supply 55% of global supply. Next five countries, make up 26% - Colombia, Indonesia, Ethiopia, Uganda, India.
Where is coffee grown? In more than 40 countries, mostly in a narrow climactic zone along the Equator between the Tropics of Cancer and Capricorn (25°N to 30°S)!
The world’s coffee-growing regions are the source of much of the world’s coffee. They offer the ideal conditions for coffee trees to flourish: rich soil, mild temperatures, regular seasonal rainfall, and shaded sun. Coffee trees are picky—outside of these coffee regions, with their specific latitudes and mild climactic zones, they’re unlikely to thrive.
While coffee trees thrive in all the coffee regions of the world, each region produces coffee with a unique flavor, fragrance, and appearance. These variations are the result of a complex combination of factors, including the coffee plant variety, the local terroir (chemistry of the soil, microclimates, and sunlight), and even the precise altitude of the farm or plantation. Even elements as specific as fog can influence the final flavor profile and characteristics of each bean.
Tea
From 2011 - Although more green coffee is produced globally than tea — 8.5 million metric tons versus 4.7 million metric tons of tea in 2011, according to the Food and Agriculture Organization — it takes only about two grams of tea to make a cup, compared with 10 grams of coffee. As a result, as British geographer David Grigg wrote, worldwide “three cups of tea are drunk for every one of coffee.
As Stanford University geographer Martin W. Lewis notes on his GeoCurrents blog, the geography of hot drinks has changed markedly over the centuries. Places once so famous for coffee that they gave their names to it (Java, Turkey, the Arabian peninsula) now favor tea or other stimulants, as do most of the tropical countries that grow the world’s joe (with a few exceptions, such as Colombia and Brazil). Great Britain exported its love of tea to most of its former colonial dominions, and it’s no coincidence that South Korea and the Philippines — both with close ties to the U.S. — are among the few Asian nations to prefer coffee over tea.
In 2023, 7.3 billion kilogram of tea was consumed in the world. (7.3 million tonnes). (Gold was 5000 tonnes - post no. 3)
In 2023, global consumption of tea amounted to about 7.3 billion kilograms and is estimated to reach to 8.3 billion kilograms by 2029. Tea is the second most consumed drink in the world, after water. There are many types of teas, depending on their oxidation levels: green, yellow, oolong and black. Well-known varieties of black tea include Darjeeling, Assam, Turkish and Ceylon teas.This fragrant beverage originated in China in 2737 BC. According to myth, a Chinese emperor was sitting under a Camellia sinensis tree while his servant boiled drinking water. The wind blew some leaves from the tree into the water, and the emperor decided to try the drink that his servant created accidentally. The tea culture had been established in China for several centuries before it came to the West. Tea drinking was introduced in Japan during the late eighth century and became an important part of Japanese culture. In the United Kingdom, tea is recognized as one of the country’s cultural beverages. Tea is also a popular beverage in Middle Eastern cultures. In 2016, Turkey was the largest tea-consuming country in the world, with a per capita tea consumption of approximately 6.96 pounds per year. In contrast, China had an annual consumption of 1.25 pounds per person. In 2018, China was the leading global tea producer, followed by India and Kenya. That year, worldwide tea production amounted to around 5.8 million metric tons.
Coffee Prices
Coffee prices - at commodity level USD per pound, it is at a high of USD 3.89 per pound. Following shows the price rise over the last couple of years.
The lingering impact of the El Niño phenomenon left Brazil in a state of prolonged drought spanning most of 2024. In turn, the warmer-than-normal temperatures have hurt coffee production, and Brazil’s 2025/26 coffee crop is forecast to hit a three-year low.Driven by these concerns, arabica coffee prices have more than doubled since the start of 2024 and are sitting near all-time highs beyond $4 per pound. However, the World Bank forecasts that prices are likely to cool off and stabilize through the 2025–2026 period as production picks up.
Industry Size
Depends on what is measured. Following from Statista:
- Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Coffee market amounts to US$96.45bn in 2025.
- Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$376.70bn in 2025.
- Revenue, combined amounts to US$473.15bn in 2025.
- The revenue, at home is expected to grow annually by 2.96% (CAGR 2025-2029).
- In global comparison, most revenue, at home is generated United States (US$12bn in 2025).
- In relation to total population figures, the average revenue per capita, at home of US$12.35 are generated in 2025.
- In the Coffee market, volume, at home is expected to amount to 6.16bn kg by 2025.
- Volume, out-of-home is expected to amount to 1.30bn kg in 2025.
- Volume, combined is expected to amount to 7.47bn kg in 2025.
- The Coffee market is expected to show a volume growth, at home of 0.2% in 2026.
- The average volume per person, at home in the Coffee market is expected to amount to 0.79kg in 2025.
Value Chain
Perhaps this following chart from here, studied in detail explains the entire value chain of the coffee industry.
There are players along the chain - from farmers, exporters, roasters, distributors, to finally the last link in an out of home/office coffee - a cafe
Production/ Plantation/ Farming
The lifespan of a coffee tree
- 100 years: How long a coffee tree can live
- Nearly 1 year: A coffee cherry matures (after first flowering)
- 3 years: A coffee tree begins producing cherries (approximately)
- 5 years: A coffee tree reaches full cherry production
- 7-20 years: The time when a coffee tree is generally most productive
João says: “The world produces about 170 million bags [of coffee per year]. This production takes place on about 10.5 million hectares, according to the latest surveys by the FAO. [On average], we are looking at a global average of 16 bags per hectare (bags/ha).”
"João says: “Today, Vietnam has the highest average productivity for robusta coffee in the world, producing around 40 bags of coffee per hectare.” For arabica, however, he says that Brazil leads the way. “[Brazil has very good productivity] in high production years… above 30 bags/ha on average"
João tells me that crop density is a key factor that affects productivity. He says: “It is still common to see farms with very low plant density… maybe 1,000 or 2,000 plants per hectare, when, for example, modern farms have above 5,000 plants per hectare.”
As of May 2023, the yield of Arabica coffee harvested in Brazil was estimated to amount to around 26 bags (60 kilograms) per hectare, while the yield of Conilon, also known as Robusta, coffee was estimated to reach approximately 43 bags per hectare. In contrast, coffee production in Brazil was estimated to add up to around 55 million bags in 2023, out of which just under 38 million bags were of the Arabica variety
Nestle
Revenue $101 billion.
Market Cap of $262 billion - one of the largest companies in the world by market cap (39th largest).
Nestle portfolio of brands includes brands such as coffee brands, maggi, food brands.
Still, Nestle is the number 1 company for coffee. USD 27 billion of the revenue (or just over a quarter of Nestle revenue) is coffee related. (31% North Am, 34% Europe, 10% Latin America, rest 25%) - 2023
Portion Coffee 36%. Number 1 company in every zone.
Instant Coffee 32%. Number 1 company in every zone.
Coffee Creamers 13%
Roast and Ground Coffee 5%
RTD coffee 4%
Out of home coffee 10%
25% market share in in-home coffee.
Nescafe has a network of 28 roasteries around the globe and 5 R&D brands. It purchases 10% of global coffee production. It owns Nescafe, Nespresso and Starbucks brands. (In 2018, Nestle formed Global Coffee Alliance to retail coffee under Starbucks brand. So except starbucks cafe, all other coffee is Nestle coffee under Starbucks brand. $7.1 billion deal)
Similar to Statista data above, the following shows the details of the entire coffee market:
They expect future demand to come from more premiumization and more consumption occassions. Currently coffee cups per person is ~40 per year in China, India, Middle East, Africa whereas over 230 in rest of the world.
Jacobs Douwe Egberts
"Jacobs Douwe Egberts (JDE) merged with Peet's in 2019 to form JDE Peet's, now the world's leading coffee & tea company. Headquartered in Amsterdam, The Netherlands, JDE Peet's has been unleashing the possibilities of Coffee and Tea for over 265 years. Operating in more than 100 countries, we proudly offer a diverse portfolio of over 50 brands, including L'OR, Peet's, Jacobs, Senseo, Tassimo, Douwe Egberts, Old Town, Super, Pickwick and Moccona.
Today we are the world’s largest pure-play coffee & tea company by revenue active in more than 100 markets"
8.8 billion euro revenue FY2024.
Europe (CPG and Away-from-Home) 4.7 billion euro
CPG LARMEA (Latin America, Russia,
Middle East and Africa) 1.5 billion euro
Peet’s (U.S.) 1.15 billion euro
CPG APAC (Asia-Pacific) 0.8 billion euro
They run a lot of projects with small holder farmers.
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Following is an interesting place to see production of key agricultural commodities:
https://www.fas.usda.gov/data/production/commodity/2631000
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