Latin America remains a pivotal player in the global coffee industry, with Brazil and Colombia at the forefront of production. In the 2023-2024 crop year, Brazil produced 69.9 million 60-kilogram bags, accounting for over one-third of global coffee production. Colombia followed as the region's second-largest producer, with an output of nearly 12.4 million bags.
Production Volume of Coffee in Latin America in the Year 2024-2025, by Leading Country (in 1,000 60-kg bags) According to Statista
Looking ahead, Brazil's National Supply Company (Conab) forecasts a 5.5% increase in coffee production for the 2024-2025 season, estimating a total of 58.1 million bags. This projection includes 40.75 million bags of Arabica Coffee, a 4.7% rise from 2023, and 17.33 million bags of Robusta, up 7.2%. The total cultivated area is expected to reach 2.25 million hectares, marking a 0.8% increase over the previous harvest according to Comunicaffe International.
Colombia's Coffee Industry Poised for Growth: Production and Revenue Surge in 2024
Colombia also anticipates growth, projecting a production of 13.6 million bags in 2024, a significant 20% increase compared to the 11.3 million bags produced in 2023. This surge is attributed to the enhanced resilience of coffee plantations against climate change and pests. Germán Bahamón, manager of the National Federation of Coffee Growers, predicts that the harvest could exceed a value of 14 trillion pesos, surpassing the 11.1 trillion from the previous year, according to statistics from Reuters.
Drought Drives Coffee Prices to 13-Year High
Despite these optimistic projections, climate change poses significant challenges. Brazil experienced its most severe drought in over seven decades, severely impacting coffee plantations, especially in São Paulo state. Farmers like Silvio Almeida in Caconde reported drastically reduced yields due to water scarcity. The drought, coupled with above-average temperatures, threatens Brazil's leading position in global coffee production. In August 2024, coffee prices reached a 13-year high, as a result of these climatic adversities, according to AP News.
Regenerative Farming: Brazil's Sustainable Solution to Climate Challenges in Coffee Production
In response to these challenges, Brazilian farmers are adopting regenerative agricultural practices to mitigate the effects of climate change. In the Cerrado Mineiro region, farmers like Marcelo Montanari and the Urtado family are implementing methods such as reduced chemical use, biological pest control, and integrated agroforestry to enhance soil health and resilience against extreme weather. These practices have led to substantial increases in coffee productivity and have attracted global coffee brands like Nespresso and Illycaffè to support and source from these regenerative farms, based on research by Reuters.
The State of Coffee Industry in Europe 2024
Turning to Europe, the continent accounts for approximately 33% of global coffee consumption as of 2020-2021, making it a significant and attractive market. The European Union boasts the highest per capita coffee consumption worldwide, though this varies by country.
The European coffee market is projected to grow from USD 49.78 billion in 2025 to USD 60.44 billion by 2030, at a compound annual growth rate (CAGR) of 3.96%. This growth is driven by increasing demand for certified coffee products, the adoption of single-serve coffee systems, and continuous innovation by leading market players, according to Mordor Intelligence™.
Rising Espresso Costs: Climate and Geopolitics Impact Europe's Coffee Culture
However, European consumers are facing rising coffee prices due to supply constraints linked to climate-related challenges in producing countries. In Italy, for instance, espresso prices have historically been among Western Europe's lowest, averaging around €1.20 per shot. Yet, factors such as climate change affecting global coffee supply and geopolitical disruptions are prompting increases. Experts predict that prices could rise to €2 per coffee shot, significantly impacting traditional coffee bars where coffee sales are crucial, points Financial Times
Bridging Continents: The Interplay of Latin American Coffee Production and European Consumption
In conclusion, while Latin American countries like Brazil and Colombia are striving to boost coffee production through innovative agricultural practices, climate change remains a formidable challenge. Europe's substantial coffee consumption underscores the interdependence between these regions. The evolving dynamics of production and consumption will continue to shape the global coffee landscape in the coming years.
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