Conventional coffee vs ecological coffee
The market for conventional and ecological coffees is growing rapidly, with the latter being preferred by consumers who are concerned about their health and environment. The global market has been estimated to be worth US$3 billion annually, but this figure may increase significantly over the next decade as a result of increased consumer awareness. This report analyses the trends in the market for both types of coffee and provides forecasts until 2025. It also includes an analysis of the main drivers behind these trends.
Key findings
The global market for conventional and ecological coffee will continue to grow at a healthy rate through to 2025 due to increasing consumer demand for healthier alternatives.
Ecological coffee has grown steadily since 2000, when it accounted for less than 1% of total coffee production. However, its share of the market is expected to rise from 2% in 2015 to 5% in 2025.
The global market for conventional coffee is forecast to remain stable throughout the period, although there could be minor fluctuations depending on regional factors such as political instability or natural disasters.
In order to maintain sustainable production levels, farmers need to switch to more environmentally friendly practices, which can lead to higher costs for them. As a result, they tend to produce lower quality coffee that is not always suitable for export. Nevertheless, this type of coffee is still popular among consumers because of its low price.
Consumers are increasingly aware of the environmental impact of coffee production and consumption, which is driving sales of ecological products.
The major markets for conventional coffee include North America, Europe and Asia-Pacific, while those for ecological coffee include Latin America and Africa.
Fair trade
Eco-friendly farming methods have become increasingly common in recent years, particularly in developing countries where most coffee is produced. Farmers must meet certain criteria set out by Fairtrade International (FIT) before they can label their product ‘fair trade’. These include:
• Using organic fertilisers;
• Supporting smallholder farmers by providing training, technical advice and access to finance;
• Ensuring workers receive regular wages and benefits;
• Promoting fair working conditions;
• Working towards zero deforestation.
These standards ensure that producers are able to earn a decent living without damaging the environment or exploiting their employees.
There are currently around 350 certified farms in Colombia alone, producing up to 50 million bags of coffee per year. In addition, there are around 100 other farms that have applied to join the scheme, which means that the number of certified farms in Colombia could reach 500 within three years.
Although certification ensures that farmers are paid fairly, it does not guarantee that their coffee will be sold at a premium price. For example, some smallholders have found that it makes sense to sell their coffee directly to retailers rather than through a middleman. Consequently, the majority of Colombian farmers do not benefit financially from the certification process.
However, the FIT system helps to provide greater transparency in the industry and enables consumers to make informed choices about the origin of their coffee.
Environmental impacts
How does echological coffee affect the environment?
Coffee production requires large amounts of land, water and energy, all of which contribute to greenhouse gas emissions. The average hectare of land used to grow coffee consumes between 0.3 and 0.5 tonnes of carbon dioxide annually. This is equivalent to taking nearly 200 cars off the road for one year.
The amount of water needed to produce a kilogramme of coffee varies significantly depending on how it is processed. A cup of espresso coffee requires only 20 litres of water, but a bag of instant coffee needs over 400 litres.
It takes 10% of the world’s total electricity supply to extract and refine raw materials into finished goods such as coffee.
Ecological coffee has been shown to reduce these negative environmental effects. Organic farming uses less pesticides and fertiliser and therefore releases fewer harmful chemicals into the soil. It also reduces the need for chemical inputs such as fungicides and herbicides, thus reducing pesticide use.
Organic farming also improves biodiversity since it encourages the development of natural pest control systems. Coffee trees are more resistant to pests if they are grown organically because they are exposed to fewer chemicals.
Finally, organic farming is better for the local community. Sustainable agriculture requires farmers to work together with their neighbours and communities to share information and resources. As a result, farmers can learn from each other while improving their own practices.
What makes Europe an interesting market for organic coffee?
Europeans love their coffee! According to Euromonitor International, the European market for coffee was worth €17 billion in 2013. Of this, the UK accounted for almost half (€8.9 billion) followed by France (€4.2 billion), Germany (€3.1 billion) and Italy (€2.6 billion), while Sweden is the third biggest producer of coffee in Europe. Its annual output is estimated at 60-70 thousand tons. However, despite being a major player in the European coffee industry, Sweden still imports most of its coffee beans. You can find original Swdish coffee in the following link köpa kaffe online.
In fact, the EU accounts for approximately 70% of global coffee consumption. In 2014, Europeans drank around 1.1 billion cups of coffee per day, or roughly 17 cups per person.
This figure is expected to rise further in the coming years. By 2020, Euromonitor forecasts that the European demand for coffee will reach €20.7 billion.
In addition to its popularity among consumers, coffee is also highly popular among businesses. According to Euromonitor, there were approximately 2.8 million coffee shops in Europe in 2013. These shops generated sales worth €22.7 billion, making them the second largest food sector after restaurants.
According to the same report, the number of coffee shop outlets is expected to increase by 4.2% a year until 2018.
Which trends offer opportunities on the European organic coffee market?
Euromonitor expects two main trends to affect the European organic coffee market in the future: growing consumer awareness about the benefits of organic products and the increasing availability of certified organic products.
Consumers are increasingly aware of the health risks associated with consuming conventional coffee. They are also becoming increasingly concerned about the impact of intensive agricultural production methods on the environment. This is leading them to seek out environmentally friendly alternatives.
As a result, the market share for organic coffee is expected to grow steadily over the next few years. The market research firm predicts that by 2019, the proportion of organic coffee sold in Europe will be 6%.
The percentage of organic coffee sold in the US is currently only 3%, but this is expected to increase significantly in the near future. While the US is already a major exporter of organic coffee, it is set to become one of the world’s top importers of organic coffee as well.
The European Organic Coffee Association has launched a campaign called ‘Coffee for all’. This aims to raise public awareness about the importance of organic agriculture and encourage consumers to buy more organic coffee. It also encourages producers to meet the requirements of the EU organic label.
What does the EU require from organic coffee?
The EU requires that coffee grown under organic standards must come from farms that have been organically managed since 1996. Farmers can apply for certification if they meet certain criteria. For example, they must use no synthetic pesticides, fertilisers or herbicides.
They must also rotate crops regularly and ensure that soil quality is maintained.