Coffee and Economy - The Coffee Market in Brazil

Brazil’s Global Position

Brazil has maintained the position of largest coffee exporter for over 150 years, producing one third of the world’s supply. The nation reached its export record in 2020 with 44.6 million bags, with primary markets in the USA (8.1 million bags), Germany (7.6 million bags), and Belgium (3.7 million bags).

Domestic Market Characteristics

As the second largest global consumer, Brazilians consumed approximately 21.5 million bags in 2021. Coffee is ranked as the 4th most produced product in the country, generating 55 billion reais in revenue in 2022.

Approximately 330,000 rural properties produce coffee across 1,983 municipalities, with 78% operated by family farmers who depend primarily on coffee cultivation for their income.

Regional Production Leaders

Minas Gerais dominates with 150,971 properties producing 50% of national output, focusing on specialty Arabica. Espirito Santo, Sao Paulo, Bahia, Rondonia, and Parana contribute significantly, each specializing in different varieties and processing methods.

Consumer Behavior

Research reveals three consumer segments: general audiences preferring traditional coffee, enthusiasts consuming specialty varieties, and specialists focused on premium offerings. Notably, capsule coffee consumption has increased dramatically, showing 14.8% revenue share with 40-50% annual growth.