How to Succeed in the Global Coffee Market

How to Succeed in the Global Coffee Market

1. Identify Your Target Buyers

Building relationships and trust is essential in the coffee market. Knowing your business’s strengths and weaknesses helps in setting realistic promises and understanding the types of buyers and markets you can access.

• Business Strengths and Weaknesses: Buyers seek detailed information about coffee quality, supply, delivery terms, sustainability, and compliance.
• Contracts and Relationships: Ensuring contracts are met builds trust, crucial in a volatile market.
• Quality Aspects: Buyers demand high-quality coffee and may request detailed sensory evaluations, especially for specialty coffee.
• Compliance: Meeting local regulations and sustainability standards is key. Understand and comply with relevant laws.
• Sustainability and Certification: Certifications like Rainforest Alliance or Fairtrade can provide additional assurance to buyers.
• Export and Transportation: Proper organization of exports is vital. Factors include buyer relationships, transportation methods, and shipment details.

2. Understand Different Types of Buyers

Knowing your business’s capabilities helps focus on suitable markets and buyers, increasing your chances of establishing long-term relationships.

• Commercial vs. Specialty Coffee Buyers: The commercial market deals with high-volume, average-quality coffee, while the specialty market focuses on high-quality Arabica coffee in lower volumes.
• Commercial Coffee: Target multinational traders who buy large volumes. Examples include Ecom, LDC, NKG, and Sucafina.
• Specialty Coffee: This niche market sells for higher prices. Specialty coffee is often smoother and more flavorful.

3. Main Buyers of Green Coffee

Understanding global demand helps in positioning your product. Changes in production volumes can make your coffee more attractive if you maintain quality and quantity.

4. Building Buyer Relationships

Establish relationships with roasters and traders. Roasters might direct traders to procure specific coffee types, enhancing exclusivity.

• Spot Buying: Traders sometimes buy coffee without an immediate buyer, banking on future sales. Understanding this can help in managing surplus.
• Country-Specific Demands: Different countries have unique demands. Target smaller traders and roasters in specific countries by understanding their market needs.

Market Examples

• Commercial Coffee: Dominated by large traders and roasters like Nestlé, JDE Peet’s, and Lavazza.
• Specialty Coffee: Handled by both large traders with specialty divisions and smaller specialty-focused traders and roasters.

Certification Market Share

• Rainforest Alliance: 9% market share
• Fairtrade: Less than 2% market share
• Organic: 2.5% market share

Tips for Success

1. Know your business strengths and weaknesses.
2. Identify potential buyers and understand their needs.
3. Focus on long-term relationships.
4. Ensure contract fulfillment to maintain trust.

By following these guidelines, you can effectively navigate the global coffee market and establish lasting business relationships. For more detailed information, refer to comprehensive market studies and guides.