Coffee, husks, skins and substitutes market in Eastern Asia

Earlier Report Observations

The coffee, husks, skins and substitutes market in Eastern Asia expanded significantly from 661.2 thousand tonnes in 2018 to 733.9 thousand tonnes in 2019. This initial growth was underpinned by a sharp rise in annual per capita coffee consumption, reaching 405 cups, and the rapid proliferation of foreign premium chains like Starbucks following its market entry. The number of cafes and coffee shops had already doubled over six years to 45 203 by 2018, indicating a deepening coffee culture. The expansion continued in 2019 as low-cost franchises, including Mega Coffee and Paik's Coffee, doubled their store counts in four years, intensifying price and volume competition and making coffee more accessible to a broader consumer base.

The COVID-19 pandemic in 2020 temporarily reduced the market volume to 712.2 thousand tonnes, but it triggered a major behavioral shift. Demand surged for 'home cafes,' with increased sales of household coffee machines and instant coffee, while online platforms and delivery services became crucial sales channels. Concurrently, consumer interest in specialty, hand-drip, and cold brew coffee varieties grew. In 2021, despite an 11% increase in import costs due to soaring global green bean prices caused by droughts in Brazil and Vietnam, the market volume recovered strongly to 805.3 thousand tonnes. This was supported by heightened consumer price sensitivity and ongoing price wars between budget and premium brands, which helped maintain consumption levels.

By 2022, the market showed signs of saturation, with the number of coffee shops nationwide approaching 95 000, and the market volume experienced a slight dip to 792.7 thousand tonnes. New chains such as Seesaw and Manner accelerated their expansion into primary and secondary cities, while relentless price competition with promotions like 9.9-yuan offers pressured profitability. Nevertheless, persistent demand for home brewing and specialty coffee products provided underlying support. The market demonstrated resilience in 2023, with volume climbing back to 805.4 thousand tonnes, reflecting the entrenched consumption habits even amidst a crowded and highly competitive landscape.

Production coffee, husks, skins and substitutes in Eastern Asia

In kind, 2017-2020, K t

Top producers of coffee, husks, skins and substitutes, 2017-2020

World map of production of coffee, husks, skins and substitutes, 2017-2020

Eastern Asia's production of coffee, husks, skins, and substitutes saw growth for two consecutive years before declining. In 2019, output reached its peak at 120.0 K t, marking a 3.9% increase from the previous year. However, by 2020, production fell to 114.0 K t, representing a 5.0% year-over-year decrease.

Annual dynamics of production in Eastern Asia in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following two years of decline, Eastern Asia's production value for coffee, husks, skins, and substitutes rebounded. In 2019, the value hit a low of 313.8 M $ US, after a significant 28.1% drop in 2018. By 2020, production value rose to 369.0 M $ US, up 17.6% from the previous year. Overall, from 2017 to 2020, production value decreased by 18.3%, averaging an annual decline of 6.5%.

Annual dynamics of production in Eastern Asia in value, 2017-2020, M $ US

Exports coffee, husks, skins and substitutes from Eastern Asia

Exports in kind, K t

Coffee, husks, skins, and substitutes exports from Eastern Asia have declined for two straight years. In 2018, exports peaked at 101.5 K t, with a 27.4% increase from the prior year. However, in 2019, exports fell sharply by 27.9%, and by 2020, they dropped further to 55.4 K t, a 24.3% decrease from 2019. From 2017 to 2020, total exports decreased by 30.5%, with an average annual decline of 11.4%.

Annual dynamics of product's exports from Eastern Asia in kind, 2017-2020, K t

From 2017 to 2020, the top buyers of coffee, husks, skins, and substitutes from Eastern Asia were Germany, accounting for 24.9% of exports in kind, Vietnam at 12.2%, and the United States at 8.4%. Together, these three countries made up 45.5% of total exports, indicating a diversified market structure with many other partners involved.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Eastern Asia in kind, 2017-2020

Exports in value, M $ US

Eastern Asia's export value for coffee, husks, skins, and substitutes has declined for three consecutive years. In 2020, exports amounted to 179 M $ US, down 6.3% from 2019. Over the period from 2017 to 2020, total export value fell by 43.1%, averaging an annual decrease of 17.1%.

Annual dynamics of product's exports from Eastern Asia in value, 2017-2020, M $ US

Between 2017 and 2020, exports in value terms of coffee, husks, skins, and substitutes from Eastern Asia were spread across numerous markets. Germany led with 19.9% of exports, followed by Vietnam at 8.3%, and the United States at 7.6%. Combined, these three countries accounted for only 35.8% of total flows, highlighting a broad distribution among other trading partners.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Eastern Asia in value, 2017-2020

Imports coffee, husks, skins and substitutes to Eastern Asia

Imports in kind, K t

In 2019, imports of coffee, husks, skins, and substitutes into Eastern Asia reached a high of 687.0 K t, up 6.1% from the previous year. However, in 2018, imports were at their lowest at 647.2 K t. By 2020, imports fell to 653.6 K t, a 4.9% decrease from 2019. Overall, from 2017 to 2020, imports decreased by 3.6%, with an average annual decline of 1.2%.

Annual dynamics of product's imports to Eastern Asia in kind, 2017-2020, K t

From 2017 to 2020, Brazil was the leading supplier of coffee, husks, skins, and substitutes to Eastern Asia, accounting for 24.7% of imports in kind. Vietnam followed with 22.1%, and Colombia with 14.7%. Together, these three countries made up 61.5% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Eastern Asia in kind, 2017-2020

Imports in value, M $ US

After two years of decline, import values for coffee, husks, skins, and substitutes in Eastern Asia increased. In 2019, imports hit a low of 2 239 M $ US, following a 12.7% drop in 2018. By 2020, imports rose to 2 277 M $ US, up 1.7% from 2019. Over the 2017-2020 period, total import value decreased by 12.9%, with an average annual decline of 4.5%.

Annual dynamics of product's imports to Eastern Asia in value, 2017-2020, M $ US

During 2017-2020, Brazil was a key supplier of coffee, husks, skins, and substitutes to Eastern Asia, representing 19.7% of imports in value terms. Colombia accounted for 14.6%, and Vietnam for 12.2%. Combined, these three countries contributed 46.4% of total imports, with the remaining 53.6% distributed among many other partners.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Eastern Asia in value, 2017-2020