Coffee, husks, skins and substitutes market in Southern Asia, 2026

Earlier Report Observations

Between 2018 and 2019, the coffee market volume in Southern Asia saw modest growth, supported by the launch of the Integrated Coffee Development Project (ICDP) which enhanced farmer training and post-harvest infrastructure. The Coffee Board's consumer promotion programs, such as 'Coffee-at-Home', also helped shift consumer habits from tea to coffee. However, in 2020, the COVID-19 pandemic caused a temporary reduction in coffee cultivation in key regions, leading to a market volume decline to 323.5 thousand tonnes.

A rapid recovery followed, with market volume jumping 13.5% to 367.2 thousand tonnes in 2021. This surge was fueled by a global spike in Robusta prices due to drought in Brazil, which encouraged Indian growers to expand planting area. Financial incentives from the Coffee Board for establishing new instant-coffee plants further boosted production capacity. Growth continued in 2022, with the market reaching 388.9 thousand tonnes, driven by the entry of new specialty coffee players like Third Wave and Blue Tokai, who opened boutique roasteries in Tier-2 and Tier-3 cities, alongside the Coffee Board's long-term plan to double production by 2047.

In 2023, the market volume experienced a slight contraction to 379.9 thousand tonnes, even as production continued to rise. That year saw the announcement of a new large-scale instant-coffee manufacturing plant with a capacity of 3 000 tonnes per year, supported by Coffee Board subsidies. Concurrently, consumer surveys revealed a growing preference for ready-to-drink (RTD) coffee, prompting firms to expand RTD lines, while new product segments such as cold-brew bags and flavoured instant coffees emerged.

Production coffee, husks, skins and substitutes in Southern 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

Southern Asia's production of coffee, husks, skins, and substitutes declined after two years of growth. In 2019, production reached its peak at 324.9 thousand tonnes, but by 2020, it had fallen to 305.0 thousand tonnes, marking a 6.1% decrease from the previous year. Over the 2017-2020 period, production decreased by 4.1%, with a compound annual growth rate of 1.4%. The largest annual increase occurred in 2018, at 1.6%.

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

Exports coffee, husks, skins and substitutes from Southern Asia

Exports in kind, t

Exports of coffee, husks, skins, and substitutes from Southern Asia showed an unstable trend from 2017 to 2020. In 2017, exports hit their lowest point, while in 2018, they peaked at 330 tonnes, representing a 3.4-fold difference between these years. In 2020, exports were recorded at 111 tonnes, a moderate increase of 5.2% compared to 2019. The largest decline occurred in 2019, at 68.0%, while the largest increase was in 2018, at 237.2%.

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

From 2017 to 2020, Southern Asia's exports of coffee, husks, skins, and substitutes were distributed across a wide range of partner countries. Germany accounted for 12.2% of exports, Japan for 11.4%, and the United Kingdom for 11.0%, with these three countries together making up 34.5% of total export flows.

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

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

Exports in value, K $ US

The market for coffee, husks, skins, and substitutes exports from Southern Asia was volatile from 2017 to 2020. Export values reached their lowest point in 2020 at 907 thousand US dollars, a 28.4% decrease from the previous year, while peaking in 2018 at 4 339 thousand US dollars, resulting in a 4.8-fold difference between these years. The largest decline occurred in 2019, at 70.8%, and the largest increase was in 2018, at 342.2%.

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

During the 2017-2020 period, Southern Asia's exports of coffee, husks, skins, and substitutes in value terms were relatively evenly spread among partner countries. Germany contributed 12.2% of export value, Japan 9.5%, and the United States 8.4%, with these three countries jointly accounting for 30.0% of total export flows.

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

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

Imports coffee, husks, skins and substitutes to Southern Asia

Imports in kind, t

Southern Asia's imports of coffee, husks, skins, and substitutes increased for the third consecutive year in 2020. The import volume rose to 18 541 tonnes, a 24.2% increase from 2019. Over the 2017-2020 period, imports grew by 103.8%, equivalent to an annualized rate of 26.8%.

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

From 2017 to 2020, the United Arab Emirates was the largest contributor to Southern Asia's imports of coffee, husks, skins, and substitutes in kind, accounting for 28.9% of imports. Vietnam followed with 24.7%, and Indonesia with 12.3%, with these three countries together making up 65.9% of total import flows.

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

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

Imports in value, K $ US

After two years of growth, Southern Asia's imports of coffee, husks, skins, and substitutes in value terms declined in 2020. Imports were recorded at approximately 54 295 thousand US dollars, a 6.9% decrease from the previous year. Over the 2017-2020 period, imports increased by 62.1%, with a compound annual growth rate of 17.5%. The maximum value was reached in 2019 at 58 317 thousand US dollars, with the largest annual increase occurring that year at 47.6%.

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

Over the 2017-2020 period, the United Arab Emirates consistently led in Southern Asia's imports of coffee, husks, skins, and substitutes in value terms, accounting for 24.4% of imports. Vietnam contributed 19.8%, and Indonesia 10.0%, with these three countries jointly making up 54.2% of total import flows.

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

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