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The coffee market and investment opportunities in it

The coffee market and investment opportunities in it
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Investment opportunities in the coffee market are among the most promising in the world. Coffee is one of the oldest and most important commodities, and it can be found in almost every restaurant and cafe on the planet.

It is one of the most widely consumed items in the world. According to a report published by “G World” in this regard, the coffee market generates revenues of more than 400 billion dollars annually, is produced primarily in developed countries and employs more than 500 million people.

Europe is the continent that consumes the most coffee, with more than 50 million bags of 60 kg capacity consumed annually, while Asia and Oceania come in second, with an estimated consumption of more than 36 million bags of coffee, bag capacity.

The coffee market and investment opportunities in it

According to the aforementioned J-world analysis, the roasted coffee market revenue is predicted to reach more than 434$ billion in 2025, with a growth rate of 5.2 percent.

While instant coffee is predicted to generate revenues of over 165.6 $ billion in 2025, with a growth rate of 6%, this is due to the annual increase in the number of coffee drinkers.

In terms of revenue distribution by intake channels in the worldwide coffee market, consumption channels outside the home, such as restaurants and cafés, account for between 78 percent and 84 percent of spending and between 17 percent and 21 percent of global coffee consumption.

Arabic coffee accounts for more than half of worldwide coffee output and is one of the most popular varieties in the Arab world, while Robusta comes in second, accounting for roughly 41% of production.

Yemen was the only country to see a 9.4% growth in coffee output between 2019 and 2020, going from 91 million bags to 100 million bags with a capacity of 60 kg per bag.

The Republic of Yemen is considered the most Arab environment for investment in the coffee sector due to its warm climate, which allows for increased production.

The coffee market and investment opportunities in it

The coffee market and investment opportunities in it

The coffee market in the Kingdom of Saudi Arabia

If we want to discuss the Saudi Arabian coffee market and the opportunities it presents for entrepreneurs, we must first understand that the Kingdom of Saudi Arabia is the Arab country that imports the most coffee annually, as well as the nineteenth country in the world in terms of coffee import value for the year 2020.

Coffee is grown in the Kingdom, according to the report of J World, which we mentioned before, in three main regions, the first of which is Jazan, which includes: Al-Dair, Al-Ardah, Fifa, and Al-Hroub. In the Asir region, coffee is grown in Rida, Jabal Hada, and Wadi Ghail. In the Al-Baha region, coffee is grown in Al-Makhwah and Shaza Mountain.

Ethiopia accounts for more than 48 percent of the Kingdom’s coffee imports, with a value of 3,008$ per ton, while Switzerland has the most costly ton of coffee at 33.588 $ per ton.

The coffee market and investment opportunities in it

The coffee market and investment opportunities in it

The volume of revenues of the coffee sector in the Arab countries

Except for some markets, which have seen a decline due to the closure of restaurants and cafes and a decrease in the intensity of coffee consumption outside the home, indicators of coffee consumption in Arab countries show a significant increase in the volume of consumption and spending over the last five years.

According to the US Department of Agriculture, total global coffee production increased by 3.8 percent from mid-2020 to mid-2021, to 10.6 million tons.

The first is “Arabica” coffee, which has a total production of 6.1 million tons and is produced by a tree that grows between 2.5 and 4.5 meters in length at a temperature of 15 to 24 degrees Celsius, and whose fruits are oval in shape with a dividing line that has a clear curvature in the middle of the pill.

The coffee market and investment opportunities in it

The coffee market and investment opportunities in it

With a compound annual growth rate of between 18% and 32.1%, more than 70% of coffee spending is predicted to be related to consumption outside the home by 2025.

The other type, “Robusta,” has a temperature range of 18 to 36 degrees Fahrenheit, and more rain is expected. The inside of the bean is spherical and has a semi-straight line. This kind has a higher ratio of “chlorogenic” compounds than the “Arabica.” In comparison to Robusta, which has 10 to 11.5 percent fat and 3 to 7 percent sugar, Arabica has 15 to 17 percent fat and 6 to 9 percent sugar.

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