Flavorful Growth In Coffee As Volume Decline
In the stimulating world of coffee, India brewed up a record-breaking performance in 2023, witnessing an impressive surge in coffee exports to a remarkable $1,16 billion. This achievement, however, comes with a twist, as the volumes experienced a 5.5% dip due to reduced demand from key European and Russian buyers.
USD Surges as Global Prices Percolate
Despite facing a volume setback, the value of India’s coffee exports demonstrated remarkable resilience, surging by 4.50% to an unprecedented $1,16 billion in 2023. In terms of Indian rupees, this growth amounted to a significant 9.81%, underlining the financial strength of the export sector. The per-unit value for Indian exporters experienced a robust surge of 16.5%, driven by bullish global prices.
A closer look at segment-wise performances reveals the triumph of premium arabica parchment shipments, boasting a 7.6% growth at 38,045 tonnes. However, the narrative for other varieties unfolds differently, with arabica cherry and robusta parchment volumes experiencing minor declines of 1.2% and 2%, respectively. Notably, robusta cherry shipments faced a substantial setback, witnessing a major 17% decline to 0.157 million tonnes. Despite volume challenges, the export sector’s resilience and adaptability shine through, painting a positive picture for India’s coffee industry.
Global Market Overview Of Coffee
Country |
Shipments |
| Italy | 55,546 tonnes |
| Germany | 35,877 tonnes |
| Russia | 27,445 tonnes |
| Belgium | 19,079 tonnes |
| Poland | 15,679 tonnes |
| UAE | 18,124 tonnes |
| Libya | 13,022 tonnes |
| Malaysia | 12,971 tonnes |
In 2023, Italy maintained its position as the leading purchaser of Indian coffees, despite a 10% dip in offtake to 55,546 tonnes from 61,717 tonnes. Germany, the second-largest buyer, reduced purchases to 35,877 tonnes from 43,822 tonnes, while the Russian Federation decreased by 19% to 27,455 tonnes from 34,102 tonnes. Belgium, the fourth-largest buyer, experienced a substantial decline of 35%, reaching 19,079 tonnes from 29,234 tonnes.
Contrastingly, the United Arab Emirates (UAE), Libya, Poland, and Malaysia were the only markets that saw growth in Indian coffee shipments. Shipments to the UAE increased by 7% to 18,124 tonnes from 16,935 tonnes, Libya exhibited a remarkable 33% growth, rising to 13,022 tonnes from 9,748 tonnes. Malaysia witnessed a surge of 40%, reaching 12,971 tonnes from 9,223 tonnes, while Poland experienced a modest increase of 1.73% to 15,679 tonnes from 15,411 tonnes. Despite challenges in some major markets, the positive growth in specific regions signals diversified opportunities for Indian coffee exports.
As the aromatic waves of success ripple through India’s coffee exports, the challenge lies in maintaining momentum despite volume fluctuations. The resilience displayed in the face of reduced demand underscores the adaptability of the industry. Looking ahead, strategic decisions and market insights will be the key ingredients for India to continue leaving its mark in the global coffee market.