Due to many great advantages of cheaper prices and stable output, many individuals and companies are very interested in entering the business of wholesale coffee products. However, there are several important things you should know before pursuing this promising industry.
Contents
- 1 Definition of wholesale coffee products
- 2 Most popular wholesale coffee products
- 3 The setting of wholesale coffee products around the world
- 4 Competitive advantages of wholesale coffee products
- 5 How to work with suppliers of wholesale coffee products
- 6 Prominent suppliers of wholesale coffee products
Definition of wholesale coffee products
Wholesale coffee products are those coffee-related products that are sold in bulk or large quantities with generally cheaper prices than buying in retail. For professional coffee purchasers, wholesale coffee products are the perfect choice to do business, therefore they tend to look for a prestigious and trustworthy supplier to cooperate in the long run.
Most popular wholesale coffee products
Wholesale coffee products are divided into two types: green coffee beans products and processed coffee products.
Green coffee beans
Most wholesale green coffee beans products distributed around the world are Robusta and Arabica green coffee , which are quite obvious since the demand and utilization of these two types are always the highest.
- Wholesale price of coffee products
In general, the prices of wholesale Arabica coffee products are higher compared to that of Robusta. For Robusta coffee, after a fall of 10.4% in MY 2019/20.
(Unit: USD/MT)
| MY 2018/19 | MY 2019/20 | MY 2020/21 | |
| Robusta wholesale price | 1691 | 1531.9 | 1783.2 |
| Arabica wholesale price | 2670.6 | 3027.1 | 3727.5 |
In general, the price of wholesale Arabica coffee is higher than that of Robusta coffee because of the more demanding natural conditions to grow and give yields. Even though many natural disasters have occurred such as the frost in Brazil and the delayed trade flows of Asian markets due to the severe Covid-19 pandemic, the prices of both types of wholesale coffee products are still predicted to increase in the near future.
Prices of both types of wholesale coffee products are predicted to increase due to unfavorable natural conditions
- World production of wholesale coffee products
In terms of coffee production, in MY 2020/21, wholesale coffee beans countries in the world have produced 175,952 millions bags of coffee, most of them produced in popular coffee nations such as Brazil, Vietnam and Colombia. However, different countries have different climatic conditions and expertise that are more suitable for growing specific types of wholesale coffee beans. For example, while the majority of Arabica beans come from Brazil, Vietnam is the king of manufacturing Robusta coffee.
(Unit: thousand tons)
| MY 2018/19 | MY 2019/20 | MY 2020/21 | |
| Robusta output | 3960 | 4140 | 4370 |
| Arabica output | 6019.2 | 5824.2 | 5958 |
In general, there is a diverse trend among the output of Arabica and Robusta. While the quantity of world Robusta increased, Arabica decreased slightly.
Roasted coffee beans
These roasted beans with a charismatic aroma are also a very popular choice of wholesale coffee products. In general, the price of whole roasted coffee beans varies depending on each different market. For example, since the people in the EU have a very high demand for roasted coffee beans, the coffee export value here tends to be higher compared to other markets: from 1,223.8 million USD in MY 2018/19 to 1,739.1 million USD in MY 2020/21. Therefore, many wholesale coffee suppliers around the world consider the EU as their key market. The other two major markets for wholesale roasted coffee beans are the U.S. and Japan.
Roasted beans with a charismatic aroma are also a very popular choice
Instant coffee products
Another type of wholesale coffee products is instant or soluble coffee. This is the perfect choice for a quick and easy-to-make beverage, which explains the large quantity of instant coffee exports worldwide (327,3 thousand tons in MY 2020/21). Each package of an instant coffee product may be priced from just a few dollars. Therefore, they are frequently consumed in low or middle-income countries such as the Philippines. A few famous providers of instant coffee products are Nestlé, Starbucks and Vinacafe.
A few famous providers of instant coffee products are Nestlé, Starbucks and Vinacafe
Overall, while green coffee beans are cheaper, processed coffee products have higher economic value, thus giving coffee distributors higher profits. Therefore, different types of wholesale coffee products have their own advantages.
The setting of wholesale coffee products around the world
Currently, while most coffee-producing countries are located in the world coffee belt such as Vietnam and Brazil, the major target customers for wholesale coffee products are the United States, Europe and Japan.
Countries that offer wholesale coffee products
Wholesale coffee products mainly come from big coffee-producing countries because of the abundant input ingredients, guaranteed quality, and reasonable prices.
- Brazil
Located in the world coffee belt, this South American country has the perfect conditions for the supply of wholesale coffee products, especially Arabica. Each year, they produce 2,550,720 MT of coffee, which makes them the world’s leading coffee producer for 150 years. This country pays much attention and effort into its coffee industry, exemplified by more than 10,000 square miles and 22,000 coffee plantations, nationwide. Currently, they are the world’s number one producer of both raw coffee beans and instant coffee products. The price of Brazilian coffee in MY 2020/21 increased by nearly 60% compared the My 2019/20, which is now at around 4000 USD/MT.
- Vietnam
Standing second on the ranking is Vietnam. This country exported 900,000MT of coffee per year and has been the leading Robusta coffee producer in the world for many years. This can be explained by their favorable climatic features in the middle of the Pacific economic region, fertile land, and cheap labor, which are all of the ideal elements for the development of the bustling coffee industry. In addition, one very signature and must-try beverage made from Vietnamese coffee wholesale products is “ca phe sua”, which is coffee served with condensed milk. The price of Vietnamese Robusta coffee in MY 2020/21 has fallen to about 1650 USD/MT, resulting from the frozen production during the epidemic and the droughts in July 2020.
- Colombia
Colombia has developed its coffee culture since 1830 and is now the third biggest coffee-producing country worldwide. Their products are available in many major markets such as Japan, USA, and Italy with around 696,000 MT/year. In fact, Colombian coffee has the honor of being certified as a protected origin by the European Union. The average Colombian coffee price in the last 3 years has always been between 2700 and 5000 USD/MT, among the highest in the world.
The Coffee Belt – or the Bean Belt – is defined as an imaginary geographic band where ideal conditions are adapted for growing coffee
Countries that consume large quantities of wholesale coffee products
Countries that import the majority of wholesale coffee products are mainly those that do not have the ideal conditions for coffee growing and instant manufacturing. From MY 2017/18 to MY 2020/21, the European Union, the United States of America, and Japan are the three major importing markets of wholesale coffee products. For example, in 2020, the European Union imported 2.9 million MT of coffee, an increase of 7% compared to the 2010 statistics despite many Covid-19 restrictions. However, for the instant or soluble coffee category, no country can beat the Philippines in terms of consumption. In fact, this country has been the no.1 instant coffee consumer in the world for 5 years.
EU and the Philippines are 2 consumers and importers of coffee products
Competitive advantages of wholesale coffee products
The reasonable price, large quantity, and high demand are what make wholesale coffee products widely consumed around the world.
- Competitive prices compared to retailed coffee products
One advantage of large production is that the total costs of manufacturing chains, technology, input ingredients, labor, packing, etc. can be divided among the total output that the producers can provide. Hence, the price of wholesale coffee products tends to be cheaper than those retailed ones. For example, several companies offer 10-25% off the listed retail price if customers buy products in bulk, making the price tag per product much cheaper than buying in retail.
- High demand
From raw beans to instant coffee, it seems that each type of wholesale coffee product has their own target customers with high demand. Given the long history of coffee with many ups and downs until these days, the love for coffee around the world is still concretized. It is safe to say that the coffee culture has never seen such a blooming success and development, giving coffee suppliers the golden opportunity to get into the business of wholesale coffee products.
Americans alone drink 400 million cups of coffee every day
- Large output
The demand for wholesale coffee products has risen around the world, especially during the pandemic, hence the bigger quantity of wholesale coffee products annually. Most wholesale coffee products are provided by producers that have suitable facilities and technological investment for mass production. However, the flavor of the wholesale coffee products depend mostly on the quality of the input ingredients and the expertise of the manufacturers, not solely on the technology.
How to work with suppliers of wholesale coffee products
In order to work with suppliers of wholesale coffee products smoothly and effectively, this recommended work procedure should be helpful.
- Price negotiation
Buyers should compare exporting prices and quality from different suppliers to get the best offer. Several channels for finding suppliers of wholesale coffee products are e-commerce platforms or search engines. Compared to buying retail products, purchasing in bulk can be much cheaper, especially if the buyers ask for a 10-15% discount from wholesalers.
- Sample researching
Scam suppliers of wholesale coffee products may try to sell poor-quality products to you, so it is important to request samples of wholesale coffee products before signing a contract. This helps buyers to avoid receiving deceived products.
How to work with suppliers of wholesale coffee products
- Contract signing
The contract between buyers and sellers is a legal binding commitment that must follow the common law. It is always highly recommended to double-check the contents, terms and both parties’ interests in the contract before signing.
- Payment
The most suitable payment methods should be offered based on the quantity of purchased wholesale coffee products. The entire order value should be divided into 2 installments: before and after receiving the product to ensure the specified standards are satisfied.
- Receiving goods and giving feedback
After the orders are shipped to the destination, buyers need to check carefully the quality and the quantity of the wholesale coffee products. If the products do not meet the agreed requirements, buyers should contact sellers immediately to find a solution.
Prominent suppliers of wholesale coffee products
In the international market, these B2B coffee brands are considered very reliable and prestigious in supplying wholesale coffee products.
K-Agriculture – Vietnamese supplier of wholesale coffee products
For buying wholesale coffee products, K-Agriculture is among the most reliable and popular choices for wholesale buyers. They are now one of the most prominent Vietnamese factories for coffee products to the international market. Their 25-year history in the agricultural industry worldwide makes their products unique and premium: large output, high quality but with reasonable prices. From Robusta Lam Dong to Arabica Quang Tri, each of their products is made with special methods and careful selection.
During 25 years of development, K- Agriculture is one of the leading wholesale companies in Vietnam which is powered by the Vietnam Ministry of Industry and Trade
Contact information:
Email: info@k-agriculture.com
Website: https://k-agriculture.com/
Whatsapp: +84855 555 837
Ga Food – Brazilian supplier of wholesale coffee products
GA Food is a very famous coffee provider with a plentiful supply of high-quality Arabica coffee. Even though it has only been on the market for 6 years, they have already received many orders with a reputation for supplying wholesale coffee to other countries. One of the most signature features of their products is the medium roast flavor.
Hacienda Flandes – Colombian supplier of wholesale coffee products
Hacienda Flandes is a large coffee farm in the Ande Mountains of Colombia with a long history in the coffee production industry. Three generations of Hacienda Flandes have dedicated more than a century for the development of their family coffee business.
Contact information:
Whatsapp: +84 855555837
Red Diamond Coffee & Tea – U.S. supplier of wholesale coffee products
Red Diamond was established in 1906 and has been one of the oldest suppliers of wholesale coffee products in the United States.
Red Diamond is one of the oldest coffee, tea and food service companies in the United States
Contact information:
Whatsapp: +84855 555 837
