Connect with us

Business

Coffee: A Sector Adapting to Change

Despite strong price pressure and consumption far from dethroning tea, coffee is gradually beginning to establish itself in the habits of Moroccans, as evidenced by the increase in imports.

Published

Photo credit: Nathan Dumlao // Unsplash

Coffee has not escaped the surge in international prices. Since 2021, prices have been on an upward trend, rising from 119 to nearly 310 US cents per pound in 2025, or from $2.62 to $6.84 per kg.

This situation is explained by several factors, including unfavorable weather conditions in major producing countries like Brazil, causing production declines or less abundant harvests, low global stocks relative to demand, as well as pressures on logistics and export costs, thereby increasing the final selling price.

Morocco has not been spared by this spike. Considering all origins and qualities (arabica and robusta), the import prices for green, non-roasted, and non-decaffeinated coffee averaged 51 DH/kg in the first six months of this year, compared to 18 DH/kg four years earlier, an increase of 183%.

The prices of roasted coffee, meanwhile, have increased by 59% since 2021 to reach 110 DH/kg. It should be noted that to counter the effect of this price growth, the 2023 Finance Law reduced the import duties on green, non-roasted coffee from 10% to 2.5%. This has allowed importers to mitigate the effect of price increases and roasters to continue their operations.

Imports, for their part, have continued their upward trend year after year. For green coffee, they amounted to 54,508 tons, an increase of 11%, for a value of 2.3 billion DH. More than two-thirds are supplied by Uganda and Vietnam, with respective shares of 30% and 15%.

Brazil, Indonesia, Guinea, Ethiopia, Tanzania, and Madagascar are also among coffee suppliers for Morocco, with volumes ranging from 6,000 to 1,500 tons.

Operators source roasted coffee, notably from European countries, with Spain in pole position, accounting for more than half of the shipments with 1,860 tons. It is followed by Italy, Switzerland, France, Portugal, and the Netherlands. Overall, imports reached 3,425 tons, growing by only 2.2% since 2021.

It should be known that “the quality of coffees differs from one country to another, and often, national industrial roasters opt for blends of different origins to adapt their production to the tastes of potential consumers,” explains Mohamed Astaib, President of the Moroccan Association of Tea and Coffee Industrialists (AMITC).

Between 800 and 1,000 grams per capita

Although coffee imports are rising, which indicates a growing interest in this beverage, the fact remains that total national consumption is limited. It stands at around 41,000 tons, encompassing both roasted and non-roasted coffee.

“The pace of the evolution in coffee consumption is not likely to see an upward trend in the immediate future, considering the annual consumption per capita, which fluctuates between 800 and 1,000 grams per inhabitant. This represents a level considered relatively modest compared to Tunisia or Algeria, where annual consumption per capita is 1.5 kg and 3 kg respectively,” adds Astaib.

Compared to tea, coffee consumption is still far behind. Moroccans consume Chinese green tea to the tune of nearly 70,000 tons per year. It should be noted that Morocco is China’s number one client in the world for green tea, importing almost 25% of the country’s total export volume destined for Morocco. However, domestic demand for coffee is poised for take-off in the coming years.

Indeed, coffee is considered an urban beverage that is progressing with accelerated urbanization, unlike green tea, which is predominantly rural.

A global hub at Tanger Med

The growing importance of coffee for the Moroccan market has led to the creation of the African Coffee Hub, which has set up at Tanger Med. It is a global platform for exporting African coffee to Europe, the United States of America, and Asia. It allows operators to source directly from producers, with the coffee being aggregated, stored, and controlled in Morocco, then shipped to major markets from the port.

In fact, “this project constitutes a real revolution in the trade of African coffee. It breaks with the traditional system that linked African producers to European intermediaries and forced them to bear costly supply chains,” explains Astaib.

Nevertheless, so far, the specific customs regime applicable to this space has not yet been explicitly defined (free zone or storage warehouse managed by the Hub Directorate). Another unknown: it has not yet been specified whether this product is reserved exclusively for export to countries on other continents or whether it can also be made available to Moroccan companies under the legal and regulatory conditions governing imports from abroad.

“Nothing motivates the exclusion of Moroccan economic operators for potential sourcing from this Hub. In this case, Moroccan roasting industrialists will benefit from this proximity advantage to conclude their commercial transactions in complete tranquility, without hindrance or delay in supplies,” concludes Astaib.

Strong competition in the sector

The coffee market in Morocco is poorly structured but highly competitive. Especially since other segments are eating away at market share, including instant coffee, pods, and capsules, with volumes that are growing steadily.

Aside from about a dozen large companies with modern industrial infrastructure compliant with international standards, there are a multitude of operators in the field of “artisanal” roasting, equipped with rudimentary equipment, but who have their place in this sector of activity.

Overall, “the market for packaged roasted coffee has become increasingly competitive and attractive for both local industrial roasters and importers of foreign brands,” emphasizes Astaib.