Key takeaways
- Global specialty coffee demand is rising, pressuring producers to improve quality.
- Ageing farmer populations threaten the continuity of coffee production worldwide.
- Long-term buyer relationships enable producers to innovate and invest in farms.
- Direct trade and blockchain platforms help producers access fairer, wider markets.
In its latest report, the USDA predicts that both global coffee production and consumption will reach record highs in 2025/26. Production is estimated at 178.8 million bags, up by 2%, while consumption could increase by 1.3% to 173.9 million bags.
The demand for specialty coffee, in particular, is also rising across the world. Consumption in the US reached a 14-year high in 2025, even surpassing “traditional” coffee consumption. Meanwhile, India’s coffee market is projected to double by 2030, with specialty coffee accounting for nearly 18% of this growth.
Specialty coffee promises producers higher prices, but it also places greater pressure on them to uphold quality standards while increasing production capacity. To grow more, producers need ongoing support from across the supply chain.
You may also like our article on how certifications can help coffee producers command higher prices.
Supporting a small but growing market
Producers play an essential role in supporting the growing specialty coffee market. But the transition from commodity to specialty-grade coffee can be challenging.
One of the many barriers is the declining number of farmers, especially among younger generations. ICO data estimates that the average age of a coffee farmer in Latin America is above 50, underscoring the pressing need to encourage youth to keep their family businesses alive.
“Succession is important because it ensures the continuity and evolution of coffee farming,” says Sandra Moraes, the Commercial Manager of Specialty Coffees at Expocacer, a Brazilian coffee cooperative that supports more than 760 producer members.
“Younger producers tend to engage in specialty coffee because they can drive change through a number of innovations, such as the adoption of new management practices, controlled fermentations, and sustainability techniques.”
The trend of youth leaving family farming is largely driven by high production costs, especially as they transition to producing higher-quality coffee. Even as coffee prices remain relatively high, production costs continue to rise, leaving many farms operating on tight margins.
Adopting innovative, sustainable production practices also requires access to capital, infrastructure, agricultural inputs, and educational resources. Historically, the deeply ingrained socio-economic challenges of coffee farming disincentivise producers from investing in innovation.
“Producing specialty coffee requires significantly more time, investment, and resources than commercial coffee,” says Wagner Brasileiro Ferrero, the production manager at Fazenda Pântano, one of the largest specialty coffee producers in Cerrado Mineiro, Brazil. “No producer grows specialty coffee as a hobby; it must make sense financially and generate long-term returns.”
Honing their craft also takes time; growing specialty coffee in an economically and environmentally sustainable manner requires knowledge and experience. Farmers often learn over many growing seasons how to best cultivate and process coffee from different plots with different microclimates and terroir.
Growing specialty coffee demands more from farmers
Specialty coffee is a lucrative market to enter, offering premium pricing and long-term buyer relationships. Over time, greater financial stability allows producers to reinvest in their farms, diversify their income, and continue to improve quality standards.
“It rewards the extra effort, investment, and attention to detail required throughout production and post-harvest processing,” says Wagner. “However, the benefits extend beyond price. Specialty coffee also brings market visibility and a better reputation, which can open many new opportunities and even improve the overall value perception of commercial lots.”
While the higher returns on investment are appealing, the risks can outweigh the benefits without the necessary skills, knowledge, resources, and infrastructure.
The specialty coffee market also puts pressure on producers to remain innovative. Whether this means planting the latest trending competition variety or developing advanced processing methods, many farmers feel the need to stay ahead of the curve, thereby increasing their production costs.
“This makes guaranteed market access, fairer pricing models, and transparency crucial,” Wagner explains. “Producers need confidence that their efforts will be recognised and rewarded.
“Having strong partners who promote two-way communication and connect producers with national and international buyers is essential to building trust, sustainability, and a more resilient supply chain.”
Supporting producers to improve quality
Trustworthy, mutually beneficial partnerships with exporters, importers, and roasters then become all the more important for producers. Buyers can facilitate the transition, offer producers ongoing feedback to improve quality, and help them access technology and social media to understand the wider supply chain.
“Three years ago, Expocacer developed the Essências programme, which offers personalised technical support throughout the pre- and post-harvest stages, ensuring that each lot reflects its maximum potential and the producer’s identity,” Sandra explains.
The Essências programme brings together differentiated microlots produced by cooperative members who adopt good agricultural practices, responsible management, and a focus on quality. The selected coffees express the terroir of the Cerrado Mineiro, a region recognised as the first Denomination of Origin for coffee in Brazil.
“We saw an average improvement in cup scores of 2.83 points, and the programme achieved four Presidential Coffees,” Sandra adds.
Without this level of support, producers can struggle to keep up with demand for higher-quality coffee. Trends in the coffee industry shift every six months to a year, but can take three to four years to move through the supply chain at origin.
“The Essências programme was truly a game-changer for us,” Wagner explains. “We had always produced specialty coffee, but much of our knowledge was based on empirical experience rather than a fully structured system.
“Expocacer helped us implement best practices across the entire chain, from pre-harvest management to post-harvest processing. This has given us the foundation to replicate results and continuously improve in the coming years.”
Why long-term relationships are key
Two central tenets of specialty coffee – long-term direct trade relationships and producer innovation – can be pursued in tandem. Building long-term relationships between buyers and coffee producers can encourage farm-level experimentation, making it easier to manage the associated risks.
When producers are assured of a roaster’s commitment to purchasing certain coffee lots each year for higher prices, they have more capacity to experiment with new farming practices and processing techniques and invest in new machinery.
“Expocacer’s support has been essential in the development of our specialty coffees. They assisted us in identifying the most promising areas and varieties, separating lots after harvest, and establishing clear post-harvest processing protocols,” Wagner explains.
“In addition, they have supported us with marketing, helping us connect with the right buyers and position our coffees in the specialty market.”
Another key consideration is that each coffee-producing community has context-specific strengths and challenges. Everything from the farm location and years of operation to the entrenched economic disparities in coffee production means some farmers start with greater disadvantages than others.
Across the board, smallholder farmers are more likely to lack the collateral needed to secure bank loans and face higher interest rates. They are also less likely to be able to afford attending coffee industry events or hosting farm tours, both of which are vital for connecting with potential new buyers.
Increasing market access
One-off transactions aren’t enough to sustain specialty coffee production; producers need long-term buyers willing to invest in working relationships that can consistently offer higher prices.
“The specialty coffee market is not based on price, but on long-term partnerships, as these generate more value and ensure the stability and innovation of the business,” Sandra says.
Even with price premiums and safety nets from environmental and social certifications, specialty coffee is still often not enough to cover farmers’ production costs. Instead, one of the most beneficial value-chain models for producers is direct trade, which can increase their bargaining power and secure better prices.
New platforms
Expocacer’s Coffee Chain platform supports producers by ensuring full traceability and transparency when connecting them with international buyers through blockchain and AI.
“The Coffee Chain platform assists with building mutually beneficial working partnerships by promoting the work of producers and generating connections that guarantee value in their businesses,” Sandra says.
After a successful debut in the US, the platform launched in Brazil and will expand into the UK, Europe, and more than 30 other countries. Expocacer also debuted the Coffee Chain Auction, which took place on 10 & 11 December 2025.
“The first online auction connected producers to over 20 international roasters to initiate lasting commercial relationships,” Sandra says. “The auction featured specialty-grade lots from Expocacer’s Essências programme, grown by producers who are new to specialty coffee, helping them access entirely new markets.”
The growing specialty coffee industry demands higher quality, presenting new market opportunities for producers.
“Producers need the courage to embrace change,” Wagner says. “Coffee farming in Brazil is still largely traditional, and new techniques, varieties, and post-harvest processes are not always immediately welcomed.”
But in order to adopt these practices more widely, producers need support from across the supply chain.
“The technical guidance and support of Expocacer’s specialists have helped us build a more structured and consistent approach to specialty coffee production,” he concludes.
Enjoyed this? Then read our article on why geographical indication is an effective marketing strategy in specialty coffee.
Photo credits: Expocacer
Perfect Daily Grind
Please note: Expocacer is a sponsor of Perfect Daily Grind.
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