Brazil has set the template for how to drive domestic coffee consumption

Estimated reading time: 7 minutes

Key takeaways

• Brazil is one of the largest coffee-producing and consuming markets in the world.
• Specialty coffee now makes up an estimated 5-10% of Brazil’s market.
• Major cities are driving demand for higher-quality, traceable coffee.
• Strong domestic consumption gives Brazil’s coffee sector resilience to export disruptions, most notably US tariffs.

Brazil remains the world’s largest coffee producer, and its domestic consumption is keeping pace with that status. 

Global commodities trader StoneX recently projected a record 182.5 million bags for the 2026/27 harvest, with Brazil expected to lead the growth, driven by a 20.8% year-on-year increase in total output.

Specialty coffee consumption is also rising within the country, growing 15% in 2025 alone. Specialty coffee now accounts for an estimated 5-10% of the total domestic market by volume, pointing to a broader shift in consumer behaviour towards higher-quality options.

The country’s long history of coffee production, well-established supply chains, and sustained investment in infrastructure have created the conditions for a strong domestic drinking culture.

“For more than two centuries, coffee has shaped our economy, culture, and national identity. It’s part of daily life across every social class, from rural farms to major cities,” says Thiago (Rasta) Dias, a fifth-generation coffee producer, roaster, and cupper in Brazil. “Coffee represents accessibility and daily ritual. Our strong domestic consumption gives the sector resilience and stability.”

Ultimately, Brazil shows that major producing countries aren’t limited to supplying the world; they can also build substantial coffee cultures at home.

You may also like our article on how to roast Brazilian coffee.

Brazil’s coffee culture was born from production

Brazil’s rise as the world’s biggest coffee producer directly shaped its culture of domestic consumption.

The first coffee plant is said to have arrived in Brazil in the 1700s, when Francisco de Melo Palheta, a Portuguese nobleman, planted it in the state of Pará. Coffee production quickly spread, primarily for the domestic market, but as coffee consumption increased in Europe, coffee plantations began to appear in Minas Gerais, Rio de Janeiro, and São Paulo to maintain supplies.

At the time, Brazil accounted for only 20% of global coffee production, but it was the country’s main export. Yet by the mid-1900s, Brazil’s production had grown to account for 80% of global volumes. Coffee estates spread throughout regions such as Minas Gerais and Espírito Santo, growing both arabica and robusta.

Today, Brazil is expected to produce record volumes of coffee. According to a recent Reuters article, a survey of 758 Brazilian coffee producers shows the 2026/27 harvest up 11.5% to 71.4 million bags.

The country’s coffee consumption is also increasing. Brazilian Coffee Industry Association (ABIC) reported that domestic coffee consumption increased by 1.1% from November 2023 to October 2024, totalling almost 22 million bags. 

Early cafés in Brazil popularised the cafezinho, a drink prepared by boiling coffee with hot water and sugar, then straining it through cotton cloth. Dark roast profiles and sugar masked overly bitter flavours, as most higher-quality Brazilian coffee was exported at the time.

But consumer awareness of quality started to increase, supported by the government and industry stakeholders. The Coffee Quality Programme, launched in 2004 by the Brazilian Coffee Industry Association (ABIC), helped improve consumer access to coffee quality verification systems. As a result, Brazilian consumers could engage with coffee in a new light and understand its nuance.

A thriving specialty coffee scene

A USDA Foreign Agricultural Service March 2026 report shows strong potential in Brazil’s specialty coffee sector, noting a rise in domestic “appreciation” and production of specialty coffee. But the country’s specialty coffee industry has been growing for decades.

In 1991, the Brazilian Specialty Coffee Association launched, supporting producers, exporters, roasters, and café owners. Eight years later, Alliance for Coffee Excellence launched its first Cup of Excellence programme in Brazil, encouraging further investment in quality at farm level.

“Over the last 15 to 20 years, specialty coffee has grown significantly in Brazil,” Thiago explains. “Consumers increasingly care about origin, varieties, processing, and the sensory experience of coffee.”

As with many other consumer markets, major cities in Brazil, including São Paulo, Rio de Janeiro, and Belo Horizonte, drive interest in higher-quality coffee. Roasters like Coffee Lab, launched in 2009 in the Vila Madalena neighbourhood of São Paulo, were among the first to raise awareness of coffee quality and flavour.

“Today, Brazil combines tradition and innovation. Filter coffee remains the most popular brewing method in Brazil,” Thiago says. “However, espresso-based beverages, capsule machines, and pour over brewing methods have gained significant traction in homes, offices, and cafés.”

Brazil’s status on the global competition stage has also supported its homegrown coffee culture. In 2023, Boram Um became the first Brazilian competitor to win the World Barista Championship. He used a Panamanian Gesha, blended with a Pink Bourbon grown on his family farm in Brazil. 

Boram’s WBC victory marked a significant milestone for Brazil, highlighting its growing domestic consumption. In addition to Fazenda Um, the family also runs Um Coffee Co. shops throughout São Paulo, driving demand for locally-grown high-quality coffee even further.

How could specialty coffee evolve in Brazil?

Boram’s WBC win cast new light on Brazil’s specialty coffee scene on a global scale. Traditionally, Brazil has been known for delivering quantity and volume rather than exceptionally high-quality coffee.

“Today, Brazil doesn’t choose between volume and quality. From commodity to specialty, from scale to excellence, we deliver both,” Thiago says. “And this balance is what defines Brazil’s strength in the global coffee market.”

Additionally, a robust domestic market enables producers to participate more actively on the consumer side, helping retain more value in the country’s coffee sector.

“Brazilian producers are also responsible for fostering this growth in consumption, not just as farmers, but as entrepreneurs,” Thiago says. “They manage their farms like businesses, analysing data, climate risks, investing heavily in quality, post-harvest, crop management, and above all, seeking differentiation in the market.”

He adds that for specialty coffee to continue growing, there needs to be more investment in the country’s infrastructure: “We need to increase consumer education and awareness, and develop stronger cooperatives and associations that support quality improvement and market access.”

Navigating tariffs

Brazil’s strength in the global coffee market was tested in early 2025, when US tariffs created serious pressure on Brazilian exports. With more than 16% of coffee exports destined for the US, the 50% tariff on Brazilian goods posed a significant challenge. 

Many US roasters, unable to absorb the high upfront costs, looked for alternative origins. Brazilian exporters, meanwhile, unable to lower their prices, redirected shipments to Europe and Asia.

Coffee and other agricultural exports were ultimately exempted from the tariffs, but the situation ultimately influenced how Brazil approaches its domestic market. Now, more producers and exporters are weighing whether to retain more coffee at home rather than depend on export revenue.

Brazil’s coffee sector operates at a scale and depth that few countries can match. It produces more coffee than anywhere else in the world, consumes it at a rate no other producing nation comes close to, and has built a specialty coffee culture that sits alongside traditional consumption.

As other major producing countries like Indonesia drive their domestic consumption to record levels, Brazil can show them how to grow interest in homegrown specialty coffee.

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Photo credits: Specialty Coffee Association

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