COFFEE

DEVELOPMENT REPORT

2022-23

BEYOND Towards a Circular

COFFEE Coffee Economy
A flagship publication of the International Coffee Organization
BEYOND COFFEE 1
 COFFEE
DEVELOPMENT REPORT

2022-23

BEYOND COFFEE
Towards a Circular Coffee
Economy

A flagship publication of the International

Coffee Organization

This fourth edition of the ICO Coffee Development Report was drafted thanks to an extensive and unique participatory process that engaged
many partners, consultants, experts and practitioners from academia, international organizations and private sector entities, coordinated
through the International Trade Centre (ITC) Coffee Guide Network and its Circular Economy Working Group. It was produced in partnership
with ITC and its Alliances for Action (A4A) programme, the Politecnico di Torino (PoliTO), the Lavazza Foundation and the Center for Circular
Economy in Coffee (C4CEC).
THE INTERNATIONAL
COFFEE ORGANIZATION

Mission

The International Coffee Organization’s (ICO) mission is to

strengthen the global coffee sector and promote its sustainable
expansion in a market-based environment for the betterment
of all participants in the coffee sector.

Scope of Work

The ICO, established in 1963, operates under an international

treaty, the International Coffee Agreement (ICA 2007). It is the
only intergovernmental organization for coffee, bringing together
the governments of exporting/producing and importing/
consuming countries to tackle the challenges facing the global
coffee sector through international cooperation.

It provides a unique forum for dialogue and cooperation among

governments, the private sector, development partners, civil
society and all coffee farmers and stakeholders to tackle the
challenges and nurture the opportunities of the global coffee
sector.

The ICO collects and compiles independent official statistics

on coffee production, trade and consumption, supports the
development and funding of technical cooperation projects and
public-private partnerships, and also promotes sustainability
and coffee consumption. It facilitates the contribution of coffee
to achieving the Sustainable Development Goals (SDGs) by
increasing the resilience of local communities and coffee
farmers, in particular smallholders, enabling them to benefit
from coffee production and trade, which can help eradicate
poverty and achieve a living income for coffee-producing
families. ICO Members include 75 countries representing 94%
of global coffee production and 64% of world consumption.

BEYOND COFFEE 3
CONTENTS
The International Coffee Organization 3 C.1.3 Early adopters of innovation, R&D, and
Acknowledgements 10 industrialization of circular products and
processes will run into high costs and risks 79
Partners 11
C.1.4 There is limited access to finance sources
Abbreviations 12
or circular economy implementation 79
Foreword 13
C.1.5 Supply and demand may be mismatched 79
OVERVIEW 15 C.1.6 Niche and developing markets for coffee
by-products are fragmented and lack transparency 80
O.1 Objectives and structure of the report 15
C.1.7 A niche market development requires
O.2 Main findings 16 entering new, competitive supply chains 80
O.3 Policy and actions are required for a sustainable, C.1.8 There is low consumer awareness of circular
inclusive, and circular coffee sector 30 economy products 81
C.1.9 The value is not always circular but should be 81
SECTION A 36
Making a case for a circular economy C.2 How to transform the coffee sector through
circular economy: policy recommendations 82
A.1 Circular economy as an urgent measure 36
C.2.1 Why now? 82
A.2 From linear to circular 38
C.2.2 The guiding principles behind the
A.3 What is circular economy? 38 recommendations 82
A.4 Circular economy in agri-business 39 C.3 Strategic and overarching recommendations 82
A.5 Circular economy in the coffee sector 39 C.3.1 Farming and production recommendations 88
A.6 Benefits of a circular economy 40 C.3.2 Processing recommendations 91
A.7 Circular economy policies and initiatives 42 C.3.3 Packaging and transport recommendations 92
C.3.4 Consumption recommendations 94
SECTION B 45
Breaking down sustainability across the C.3.5 Post consumption recommendations 95
coffee value chain
SECTION D 98
B.1 Resource efficiency from bean to cup 45 The coffee sector in numbers
B.1.1 From cherry to green coffee 47
D.1 Prices 98
B.1.2 From green coffee to consumption 48
D.1.1 I-CIP Prices 98
B.1.3 Opportunities for transformation 48
D.1.2 Growths 98
B.2 Circularity in the Coffee Global Value Chain 50
D.1.3 Price volatility in spot and futures coffee markets 99
B.2.1 Farming and production 50
D.1.4 Arbitrage 99
B.2.2 The consequences of coffee cultivation 50
D.1.5 Certified Stocks 99
B.2.3 Opportunities for circularity in coffee cultivation 51
D.2 Exports 100

SECTION C 78 D.2.1 Exports of all forms of coffee – world

Challenges and recommendations for a more and regions 100
circular coffee sector D.2.2 Coffee exports by form 101
C.1 Challenges in implementing a circular economy D.2.3 Exports of Arabica and Robusta –
across the coffee sector 78 green beans 101
C.1.1 Actionable knowledge is isolated 78 D.3 Production 102
C.1.2 Fragmented policies, regulations, and D.3.1 Total coffee production – world and regions 102
standards need adaptation and consensus 79 D.3.2 Total coffee production – countries 103

4 BEYOND COFFEE
 D.3.3 Arabica coffee production 103
D.3.4 Robusta coffee production 105
D.4 Consumption 105
D.4.1 Total coffee consumption – world and regions 105
D.4.2 Coffee consumption – producing countries 106
D.4.3 Coffee consumption – non-producing countries 106

ANNEXES 109
ANNEX A1 109
ANNEX A2 110
Bibliography 112
Disclaimer 117

BEYOND COFFEE 5
LIST OF FIGURES

OVERVIEW 15 FIGURE B.3 47

Coffee cherry structure and by-products
FIGURE O.1 17
from coffee processing
Principles for circular economy in coffee
FIGURE B.4 48
FIGURE O.2 17
Percentage of coffee cherry in the cup
From the “3R’s” to the “9R’s”
FIGURE B.5 48
FIGURE O.3 20
Coffee by-products and their chemical compounds
Coffee by-products and their chemical compounds
FIGURE B.6 49
FIGURE O.4 21
Opportunities to add value, reuse or reduce waste
Global biomass generated through coffee
in a coffee value circle
transformation, coffee year 2022-2023
FIGURE B.7 53
FIGURE O.5 22
What is insetting?
Coffee cherry structure and by-products
from coffee processing FIGURE B.8 56
An overview of coffee processing
FIGURE O.6 23
Biomass flow - coffee year 2022-23 FIGURE B.9 57
Every tonne of cherries obtains approximately
FIGURE O.7 30
200 kg of green coffee beans
Global sector survey findings
FIGURE B.10 57
FIGURE O.8 32
Chemical compounds of coffee pulp
Overview of strategic and overarching
(wet processing method)
policy recommendations
FIGURE B.11 57
SECTION A 36 Chemical compounds of coffee mucilage
Making a case for a circular economy and parchment (washed processing method)
FIGURE B.12 59
FIGURE A.1 37
Value-addition uses for washed coffee process
Making a case for a circular economy
by-products
FIGURE A.2 38
FIGURE B.13 63
Principles for circular economy in coffee
Value-addition uses for natural coffee process
FIGURE A.3 39 by-products
Average benefit comparison between adopting
FIGURE B.14 65
circular design and only adopting better sourcing
Chemical compounds of silverskin (roasting)
practices
FIGURE B.15 66
FIGURE A.4 41
Value-Addition Uses for Silverskin
The “9R's” applied to the coffee sector
FIGURE B.16 68
FIGURE A.5 42
Packaging, emissions and waste
International standards on circular economy
FIGURE B.17 69
SECTION B 45 Global daily coffee consumption
Breaking down sustainability across the coffee FIGURE B.18 72
value chain Chemical compounds of spent coffee grounds
(after coffee brewing)
FIGURE B.1 45
FIGURE B.19 73
The coffee value chain, from producer to consumer
Value-addition uses for spent coffee grounds
FIGURE B.2
Global biomass generated through coffee SECTION C 78
processing, coffee year 2022-2023 Challenges and recommendations for a more
circular coffee sector

6 BEYOND COFFEE
FIGURE C.1 83 FIGURE D.17 103
Key new approaches required to accelerate the Production of coffee - top ten countries,
transition from linear to circular '000 60-kg bags
FIGURE D.18 103
SECTION D 98 Production of coffee - top ten countries,
The coffee sector in numbers growth rates (%)
FIGURE D.1 98 FIGURE D.19 103
ICO Composite Indicator Price (I-CIP) | Production of Arabica - regions, million 60-kg
October 2020 - September 2023 bags and growth rates (%)
FIGURE D.2 99 FIGURE D.20 104
ICO Group Indicator Prices | Production of Arabica - regions, percent share (%)
October 2020 - September 2023 FIGURE D.21 104
FIGURE D.3 99 Production of Arabica - top ten countries,
Average of 2nd and 3rd position of ICE Futures, '000 60-kg bags
US cents/lb FIGURE D.22 104
FIGURE D.4 99 Production of Arabica - top ten countries,
Rolling 30-day volatility of the I-CIP | growth rates (%)
October 2020 - September 2023 FIGURE D.23 105
FIGURE D.5 99 Production of Robusta - regions, million 60-kg
Certified stocks | October 2020 - September 2023 bags and growth rates (%)
FIGURE D.6 100 FIGURE D.24 105
Exports of all forms of coffee - regions, millions Production of Robusta - regions, percent share (%)
of 60-kg bags FIGURE D.25 105
FIGURE D.7 100 Production of Robusta - top ten countries,
Exports of all forms of coffee - regions, '000 60-kg bags
percent share (%) FIGURE D.26 105
FIGURE D.8 100 Production of Robusta - top ten countries,
Exports of all forms of coffee - top ten growth rates (%)
countries, '000 60-kg bags FIGURE D.27 106
FIGURE D.9 101 Consumption of coffee - regions, million 60-kg bags
Exports of all forms of coffee - top ten countries, FIGURE D.28 106
growth rates (%) Consumption of coffee - regions, percent share (%)
FIGURE D.10 101 FIGURE D.29 106
Share of exports by forms of coffee - world, Top ten consumption - producing countries,
percent share of total (%) million 60-kg bags
FIGURE D.11 101 FIGURE D.30 106
Exports of coffee by different forms - regions, ' Top ten consumption - producing countries,
000 60-kg bags growth rates (%)
FIGURE D.12 102 FIGURE D.31 107
Green beans exports - groups, millions 60-kg bags Top ten consumption - non producers,
FIGURE D.13 102 million 60-kg bags
Green beans Arabica/Robusta exports - regions, FIGURE D.32 107
'000 60-kg bags Top ten consumption - non producers, growth rates (%)
FIGURE D.14 102
Production of coffee - regions, million 60-kg
bags and growth rates (%)
FIGURE D.15 102
Production of coffee - regions, percent share (%)
FIGURE D.16 103
Production of Arabica/Robusta share - regions,
percent share (%), 2022/23

BEYOND COFFEE 7
LIST OF BOXES

OVERVIEW 15 BOX B.13 75

Kaffe Bueno: Upcycling coffee by-products
BOX O.1 18
What is regenerative agriculture? BOX B.14 76
Nespresso’s Da Chicco a Chicco: Coffee
BOX O.2 33
capsule recycling schemes
The Center for Circular Economy in Coffee (C4CEC)
SECTION C 78
SECTION A 36
Challenges and recommendations for
Making a case for a circular economy
a more circular coffee sector
BOX A.1 38
BOX C.1 79
A historical barrier to circularity
Harmonized codes for coffee
BOX A.2 39
BOX C.2 80
UNIDO’s two cycles within the circular model
Industrial symbiosis in the coffee sector (SISSI)
BOX A.3 41
BOX C.3 83
Benefits of circular economy in the coffee sector
Ten guiding principles for the coffee global
value chain
SECTION B 45
Breaking down sustainability across the
coffee value chain
BOX B.1 51
A living income for coffee farmers
BOX B.2 52
OP2B working definition of regenerative agriculture
BOX B.3 54
COMSA: Regenerative agriculture on coffee farms
BOX B.4 55
Water usage of washed coffee
BOX B.5 60
What is cascara?
BOX B.6 61
COMSA: Regenerative agriculture on coffee farms
BOX B.7 64
NetZero: Biochar from biomass
BOX B.8 67
Cir.Co: High-value compounds from silverskin
BOX B.9 68
Packaging and Packaging Waste Regulation (PPWR)
BOX B.10 68
Strategies for circular packaging design
BOX B.11 70
Lavazza sustainable packaging roadmap
BOX B.12 71
Circular coffee capsule design critical elements

8 BEYOND COFFEE
LIST OF TABLES

OVERVIEW 15
TABLE O.1 20
Opportunities for the coffee sector
TABLE O.2 25
Opportunities to integrate circularity in coffee
production and post-harvest processes
TABLE O.3 27
Opportunities to integrate circularity in
transportation and trade
TABLE O.4 29
Opportunities to integrate circularity in
roasting and consumption
TABLE O.5 33
Overview of specific policy recommendations

SECTION C 78
Challenges and recommendations for a more
circular coffee sector
TABLE C.1 84
Overarching recommendations for implementing
a circular economy in the coffee sector
TABLE C.2 88
Farming and production recommendations
TABLE C.3 91
Processing recommendations
TABLE C.4 92
Packaging and transport recommendations
TABLE C.5 94
Consumption recommendations
TABLE C.6 95
Post consumption recommendations

BEYOND COFFEE 9
ACKNOWLEDGEMENTS

The Coffee Development Report (CDR) 2022-23 was prepared by Dock No, Statistical Coordinator, and Alexander Rocos, Statistics
an extended team led by Vanúsia Nogueira, Executive Director Associate, who prepared Part III Section D and contributed to
of the International Coffee Organization (ICO) and guided by the scientific work on defining coffee-specific biomass and
Gerardo Patacconi, Head of Operations, who overviewed and waste parameters. Additionally, appreciation goes to Veronica
contributed to all stages of the report. Ariana Ocampo Cruz, Ottelli, ICO Secretariat and External Relations Officer, Adriel
Junior Economist, played an instrumental role in consolidating Tiongson, who provided support with editing the report, and
and reviewing its content. to Chris Eccleston (The Clockwork Creative), who partially
contributed to the graphical design of the report.
The International Trade Centre (ITC), through its Alliances
for Action (A4A) programme, co-led the production of this We extend our gratitude to everyone who contributed to this
report and facilitated contributions from the ITC Coffee Guide report, including those whose names may not appear here,
Network Circular Economy Working Group, a global group of 62 as well as the families and friends who supported us in this
individuals from 36 countries representing 44 coffee stakeholder endeavour.
organizations – including MSMEs and institutions from coffee
growing countries (see ANNEX A1 list of members). The ICO team was highly motivated to work on this CDR,
hoping it will empower all coffee stakeholders and the
Alessandro Campanella (Researcher and Assistant Lecturer, development community to seize opportunities for achieving
Sys - Systemic Design Lab, Politecnico di Torino), Dario Toso sustainability and resilience in the coffee sector through
(Product Sustainability and Circular Economy Manager, Lavazza, circular and regenerative solutions. These solutions could drive
and Co-Coordinator, C4CEC), and Katherine Oglietti (Coffee substantial sector upgrades and resilience by combating climate
Guide Network Coordinator, ITC, and Co-Coordinator, C4CEC) threats, safeguarding natural resources and the environment,
led the research and content creation for the report through transforming waste into new products, implementing cost-
a participatory and collaborative process. Sarah Charles effective circular and regenerative agricultural practices,
(Communications Consultant, ITC) was the chief editor of the reducing inputs, transaction costs, and environmental footprints,
report, and oversaw its strategic design and production. Hernan improving energy efficiency, and even producing alternative
Manson (Head Inclusive Agribusiness Systems) designed energy. Ultimately, by making the coffee economy circular, the
and oversaw the strategy and methodology behind the co- sector can create new jobs, generate income opportunities,
creation and evidence-based partnership process and Giulia and reduce living income gaps.
Macola (Alliances for Action Programme Advisor) oversaw ITC
contributions for the report. Camila Gadotti (Graphic Designer, We believe that everyone involved in the coffee supply chain,
ITC) created all original graphics and layout. from farmers to consumers, has both an opportunity and a
moral obligation to move towards circular, regenerative, and
The ICO extends its sincere thanks and deepest appreciation to restorative coffee production, processing, consumption, and
these contributors. Their outstanding commitment, dedication, disposal. We sincerely hope that all participants in the coffee
and expertise were essential to the realization of this document. global value chain (C-GVC) will be inspired by this report and
work alongside business, technical, and development partners
This report builds on the ITC paper “Making a Case for a to drive the transition from a linear to a circular coffee economy.
Circular Economy in the Coffee Sector: Insights from the multi-
stakeholders working group on circular economy in coffee” (ITC, All coffee stakeholders can now benefit from the recently
2024), offering deeper technical and policy analyses of circular established Center for Circular Economy in Coffee (C4CEC),
economy in the context of the coffee market. a unique pre-competitive platform designed to put circular
economy into practice. The Center facilitates the piloting
Policy recommendations were led by Arthur Kay, Honorary of innovations, advances research, and serves as a hub for
Associate Professor and Entrepreneur in Residence at UCL’s collecting and sharing best practices, solutions, case studies,
Institute for Global Prosperity, whose work was supported and practical information on applying circular economy
by Dr Rebecca Clube, Dr Berill Takacs of UCL, Independent concepts throughout the coffee value chain – from farming
Researcher Jasmine Kaur, and Prof Raimund Bleischwitz of the to consumption and disposal. We encourage all coffee
Leibniz Centre, as well as the ICO, ITC, and its Circular Economy stakeholders to join this platform and work towards a resilient,
Working Group Members. inclusive, and sustainable coffee sector.
The ICO also acknowledges the valuable contributions from

10 BEYOND COFFEE
PARTNERS

The main partners of this report include the International Coffee Organization (ICO), the International Trade Centre (ITC), the
Center for Circular Economy in Coffee (C4CEC), Fondazione Giuseppe e Pericle Lavazza Onlus, and Politecnico di Torino. The
report benefits from the contributions and insights of global coffee sector stakeholders through the ITC Coffee Guide Network
Circular Economy Working Group.

The International Trade Centre (ITC) is the joint agency of Founded in 1906, Politecnico di Torino is internationally
the World Trade Organization and the United Nations. ITC is recognized as one of Europe’s leading universities for engineering
the only development agency fully dedicated to supporting and architecture studies. The university is a centre of excellence
the internationalization of micro, small and medium-sized for education and research in engineering, architecture, design,
enterprises (MSMEs). Its Alliances for Action programme and planning, working closely with the socio-economic system.
leverages partnerships for sustainable food systems by As a comprehensive research university, Politecnico integrates
cultivating ethical, climate-smart, and sustainable agricultural education and research to create synergies that address the
value chains aimed at achieving resilience and growth for needs of the economy, the local community, and its students.
farmers and MSMEs. The Circular Economy Working Group, Sys - Systemic Design Lab, part of Politecnico di Torino’s
coordinated by ITC as part of the Coffee Guide Network, is Department of Architecture and Design, develops methods
a global, multi-stakeholder group formed through a unique and tools of Systemic Design aimed at environmental, social,
collaborative effort to pool knowledge and experience for the and economic sustainability. By collaborating with public and
fourth edition of ITC’s Coffee Guide, widely regarded as the private stakeholders both locally and internationally, the lab
industry reference for coffee knowledge. The Coffee Guide is applies the systemic approach in three main areas: sustainable
freely available in English, French, Spanish, Portuguese, and, products, industrial innovation, and territorial enhancement.
most recently, Amharic.

Established in 2004, the Fondazione Giuseppe e Pericle The Center for Circular Economy in Coffee (C4CEC) is a pre-
Lavazza Onlus promotes and implements economic, social, competitive initiative established to accelerate the transition
and environmental sustainability projects for coffee-producing from linear to circular practices in the coffee sector. Established
communities worldwide. The foundation supports the autonomy in Turin, Italy, as a non-profit organization, the Center was
of local communities by emphasizing the value of female officially launched in September 2023 during the ICO 5th World
workers, involving younger generations, encouraging good Coffee Conference in Bangalore, India, and is supported by a
agricultural practices to improve crop yields and coffee quality, global network of members. The Center serves as a platform
and promoting the use of technological tools to counter the to put circular economy into practice by piloting innovations,
effects of climate change. Since its inception, the non-profit advancing research, and sharing best practices. Its web platform
has organized more than 50 projects across more than 20 offers case studies, research, and practical information on
countries and three continents in partnership with more than applying circular economy principles across the coffee value
60 public and private partners. chain, from farming to consumption and disposal.

BEYOND COFFEE 11
ABBREVIATIONS

ACEF Africa Circular Economy Facility

ACRAM Robusta Coffee Agency of Africa and Madagascar
AFCA African Fine Coffees Association
APR Association of Plastic Recyclers
C4CEC Center for Circular Economy in Coffee
CDR Coffee Development Report
CFCG Cradle-to-Grave Carbon Footprint
CGLF CEOs and Global Leaders Forum
CIAT International Centre for Tropical Agriculture
CIC Coffee Industry Corporation
CICC Interprofessional Cocoa and Coffee Council
C-GVC Coffee Global Value Chain
CLAC The Latin American and Caribbean Network of Fair Trade Small Producers and Workers
CNC Conselho Nacional do Café
CO Carbon Monoxide
CO2 Carbon Dioxide
CO2e Carbon Dioxide Equivalent
COSA Committee on Sustainability Assessment
CPC Coffee-Producing Country
CPPTF Coffee Public-Private Task Force
CSA Climate Smart Agriculture
D4ACE Designing for a Circular Economy
ECF European Coffee Federation
EU European Union
EMF Ellen MacArthur Foundation
FAO Food and Agriculture Organization
GHG Greenhouse Gas
HDPE High-Density Polyethylene
ICC International Coffee Council
ICD International Coffee Day
I-CIP ICO Composite Indicator Price
ICO International Coffee Organization
IDH The Sustainable Trade Initiative
IMF International Monetary Fund
ITC International Trade Centre
IWCA International Women’s Coffee Alliance
LCA Life Cycle Assessment
LI Living Income
LIFFE London International Financial Futures and Options Exchange
LPI Living and Prosperous Income
MSME Micro, Small and Medium-Sized Enterprises
NGO Non-Governmental Organization
NYBOT New York Board of Trade
OECD Organisation for Economic Cooperation and Development
OP2B One Planet Business for Biodiversity
PVC Polyvinyl Chloride
SCA Specialty Coffee Association
SCTA Swiss Coffee Trade Association
SSU Single-Serve Unit
UCL University College London
UN United Nations
UN SDGs United Nations Sustainable Development Goals
UNIDO United Nations Industrial Development Organization
US EPA United States Environmental Protection Agency
VOCs Volatile Organic Compounds
WPC Wood Plastic Composite

12 BEYOND COFFEE
FOREWORD

A transformative shift is brewing in the coffee sector – one (CSA) strategies, fostering meaningful change. The traditional
that embraces the principles of the circular economy in a way linear model – characterized by inputs, transformation, outputs,
that works for all and leaves no one behind. consumption, and disposal – is becoming increasingly outdated
and costly. Real progress in the coffee sector necessitates
This concept has been at the forefront of the International Coffee sustainable solutions that span the entire value chain.
Organization’s (ICO) efforts throughout 2022-23, culminating
in the celebration of International Coffee Day on 1 October The CDR 2022-23 introduces several impactful circular solutions
2022. This global event was a call to action for all stakeholders in the coffee sector, proving that they are both accessible and
to reimagine coffee sector waste as a valuable resource. By economically viable. With the right policies and commitment
repurposing waste into new products and alternative energy from all stakeholders, these solutions can be scaled up,
sources, we can unlock significant income possibilities and job promoting sustainability, resilience, and prosperity for coffee
opportunities while simultaneously lowering production costs. farmers and everyone involved in the coffee journey, from
production to consumption. This report aspires to demonstrate
The 5th World Coffee Conference, held in Bangalore, India, in that the future of the coffee industry is not just a distant vision;
September 2023 further amplified this message with its theme: it is within our grasp. By rethinking our supply chains in circular
“Sustainability through Circular Economy and Regenerative terms and fostering collaboration among the ICO and our
Agriculture.” This gathering brought together hundreds of partners, we can implement systemic and technological
experts and practitioners from diverse sectors – coffee farmers, innovations across the entire value chain – not merely in isolated
industry leaders, government representatives, academics, farms or cafes, but throughout the whole industry.
and development partners – for a collaborative exploration of
innovative solutions. This report is designed to provide in-depth knowledge on the
potential of circular economy in the coffee sector and to ignite
Pivotal contributions from the International Trade Centre (ITC), action among coffee stakeholders, policymakers, international
the ITC Coffee Guide Network’s Circular Economy Working development agencies, NGOs, and bilateral and multilateral
Group, and the Center for Circular Economy in Coffee (C4CEC) institutions. By leveraging circularity to address the challenges
have laid the groundwork for the 4th edition of the Coffee facing our sector, we can collectively shape the coffee industry
Development Report (CDR), titled “Beyond Coffee: Towards a we envision and lay a foundation for future generations to
Circular Coffee Economy.” This report builds on the insights thrive. Transitioning to a circular coffee economy and adopting
from the ITC paper, “Making a Case for a Circular Economy in regenerative agricultural practices is not merely an innovative
the Coffee Sector” (2024), and The Coffee Guide, 4th Edition strategy; it is essential for increasing income while minimizing
(2021). I am proud to present this report, the culmination of over environmental impact, complementing traditional methods
two years of dedicated research and collaboration. aimed at enhancing productivity.
Remarkably, the coffee industry generates over 40 million tonnes I want to express my heartfelt gratitude to the ICO team and
of biomass annually. This is an underutilized resource brimming our external collaborators who have poured their efforts into
with potential for sustainable exploitation and waste reduction. this report over the past two years. Special thanks to Hernan
We aim to challenge the outdated perception that coffee Manson from ITC, Mario Cerutti of Lavazza and its Foundation,
producers gain value solely from the coffee bean itself. The and Gerardo Patacconi from the ICO, whose leadership, technical
true wealth of coffee lies beyond the three billion cups consumed knowledge and mobilization of partnerships and resources have
daily; by enhancing resource efficiency through a circular been instrumental in bringing this vision to life. Together, let us
economy approach, we can cultivate new products, create cultivate a sustainable future for coffee.
jobs, combat climate change, and protect our environment.

Our shared responsibility for the planet transcends borders,

extending from global leaders to local communities. I firmly
believe that everyone in the coffee sector – coffee farmers,
workers, industry stakeholders, and consumers – can play a
crucial role in driving the shift towards a more sustainable and
resilient industry. By embracing circular economy principles Vanúsia Nogueira
and implementing cost-effective, regenerative solutions, we Executive Director
The International Coffee Organization
can align coffee production with Climate Smart Agriculture

BEYOND COFFEE 13
14 BEYOND COFFEE
PART I
OVERVIEW

O.1 Objectives and structure of Report structure:

the report Part I: Provides a comprehensive overview of the report,

highlighting the main findings, opportunities, challenges, and
This fourth edition of the Coffee Development Report policy recommendations for advancing a circular economy
(CDR), the flagship publication of the International Coffee in the coffee sector.
Organization (ICO), explores the untapped potential of Part II Section A: Establishes the foundation for a circular
coffee cherries and beans beyond traditional brewing. economy and regenerative agriculture within the C-GVC.
By transforming the substantial biomass and waste generated It explores the broader concept of circular economy, its
throughout the coffee value chain – from production to application in agribusiness, and introduces a new definition
consumption – this report demonstrates how new products, tailored to the coffee sector, serving as a mission statement
energy, jobs, and income can be created. This approach not only for transforming the sector.
addresses climate change but also enhances the sustainability Part II Section B: Reviews the waste and biomass
and resilience of the entire coffee sector. generated throughout the C-GVC, offering unprecedented
The report was developed through a participatory process co-led data estimates and examining the current environmental
by the ICO and the International Trade Centre (ITC), integrating and social impacts. It includes technical insights into the
insights from a diverse group of global coffee sector experts composition of coffee by-products and showcases case
and practitioners. It draws on existing research, case studies, studies of circular and regenerative practices that add value
and expert presentations from international conferences. The to these materials.
report includes findings from the C4CEC Working Group, a multi- Part II Section C: Outlines the key challenges in implementing
stakeholder group representing 44 coffee organizations across circular economy practices in the coffee sector. This section
36 countries, including MSMEs, coffee farmers, value chain provides a comprehensive set of policy recommendations
operators and institutions from coffee-producing regions, the with specific actions for various stakeholders to support
ICO, Politecnico di Torino, Lavazza Foundation, and the Center and accelerate the transition towards a circular economy,
for Circular Economy in Coffee (C4CEC). This collaboration addressing sustainability challenges, creating new income
has resulted in a new definition of the circular economy for and job opportunities, improving soil and plant health, and
the coffee sector. combating climate change.
This report offers a unique analysis of circular and regenerative Part III Section D: Presents ICO statistics for the 2022-
opportunities within the Coffee Global Value Chain (C-GVC), 23 coffee year, analysing key market trends, market
including unprecedented global data estimates on coffee by- fundamentals, and their impact on the sector.
products.
This report aims to engage readers in understanding
Contributions from the C4CEC, Politecnico di Torino, Lavazza the transformative potential of circular economy
Foundation, the Circular Economy Working Group, ICO, ITC and principles in the coffee sector and to inspire
other key partners from University College London (UCL) were actionable change for a sustainable future.
crucial in identifying sector-wide challenges and formulating
actionable policy recommendations. These recommendations
provide a clear path for governments, industry stakeholders,
development partners, and consumers to transition the coffee
sector from a linear to a circular economy, fostering a more
sustainable and thriving future.

BEYOND COFFEE 15
O.2 Main findings to-cradle design, offers an alternative. It creates a closed-loop
system where waste is minimized, and the value of products and
materials is retained within the economy for as long as possible.
This report identifies key insights and actionable strategies for
This model is increasingly applied across sectors, including
integrating circular economy principles into the coffee sector.
agribusiness, to promote sustainability and resource efficiency.
The following sections delve into the implications of a circular
economy for the coffee industry, build a case for transforming
the Coffee Global Value Chain, and explore opportunities to The Circularity Gap Report 2024 reveals that only 7.2% of
enhance sustainability and circularity in both cultivation, post- the global economy is circular, showing a decline in the
harvest processing, transportation, and consumption. These reuse and recycling of materials. The report identifies the
findings provide a roadmap for fostering a more resilient and global food system as a major contributor to greenhouse
sustainable coffee sector. gas emissions, land use, freshwater withdrawal, and
phosphorus emissions. For biomass to be renewable and
sustainable, carbon, nitrogen, and phosphorus must be
O.2.1 A circular economy can help reintegrated into the soil, consistent with circular economy
address urgent and systemic issues in principles (Circle Economy, 2024).

the coffee sector

As climate challenges intensify, the sustainability of coffee
production faces significant threats. Coffee, particularly
the Arabica variety, thrives in cool tropical climates at high In the coffee sector, the waste generated at every stage of the
elevations, but these conditions are increasingly at risk due to value chain can be re-purposed into valuable resources. By
environmental changes. adopting circular economy principles, the industry can reduce
its environmental impact, unlock new economic opportunities,
To address these challenges, coffee cultivation must undergo and foster job creation – especially in vulnerable coffee farming
a significant transformation. communities, youth, and small processors.
Moving production to higher altitudes encroaches on forested Countries around the world are embracing circular economy
ecosystems, exacerbating environmental damage and becoming policies. The European Union, through its Circular Economy
unsustainable under new regulatory frameworks. The sector Action Plan, integrates circular practices into its 2050 climate
requires investments in regenerative practices, climate-resistant neutrality goals. Brazil, leading the G20 in 2024, has prioritized
varieties, and farm redesigns to enable efficient irrigation and circular economy in its presidency, and has launched a national
mechanization. strategy to transition to circular and sustainable practices.
India is also setting ambitious circularity targets, focusing on
The 2023 United Nations Climate Change Conference (COP28)
renewable energy and rural empowerment. Africa’s efforts are
emphasized the need to cut global greenhouse gas (GHG)
bolstered by the Africa Circular Economy Facility (ACEF), aiding
emissions by 43% by 2030 to limit warming to 1.5˚C (relative
countries (Ethiopia, Cameroon, Chad, Ghana and Uganda) in
to 2019). The coffee sector, also with its impacts on emissions,
developing circular roadmaps. Indonesia is advancing a National
biodiversity, water use, and eutrophication, must align with
Circular Economy Roadmap.
these goals.

Economically, coffee is a globally consumed beverage and

a critical commodity, providing jobs and income in over 50
coffee-producing countries as well as in the entire value chain.
However, smallholder farmers are those most affected by
growing risks from climate change, resource competition,
declining soil fertility, and economic pressures. Price volatility
and an unbalanced value distribution further challenge their “By 2025, circular business
ability to achieve a living and prosperous income (LPI).
models could generate about
To navigate these environmental and economic challenges, the
coffee sector must adopt transformative strategies that improve USD 1 trillion per year in
farmer livelihoods and promote sustainability. The circular
economy, focused on reducing waste, enhancing resource materials cost savings.”
efficiency, and regenerating natural systems, offers a promising
World Economic Forum and Ellen MacArthur Foundation (2014).
path forward.

From linear to circular

Traditional linear economic models – based on a “take, make,

waste” approach – are unsustainable, leading to resource
depletion and environmental degradation. The circular economy,
rooted in concepts like biomimicry, industrial ecology, and cradle-

16 BEYOND COFFEE
 Principles for circular economy in coffee
“A circular economy model for the coffee sector
Modern circular economy thinking expands the traditional 3
designs, balances, and implements regenerative
R’s – Reduce, Reuse, Recycle – into 9 R’s.
practices, resource efficiency, and waste reduction
while giving value to process outputs, achieving
environmental, social and economic sustainability. FIGURE O.2
Driven by a systemic and holistic approach, it draws From the “3R’s” to the “9R’s”
inspiration from the dynamics of natural systems to
regenerate, maintain, and create shared value for all
stakeholders, across different contexts and within the
entire coffee value circle.”
ITC Coffee Guide Network, Circular Economy Working Group
(2024).

At the G7 Summit in 2024, under Italy’s presidency, a multi-

stakeholder programme for the circularity and sustainability of
global coffee value chains was launched including the decision
to explore the establishment of a global public-private fund to
enhance sustainability and fighting climate change.

Definition of circular economy in the coffee

sector
This report adopts the definition of a circular economy for
coffee developed by the Circular Economy Working Group within
the ITC Coffee Guide Network, in collaboration with the ICO. It
emphasizes a holistic and systemic approach to transforming
the coffee sector – not just reducing negative impacts but
actively regenerating and creating new value. This approach
can empower communities, enhance cultural practices, and
turn by-products into valuable resources, extending the life
cycle of products and ensuring they stay in circulation rather
than becoming waste.

FIGURE O.1
Principles for circular economy in coffee

Source: ITC, Making a Case for Circular Economy in Coffee: Insights from the
multi-stakeholders working group on circular economy in coffee (2024).
Note: Adapted from Ellen MacArthur Foundation.

Note: Adapted from Kirchherr et al (2017).

BEYOND COFFEE 17
BOX O.1
What is regenerative agriculture?

Regeneration is the process that allows cells, tissues, or In coffee production, regenerative agriculture draws on
organisms to recover from damage, essential for ecosystem consolidated knowledge of organic farming, permaculture,
conservation (National Institute of General Medical Sciences, climate-smart agriculture, holistic farm management,
2024). Sustainability relies on nature’s ability to regenerate agroecology, and traditional indigenous farming practices.
(Illy and Vineis, 2024), especially in the face of climate These methods can improve coffee quality, increase
change, which demands more resilient agricultural systems. productivity, and strengthen farmers’ livelihoods.

Regenerative agriculture is a systemic land-use approach A key aspect of regenerative agriculture is diversification,
aiming to regenerate and strengthen natural, social, such as increasing biodiversity with cover crops and
and economic systems rather than merely reducing or integrating livestock farming for manure and additional
minimizing damages. It provides a framework for practices income. This approach aligns with the circular economy by
that align with natural processes to create sustainable and promoting sustainable production while enhancing natural
resilient agricultural systems. By improving soil fertility resources.
through organic matter, it reduces the need for chemical
fertilizers and decreases farmers’ reliance on volatile Regenerative practices go beyond reducing negative impacts
markets. – they actively restore ecosystems, communities, and the
broader coffee system. For example, in Brazil, the coffee
According to One Planet Business for Biodiversity (OP2B), leaf miner pest, which causes significant crop losses, can
regenerative agriculture enhances soil health, biodiversity, be managed through resistant cultivars, biological control,
climate, water resources, and farming livelihoods. It and cover crops (Dantas et al., 2021).
promotes carbon sequestration, reduces greenhouse gas
emissions, and boosts farming efficiency. The goals of regenerative agriculture in coffee are to protect
and restore soil fertility, optimize nutrient management, and
“Regenerative agriculture is a holistic, improve land productivity, all while sustaining ecosystem
outcome-based farming approach that services and consolidating farmers’ livelihoods. These
generates agricultural products while practices can ensure sustainable coffee production for
measurably having net-positive impacts future generations, meeting demand, providing stable
on soil health, biodiversity, climate, water incomes, and mitigating climate change impacts.
resources and farming livelihoods at Note: Co-written by the Regenerative Society Foundation (RSF) and the
the farm and landscape levels. It aims Circular Economy Working Group (2024).
to simultaneously promote above and
belowground carbon sequestration, reduce
greenhouse gas (GHG) emissions, protect
and enhance biodiversity in and around
farms, improve water retention in soil, reduce
pesticide risk, improve nutrient-use efficiency
and improve farming livelihoods”
- One Planet Business for Biodiversity (OP2B) working definition of
regenerative agriculture.

A circular transformation in the C-GVC could greatly benefit fostering a more equitable and sustainable coffee industry.
emerging coffee-producing economies. By adopting circular Viewing by-products as valuable resources rather than waste
economy principles, the sector can drive innovation, reduce its can lead to new, innovative products, diversify offerings, and
environmental footprint, improve resource efficiency, and create rebalance value chain dynamics.
new income and job opportunities, particularly for vulnerable
coffee farming communities.

Coffee sector stakeholders can work together to overcome

O.2.2 We must shift from a coffee
challenges like limited access to funding, technical innovation, global value chain to a coffee global
and infrastructure in these economies. With the right support, circle
smallholder farmers, who are especially vulnerable to
environmental changes, can lead and benefit from a circular and Coffee is one of the most widely consumed beverages globally
regenerative transformation, helping to restore environmental and a key internationally traded commodity. Its complex
balance. value chain involves production, processing, trade, roasting,
Successfully implementing a circular economy requires distribution, and consumption, with distinct stakeholders at
commitment from all stakeholders across the value chain. each step. Coffee is primarily grown in tropical and subtropical
This shift redefines value creation from scarcity to abundance, highlands across more than 50 countries, covering around 11
million hectares.

18 BEYOND COFFEE
The coffee industry is a significant source of employment and reused, or upcycled into valuable products through circular
income in both producing and consuming countries. Most coffee and regenerative agricultural practices. The entire coffee plant,
is exported as green beans, which are roasted, packed, and including the cherry’s skin, pulp, mucilage, husk, silverskin, and
sold in consuming nations through various channels, including spent grounds, contains unique compounds suitable for various
supermarkets, coffee shops, and online platforms. industrial applications.

However, the social impact of the coffee industry, particularly Innovative entrepreneurs and researchers are finding ways
in terms of value distribution, is profound. Many smallholder to repurpose these by-products, creating new products and
farmers and workers face challenging living conditions and materials that support local economies and generate new
income instability. Addressing these social issues is as crucial income streams. For instance, coffee husks and pulp can
as mitigating the environmental impacts. be used as organic fertilizers, compost, biochar, or as inputs
for bioplastics and biofuels. Spent coffee grounds are being
Historically integrated into diverse ecosystems, coffee farming upcycled into cosmetics, dietary supplements, and building
has shifted towards intensive practices due to rising demand. materials, contributing to a circular economy that minimizes
This has led to environmental degradation – soil erosion, loss waste and adds value at every stage.
of fertility and biodiversity, and increased greenhouse gas
emissions – making ecosystems more vulnerable to pests, Integrating regenerative agriculture, agroforestry, and other
diseases, and climate change. Thus, “greening” the coffee sustainable practices can further enhance biodiversity, improve
value chain is essential to improving its efficiency, resilience, soil health, reduce the need for agrochemicals, and lower the
and sustainability. carbon footprint of coffee farming, while supporting the quality
and resilience of coffee trees.
The coffee production process generates significant biomass at
every stage, from harvest to final consumption. This biomass,
instead of becoming environmental waste, can be reduced,
Did you know that every part
of the coffee plant – from
the cherry’s skin to spent
grounds – holds compounds
for industrial innovation?

PULP

63%
Cellulose

SILVERSKIN

60%
Total fibre

COFFEE HUSK

58-
Carbohydrate

85%
16%
SPENT COFFEE Lipids
GROUNDS

BEYOND COFFEE 19
FIGURE O.3
Coffee by-products and their chemical compounds

Source: C4CEC (2024).

Note: Based on data from Mendes dos Santos, É., Malvezzi de Macedo, L., Lacalendola Tundisi, L., Ataide, J. A., Camargo, G. A., Alves, R. C., Oliveira, M. B. P.
P., & Mazzola, P. G. (2021). Coffee by-products in topical formulations: A review. Trends in Food Science & Technology, 111, 280-291. https://doi.org/10.1016/j.
tifs.2021.02.064

Inspired by ecosystems, where waste does not exist, adopting a circular and regenerative mindset can address major constraints
in the global coffee sector.

TABLE O.1
Opportunities for the coffee sector

CONSTRAINTS OPPORTUNITIES

ENVIRONMENTAL DEGRADATION CIRCULAR SOLUTIONS TO HELP CLOSE

Climate change, deforestation, and soil degradation are major THE LIVING INCOME GAP
challenges that threaten the sustainability of coffee production. The Most coffee family farmers cannot reach a living income, i.e. selling
move to higher altitudes for coffee cultivation is encroaching on forested their produce cannot cover input and labour costs and access to basic
ecosystems, further exacerbating environmental damage. These are services such as health, housing, and education. While intercropping
no longer feasible under the emerging new regulatory framework. is among the solutions to diversify income, circular and regenerative
solutions can increase income and reduce input costs, thereby reducing
ECONOMIC INEQUITIES the living income gap.
Small coffee farmers, who are the majority in the sector, often struggle
with price fluctuations, low incomes, increasing inputs and transaction RESOURCE EFFICIENCY AND WASTE REDUCTION
costs, and inequitable distribution of value along the supply chain. By adopting circular economy principles, the coffee sector can improve
This economic vulnerability is compounded by the lack of negotiating resource efficiency and reduce waste. This includes optimizing every
power these farmers have over market prices. stage of the coffee life cycle, from cultivation to consumption, and
finding new uses for by-products.
SUSTAINABILITY PRESSURES
Coffee producers face growing demands from consumers, buyers, and REGENERATION AND VALUE CREATION
regulators to enhance sustainability, improve productivity, and maintain The circular economy model goes beyond minimizing negative impacts
high-quality standards. Meeting these demands requires significant by focusing on regeneration and value creation. This can lead to new
investment and adaptation, which can be challenging for small-scale business models, innovative products, and additional income streams
farmers and for the entire C-GCV. for coffee producers.

RESOURCE MANAGEMENT SUSTAINABILITY AND LIVELIHOOD IMPROVEMENT

The coffee sector generates significant waste at every stage of the A circular economy in the coffee sector promotes environmental,
value chain, contributing to pollution and resource depletion. Efficiently economic, and social sustainability. This includes reducing the use of
managing and reducing this waste is a key challenge for implementing non-renewable resources, improving ecosystem health, and enhancing
circular economy principles. the quality of life for coffee-producing communities

SYSTEMIC AND HOLISTIC APPROACHES

Adopting a systemic and holistic approach allows for a more
comprehensive understanding of the coffee sector as a complex
network of stakeholders and processes. This approach can help address
sustainability challenges more effectively and ensure that changes in one
part of the system do not lead to unintended consequences elsewhere.

20 BEYOND COFFEE
FIGURE O.4
Global biomass generated through coffee transformation, coffee year 2022-2023

Note: With contributions from ITC Coffee Guide Network Circular Economy Working Group and C4CEC (2024).
NB (1): These calculations are made using ICO production and consumption statistics from coffee year 2022/2023. Known conversion rates from Oliveira, et al.
(2021) are applied. See Annex A.2 for detailed calculations.
NB (2): These calculations include the total biomass created from green coffee processing, roasting, and brewing: husks, pulp, mucilage, parchment, silverskin, and
spent coffee grounds. It includes moisture weight (30% of total) that will be evaporated but does not include the weight of green coffee bean itself or material from
coffee pruning. Although these calculations are approximations and do not account for differences in coffee varieties, production efficiencies, or natural variances,
they provide a useful estimation of the volume of waste generated throughout the coffee production process. This highlights the potential for revaluing what is often
considered waste, transforming it into new products or energy sources.

BEYOND COFFEE 21
The global sum of by-products generated through coffee In total, the various coffee processing methods from cherry
processing, roasting, and consumption is 40.68 million tonnes/ to green coffee for export produced 29.34 million tonnes of
year – 86% of the volume of harvested cherries. biological material, which represents approximately 62% of the
weight of the harvested coffee cherries in the 2022-23 coffee
In coffee year 2022/23, production reached approximately year. Global coffee consumption for the 2022-23 coffee year
165.5 million (60-kg) bags (Part D), translating to 47.29 million reached 173.0 million bags, equivalent to 10.38 million tonnes
tonnes of coffee cherries and 9.93 million tonnes of green of green coffee (Part D).
coffee.
From this consumption figure, the roasting processes produced
Coffee processed using the natural methods (an estimated 32.63 0.20 million tonnes of coffee silverskin, accounting for 0.4%
million tonnes of coffee cherries or 31% of total production) of the weight of the cherry and 1.7% of the green coffee bean.
produced approximately 14.68 million tonnes of coffee husks, Additionally, spent coffee grounds after brewing totalled
and 6.92 million tonnes of green coffee. 11.14 million tonnes, which includes 61% moisture content,
converting to approximately 6.92 million tonnes of dry material.
Cherries processed through washed/semi-washed methods
By transforming this biomass into valuable products, the coffee
(69%) generate 14.66 million tonnes of material (including
sector can significantly reduce its environmental impact and
coffee skin, pulp, mucilage, and parchment, and moisture
create a more sustainable, resilient global coffee circle.
content). These by-products condense to 6.80 million tonnes,
approximately 46% of the cherry’s original weight once dried.

FIGURE O.5
Coffee cherry structure and by-products from coffee processing

Note: Adapted from Oliveira, et al. (2021).

NB: Schematic representation of the coffee cherry structure and coffee processing-derived by-products. The percentages refer to the amount of each by-product
obtained from fresh coffee cherries.

22 BEYOND COFFEE
FIGURE O.6
Biomass flow - coffee year 2022-23

Note: With contributions from ITC Coffee Guide Network Circular Economy Working Group and C4CEC (2024).
NB: Unit in million tonnes. These calculations are made using ICO production and consumption statistics from coffee year 2022-23. Known conversion rates from
Oliveira, et al. (2021) are applied. See Annex A.2 for detailed calculations.

The environmental impact of coffee cultivation is considerable Coffee production practices can consume substantial amounts
and varies depending on farming practices and location. Studies of water and fertilizers, and the poor management of these
suggest that coffee cultivation and processing contribute to inputs can lead to water scarcity, soil contamination, and
between 40% and 70% of the carbon emissions in the coffee biodiversity loss.
lifecycle. For instance, the carbon footprint of producing 1 kg
of fresh coffee cherries ranges from 0.26 to 0.67 kg CO2e in The average water footprint of a 125-milliliter cup of coffee is
conventional systems and from 0.12 to 0.52 kg CO2e in organic 132 litres from production to consumption (Water Footprint
systems, with the primary emissions source being the use of Network, n.d.), highlighting the resource-intensive nature of
nitrogen inputs (Nopenen et al, 2012). coffee production. Monoculture practices and deforestation
further exacerbate these issues, making sustainable farming
The environmental burden extends beyond carbon emissions. practices critical for the sector’s overall sustainability.

BEYOND COFFEE 23
O.2.3 Coffee cultivation and post- process each kg of coffee beans. The wastewater produced
is highly acidic and contains a high concentration of organic
harvest processing can be enhanced matter, which can contaminate local water systems if not
through circular practices properly treated.

Washed coffee processing generates a significant amount of

There are numerous opportunities to improve the environmental
by-products – such as coffee pulp, mucilage, parchment, and
and social sustainability of coffee cultivation by applying circular
wastewater – that together account for about 80% of the coffee
economy principles.
cherry’s mass. Coffee pulp, in particular, is rich in carbohydrates,
Coffee cultivation proteins, minerals, and bioactive compounds like tannins and
caffeine. However, these bioactive compounds require further
Regenerative agriculture, aligned with circular economy research to assess their safety and toxicity. The organic content
principles, offers a holistic approach to making coffee of coffee pulp makes it an excellent source for nutrient-rich
production more sustainable. It focuses on regenerating fertilizer and a cost-effective addition to animal feed, supporting
soil health, enhancing biodiversity, and reducing the need for sustainable agriculture. Known as cascara, coffee pulp also has
chemical inputs. By returning organic matter such as coffee potential in various other applications.
pulp and husks to the soil, these practices contribute to healthier
ecosystems and more sustainable food systems. Regenerative Mucilage, the sticky substance clinging to the beans
agriculture also helps diversify farmers’ incomes, improves food after pulping, is composed of 39% pectic substances and
security, and increases climate resilience, reducing the carbon antioxidants. Unlike coffee pulp, it lacks bioactive compounds,
footprint of coffee farming. making it a safer by-product for various applications, such as
pectin production.
Intercropping – growing coffee alongside other plants, has
a lower carbon footprint and higher carbon stocks than Coffee parchment, the fibrous material remaining after hulling,
monocultures. Integrating trees and other plants into coffee primarily consists of cellulose and lignin, with potential uses
farms supports biodiversity, improves soil fertility, and provides in bioenergy production and other industrial applications.
additional income for farmers. For example, coffee grown in The by-products of washed coffee processing present many
polycultures has a carbon footprint of 6.2 to 7.3 kg CO2e per opportunities for sustainable practices and economic benefits.
kg of parchment coffee, compared to 9.0 to 10.8 kg CO2e in
Natural (dry) processing is one of the oldest and most traditional
monocultures.
techniques, particularly suited to regions with scarce water.
Incentives like premiums and carbon insetting – investing in Harvested coffee cherries are first sorted to remove defective or
greenhouse gas reduction within a company’s supply chain overripe cherries. Once sorted, the cherries are dried using either
– can support sustainable coffee production. Carbon credit sun-drying or mechanical dryers. This drying process is crucial
mechanisms that reward farmers for carbon sequestration as it reduces the cherries’ moisture content from approximately
through regenerative practices are additional strategies. 60-65% to about 10-12%, which is necessary for safe storage
and further processing. During drying, pit is important to ensure
Post-harvest processing uniform drying to prevent mould or undesirable fermentation.

Post-harvest coffee processing is critical to coffee quality Traditionally, drying occurs on large patios or raised beds, where
and waste management. Two main methods dominate: cherries are spread in thin layers to ensure even exposure to
washed (wet) and natural (dry) processing, each with distinct sun and air. Depending on weather conditions, this process
environmental and intrinsic quality impacts. can take several days to a few weeks. Some producers use
mechanical drying methods to prevent contamination risks of
Washed (wet) processing is a resource-intensive method used
improper drying and to speed up the process.
to prepare coffee beans. The process starts with pulping, where
the outer skin of the coffee cherries is mechanically removed. The next phase, hulling, involves removing the dried outer layers
The beans, still coated with sticky mucilage, are then placed of the cherry – skin, pulp, and parchment – to reveal the green
in fermentation tanks. Natural enzymes and microbes break coffee beans. This step is typically done using mechanical
down the mucilage during fermentation. After fermentation, hullers, which carefully remove the husk without damaging
the beans are thoroughly washed to remove any remaining the beans.
mucilage, ensuring a clean flavour profile. This water-intensive
process typically involves placing the beans in long troughs and Coffee husks, consisting of the dried skin, pulp, and parchment
repeatedly flushing them with water while stirring. layers, make up about 45% of the coffee cherry. Disposing of

After washing, the beans are dried either in the sun or using
mechanical dryers. The last step is hulling, which removes the
parchment layer covering the beans, revealing the green coffee
beans. These beans are then sorted and bagged for storage
until they are ready for roasting.

While popular, washed processing has significant environmental

implications due to its high-water usage and wastewater
generation. On average, 15 to 20 litres of water are required to

24 BEYOND COFFEE
these husks can be challenging, especially in high production pyrolysis, as well as for various industrial applications, including
areas. Common disposal methods include landfilling, open the production of composite materials for construction,
burning, and composting. Open burning is particularly harmful biodegradable packaging, and as a biosorbent to filter
as it releases pollutants like greenhouse gases and particulate contaminants from water.
matter, contributing to climate change and air pollution. Some
regions have implemented regulations to reduce or ban open Additionally, many elements of the coffee farm, such as leaves
burning due to its negative environmental and health impacts. and branches from pruning, cover crops, and fruit trees, can
be integrated regeneratively and developed into value-added
However, coffee husks are increasingly recognized for their products. This promotes a circular economy in the coffee sector,
potential beyond waste disposal. Like coffee pulp, husks can reducing waste and creating new economic opportunities for
be used as cascara or as nutrient-rich soil amendments, mulch, coffee-producing communities.
or compost. Their high lignocellulosic content also makes
them suitable for biofuel production through processes like

TABLE O.2
Opportunities to integrate circularity in coffee production and post-harvest processes

C-GVC stage and By-product characteristics and Circular practice

by-product properties examples

Regenerative agriculture practices

• Promoting the well-being of animals, humans,
Organic materials and environment
Locally available inputs • Cover crops
Regenerative Carbon sequestration • Crop rotation
agricultural
Soil improvements • Animal husbandry
practices
Water retention • Composting
• Mulching
• Carbon insetting
• Conservation of wild forest land

Intercropping and • Shade crops and canopies

agroforestry: Creates shade for coffee • Intercropping bamboo
Shade trees Multipurpose woods • Intercropping fruit trees
Wood production
Fruit Nutrition and income sources • Intercropping fruit and vegetables
Vegetables • Beekeeping
Honey • Carbon insetting

Hardwood
• Furniture (hardwood)
Organic material • Coffee prunings for on-farm lumber (drying
Leaves: caffeine, polyphenols, beds, posts)
Coffee tree pruning: antioxidants • Compost additive
branches and leaves
Renewable and plentiful • Mulch
Local material • Biochar
• Beverages and extracts from coffee leaves

• Solar drying beds utilizing natural materials

GHG emissions
found near farm
Materials used for drying beds or • Reuse of materials; i.e. polyethylene tunnels
Coffee drying
polyethylene tunnels
• Use biochar or biobricks as fuel
• Renewable and bio-based energy sources

BEYOND COFFEE 25
 C-GVC stage and By-product characteristics and Circular practice
by-product properties examples

• Cascara products for human consumption

• Compost additive
Fruity or floral aroma with sweet
berry flavour • Soil amendment

Natural (dry) post- High in fibre (cellulose) • Spread on coffee farms as a mulch and slow
harvest processing: compost
Nutrients including proteins, lipids,
Dried coffee husks • Biochar and biobricks
and minerals
(coffee cherry skin, • Biochar for soil amendment
pulp, and husk) Residual nutrients including carbon,
phosphorus, potassium, and nitrogen • Biosorbent for wastewater treatment and
caffeine removal
• Polymer composite
• Biogas

• Cascara products for human consumption

Nutritionally dense (fruit infusion, Qishr sweet tea in Ethiopia,
Sweet smell and taste distilled alcohol, ready to drink beverages)
Washed (wet) post- • Gluten-free flour alternative
Bioactive compounds such as
harvest processing: • Animal feed
tannins, caffeine, and melanonids
Coffee pulp (coffee
cherry skin and pulp) • Substrate for mushroom cultivation
Pectin, moisture
• Compost and fertilizer
Residual nutrients including
phosphorus, potassium, and nitrogen • Paper product ingredient (cellulose)
• Dyes

• Aerobic and anaerobic lagoons

Organic matter • Constructed wetlands
Post-harvest • Vetiver grass cultivation
washed (wet) post- Toxic chemicals including tannins,
phenolics, and alkaloids • Membrane bioreactors
harvest processing:
Wastewater (Honey • Composting and biofertilizers with treated
water) wastewater
Depletion of oxygen levels in water • Water recycling after treatment
• Rainwater capture

Post-harvest Sweet and sticky • Human consumption as beverage or baked

Washed (wet) post- good ingredient
High in pectin
harvest processing: • Organic fertilizer sprays
Coffee mucilage High in antioxidants • Natural food preservative

• Biofuels
• Biochar component
• Bio brick or cement component
• Polymer composite
Milling (washed Fibrous material • Paper, textiles, biodegradable packing
processed coffee):
Lignin and cellulose materials
Coffee parchment
• Biobricks (building material)
• Compost ingredient
• Mulch
• Soil amendment

Note: Table informed by ITC, The Coffee Guide, 4th Edition (2021); ITC Coffee Guide Network Circular Economy Working Group (2023); and C4CEC (2024).

O.2.4 We can enhance the coffee trade and transport of green coffee beans. A key challenge
is balancing the use of environmentally friendly packaging
transportation and trade with materials, such as jute and biodegradable sacks, with the
sustainability and circularity need to protect coffee quality from moisture and odours. This
requires innovative, chemical-free materials that ensure both
The coffee industry is under increasing pressure to enhance sustainability and product integrity during storing, drying, and
the sustainability and circularity of the materials used in the transportation.

26 BEYOND COFFEE
Logistics and shipping recycling infrastructure is often too inadequate to handle these
materials effectively, resulting in low recycling rates. To address
Logistics and shipping are also critical in reducing the this, industry stakeholders are developing recyclable packaging
environmental impact of coffee production, especially regarding solutions that align with circular economy principles.
greenhouse gas emissions from transportation. Strategies
such as efficient warehousing, consolidation, and reducing In a circular economy, designing packaging to eliminate
the number of operational warehouses can improve efficiency waste is crucial. Coffee packaging must be designed with its
and lower the carbon footprint. Adopting multi-modal transport end-of-life use in mind, prioritizing the reuse and recycling of
– combining road, rail, and sea – can further enhance fuel materials. This approach not only minimizes waste but also
efficiency and reduce pollution. ensures that packaging can be effectively reintegrated into the
production cycle. Recyclable packaging solutions made from
While coffee producers and exporters often reuse sacks polyolefins, such as polyethylene and polypropylene, are being
for collecting coffee cherries and parchment, reusing those developed to enhance the recyclability of flexible packaging.
materials after export is challenging due to the difficulties in However, achieving widespread recyclability requires substantial
consolidating and shipping them back to coffee-producing investment in recycling infrastructure and consumer education
countries. on proper disposal practices.
Packaging and circularity Reuse models are being explored as alternatives to single-use
packaging. However, in the coffee industry, maintaining product
The coffee industry is increasingly focusing on designing
freshness remains challenging with reusable packaging options.
recyclable and sustainable packaging to reduce resource
To address this, packaging decisions should be informed by
extraction and waste.
scientific analyses, such as life cycle assessments (LCAs), to
Flexible packaging, which provides strong barriers against ensure they support sustainability goals without compromising
oxygen and moisture, is widely used but presents significant Zproduct quality.
recycling challenges due to its multilayer composition. Current

TABLE O.3
Opportunities to integrate circularity in transportation and trade

C-GVC stage and By-product characteristics and Circular practice

by-product properties examples

Biodegradable natural fibres (jute)

Plastic “big bags”
Polyethylene hermetic liners for jute • Jute bags
bags
Trade and transport: • Recycling or reuse of plastic hermetic
Packing materials Container liners liners
Shrink wrap • Compostable sample bags
Pallets
Plastic sample bags

• Consolidated shipments
Trade and transport: • Multi-modal transport (road, rail, and
Ocean freight sea)
GHG emissions
Ground transportation • Limit on corporate travel
Airline travel • Carbon insetting and carbon credits
• Renewable energy and biofuels

GHG emissions • Consolidated warehouses

Warehousing
Large, climate-controlled facilities • Decreasing number of warehouses used

BEYOND COFFEE 27
 C-GVC stage and By-product characteristics and Circular practice
by-product properties examples

• Single-serve capsule materials allowing

Plastics for recycling
Aluminium • Coffee pod return scheme with major
brands
Bio-based materials with polymers
• Designing for reuse
Consumer Recycled materials • Designing for recycling with mono-
packaging
Single-serve units (SSU) are often a material packaging
blend of aluminium and plastic and • Design for compostability
combine with organic waste, limiting
material separation for recycling and • End-of-life product recyclability
composting • Reduced and post-consumer recycled
materials use

Note: Table informed by ITC, The Coffee Guide, 4th Edition (2021); ITC Coffee Guide Network Circular Economy Working Group (2023); and C4CEC (2024).

O.2.5 Coffee roasting and Coffee consumption

consumption require circular The coffee we drink represents only a small fraction of the
principles material produced throughout the coffee value chain – only 1-5%
of the original mass of the coffee cherry ends up in our cup.
Coffee consumption significantly impacts the global economy, Widespread coffee consumption generates approximately 11.4
with approximately 3 billion cups consumed daily. However, million tonnes of spent coffee grounds annually, matching the
this large scale of consumption generates substantial amount of ground coffee used for brewing. Different brewing
waste, contributing to environmental challenges at various methods have varying environmental impacts. Drip brewing,
stages of coffee production and disposal. Waste from coffee a common method, produces significant waste from both
consumption, particularly spent coffee grounds and single-use the coffee grounds and paper filters, which often end up in
coffee capsules, underscores the need for sustainable end-of- landfills instead of being composted or recycled. Espresso
life management strategies. generates substantial waste in the form of spent coffee grounds.
Coffee capsules, while efficient and increasingly popular, pose a
Coffee roasting
significant environmental challenge due to which make recycling
Coffee roasting, a critical step in developing coffee’s flavour and difficult.
aroma, is energy intensive. The environmental impact of roasting
Most spent coffee grounds are disposed of in landfills, where
varies based on whether the energy source is renewable, electric,
they decompose anaerobically, releasing methane – a potent
or fossil-based. Roasting emits carbon dioxide, volatile organic
greenhouse gas that contributes to climate change. This
compounds (VOCs), organic acids, and by-products from natural
underscores the need for better waste management solutions.
gas combustion. Since most roasters are powered by natural
gas, they produce carbon monoxide (CO) and carbon dioxide However, spent coffee grounds hold significant potential for
(CO2), contributing to air pollution and posing health risks to value addition. Rich in organic compounds and nutrients, they
workers and the nearby communities. can be repurposed for various applications, including organic soil
amendments, biochar production, biocosmetics, textiles, foods,
Roasting also generates a by-product called silverskin, or chaff.
and skincare products. Their high carbon and nitrogen content
Proper management of silverskin is crucial, as its accumulation
make them a valuable source of organic matter for agriculture,
poses disposal and safety challenges due to its flammability.
as they contain fibre, proteins, lipids, small amounts of caffeine,
Some roasting facilities incinerate silverskin, which can increase
and bioactive compounds with antioxidant properties. Several
air pollution.
innovative uses have transformed spent coffee grounds from
Silverskin is a thin, papery layer between the coffee cherry and waste into valuable resources.
the green bean that tends to fragment during handling. Rich in
The disposal of coffee capsules, despite their convenience,
bioactive compounds, including antioxidants, fibre, and lipids,
contributes to the problem of non-biodegradable waste.
silverskin has potential application in various industries. Its high
Their composite material structure makes recycling difficult,
cellulose content gives it fibrous and brittle characteristics, while
particularly in regions lacking the necessary infrastructure.
its nutritional profile includes proteins, lipids, antioxidants, fibre,
As a result, many capsules end up in landfills, exacerbating
and essential minerals like potassium and magnesium. Studies
environmental concerns.
have shown that silverskin contains phenolic compounds and
flavonoids, known for their anti-inflammatory and anti-aging Efforts are underway to address these issues, including the
properties, making it valuable for multiple sectors. development of dedicated collection systems, recycling facilities,

28 BEYOND COFFEE
and compostable or recyclable capsules. However, these efforts
are complicated by the varying recycling systems across
different countries, where some regions lack the infrastructure
needed to process these materials effectively. The fragmented
nature of recycling and waste management systems poses
significant barriers to the widespread adoption of standardized

1-5%
and effective solutions.

of the original
cherry remains in
our cup

TABLE O.4
Opportunities to integrate circularity in roasting and consumption

C-GVC stage and By-product characteristics Circular practice

by-product and properties examples

• Cosmetics
• Nutraceuticals
Contains high value cellulose, • Paper production
Roasting:
hemicellulose, lignin, lipids, and
Silverskin (chaff) • Agriculture fertilizers
some phenolic compounds
• Vegan leather fibre
• Biopolymer additive

• Coffee flour for human consumption (baked

goods)
• Oil extracts for skincare products
Rich in organic matter including • Extracts for nutraceuticals and functional foods
carbon and nitrogen
• Substrate for mushroom cultivation
Fibre • Organic fertilizers or compost additive
Coffee brewing: Residual caffeine • Vermiculture
Spent coffee • Biofuels
Nutrients including protein and
grounds (remain
lipids • Feedstock component
after brewing)
Polyphenol • Biobrick component
Bioactive compounds with • Biosorbents to remove dyes, oils, and metal ions
antioxidant properties from aqueous solutions
• Paper products material component including
coffee cups
• Fabric and textile component
• Natural dyes

• Reusable coffee mugs

Coffee shops:
Single-serve coffee Often lined with polyethylene • Integrated reuse programmes
cups plastic that is difficult to recycle • Recycling with in-store recycling facilities
• Industrial compostable cups

Note: Table informed by ITC, The Coffee Guide, 4th Edition (2021); ITC Coffee Guide Network Circular Economy Working Group (2023); and C4CEC (2024).

BEYOND COFFEE 29
O.3 Policy and actions are The global coffee sector stakeholder survey, conducted by the
ITC Coffee Guide Network’s Circular Economy Working Group, in
required for a sustainable, partnership with the ICO, assessed the sector’s understanding and
inclusive, and circular coffee perception of a circular economy. Using a participatory approach,
the survey gathered perspectives from 322 producers, roasters,
sector micro, small and medium-sized enterprise representatives,
exporters, corporates, consumer facing companies and
The need for transformation in the coffee sector is clear, as institutions. It helped assess the sector’s assumptions and
are the sustainable opportunities that mainstreaming circular challenges in implementing a circular economy.
economy practices can provide. However, like any significant
The survey confirmed a strong interest in and openness to a
system change, this transformation comes with challenges.
circular economy within the coffee sector. It revealed that the
To drive effective and actionable systemic change, starting most common circular practices currently include the reuse
with a realistic baseline assessment is essential. This report of coffee by-products, waste reduction and recycling, and
presents findings from a sector-wide survey conducted efficient use of resources and energy. However, the survey
specifically for this purpose, identifying key challenges and also highlighted the need for greater awareness and deeper
offering recommendations for implementing and mainstreaming understanding of the circular economy model, as well as
a circular economy throughout the coffee sector. the necessity for increased investment, sector cooperation
and equitable distribution of knowledge, technical capacity,
O.3.1 A global survey to gauge the investment, and infrastructure across the coffee value chain.
industry’s stance on circular economy
FIGURE O.7
Global sector survey findings

• With an average response of 4.3 on a scale of one to five,

survey respondents indicated broad consensus that a circular The global survey received
economy is a model capable of improving environmental, 322 responses that represent:
social, and economic sustainability in the coffee sector
• In stark contrast, only 37% of respondents declared they
implement some form of circular practice within their
64 8
Countries Value chain
activities
segments
• 72% of respondents indicated they have limited to moderate
knowledge about circular economy in practice
24% 23%
Coffee farmers Coffee support
organizations

24% 20%
• Lack of knowledge
• Financial constraints and limited access to funding
Coffee traders Consumer-facing
• Low levels or coordination between research centres and and mills brands & roasters
private sector organizations
• Balancing economic viability with broader circular economy
goals
• Lack of standardized guidelines and best practices to
7% 2%
Government Other coffee
implement a circular economy authorities industry
• Inadequate regulatory frameworks
• Low consumer awareness and associated reluctance to pay
means that potential is considerably reduced

Note: Figure adapted from ITC, Making a Case for a Circular Economy in the Coffee Sector: Insights from the multi-stakeholders working group on circular economy
in coffee, p.6 (2024).
NB: The Circular Economy Working Group co-created and distributed the survey in English, Portuguese, French, and Spanish in 2023. The ITC Coffee Guide Network
distributed the global survey widely among its global network. Members of the network shared the survey with their own outreach networks in order to include a
diverse set of perspectives, including: ITC, the ICO, Specialty Coffee Association (SCA), Lavazza Group and Foundation, The Latin American and Caribbean Network
of Fair Trade Small Producers and Workers (CLAC), International Women’s Coffee Alliance (IWCA), European Coffee Federation (ECF), Swiss Coffee Trade Association
(SCTA) and SCTA Next Gen, Fair Trade International, Coffee Board of India, and Conselho Nacional do Café (CNC). It is important to note that the survey results do
not represent a statistically significant sample of the global coffee sector. As such, it does not aim to provide a comprehensive state of the sector. Instead, it serves
as a starting point for deeper reflection and more detailed research, encouraging discussion around its key topics.
30 BEYOND COFFEE
O.3.2 Challenges remain in the Consumer awareness: Low consumer awareness and
understanding of circular economy benefits limit the market
implementation of a circular coffee for upcycled products. Educating consumers and shifting
economy mindsets is essential to increasing acceptance and demand
for these products.
Transforming the coffee sector through circular economy
Value distribution: The benefits of circular economy
practices presents both challenges and opportunities.
practices are not always equitably distributed. While circular
Effective change requires addressing key obstacles, which
initiatives should ideally support all stages of the coffee
are summarized below.
value chain, compensation for raw materials and efforts in
Coordination and knowledge sharing: There is limited collection and distribution is often insufficient. The economic
coordination among research centres, R&D initiatives, local impact needs to be recognized and appreciated across the
solutions, farmers, and industry stakeholders across the entire value chain, including by farmers who may not fully
C-GVC. Knowledge about circular economy practices is realize the benefits of circular practices.
often isolated and fragmented, hindering the implementation
Addressing these challenges requires improving
of innovative models. Better coordination, standardized
coordination, standardizing regulations, securing
guidelines, and practical best practices are needed to
funding, and developing transparent markets to
develop and scale pilot projects. Additionally, there is a
effectively integrate circular economy practices
risk of undervaluing traditional indigenous knowledge in
into the coffee sector.
favour of new solutions from startups.

Inconsistent policies and regulations: The policies and O.3.3 Strategic and overarching
regulations governing coffee by-products and circular recommendations
economy practices are often fragmented and inconsistent.
Differences in regulations related to food safety, labelling,
To address the challenges and seize the opportunities for a
and import/export codes complicate global trade and
more sustainable, resilient, and prosperous future, the coffee
tracking, making it challenging for MSMEs to navigate.
sector must transition to a circular economy. This shift will
Funding and R&D: Significant funding is needed to innovate strengthen the C-GVC and enhance its resilience in the coming
and scale circular economy practices, posing high risks and decades. By improving the way coffee is produced, processed,
costs for MSMEs and producers. The cost of developing new and consumed, we can create a future where the C-GVC thrives
products from coffee by-products, such as biochar or coffee in harmony with the planet.
mucilage concentrate, is often prohibitive, especially at an
The following policy recommendations serve as a roadmap for
industrial level. More efficient R&D investment is required
stakeholders dedicated to making this vision a reality. These
to reduce costs and improve scalability.
recommendations are intended for all those engaged in the
Financial access and equity: While there are opportunities, coffee sector, including governments, private sector entities
access remains limited for MSMEs and farmers in developing (from farmers to retailers), NGOs, and development partners
countries. Bridging the gap between small-scale innovators worldwide. They recognize the vast amounts of waste generated
and financial support is crucial, as many good ideas are by the coffee sector and the potential to reduce and repurpose
hindered by a lack of funding. this waste through circular economy practices, creating new
economic opportunities, especially for farmers and small
Logistics and matchmaking: Efficient logistics for businesses in coffee-producing countries. The shift from a
collecting and processing coffee by-products are lacking. linear to a circular economy aligns with several UN Sustainable
Standards for collection and storage are underdeveloped, Development Goals (SDGs), promoting sustainable consumption
and better coordination is needed between collectors and and production, economic growth, and climate action.
product makers. Mismatches in product demand and
availability, along with the high risk and cost of new product Recommendations are organized by C-GVC stages, outlining
development, also create barriers to market entry. specific actions, impacted stakeholders, and expected
outcomes. These include:
Market fragmentation and transparency: The market for
coffee by-products is fragmented and lacks transparency RECOMMENDATIONS
in pricing and quality. The absence of standard practices
for quality, collection, and packaging makes it difficult for
farmers and producers to navigate and capitalize on niche • Stage identification: Pinpointing where in the value
markets. chain the recommendation applies
• Policy recommendation: Detailed guidance on
Market development: Developing new markets for
implementing circular practices
upcycled coffee by-products requires establishing new B2B
relationships and networks outside the coffee industry. Many • Stakeholder impact: Identifying affected groups and
producers lack the connections and knowledge to access organizations
these new supply chains, hindering market development. • Impact assessment: Evaluating social, environmental,
and economic effects, and alignment with SDGs
• Strategy and implementation: Providing actionable
steps for effective execution
BEYOND COFFEE 31
Guiding principles O.3.4 Specific policy
The transformation should adhere to principles such as recommendations for transforming
circulating materials at their highest value, regenerating the coffee sector through circular
natural systems, and fostering local innovation. These
principles advocate for collaborative, open-source solutions
economy
and emphasize the importance of local actions in achieving
global impacts. By integrating these strategies, the coffee The strategic recommendations provide a comprehensive
sector can move towards a more sustainable, resilient, and framework for establishing a circular economy in the coffee
economically beneficial future. sector. These foundations emphasize the importance of
coordination, impact investment, and innovation, as well
These recommendations build on the insights from the as the adoption of sustainable practices across all stages
joint paper by ITC, C4CEC, and the ICO: “Making a Case for a of the coffee value chain. By creating an environment that
Circular Economy in the Coffee Sector: Insights from the multi- supports collaboration, research, and knowledge sharing, and by
stakeholders working group on circular economy in coffee” developing robust regulatory frameworks, financial incentives,
(ITC, 2024) and are intended to guide stakeholders in turning and market mechanisms, the coffee sector can transition to a
this vision into reality. They are integrated at both global and more sustainable and resilient model.
C-GVC-specific levels, identifying the actors in the C-GVC that
should lead their implementation. To achieve this transformation, it is crucial for all coffee
stakeholders – farmers, industry players, government agencies,
FIGURE O.8 NGOs, and research institutions – as well as financial institutions,
Overview of strategic and overarching policy investors, and development partners to join forces. By embracing
recommendations circular economy principles and scaling up existing solutions
or developing new ones, the coffee sector can enhance its
economic viability, environmental sustainability, and social
Establish best practices and shine a light equity. This collective effort will not only benefit the coffee
on good examples industry but also contribute to broader global sustainability
goals. Now is the time to act and drive meaningful change
towards a more sustainable future for coffee.
Set metrics and measure progress

Undertake pre-competitive research and

development for industry (processor)
waste streams

Collaborate with adjacent industries

Develop economic incentives and

promotion programmes

Establish partnerships and pre-competitive

collaboration

Adopt waste reduction approaches

Create a market for coffee by-products

Establish standards and certifications

Build education and awareness-raising

Lay out regulatory frameworks and

advocacy

Catalyse investment

32 BEYOND COFFEE
TABLE O.5
Overview of specific policy recommendations

Regenerative Create value from Circular economy in Responsible Resource recovery

agriculture and waste and by- packaging consumption and waste
agroforestry products management
Alignment of Certifications and
Commercialization Coffee processing packaging choice standards Revalorization of
and use of coffee with local waste waste
by-products Coffee wastewater policies Resource efficiency
in coffee shops Promotion of R&D
Create market Technological Transparent pricing in valorization of
linkages for coffee solutions for structures coffee by-products
by-products emission control
Implementation of Promotion of R&D
Circular economy Incentives for sustainable product- in packaging
and regenerative processors to move service systems
agriculture to close from countries
living income gaps of consumption
to countries of
Multi-stakeholder production
research
collaborations Diversification of
for regenerative income streams
agriculture
and by-product Farmer-focused
development in education initiatives
producing countries

Diversification of
income streams

Farmer-focused
education initiatives

BOX O.2
The Center for Circular Economy in Coffee (C4CEC)

This report emphasizes the need for pre-competitive • Coffee farmers and producer organizations: Access
collaboration, a practical research hub with mechanisms resources to learn, develop, and pilot circular innovations,
linking research with C-GVC actors, and actionable education enhancing business resilience, sustainability, and
to implement circular economy practices. profitability

The Center for Circular Economy in Coffee (C4CEC) is a • Coffee sector companies: Improve and implement
global pre-competitive initiative designed to foster and circular initiatives with support from a scientific network
advance circular economy principles within the coffee and connections to a global network of like-minded
sector. Established in Turin, Italy, as a nonprofit organization, organizations
the Center was officially launched in September 2023 during • Public sector and academia: Collaborate, share
the ICO 5th World Coffee Conference in Bangalore, India. knowledge, propose new initiatives, and conduct research
The Center serves as a platform to put circular economy through a global multi-stakeholder network
into practice by piloting innovations, advancing research,
and sharing best practices. Its web platform offers case The Center has more than 35 member organizations globally
studies, research, and practical information on applying and counts on the support of its founding strategic partners.
circular economy principles across the coffee value chain,
from farming to consumption and disposal.

With a pre-competitive, transparent, and science-based

approach, the C4CEC expands its knowledge base through
its scientific board and the ITC Coffee Guide Network
Circular Economy Working Group. The Center is open to
all stakeholders in the coffee sector:

BEYOND COFFEE 33
O.3.5 Conclusion
The coffee industry faces both challenges and opportunities
from farm to cup. By embracing circular economy principles
– such as waste reduction, regenerative agriculture, innovative
value addition, and responsible consumption – the sector
can enhance sustainability and social equity. Practices like
agroforestry and carbon insetting not only reduce environmental
impact but also create new income opportunities for farmers.
Sustainable processing methods, including transforming waste
into valuable by-products, adopting circular packaging, and
optimizing logistics, can lower environmental impact while
supporting profitability. Together, these efforts propel the coffee
industry towards a more sustainable, responsible, and climate-
conscious future.

Business success and sustainability are two sides of the same

coin; when integrated effectively, they can mutually reinforce
each other. A sustainable coffee industry is only achievable if
circular practices align with the needs and incentives of MSMEs
and farmers. Broad adoption of these practices along the C-GVC
will occur when there are clear benefits and support systems
tailored to their requirements. Finance and investment are
critical enablers, providing the resources needed to innovate,
scale, and implement circular models that drive both economic
and environmental benefits across the value chain.

34 BEYOND COFFEE
BEYOND COFFEE 35
PART II
SECTION A Making a case for a circular economy

The circular economy offers a transformative model for Many countries are developing and implementing circular
extending material life cycles, eliminating waste, and economy strategies and policies that can also apply to the
regenerating nature, with significant benefits for the coffee sector.
agribusiness and coffee sectors.
The G7 Summit in June 2024, under Italy’s presidency,
Key Findings launched a multi-stakeholder programme to advance policy,
investment, research, innovation, and partnerships for the
circularity and sustainability of global coffee value chains,
The concept of the circular economy does not have a single
including exploring the feasibility of establishing a global
origin but has evolved from various schools of thought,
public-private fund on coffee to support smallholders and
including biomimicry, industrial ecology, cradle-to-cradle
family farmers.
design, the blue economy, and bioeconomy theories.

The circular economy is a production and consumption A.1 Circular economy as an

model designed to extend the life cycle of materials by
keeping them in circulation rather than allowing them to
urgent measure
become waste. Its core principles are eliminating waste
and pollution, circulating products and materials at their As we enter the “era of global boiling,” as described by UN
highest value, and regenerating nature. Secretary-General António Guterres, discussions about
the future of coffee production are intensifying worldwide.
In the agri-business sector, the circular model applies Coffee, especially the prized Arabica varieties, thrives in cool,
through two distinct cycles: tropical climates. However, rising temperatures are forcing
production regions to move uphill into cooler, often steeper,
I. The Technical Cycle, which focuses on maintaining, and less stable lands with shallower soils. These new areas
returning, renewing, and reusing agri-processing are typically the remnants of once larger forest ecosystems.
technologies to enhance agricultural efficiency, minimize The effects of climate change and other environmental impacts
waste, and reduce costs; are significantly reducing the amount of suitable land for coffee
cultivation.
II. The Biological Cycle, which seeks to recover value from
system waste by reusing food, utilizing by-products and In December 2023, the United Nations Climate Change
food waste, and recycling nutrients. Conference (COP28) emphasized that to limit global warming
to 1.5˚C and maintain a safe operating space for humanity,
In the coffee sector, a circular economy integrates
global GHG emissions must be reduced by 43% by 2030.1 The
regenerative practices, resource efficiency, and waste
global stocktake of agreements calls for tripling renewable
reduction while valuing process outputs to achieve
energy capacity, phasing out fossil fuels, and setting a “new
environmental, social, and economic sustainability. Inspired
quantified collective goal on climate finance” in 2024, with a
by natural systems, this model aims to regenerate, sustain,
focus on meeting the needs of developing countries. Beyond
and create shared value for all stakeholders throughout the
GHG emissions, the coffee sector also impacts biodiversity,
coffee value chain.
water use, and eutrophication.
The global food system is responsible for a quarter of
The coffee industry faces significant economic challenges.
GHG emissions, 44% of global land use, 61% of freshwater
Price fluctuations make it difficult for smallholder farmers to
withdrawal, and 90% of phosphorus emissions to soil.
predict production costs and secure a living income. The value
Key benefits of a circular economy in the coffee sector added across the supply chain is unevenly distributed, with
include increased resource efficiency, sustainable smallholder farmers often struggling to earn a decent livelihood
management of biological waste, climate change (BASIC, 2024). Older generations have few alternatives to coffee
mitigation and adaptation, job creation and income farming, while younger generations are rapidly leaving the sector
opportunities, reduced packaging waste, long-term soil due to the lack of a stable future (ICO, 2021).
health improvements, and healthier ecosystems and water
Additionally, coffee farmers and producing countries face
systems.
increasing pressure from consumers, buyers, and regulators

1 Relative to 2019. See United Nations Framework Convention on Climate Change (UNFCCC) (2023). COP28 Agreement Signals “Beginning of the End” of the Fossil Fuel Era. https://unfccc.
int/news/cop28-agreement-signals-beginning-of-the-end-of-the-fossil-fuel-era

36 BEYOND COFFEE
to achieve higher levels of sustainability, productivity, quality, Circular economy principles are increasingly being applied
and output (ICO, 2004). To meet these demands, the coffee across various sectors and industries to reduce waste, improve
sector must prioritize the livelihoods of farmers in all policies resource efficiency, and promote sustainability, addressing
and strategies and develop adaptive approaches to address climate-related challenges and future supply-demand gaps.
environmental impacts and manage rising production and Key sectors and industries that have engaged in the transition
transaction costs. Adopting a “living income” provides a crucial from a linear to a circular economy include manufacturing
metric for evaluating the success of sustainability efforts within sectors, such as:
the global coffee value chain (C-GVC). This approach, along with
circular and regenerative solutions, is essential for ensuring • Electronics, electrical equipment, and car manufacturers,
prosperity for all coffee farmers and workers. characterized by a strong emphasis on product (re)design
and after-consumption recyclability and waste management;
The Circularity Gap Report 2024 states that the global economy
is only 7.2% circular to date, meaning that the amount of reused • The textiles, apparel, and furniture industries are shifting
or recycled materials used by the global economy is declining towards developing and using sustainable materials, along
year-on-year, driven by rising material extraction and use, while with implementing systems to recycle fabrics, textiles, and
consumption continues to accelerate. The report indicates furniture;
that the global food system contributes to 25% of greenhouse
• The recycling and waste management, packaging, retail,
gas emissions, accounts for 44% of global land use, 61% of
and construction sectors, and the mining and extractive
freshwater withdrawals, and 90% of phosphorus emissions into
industries, which are also progressing towards circularity
soil. For biomass use to be considered renewable, sustainable,
– either adding value to waste or eliminating it entirely to
and truly circular, carbon, nitrogen, and phosphorus need to be
achieve resource and cost efficiency and save or generate
effectively reintegrated into the soil (Circle Economy, 2024).
energy.

The agri-business sector is increasingly focusing on circular

The global food system is responsible for a quarter of solutions that promote sustainable, regenerative, and
GHG emissions, 44% of global land use, 61% of freshwater restorative agriculture. These efforts aim to reduce food waste
withdrawal, and 90% of phosphorus emissions to soil. and environmental impacts through improved supply chain
management and to use waste to create new materials (known
as “feedstocks”) and products. This approach is particularly
evident in the coffee sector.
An analysis of the coffee sector’s resource efficiency, as
presented in this report, underscores the need for more This report demonstrates that by adopting circular economy
sustainable business and production models. Effective principles along the C-GVC, the sector can reduce its
implementation should focus on developing new coffee environmental footprint, increase resource efficiency, and
varieties and agricultural practices, intercropping, and increasing develop more sustainable business models. These models
income opportunities through environmental services, while not only generate new products and value-added processes but
also promoting the large-scale adoption of a circular economy. also create significant income and job opportunities, especially
This approach can help secure a sustainable future for the entire for vulnerable coffee farming communities.
coffee sector, creating new opportunities for global well-being
and sustainable growth.

FIGURE A.1
Making a case for a circular economy

BEYOND COFFEE 37
A.2 From linear to circular non-existent – every process output is used as input in other
processes. The Blue Economy model seeks to shift society from
scarcity to abundance by utilizing locally available resources in
The traditional production model in supply chain economics
innovative ways (Pauli, 2010).These various schools of thought
is linear, often described as a “take, make, waste” approach.
have collectively shaped the principles of today’s circular
Natural resources are used to manufacture products, which
economy.
are typically discarded at the end of their life cycle. For the
past 50 years, global consumption of natural resources has The concept of the bioeconomy has also evolved, focusing on
exceeded planetary boundaries, a trend expected to worsen using biological resources, processes, and principles to produce
without significant intervention. food, feed, bio-based products, and energy sustainably. The
European Environment Agency suggests that the bioeconomy
BOX A.1
and circular economy have significant potential to partner
A historical barrier to circularity
towards sustainability, as the bioeconomy is inherently circular
(De Schoenmakere et al., 2018).
Today’s “throw-away society” a term coined in 1955 as
The Ellen MacArthur Foundation (EMF) has been instrumental
a critique of rising consumerism, tends to use items
in promoting circular economy ideas across Europe and
once only, with disposable packaging and consumer
North America. Increasingly, countries in the Global North and
products that are not designed for reuse or lifetime use.
South are incorporating circular economy principles into their
Many companies still make it difficult, or even illegal, to
environmental policies, advancing circularity on a global scale
mend their products.
through extended cooperation across countries and industries.
In 1924 a cartel of big lightbulb manufacturers, including
General Electric, Osram and Philips, agreed to keep A.3 What is circular economy?
lifetimes of their products to 1,000 hours or so, down
from an average of 2,500 hours, in order to sell more The circular economy is a production and consumption model
of them, in a strategy called planned obsolescence that extends the life cycle of products by keeping them in
(Krajewski, 2014). circulation rather than allowing them to become waste. Its
foundational principles are summarized as:

• Eliminate waste and pollution

The concept of the circular economy has evolved over
decades and cannot be attributed to a single source or date. • Circulate products and materials at their highest value
Key contributors in the literature include John Kyle, William • Regenerate nature
McDonough, Michael Braungart, and Walter Stahel (Winans et
From the inputs entering production to the final consumer, a
al., 2017). Rachel Carson’s seminal book Silent Spring may also
circular flow of goods avoids pollution, prolongs material use,
have inspired the circular economy model. Various schools of
captures value from waste and regenerates organic flows.
thought, such as biomimicry, industrial ecology, and cradle-to-
cradle design, have also influenced the movement.
FIGURE A.2
Biomimicry, as defined by the Biomimicry Institute, is the practice Principles for circular economy in coffee
of applying lessons from nature to create more sustainable
technologies. The term was coined by Otto Schmitt in 1957 (Phil.
Trans. R. Soc. A, 2009) but gained popularity through Janine
Benyus’s work in 1997. The costs and benefits of climate change
were first addressed around 1991 by Bob Ayres, a founding
figure in industrial ecology (van der Bergh, 2013). That same
year, a pioneering study on the Economic Aspects of Global
Warming was published, with contributions from William Cline,
future Nobel laureate William Nordhaus, and David Pearce
(McLaughlin, 2022).

Gunter Pauli’s “Blue Economy” approach,2 which emerged

later, advocates for zero-emission systems where waste is

In 2002, the “Cradle-to-Cradle” concept

was popularized by Michael Braungart and
Bill McDonough. This design philosophy
categorizes all industrial and commercial
materials as either technical or biological
nutrients, aiming for products that positively
impact the environment through effective Source: ITC, Making a Case for Circular Economy in Coffee: Insights from the
design. multi-stakeholders working group on circular economy in coffee (2024).
Note: Adapted from Ellen MacArthur Foundation.

38 BEYOND COFFEE 2 More recently the term “Blue Economy” has been associated with the concept of sustainable use
of ocean resources.
A.4 Circular economy in agri- The way food is designed directly impacts what is consumed
and the ingredients grown. The EMF emphasizes circular design
business for food from product conceptualization through ingredient
selection and packaging design. Applying these principles
In 2022, agricultural land covered approximately 4.781 million across all aspects of food design can maximize positive
hectares, accounting for more than one third of the Earth’s outcomes and help businesses meet their circular economy
land surface. Of this, 1.573 million hectares were cropland, targets. A study by the EMF in the UK and EU found that adopting
with coffee cultivation representing 0.7% (FAO, 2024). The circular design yields greater benefits, such as reducing GHG
global food system is responsible for about one-third of GHG emissions, minimizing biodiversity loss, and increasing food
emissions, highlighting the agri-business industry’s crucial role in output, compared to merely improving sourcing practices.
addressing climate change and biodiversity loss. In this context,
A unique aspect of agri-business is potential to repurpose
circular design for food can provide significant environmental
biomass as soil amendments, nutrients, compost, or energy,
and economic benefits.
making regenerative agriculture a key component of the circular
For every dollar spent on food, society incurs two dollars in economy in this sector. With proper support, smallholder
health, environmental, and economic costs, totalling USD $5.7 farmers – who are most vulnerable to environmental changes
trillion annually. Half of these costs stem from current food – can play a crucial role in restoring environmental balance.
production methods, which often rely on fossil fuels, chemical
The industrial scale of modern food systems also offers
fertilizers, and unsustainable water use (EMF, n.d.). These
economies of scale for waste valorization and by-product
practices have led to farmland degradation, biodiversity loss,
(feedstock) development. Closing input loops minimizes
and ecosystem damage.
waste, reduces resource demand, and increases efficiency,
A linear economic model also creates imbalances in the risk/ fostering circularity in agri-business. While reusing and recycling
reward equation. Smallholder farmers, the foundation of agricultural goods is not new, technological advancements have
agricultural value chains, face increasing risks due to climate introduced more efficient techniques, expanding opportunities
change, competition for natural resources, rising input costs, for value-added practices.
declining soil fertility, and an aging farming population.
FIGURE A.3
Policymakers are beginning to support food system
Average benefit comparison between adopting
transformation. To facilitate the adoption of the circular economy,
circular design and only adopting better sourcing
the United Nations Industrial Development Organization (UNIDO)
practices
has identified two distinct cycles within the circular model:
technical and biological.

These principles align with the three foundational principles of

the circular economy: eliminating waste and pollution, preserving
value over time, and avoiding non-renewable resources. These
principles apply to both biological and technical processes
across all circular models.
BOX A.2
UNIDO’s two cycles within the circular model

In the agri-business sector, these cycles can be described

as follows:
1. Technical Cycle: involves maintaining, returning,
renewing, and reusing agri-processing technologies
Source: Graph adapted from Ellen MacArthur Foundation (2024).
to enhance agricultural efficiency while minimizing
waste and reducing costs. Business models that
focus on sharing capital-intensive machinery promote
broader application and cost savings. This cycle also
A.5 Circular economy in the
applies to non-natural packaging by prioritizing reuse coffee sector
and recycling.
2. Biological Cycle: recovers value from system waste Coffee is one of the most widely consumed beverages globally,
by reusing food, utilizing by-products and food waste, with around 3 billion cups consumed daily, and it is also one of
and recycling nutrients. This waste becomes input the most significant internationally traded commodities. The
for new products, supporting crop production, food sector provides jobs and income in over 50 coffee-growing
processing, feed, energy, or other industries like countries and supports millions of people worldwide. However,
cosmetics and pharmaceuticals. By closing input like most agricultural commodities, it generates substantial
loops, discharges are minimized, resource demand waste at every stage of the value chain. By adopting circular
is reduced, and efficiency is increased, fostering
circularity in agri-business practices.
Source: UNIDO (2021).

BEYOND COFFEE 39
economy principles and rethinking its supply chain, this waste ethical work practices, enhance community quality of life,
could be transformed into valuable resources, reducing its and ensure fair access to resources. Economically, the
contribution to global pollution and climate change. goal is to create long-term value, stimulate innovation,
and provide equitable income distribution within the coffee
For this report, we use the definition developed by the Circular value chain.
Economy Working Group, part of the ITC Coffee Guide Network,
in collaboration with the ICO and global experts and practitioners. Employ a systemic, participatory, and holistic approach: A
systemic approach views the coffee sector as a whole rather
than focusing on individual parts. It considers the sector
as a complex network of stakeholders, material and value
“A Circular Economy model for the coffee sector designs, flows, and processes that span from the coffee cherry to
balances, and implements regenerative practices, resource the final product and beyond. This approach acknowledges
efficiency, and waste reduction while giving value to process that all systems are dynamic and interconnected, where
outputs, achieving environmental, social and economic changes in one part can have unintended consequences
sustainability. Driven by a systemic and holistic approach, elsewhere. Understanding the coffee market as a system
it draws inspiration from the dynamics of natural systems highlights the interdependence of all actors and activities,
to regenerate, maintain, and create shared value for all from production to consumption. It also recognizes the
stakeholders, across different contexts and within the importance of indirect actors – those who don’t directly
entire coffee value circle.” buy or sell coffee but influence the market’s structure,
ITC Coffee Guide Network, Circular Economy organization, and development.
Working Group (2024).
A holistic approach considers the coffee sector’s complexity
and the interconnectedness of its parts. Recognizing this
complexity is crucial for addressing the sustainability
This definition was crafted to reflect the perspectives of farmers, challenges the sector faces. It also requires understanding
researchers, sector support organizations, and industry players. timelines that extend beyond the short-term focus of
As the circular economy model gains traction within the coffee business operations. Changing market systems demands
sector, this common definition aims to become a new reference awareness not only of core functions but also of supporting
point. Beyond defining the circular economy, it seeks to guide roles and key regulations that drive competitive and inclusive
and inspire stakeholders in the coffee industry to pursue sector economies within the limits of our ecosystems.
transformation in line with circular principles.
Transition towards a value circle: A circular approach to the
A circular economy for the coffee sector integrates key principles: coffee sector envisions a trade system rooted in cooperation,
waste reduction, resource efficiency, and sustainability. These known as a value circle. This concept represents a shift in
principles are embodied in the definition of a circular economy thinking that recognizes the unique contributions and needs
for the coffee sector: of each stakeholder, balancing profit with environmental
costs. Like a circle, this model must seek balance to remain
Engage efficiency in resource use and waste reduction: intact, mirroring the principles of nature.
This principle ensures that every stage of the coffee life
cycle, from cultivation to consumption, is optimized for Ensure shared value for all: The concept of shared value,
minimal resource use and maximum waste reduction. When defined as “creating economic value in a way that also
waste is unavoidable, circular practices seek to repurpose creates value for society by addressing its needs and
it for the highest value. For example, by-products from challenges” (Porter and Kramer, 2011), emphasizes the
coffee cherries can be transformed into raw materials for importance of generating benefits that serve all stakeholders
new products or processes, beyond just producing the final proportionally. From this perspective, a circular economy
coffee beverage. can enhance the competitiveness of companies and coffee
organizations while simultaneously improving economic and
Regenerate, maintain, and create value: Unlike conventional social conditions across the coffee sector, from producing
approaches that focus on reducing negative impacts, regions to the global market.
the proposed model emphasizes regeneration and value
maintenance, aiming to create new value whenever
possible. This value can manifest in the empowerment of
A.6 Benefits of a circular
communities, the preservation of culture and traditions, or economy
the transformation of seemingly worthless assets through
innovative technologies. By 2025, circular business models could generate about USD
1 trillion per year in materials cost savings (World Economic
Aim for environmental, economic, and social sustainability:
Forum and Ellen MacArthur Foundation, 2014). A circular
A circular economy in the coffee sector promotes the
economy not only tackles environmental challenges but also
well-being of coffee-producing communities, expanding
drives innovation, creates new business practices, and generates
economic opportunities for all stakeholders while conserving
income opportunities and jobs by utilizing agricultural waste,
and regenerating natural resources. Environmentally, this
by-products, and co-products.
means reducing the use of non-renewable resources,
minimizing waste, and improving the health of ecosystems National economies, entrepreneurs, and employees can benefit
involved in coffee production. Socially, it aims to promote

40 BEYOND COFFEE
FIGURE A.4
The “9R's” applied to the coffee sector

Note: Adapted from Kirchherr et al (2017).

from the circular economy as they develop new businesses BOX A.3
and jobs in resource recovery and remanufacturing. New Benefits of circular economy in the
technologies can convert food waste into organic fertilizers, coffee sector
biomaterials, medicines, and bioenergy.

These opportunities are particularly relevant for emerging

economies with high food processing waste and underdeveloped Increased resource efficiency
infrastructure to manage it. On the technical side, business
opportunities exist in agri-technology repair and maintenance, Sustainable management of biological waste from
reuse and redistribution, refurbishment and remanufacturing, coffee processing
and recycling – leading to decent work, new businesses, and
Reduction of environmental footprint
improved incomes.
Climate change mitigation and adaptation
The transition to a circular economy must be considered at the
design stage to eliminate pollution and waste, preserve value Innovation and new market opportunities
over time, and avoid using non-renewable resources. Scaling
existing solutions requires the commitment of all stakeholders Reduction of packaging waste
across the value chain, with developing countries poised to
lead this change. Long term improvements to soil health

The circular economy reframes value creation in a context of Healthier ecosystems and water systems
abundance rather than scarcity. Shifting the perspective from
Alignment with UN Social Development Goals
viewing by-products as waste to seeing them as resources
opens opportunities for innovative, value-added products. This
diversification can expand product offerings in new markets,
particularly at the local level, and help rebalance long-standing
power dynamics within value chains.

BEYOND COFFEE 41
A.7 Circular economy policies growth strategy in Africa. ACEF accelerates Africa’s transition to
a circular economy through three key areas: building institutional
and initiatives capacity, energizing the private sector, and advocating for
the integration of circular economy principles into national
Several European countries have launched circular economy policies. The facility has assisted countries such as Ethiopia,
initiatives. In March 2020, the European Commission adopted Cameroon, Uganda, Benin, and Chad in designing circular
the new Circular Economy Action Plan (CEAP) as a key economy roadmaps and has supported 30 circular economy
component of the European Green Deal, Europe’s agenda for startups across Côte d’Ivoire, Rwanda, and Ghana. Additionally,
sustainable growth. The EU’s transition to a circular economy it bolsters the African Circular Economy Alliance, a platform
aims to reduce pressure on natural resources, create sustainable enabling African governments to integrate circular approaches
growth and jobs, and achieve the EU’s 2050 climate neutrality into their economic development strategies.
target while halting biodiversity loss. The action plan includes
India’s approach to circularity and bioeconomy sets strict
initiatives covering the entire life cycle of products. In 2023,
renewable energy targets, promotes biogas and other high-
the Commission updated its circular economy monitoring
value products, and replaces fossil fuels in cooking, with a focus
framework, adding new indicators for material footprint,
on empowering women and rural communities. Indonesia,
resource productivity, and consumption footprint to better
following its Vision Indonesia 2045, is developing a National
track material efficiency and EU consumption.
Circular Economy Roadmap, guided by the next National
The upcoming European Union Circular Economy Resource Medium Term Development Plan 2025–2029. Five sectors –
Centre exemplifies the EU’s commitment to advancing circularity wholesale and retail trade, textiles, construction, electronics,
globally, facilitating the transition to sustainable, climate-neutral and food and beverage – have been identified as having the
societies. This centre aims to mobilize EU expertize, policies, most potential for the country’s circular transition.
standards, technologies, business models, and practices,
On the policy front, the G7 Summit in June 2024, under
promoting learning and exchange with partners across the
Italy’s presidency, included coffee in its Apulia G7 Leaders’
Neighbourhood,3 Asia, Africa, and Latin America.
Communiqué, supporting multi-stakeholder programmes
In the Global South, numerous initiatives are underway. Brazil to advance policy, investment, research, innovation, and
has placed a circular economy at the core of its 2024 G20 partnerships for the circularity and sustainability of global
presidency, outlining a roadmap on waste management and coffee value chains. This includes exploring the feasibility of
circular practices. Brazil’s National Strategy for Circular Economy establishing a global public-private fund on coffee to support
(ENEC) aims to transition from a linear production model smallholders and family farmers.
to a circular economy by promoting efficient use of natural
This G7 decision builds on the Ministers of Climate, Energy, and
resources, redesigning production chains, and encouraging
Environment Communiqué, which announced a public-private
nature regeneration.
partnership initiative for sustainable, resilient, circular, and
The African Development Bank established the Africa Circular regenerative coffee value chains. The upcoming G7 Ministerial
Economy Facility (ACEF) in 2022, the only trust fund dedicated meeting in October 2024 is expected to discuss this proposal
to mainstreaming the circular economy as an inclusive green in more detail.

FIGURE A.5
International standards on circular economy

Source: Adapted from International Organization for Standardization (2024). Circular economy – Vocabulary, principles and guidance for implementation (ISO
Standard No. 59004:2024). https://www.iso.org/standard/80648.html

3 The European Neighbourhood Policy (ENP), a specific EU policy framework that guides relationships with neighbouring countries in Eastern Europe, the Southern Mediterranean, and the
Middle East.

42 BEYOND COFFEE
Many other countries are also focusing on circularity, development. Moreover, this definition nurtured the proposed
regenerative practices, and bioeconomy, but a comparative definition of a circular economy in the coffee sector adopted
analysis is beyond the scope of this report. by the C4CEC.

In May of 2024, the International Organization for Standardization The systemic approach emphasized in the definition of a circular
published three international standards designed to guide economy suggests a holistic perspective on the interactions and
organizations in implementing circular economy principles. This relationships among various stakeholders and across different
set of standards officially defines the circular economy as an stages of the product life cycle or value chains. Through strategic
economic system that adopts a systemic approach to ensure a planning and collaboration among businesses, governments,
continuous, circular flow of resources. This definition highlights and consumers, it is possible to foster an economic environment
the importance of recovering, retaining, and even enhancing that promotes innovation, social responsibility, and a shared
the value of resources, thereby fostering an economy that not commitment to sustainable practices, ultimately leading to a
only optimizes resource utilization but also aims to reduce more equitable and sustainable future.
environmental impacts, actively contributing to sustainable

BEYOND COFFEE 43
44 BEYOND COFFEE
PART II Breaking down sustainability across
SECTION B the coffee value chain

This section reveals the untapped potential of coffee by-

products, highlights the environmental challenges of coffee
B.1 Resource efficiency from
production, and advocates for regenerative agriculture and bean to cup
circular packaging to boost sustainability and ecosystem
health. Coffee distinguishes itself from other commodities by its
complex processing requirements, which prevent it from being
Key findings simply packed for immediate sale or consumption, whether
domestically or internationally. After harvest, various methods
86% of the coffee cherry is typically discarded as agricultural of primary processing are employed to remove the outer layers
waste or by-products. of skin and pulp from the coffee cherry, followed by drying the
two beans contained within.
Over 40.68 million tonnes of biomass are generated by
coffee processing annually. Once dried, the parchment, or outer skin of the bean, is
mechanically removed. The beans are then sorted based
72% of coffee’s renewable, organic material is generated in on criteria like size and density. Further processing may be
coffee-growing countries, representing 29.34 million tonnes conducted to eliminate defective beans caused by insects
of materials with underutilized productive and income- or disease. At this stage, the coffee is ready for roasting and
generating potential. packaging, either as whole beans or ground coffee for sale to
the final consumer.
Coffee by-products include the skin, pulp, mucilage,
parchment, husk, silverskin, and spent coffee grounds – all Producers generally export little roasted coffee, with most coffee
these have unique compounds with value addition potential. shipped as raw “green” beans to consuming countries. In these
markets, the beans are roasted, packaged, marketed, and sold
Research and innovation are yielding creative solutions
primarily through supermarkets, coffee shops, and increasingly
that give new value to coffee by-products and help diversify
through various e-commerce platforms.
income sources and businesses while benefiting the
environment. The C-GVC comprises five main categories: production,
processing, trade, roasting, and marketing, each representing
Mismanagement of biological waste contributes to water
key stakeholder roles within the value chain. Figure B.1 provides
pollution, oxygen depletion, ecosystem damage, and
a more detailed view of the value chain, illustrating its complex
greenhouse gas (GHG) emissions.
roles and evolving dynamics (International Trade Centre, 2021).
The excessive use of agri-chemicals in conventional FIGURE B.1
agricultural production can lead to soil erosion, loss of The coffee value chain, from producer to consumer
natural fertility and plant-available nutrients, and loss of
natural pest and disease control capacity.

A key circular feature in agricultural production is

regenerative agriculture, which combined with local
approaches for coffee processing, can add value for coffee-
growing communities.

Regenerative agriculture and agroforestry in coffee

cultivation can improve the health and longevity of crops,
people, and the ecosystem in the long term.

Circular packaging involves waste-efficient design that

minimizes raw material use as much as possible, with reuse
and recycling promoted at end use.

Source: International Trade Centre (2021). The Coffee Guide, 4th Edition.

BEYOND COFFEE 45
FIGURE B.2
Global biomass generated through coffee processing, coffee year 2022-2023

Note: With contributions from ITC Coffee Guide Network Circular Economy Working Group and C4CEC (2024).
NB (1): These calculations are made using ICO production and consumption statistics from coffee year 2022/2023. Known conversion rates from Oliveira, et al.
(2021) are applied. See Annex A.2 for detailed calculations.
NB (2): These calculations include the total biomass created from green coffee processing, roasting, and brewing: husks, pulp, mucilage, parchment, silverskin, and
spent coffee grounds. It includes moisture weight (30% of total) that will be evaporated but does not include the weight of green coffee bean itself or material from
coffee pruning. Although these calculations are approximations and do not account for differences in coffee varieties, production efficiencies, or natural variances,
they provide a useful estimation of the volume of waste generated throughout the coffee production process. This highlights the potential for revaluing what is often
considered waste, transforming it into new products or energy sources.

46 BEYOND COFFEE
To gain a comprehensive understanding of the challenges and B.1.1 From cherry to green coffee
opportunities associated with coffee by-products, as well as to
provide an approximate quantification of these by-products, data
For coffee cherries processed using the natural method,
from the 2022/23 coffee year has been utilized. The authors
approximately 32.63 million tonnes of cherries yield around
of this report integrated this data with literature estimates on
14.68 million tonnes of coffee husks (45%) and 6.92 million
the percentages of each by-product generated during various
tonnes of green coffee (21%). The remaining weight (34%)
processing stages (Oliveira et al, 2021) to produce new estimates
corresponds to the moisture lost during the drying process.
for the main biological by-products generated through coffee
processing, as detailed in Sections B.1.1 and B.1.2. In the washed processing method, each tonne of cherries
processed generates a comparable volume of by-products,
As indicated in Section D, the ICO figures show that approximately
including coffee skin, pulp, mucilage, and parchment. This
165.5 million (60 kg) coffee bags were produced in coffee
totals approximately 14.66 million tonnes of by-products. After
year 2022/2023, corresponding to approximately 47.29 million
removing moisture, these by-products amount to about 6.80
tonnes of coffee cherries and 9.93 million tonnes of green coffee,
million tonnes of dry material, representing 46% of the original
including both Robusta and Arabica. According to data from the
weight of the cherries. This figure closely aligns with the 45%
ITC Data Aggregation Working Group, in coffee year 2021/2022,
conversion rate of coffee cherries to coffee husks observed in
approximately 69% of the coffee produced was processed using
natural processing.
the natural method, while the remaining 31% was processed
using either a washed or semi-washed method (International Overall, the various processing methods from cherry to green
Trade Centre and International Coffee Organization, 2023). coffee for export produced approximately 29.34 million tonnes
Despite limitations regarding data precision, these figures offer of biomass, which accounts for around 62% of the weight of
a reasonably accurate depiction of coffee volumes. the harvested coffee cherries in the 2022/2023 coffee year.

FIGURE B.3
Coffee cherry structure and by-products from coffee processing

Note: Adapted from Oliveira, et al. (2021).

NB: Schematic representation of the coffee cherry structure and coffee processing-derived by-products. The percentages refer to the amount of each by-product
obtained from fresh coffee cherries.
BEYOND COFFEE 47
B.1.2 From green coffee to consumption cherry, in its entirety – from the skin, pulp, mucilage, and
parchment to the husk, silverskin and spent coffee grounds –
contains unique compounds that can serve multiple purposes.
Global coffee consumption for the 2022/2023 coffee year
reached 173.0 million bags, equivalent to 10.38 million tonnes
of green coffee, as analysed in Part D. FIGURE B.4
Percentage of coffee cherry in the cup
From this consumption, the roasting process yielded 0.20
million tonnes of coffee silverskin – equivalent to 0.4% of the

1-5%
cherry’s weight and 1.7% of the green coffee bean. Additionally,
brewing produced 11.14 million tonnes of spent coffee grounds
(including 61% moisture), which translates to roughly 6.92
million tonnes of dry material.
of the original
In total, over 86% of the coffee cherry’s matter becomes by- cherry remains in
product or waste, generating 40.68 million tonnes of biomass, our cup
excluding green coffee. This figure also excludes valuable
biomass from coffee tree pruning, such as hardwood and leaves.
When moisture is removed, the dry weight of these by-products
reduces to 28.6 million tonnes, or 60% of the original biomass. The coffee cherry is
It is important to note the limitations of this calculation. The
made up of elements
estimates do not account for the differing masses of Arabica
with unique bio-active
and Robusta beans, variations in the efficiency of production
compounds that can be
processes, or natural and procedural differences that affect
used across industries
the weight of the products and their respective by-products. from cosmetics, food
Nevertheless, these calculations provide a useful indication of products, agriculture
the biomass generated and highlight the value of waste that production, energy, to
often goes unnoticed throughout the journey from coffee farm bioplastics and more.
to the final cup – and beyond.

B.1.3 Opportunities for transformation

Source: Mendes dos Santos et al., (2021).

The entire coffee plant offers valuable attributes that can be

utilized across various industries and products. The coffee

FIGURE B.5
Coffee by-products and their chemical compounds

Source: C4CEC (2024).

Note: Based on data from Mendes dos et al. (2021).

48 BEYOND COFFEE
Research and innovative entrepreneurs are actively exploring developing solutions to add new value to process outputs. These
efforts contribute to the creation of new products and materials that, when properly designed and implemented, can foster local
development and generate additional income sources.

FIGURE B.6
Opportunities to add value, reuse or reduce waste in a coffee value circle

Source: ITC, Making a Case for Circular Economy in Coffee: Insights from the multi-stakeholders working group on circular economy in coffee (2024).

BEYOND COFFEE 49
The following section highlights some examples and case to a sharp rise in GHG emissions and the overall carbon footprint
studies of circular practices and innovations that utilize coffee of conventional coffee production. Additionally, nutrient runoff
by-products. More examples of good practices throughout the can lead to eutrophication, impacting both fresh water and
coffee sector can be found at the C4CEC online platform: marine ecosystems.

https://www.circulareconomyincoffee.org/ Coffee plants thrive in highland regions of tropical and

subtropical climates and are farmed commercially on 12.5
million farms across more than 50 countries in Latin America,
B.2 Circularity in the Coffee Africa, and Asia, covering over 10.6 million hectares worldwide
Global Value Chain (International Trade Centre, 2021). Integrating agroforestry
and regenerative agriculture offers a substantial opportunity
to create positive environmental impacts for the coffee sector
This section highlights the concept of circularity within the
overall.
C-GVC, emphasizing both the challenges and opportunities
for integrating circular economy principles across the entire
B.2.2 The consequences of coffee
lifecycle of coffee production. From cultivation, where
regenerative agricultural practices like agroforestry can help cultivation
restore biodiversity and reduce environmental impacts, to post-
harvest processing that generates significant by-products with The environmental and social impacts of coffee cultivation can
potential for reuse, such as coffee pulp and mucilage, each vary considerably by farm and location, depending on how farms
stage offers avenues for improvement. Challenges like the high are managed and how ecosystems are maintained. Coffee
carbon footprint of trade and transport, especially in packaging farming carries a considerable burden of potential environmental
and logistics, are offset by innovations in sustainable materials and social consequences due to the resources required for
and methods. Roasting and packaging, while resource-intensive, coffee cultivation, regardless of farm size (Bunn, C., Läderach,
present opportunities to adopt energy-efficient technologies and P., Ovalle Rivera, O., 2015). Currently, approximately 24% of the
reduce waste through circular design. Finally, consumption and world’s coffee area is managed under diverse shade, while
end-of-life management, particularly for packaging, underscore 35% is under limited shade – a decrease of around 20% since
the need for recyclable, compostable solutions to minimize the 1990s.
environmental damage. The following sections explore these
stages in greater detail, beginning with farming and production Various studies estimate that global coffee cultivation
practices. and processing account for approximately 40-70% of CO2
emissions throughout the coffee lifecycle.
B.2.1 Farming and production This figure varies depending on numerous factors, including
growing practices, post-harvest processing, brewing techniques,
Originally, coffee thrived naturally within diverse ecosystems, and technology (Thoden van Velzen et al, 2023 and Quantis
growing wild as a forest shrub or intercropped in the understory Environmental Consulting, 2023, n.d.) The carbon footprint for
of multi-layered, shade-covered plots. This agroforestry system 1 kg of fresh coffee cherries ranges from 0.26 and 0.67 kg CO2e
supported biodiversity and provided essential ecosystem for conventional systems, and from 0.12 and 0.52 kg CO2e for
services – regulating pests and diseases, maintaining soil organic systems. The primary driver of GHG emissions across
health, and cycling water and nutrients. However, due to rising all management systems is the use of organic and inorganic
global demand, coffee cultivation has increasingly shifted nitrogen inputs (Nopenen et al, 2012).
towards intensive agricultural practices, moving away from
these sustainable methods. Research consistently shows that the cultivation and
consumption stages account for the largest portion of
environmental impacts within the C-GVC (Nab and Maslin,
As global demand for coffee surged, the focus shifted to 2020).
intensive production systems that prioritized high yields
For instance, Brommer et al. (2011) estimated the GHG
above all else.
emissions associated with preparing 2,000 cups of coffee
(keep 125 ml together) typically consumed annually in German
households. The agriculture phase accounted for 55.4% of total
While this approach has temporarily increased coffee GHG emissions, followed by the consumer and post-consumer
stocks to meet growing demand, it has come at a significant phases (36%), coffee roasting, packaging, and distribution
environmental cost. The excessive use of chemical fertilizers, (6.6%), and overseas transportation (1.9%) (Brommer et al.,
pesticides and herbicides in conventional agricultural practices 2011).
has led to soil erosion, loss of natural fertility, and depletion of
A recent study (Cibelli et al., 2024) estimates the carbon
essential plant nutrients. These practices have also contributed
footprint of coffee consumption, identifying the green coffee
to the deterioration of soil structure and water holding capacity,
production phase as the primary hotspot, accounting for 59%
as well as reduced the biodiversity necessary for effective pest
to 70% of the cradle-to-grave carbon footprint.
and disease control (Gliessman, S. R., n.d.).
The use phase represents a secondary hotspot, contributing to
Moreover, pesticide use carries a 45% chance of contaminating
12.5% to 18.2% of emissions (Cibelli et al., 2024). Additionally,
surface water and a 24% chance of contaminating groundwater
PCF Pilotprojekt Deutschland (2008) estimated that 55% of
(De Queiroz et al, 2018). Together, these factors have contributed

50 BEYOND COFFEE
coffee production’s carbon footprint comes from cultivation and
on‐farm processing, 30% from consumption, and the remaining Insufficient income means farmers are unable to
15% from transport, processing, and waste disposal (PCF invest properly in their farms, adopt environmentally
Pilotprojekt Deutschland, 2008). sustainable agricultural practices, or pay fair wages to
workers for essential tasks. Addressing the living income
It is important to note the wide range of findings across these
gap is therefore a critical first step in resolving broader
studies, which can be attributed to several key factors. Variations
social and environmental issues in coffee-growing
in farm size, coffee varieties, and whether farms employ
communities. This is why governments in consuming
conventional, organic, or regenerative practices significantly
countries are prioritizing the issue through legislation and
influence outcomes. Furthermore, the cultivation location,
declarations, while governments in producing countries
traditional processing methods, beverage volumes (ranging
are initiating national-level efforts and participating in
from 40-237 ml), and packaging choices (e.g., pods, capsules,
global initiatives like the ICO’s Coffee Public-Private
or various materials) all play a role. The brewing method used
Task Force (CPPTF).
by consumers and the energy efficiency of the appliances also
significantly affect the environmental impact during the use For the ICO CPPTF, achieving a living income is seen
phase. Methodologies for measuring carbon sequestration as the first step towards long-term prosperity. By 2030,
can vary considerably, particularly in tropical systems, which the goal is for at least half of the 42 coffee-producing
influences assessments of net carbon emissions versus carbon countries that are ICO Members to implement initiatives
sequestration. aimed at closing the living income gap and fostering
prosperity in coffee regions.

Coffee production and processing require substantial As part of its efforts, the ICO and its public and private
amounts of water for irrigation and processing, as well as partners have conducted living income benchmark
fertilizers to boost crop yields and pesticides to protect studies in nine countries and have supported initiatives
plants from diseases, especially on large-scale farms. to better understand the cost of production and
actual income levels in several of these regions. More
importantly, the ICO has successfully brought together
key stakeholders in at least two countries to launch
On average, the water footprint for a 125-millilitre cup of initiatives aimed at closing these income gaps as part
coffee is 132 litres (Water Footprint Network, n.d.). Effective of their national coffee strategies. In 2024/25, the ICO
management of these inputs, coupled with sustainable and its CPPTF partners will focus on building a stronger
agricultural practices, could significantly mitigate negative case, securing necessary resources, and scaling up their
impacts on local ecosystems, such as water scarcity, soil approach to achieve their 2030 goal.
contamination, land degradation, deforestation, and biodiversity
loss. Overall, the coffee value chain contributes to climate
change, as coffee is a nitrogen-intensive plant with a long and
complex production process that requires energy-intensive B.2.3 Opportunities for circularity in
preparation for consumption (Birkenberg el al., 2021; Kilian et coffee cultivation
al., 2013). Sustainable farming practices are critical for ensuring
the long-term sustainability of the sector.
Coffee can be cultivated in ways that that yield positive
Moreover, coffee production faces significant challenges related environmental and social impacts, particularly in regions
to unequal value distribution, which often fails to ensure a decent that adopt regenerative agriculture, organic practices, and
living income for famers and secure adequate living conditions agroforestry strategies. These approaches enhance the health,
for coffee producers and workers. longevity, and productivity of coffee trees while benefiting
the wider ecosystem. They promote long-term soil health,
reducing the need for synthetic and organic fertilizers through
BOX B.1
practices such as cover cropping, organic fertilization, mulching
A living income for coffee farmers
of pruning residues, establishing shade canopies to enhance
biodiversity, and integrating of post-harvest processing by-
A primary challenge for coffee farmers, especially products into natural compost, mulch, biochar, foliar fertilizers,
smallholders in most coffee-producing countries, is and biofertilizers.
the difficulty in earning enough from coffee farming
to secure a living income. A living income is defined Regenerative agriculture, aligned with circular economy
as the earnings required by a household to ensure a principles, offers a holistic approach to making coffee production
decent standard of living for all members, covering more sustainable. It focuses on regenerating soil health,
essential needs such as adequate housing, education, enhancing biodiversity, protecting water sources, reducing the
nutritious food, clean water, healthcare, and provision need for chemical inputs, and improving farming livelihoods. A
for emergencies and savings –after farm costs are key aspect of regenerative agriculture is diversification, such as
accounted for (Anker and Anker, 2017). increasing biodiversity with cover crops and integrating livestock
farming for manure and additional income (One Planet Business
When farmers fail to earn a living income, other for Biodiversity (OP2B), n.d.). By returning organic matter such
challenges in coffee-producing regions are often
exacerbated.

BEYOND COFFEE 51
as coffee pulp and husks to the soil, these practices contribute The Interprofessional Council of Cocoa and Coffee (CICC) in
to healthier ecosystems and more sustainable food systems. Cameroon is working to optimize coffee processing and refine
Its holistic approach also helps diversify farmers’ incomes, harvesting techniques to enhance both the quality and efficiency
improves food security, and increases climate resilience, of its Robusta coffee production. To support this effort, ITC’s
reducing the carbon footprint of coffee farming. “ACP Business-Friendly” programme is facilitating a technical
exchange between Robusta coffee value chain stakeholders
BOX B.2 from India and Cameroon, including the Central Coffee Research
OP2B working definition of regenerative agriculture Institute of India (CCRI) and the coffee roaster BerryCo.

These initiatives embrace circular economy principles by utilizing

“Regenerative agriculture is a holistic, outcome- tree pruning and shade trees for drying racks instead of plastic
based farming approach that generates agricultural netting and treated wood. They also include testing anaerobic,
products while measurably having net-positive impacts natural, and honey processing methods to enhance quality while
on soil health, biodiversity, climate, water resources reducing water usage. Additionally, they are experimenting with
and farming livelihoods at the farm and landscape cascara production and implementing traditional techniques,
levels. It aims to simultaneously promote above and such as placing pits and clay pots in the ground to capture
belowground carbon sequestration, reduce greenhouse rainwater for plants, as practised in India (International Trade
gas (GHG) emissions, protect and enhance biodiversity Centre, n.d.).
in and around farms, improve water retention in soil,
reduce pesticide risk, improve nutrient-use efficiency The methods and environment used in coffee farming
and improve farming livelihoods.” significantly influence the carbon footprint. Polyculture practices
– where coffee is grown alongside other plants that provide
- One Planet Business for Biodiversity (OP2B)
shade and facilitate beneficial nutrient exchanges – result in
a lower average carbon footprint compared to monocultures.
According to Van Rikxoort et al. (2014), the carbon footprint
As a result, regenerative agriculture offers the potential to for polycultures ranges from 6.2-7.3 kg of CO2 equivalent per
diversify income streams and crop varieties, while simultaneously kg of parchment coffee, while for monocultures, it is around
enhancing food security, soil quality, biodiversity, and climate 9.0-10.8 kg of CO2 equivalent. Traditional polycultures also
resilience. Organic matter from coffee cherry processing, store significantly more carbon in vegetation, with an average
pruning, and cover crops plays a crucial role in fertilizing coffee of 42.5 Mg per hectare compared to just 10.5 Mg for unshaded
plants, particularly when integrated with other sustainable monocultures.
farming practices. This holistic approach reduces the reliance
Reducing GHG emissions from agriculture and land use is
on chemical inputs, promotes carbon insetting, and improves
crucial for the coffee sector’s collective response to climate
both soil health and tree vitality over time.
change. There remains considerable potential for agriculture
Regenerative practices in coffee go beyond reducing negative and land use to not only cut GHG emissions but also serve
impacts – they actively restore ecosystems, communities, and as “sinks” that capture and store excess atmospheric carbon
the broader coffee system. dioxide (CO2) (International Trade Centre, 2021). To unlock
this potential, developing shared value mechanisms that fairly
In practice, regenerative agriculture for coffee includes mulching, reward farmers for regenerative practices is essential.
intercropping and cover crops, promoting plant diversity,
integrating livestock farming, and implementing integrated One effective strategy is carbon insetting, which involves
weed and pest management (Pulleman, Rahn, and Valle, 2023). investing in GHG emissions reduction and carbon storage
Vermiculture, which utilizes coffee pulp, husks, and spent within a company’s own supply chain. This can be achieved by
coffee grounds, effectively converts coffee by-products into supporting farmers and communities in adopting regenerative
high-value compost. Farmers participating in a vermiculture agricultural and agroforestry practices.4 Companies and
project in Ethiopia reported that this solid biofertilizer not only nonprofits are piloting mechanisms to accurately record and
maintains soil fertility but also increases the water retention reward the carbon storage achieved by producers within their
and outperforms commercial synthetic fertilizers and traditional supply chains. However, it is important to know that carbon
compost (Pulleman, Rahn, and Valle, 2023). In Brazil, the coffee insets may not fully recognize the value of ongoing stewardship
leaf miner pest, which causes significant crop losses, can be under best practices, as they primarily account for changes in
managed through resistant cultivars, biological control, and landscapes rather than the continuous improvements made
cover crops (Dantas et al., 2021). by farmers.

To facilitate the broader adoption of regenerative practices, ACORN Rabobank provides a direct marketplace for carbon
it is essential to promote and financially incentivize coffee removal units generated through the agroforestry practices of
farmers through shared-value approaches, encouraging smallholder farmers, leveraging remote sensing technology.
sustainable farming practices on a larger scale. The philosophy behind ACORN is to compensate farmers for
the climate-smart practices they adopt and to facilitate their
This is especially important as it addresses the urgent need transition to agroforestry. Its partnership model prioritizes
to invest in rejuvenating old, low-yield coffee plantations by carbon insetting, ensuring that the benefits and incentives
adopting new climate-resistant varieties and sustainable
agricultural practices.

4 International Platform for Insetting. https://www.insettingplatform.com/insetting-explained/

52 BEYOND COFFEE
 FIGURE B.7
What is insetting?
OF
OILING"
people

ST
VE
IN
LANDSCAPE

LATILE
es COMMUNITY
FARM

Soil health
enrichment
VALUE CHAIN Carbon
sequestration
Tackle climate and nature crises
Increased agricultural
GHG emissions productivity
reductions
Build climate resilience
More sustainable
Transform business models
watershed
Build partnerships
Achieve climate targets Natural resource
Protect Improved livelihoods
and commitments conservation
biodiversity

Source: International Platform for Insetting (IPI).

N.B: The IPI is a business-led organization which advocates for climate action at the source of global value chains.

remain within the coffee value chain. As of August 2024, the B.2.4 Post-harvest processing
ACORN model has generated over 30,000 Carbon Removal
Units (CRUs) resulting in 7.9 million euros in carbon credits, with The post-harvest stage is a crucial part of the coffee
80% of this value flowing directly to farmers (Rabobank, n.d.). production process, as it significantly influences both the
final quality of the coffee and its environmental impact. This
A pilot project funded by the Inter-American Development Bank section explores various coffee processing methods, with an
used the Cool Farm Tool to assess the carbon footprint of 370 emphasis on circularity within the value chain. By examining
farms across six organic smallholder producer organizations traditional methods like natural and washed processing
in Honduras, Peru, and Guatemala. According to Cooperative alongside innovative hybrids like honey processing, this section
Coffees, the commercial partner in this initiative, the results underscores how geography, climate, and resource availability
showed that the majority of the sampled coffee farms operated critically influence post-harvest techniques. These methods
either carbon negative (55%) or carbon neutral (20%), with a have profound implications for the environment, influencing
median carbon footprint of -0.6 kg of carbon dioxide equivalent factors such as water usage, waste generation, and energy
(CO2e) per kg of coffee green bean equivalent (GBE). Cooperative consumption. As we delve into each method and its broader
Coffees provided carbon-based payments to cooperatives at a impacts, the following subsections will examine the specific
rate of $66 per tonne sequestered, resulting in total payments processes, environmental considerations, and opportunities for
of $160,000 (Cool Farm Tool Impact Report, 2023). valorizing by-products to create more sustainable and efficient
production systems.
Key insights from Cooperative Coffees indicate that regenerative
organic agriculture can enable coffee production to be carbon
B.2.4.1 Coffee processing and related methods
neutral or even carbon negative, though often at a higher cost.
Additionally, a narrow focus on emissions reductions overlooks The next stage in coffee production is post-harvest coffee
the broader ecosystem benefits. The Greenhouse Gas Protocol processing, which primarily utilizes two methods determined by
standards identified that the primary determinant of carbon the geographic and climatic conditions of the coffee’s country
outcomes was whether trees had been planted or removed of origin: natural processing and washed processing.
in the past 20 years, regardless of illegal logging by previous
owners or the implementation of agroforestry practices (Root Post-harvest processing methods vary based on factors such
Capital, 2023). As a result, Cooperative Coffees has shifted its as water availability, climate conditions, and the desired cup
emphasis from simply achieving carbon neutrality to what it calls quality profile. The chosen method can significantly impact the
“regenerative trade,” a model that rewards producer partners for environment and is influenced by geographic location, traditional
their long-term regenerative efforts and encourages investments practices, market demand, and target market segment. Washed
that go beyond carbon metrics alone (Cooperative Coffees, n.d.). processing is typically employed in regions with abundant

BEYOND COFFEE 53
BOX B.3
COMSA: Regenerative agriculture on coffee farms

CASE STUDY

COMSA:
Partner(s): Input:
Cafe Orgánico Marcala, S.A. Fruit and shade trees; cover crops; coffee
(COMSA) processing residues (coffee pulp) and plant and
Regenerative Country: fruit material residues on farm (leaves, coconut
Honduras
agriculture on Year launched:
husks, fruit residues, other composting material);
cultured native microorganisms; minerals
coffee farms 2013 extracted from local rocks
Coffee value chain area: Output:
Farm and production Organic compost, microbiological activity in the
Industry/sector: soil, improved soil composition, biodiversity, fruit
Coffee production and beans from agroforestry and cover crops,
hardwood trees, organic and high-quality coffee
Technology readiness level:
Implemented action, tested
solution

Description: COMSA, a small producer organization in

Honduras, implements an intensive regenerative farming
system designed to strengthen the natural immune
defenses of its members’ fields. Finca Fortaleza, COMSA’s
farmer-focused centre for experimentation and innovation,
prioritizes the sustainable use of local natural resources. This
site also hosts El Diplomado Organic, a week-long farmer
training programme that combines theory with hands-on
learning and visits to farms where these practices have
already been successfully applied. The training emphasizes
key techniques such as enhancing organic matter in soils,
improving compost with locally produced beneficial bacteria
and fungi, applying liquid compost as a biofoliar to treat
coffee leaves, and utilizing mulching and cover crops to
maintain soil health and moisture. COMSA also cultures
native microorganisms and incorporates minerals from local
rocks to further enrich soil quality.

Motive: COMSA seeks to address the pressing challenges other agricultural products. Through a pilot project with
of farm profitability and climate change adaptation faced Cooperative Coffees, COMSA secured $36,751 in carbon-
by smallholder farmers. Viewing coffee production from a based premiums for their environmental contributions.
holistic perspective, COMSA recognizes that coffee trees Environmental impacts: Adopting regenerative practices
in degraded soils or monocultures are highly vulnerable has not only improved soil quality but also enhanced
to climate shocks, such as erratic weather and disease climate resilience, resource efficiency, and nutrient cycling.
outbreaks. Many smallholder farmers in the region struggle COMSA also provides a waste management system for the
with limited financial resources, food scarcity, and low municipality, including recycling and biofuel production.
incomes. Through organic regenerative agriculture and Social impacts: Regenerative agriculture has improved
agroforestry, COMSA aims to restore ecological balance public and community health in the regions where COMSA
while promoting the well-being of coffee producers and their operates. The COMSA International School offers practical,
families. multilingual education to local children, following innovative
Challenges and lessons learned: During the coffee leaf rust educational models such as Glenn Doman, Waldorf, and
crisis that impacted Central America, many organic farms Montessori.
within COMSA’s network remained unaffected by the fungus. Cultural, educational and awareness impacts: COMSA’s
This success was attributed to the restoration of beneficial approach has fostered the adoption of sustainable
microorganisms and healthier soils, which enabled coffee and innovative agricultural practices in rural Honduran
plants to resist both disease and drought. communities and beyond. This model has sparked a shift
Economic impacts: Improved soil health has reduced the towards regenerative thinking, promoting innovation,
need for costly agricultural inputs, lowering expenses for creativity, research, and on-farm experimentation. It has
farmers. Additionally, it has supported long-term profitability strengthened rural networks, built leadership and technical
by enabling the production of high-quality organic coffee capacities, and created new employment opportunities for
and creating income diversification opportunities with members.

54 BEYOND COFFEE
water sources and is favoured for producing high-quality, bright the ideal level for safe storage and further processing.
coffees. This method is especially common in Latin American
countries like Colombia and Mexico, as well as in some African Once the beans have reached the desired moisture level, they
nations such as Ethiopia and Kenya. undergo hulling. Hulling machines remove the parchment layer,
revealing the green coffee beans inside. The beans are then
In contrast, natural processing is preferred in water-scarce further cleaned and sorted to eliminate any remaining impurities
regions. This technique, prevalent in countries like Brazil, or defective beans. After hulling, the beans may go through a
Ethiopia, and Yemen, involves drying the entire coffee cherry final drying phase to ensure uniform moisture content. Finally,
in the sun. It is valued for its ability to produce coffee with a the green coffee beans are bagged and stored in a cool, dry
fuller body and complex, fruity flavours. place until they are ready to be roasted (International Trade
Centre, 2021).
In addition to natural and washed methods, there are hybrid
processes that combine elements of both, resulting in unique B.2.4.3 Wider impacts of the washed processing
flavour profiles and addressing some of the drawbacks
method
associated with traditional techniques. One notable hybrid
process is honey processing, where the coffee cherries are Washed coffee processing has a significant environmental
pulped to remove the outer skin while retaining varying amounts impact due to the large volume of wastewater it generates. This
of mucilage before drying. This method is particularly popular in wastewater is highly acidic and contains a high concentration
Costa Rica, El Salvador, and some innovative farms from around of organic matter and suspended solids, posing a risk of
the world. Honey processing is valued for its ability to produce contaminating water systems if not properly treated.
coffee with distinct sweetness, complexity, and balanced acidity
(International Trade Centre, 2021). BOX B.4
Water usage of washed coffee
B.2.4.2 A breakdown of the “washed”
processing method Washed coffee processing consumes approximately
15 to 20 litres of water for every kg of coffee beans
Washed processing methods are used to remove the outer processed (Ijanu et al., 2020).
layers that protect the coffee beans inside the coffee cherries.
This method involves several distinct stages to ensure the beans
are thoroughly cleaned and prepared for drying.
The environmental impact of washed coffee processing
The first stage is pulping, where coffee cherries are mechanically goes beyond high water consumption. Mismanagement of
pressed to eliminate the outer skin and pulp. This is accomplished wastewater can lead to severe ecological threats. Untreated
using a pulping machine that utilizes flowing water to facilitate wastewater poses a significant environmental challenge, as
the removal of the cherry’s outer layer. The cherries pass through it can pollute water sources and damage ecosystems. This
rotating drums or screens, where mechanical action, combined wastewater often contains toxic chemicals such as tannins,
with water, strips away the skin and most of the fruit pulp, phenolics, and alkaloids, which inhibit biological degradation
exposing the beans inside. and disrupt aquatic ecosystems, harm wildlife, and reduce
biodiversity. The high biological and chemical oxygen demand
Once pulping is complete, the beans – still covered in a sticky
from decomposing organic matter in the wastewater can
layer called mucilage – are placed in fermentation tanks filled
deplete oxygen levels in water bodies, potentially endangering
with water. In these tanks, natural enzymes and microbes
aquatic organisms (Rattan et al., 2015). Modern de-pulping
break down the mucilage. This fermentation process can last
equipment, such as de-mucilagers, mechanically separates
anywhere from 12 to 48 hours, depending on factors such
the mucilage, which can generate significant water savings by
as temperature, altitude, and desired flavour profile. During
eliminating the need for the fermentation step.
fermentation, the beans must be regularly stirred to ensure
even fermentation and prevent the growth of unwanted To address these environmental challenges, it is crucial to
microorganisms. implement effective wastewater treatment solutions. These
measures can help reduce the harmful impact of washed
After fermentation, the beans are thoroughly washed with clean
processing on local water systems and surrounding ecosystems.
water to remove any residual mucilage. This step is essential
Adopting sustainable practices and innovations in wastewater
for ensuring the beans are clean and reducing the risk of off-
management is essential to ensure the long-term viability of
flavours developing during the drying phase.
coffee production while protecting the environment.
Following washing, the beans, now covered only by a thin layer
known as parchment, are spread out to dry. Drying can be B.2.4.4 The washed processing method’s by-
achieved through various methods. In sun drying, the beans products and waste
are placed on large patios or raised drying beds and turned
regularly to ensure even drying, which can take several days During the washed coffee processing method, approximately
to weeks. In regions with unpredictable weather, mechanical 80% of the original coffee cherry’s mass is converted into
dryers are used to expedite the drying process. The goal is to by-products, including coffee pulp, mucilage, and parchment.
reduce the moisture content of the beans to around 10-12%,

BEYOND COFFEE 55
FIGURE B.8
An overview of coffee processing

Source: : International Trade Centre (2021). The Coffee Guide, 4th Edition.

56 BEYOND COFFEE
 particularly the presence of bioactive compounds like caffeine
FIGURE B.9
and tannins, along with potential mycotoxin contamination and
Every tonne of cherries obtains approximately 200 kg
microbial deterioration – raises safety concerns. This highlights
of green coffee beans
the need for further research to ensure the safe handling and
potential consumption of this by-product (Klingel et al., 2020).

1 200 kg FIGURE B.11

tonne green coffee Chemical compounds of coffee mucilage and
cherries beans parchment (washed processing method)

Note: Adapted from International Trade Centre (2024).

Coffee pulp, which includes both the skin (epicarp) and the pulp
between the skin and the seed (mesocarp) of the coffee cherry,
makes up about 39-43% of the coffee cherry’s total weight
(Oliveira et al., 2021; Bressani, 1978). This by-product is rich in
carbohydrates, accounting for 21 to 32% of its composition.
It also contains 6.5% total pectic substances, 12.4% reducing
sugars, and 2% non-reducing sugars. The protein content varies
between 5 and 15%, minerals make up 9%, and fats range
from 2 to 7%. Additionally, coffee pulp is abundant in bioactive
compounds, including 3% tannins, 2.4% chlorogenic acids,
1.6% caffeic acid, and 1.5% caffeine, which contribute to its
nutritional and biochemical profile,making it a valuable material
for a variety of product applications and worthy of additional
studies (Mendes dos Santos et al., 2021).

Physically, coffee pulp has a soft, fibrous texture and can range
in colour from green to brown. While no studies have provided
specific data on the toxicity of coffee pulp, its composition –

FIGURE B.10
Chemical compounds of coffee pulp (wet processing
method)

Note: Adapted from Iriondo-DeHond et al. (2020) and Elías, L.G. (1979).

Coffee mucilage is a viscous and sticky substance (inner

mesocarp) that adheres to the coffee beans after pulping. From
100 kg of coffee cherries, approximately 22 kg of this by-product,
including its moisture content, are produced (Iriondo-DeHond
et al., 2020). This layer, typically 0.5–2 mm thick, is a colloidal
liquid system and a lyophilic hydrogel. Mucilage is composed
of up to 39% pectic substances, mainly in the form of reducing
sugars, which are essential for microbial activity during the
fermentation process. It also contains 84.2% water, 8.9% protein,
4.1% sugar, 0.91% pectic acid, and 0.7% ash. Notably, it includes
enzymes that degrade pectin but does not contain tannins or

Source: Mendes dos Santos et al., 2021

BEYOND COFFEE 57
caffeine (Elías, L.G., 1979). Coffee mucilage does not contain This process breaks down coffee pulp in the absence of oxygen
the bioactive compounds found in coffee pulp, such as tannins, to produce biogas, which can be used for electricity and heat
caffeine, and melanoids (Iriondo-DeHond et al., 2020). Studies generation. The by-product of this process, known as digestate,
suggest that mucilage can promote the growth of beneficial is a nutrient-rich material that can be used as a fertilizer. Utilizing
microorganisms, which can ultimately influence and enhance coffee pulp for biogas production has shown significant
the flavour profile of the resulting coffee (Cruz et al., 2019). potential in various regions, allowing coffee producers to reduce
reliance on external energy sources and minimize waste. The
Coffee parchment is the brown, fibrous material (endocarp) digestate also provides valuable agricultural input, supporting
that results from the hulling of dried coffee beans after the local farming and contributing to a circular economy.
removal of the cherry pulp and mucilage. Although sometimes
referred to as the husk, it is distinct from the coffee husks However, this model has limitations. A project in Peru exploring
produced during natural processing, as discussed in this report. the use of coffee pulp for biochar and biogas found it unsuitable
Coffee parchment makes up about 39% of the coffee cherry for biogas production due to the presence of potentially harmful
(including moisture) or 35% when dried (Oliveira et al., 2021). biocides and the limited availability of pulp during the harvest
Primarily composed of cellulose and lignin (89-91%), it has a low period. Additionally, biogas production requires significant
moisture content, ranging from 10 to 15%. The gross chemical investment (RePiC, 2020).
composition of coffee parchment has been compared to that
of corncobs and cottonseed hulls (Bressani, R., 1978). Coffee pulp can be incorporated into animal feed formulations,
offering a sustainable and cost-effective alternative to traditional
B.2.4.5 Circular opportunities for washed feed ingredients. Research has shown that coffee pulp can
replace up to 20% of traditional feed for livestock such as cows
process by-products (Pedraza et al., 2012), pigs, and rabbits, reducing feed costs
Effectively managing by-products from the washed coffee while still providing a nutritious diet. This integration of coffee
processing method offers significant opportunities for pulp not only addresses waste management challenges but
sustainability and economic gain. By separating the solid also supports more sustainable agricultural practices. However,
components from the liquid ones, the potential of coffee pulp scepticism remains in the feed industry, and connections
can be unlocked through various value-addition practices. While between coffee and feed industries remain limited. Research
coffee pulp is often discarded or used to produce compost and has also explored the use of coffee pulp in aquaculture (Ulloa
biofertilizers from fermented organic residues, these practices Rojas, J., 2002).
represent just a fraction of its potential uses. Exploring innovative
Another use for coffee pulp is as a substrate for cultivating
ways to repurpose coffee pulp could lead to new sustainable
mushrooms. Its high organic content makes it an ideal
products and revenue streams, enhancing both environmental
growing medium for fungi such as such as oyster and shiitake
and economic outcomes.
mushrooms (Murthy and Madhava Naidu, 2012). Using coffee
Wastewater or honey water management pulp in mushroom cultivation offers a sustainable waste
management solution while offering additional nutrients and
Various advanced systems are used to treat wastewater, each potential income opportunities for farmers. However, this
designed to address specific contaminants and operational application faces challenges, including the limited consumption
needs. Common methods include constructed wetlands, which of specialty mushrooms in many coffee-producing regions, the
effectively remove organic matter and nutrients, and membrane perishable nature of fresh mushrooms, and the niche market
bioreactors, known for their high-efficiency contaminant removal. for these products.
Aerobic and anaerobic lagoons are also employed to manage
coffee wastewater. The treated water can be repurposed as Coffee cherry mucilage is a rich source of pectic substances
a nutrient-rich biofertilizer, reducing the reliance on chemical that can potentially be processed into pectins. However,
fertilizers, and supporting sustainable agricultural practices. traditional washing methods pose challenges in recovering
these substances, as they are often washed away with large
Vetiver grass (Vetiveria zizanioides) offers a circular approach volumes of water during the pulping and washing stages and
to mitigating the environmental impact of honey water, a by- are subjected to advanced fermentation. To effectively harness
product of coffee processing. Vetiver’s robust root system these pectic substances, it is crucial to either recycle the water
naturally filters out contaminants like nitrogen, phosphorus, used in the process or use coffee pulp as the raw material
and heavy metals, significantly reducing wastewater toxicity (Bressani, 1978). The use of de-mucilagers allows for the
before release into the environment (Chen, Y., Shen, Z. G., & separate collection of mechanically removed mucilage.
Li, X. D., 2004). The grass can also be harvested for erosion
control, handicrafts, or as a raw material for thatch, maximizing Mucilage concentrate has been explored for various applications,
its utility in agricultural systems. In Peru, cooperatives such such as beverages, organic foliar fertilizer sprays and natural
as La Flor del Café and Valle Verde in Amazonas, as well as preservatives. For instance, Good Vodka, an American distillery,
CENFROCAFE in Cajamarca, have successfully implemented uses mucilage concentrate from Colombia (The Zero Waste
constructed wetlands with vetiver grass, leading to substantial Coffee Project, 2023). Another practical use of coffee mucilage
reductions in pollutants and improved water quality. is in the ready-to-drink beverage market. NAOX, a beverage rich
in antioxidants, is produced from coffee mucilage concentrate.
Coffee pulp
This innovation was developed in Colombia through a
Coffee pulp is rich in organic matter, making it a promising collaboration between Nautucafe (The Zero Waste Coffee
by-product for biogas production through anaerobic digestion. Project, 2023) and SANAM. An example of successful industrial-

58 BEYOND COFFEE
FIGURE B.12
Value-addition uses for washed coffee process by-products

Source: ITC Coffee Guide Network’s Circular Economy Working Group and Center for Circular Economy in Coffee, 2024.

BEYOND COFFEE 59
scale production is seen with CoopeAgri, a small producer to conventional products. In the construction industry, coffee
organization in Costa Rica. Through a joint venture named Agri- parchment can be incorporated into building materials like bricks
SANAM, CoopeAgri produces coffee mucilage concentrate on or cement to enhance properties such as insulation.
an agro-industrial scale. It is bottled and sold as NAOX in Costa
Rica, available in retailers like WalMart, and is also exported to Research is ongoing to explore coffee parchment’s use in
international markets for various uses. This initiative aims to building materials. For instance, incorporating parchment
maximize the use of the coffee cherry and enhance economic into bricks aims to enhance their porosity, improving thermal
opportunities for farmers by integrating circular economy insulation (Sanchez-Zuiga et al., 2019). This innovation supports
practices into their operations. more sustainable and energy-efficient construction practices by
leveraging the natural benefits of a by-product. An example is
Coffee parchment is well-suited for bioenergy production. Woodpeckers WPC (wood plastic composite) panels developed
It can be utilized as biomass for energy generation through in Colombia, designed for rural construction. These panels,
combustion or converted into biochar or biogas via pyrolysis made from parchment and recycled polymers, offer cost-
or anaerobic digestion. A common use of parchment is as effective and sustainable building solutions for low-income
fuel for mechanical parchment coffee dryers, providing a populations.
renewable energy source while reducing waste. However, this
approach poses sustainability challenges related to combustion Coffee parchment is also being used in combination with
emissions, which need careful management to minimize polymers to create composite materials, taking advantage of
environmental impact. its natural lignocellulosic properties to enhance mechanical
strength, thermal insulation, and durability. However, challenges
In agriculture, coffee parchment can be composted to create include variability in parchment quality and composition,
organic fertilizer, enriching soil with essential nutrients and which can affect the final product’s performance. Additionally,
enhancing fertility. It can also be used as mulch, aiding in water integrating parchment with non-recyclable polymers raises
retention, weed suppression, and soil temperature regulation, issues related to biodegradability and disposal, potentially
thereby improving crop yields. Converting coffee parchment undermining the environmental benefits of these composites.
into biochar serves as a soil amendment, reducing the need
for fertilizers, improving soil properties over time, and aiding Huskee is a brand that exemplifies innovative use of coffee
carbon sequestration, which helps mitigate climate change by parchment, offering reusable coffee cups made from a mix of
capturing and storing carbon. coffee parchment and polymers. The brand’s “HuskeeSwap”
model promotes reuse in cafes, universities, and offices
The fibrous nature of coffee parchment makes it suitable to reduce single-use cups. Huskee also offers a recycling
for producing paper and biodegradable packaging materials, programme to ensure the proper disposal and recycling of their
which are increasingly in demand as sustainable alternatives products, creating new products from recycled Huskee cups.
BOX B.5
What is cascara?

Cascara, which means “skin” or “husk” in Spanish, refers is now widely available for making infusions and teas, thanks
to the dried coffee cherry skin and pulp. It also broadly to the novel food recognition process that has opened
encompasses the coffee husk from natural coffee international markets, including Europe. Cascara can also be
processing, including the skin, pulp, and parchment. Cascara turned into syrups that add a unique, fruity depth to desserts,
can be used as a fruit infusion, with Quishr, or Hashara – a ice cream, pancakes, and cocktails. By processing and
sweet tea made from coffee skin – originating in Ethiopia fermenting coffee pulp, manufacturers can create unique
and still enjoyed in the region. The distinctive sweet red fruit beverages such as coffee pulp-based refreshing drinks and
and molasses flavour of cascara has driven its growing low-alcohol beverages (Rathinavelu and Graziosi, 2005).
popularity as a refreshing beverage. This increasing demand This innovative use of coffee pulp not only reduces waste
requires new regulatory and marketing efforts to introduce but also introduces novel products to the market, offering
and establish cascara in different markets (International both environmental and commercial benefits.
Trade Centre, 2021).

Some companies have innovatively used cherry pulp to

create “coffee flour,” a gluten-free alternative to grain-based
flours. Other initiatives include transforming “honey water”
into a sweet syrup, often called “coffee honey.” Coffee Cherry
& Co. produces a nutritious, gluten-free flour from dried
cascara, sourced with operations in Hawaii, Nicaragua,
Guatemala, Mexico, and Vietnam. This product provides
environmental benefits, economic opportunities for farmers,
and helps address dietary deficiencies (The Index Project,
n.d.).

Coffee pulp or cascara can also be used in both non-

alcoholic and alcoholic beverage production. Dried cascara

60 BEYOND COFFEE
B.2.4.6 A breakdown of the “natural” processing level of around 10%. This can be done using either solar or
mechanical drying methods. In solar drying, cherries are spread
method
in a thin, uniform layer on surfaces like drying patios, raised
In the natural coffee processing method, the post-harvest beds, or polytunnels.
workflow begins with an initial sorting phase to remove defective
Natural sunlight and air circulation reduce the cherries’ moisture
cherries, ensuring that only high-quality cherries move on to
content, with regular turning and raking to ensure even drying
subsequent processing stages.
and prevent mould growth or fermentation, which could affect
The selected coffee cherries are then dried to a residual moisture quality and flavour.

BOX B.6
COMSA: Regenerative agriculture on coffee farms

CASE STUDY

NAOX:
Partner(s): Technology readiness level:
COOPEAGRI, Agri-SANAM Proof of concept, ready for market
Country: Input:
Coffee honey Costa Rica Coffee mucilage
concentrate Year launched:
2019
Output:
Mucilage concentrate as an ingredient
Coffee value chain area: for multiple applications
Post-harvest processing
Industry/sector:
Food and beverages;
agricultural inputs; cosmetics

Description: Mucilage, the sticky layer found in coffee

cherries, is separated from the pulp during the washed
processing of coffee. This mucilage is then extracted and
heated to produce a sweet, antioxidant-rich concentrate
suitable for human consumption. The versatile concentrate
is used in a variety of products, including granola bars, fruit
bites, spreads, sauces, nutraceutical supplements, energy
gels, beverages, confectionery items, dairy products, ice
cream, and baked goods. Additionally, the concentrate has
proven effective as a bio-stimulant foliar fertilizer for both
conventional and organic farming, and it also serves as a
natural food preservative. Through a joint venture between
COOPEAGRI and SANAM in Colombia, the product is
marketed under the name NAOX, a ready-to-drink beverage
sold in major retailers such as Walmart in Costa Rica.

Motive: COOPEAGRI, a cooperative with over 60 years discounted rate, leading to improved coffee yields and
of experience in coffee, sugarcane, and agro-industrial enhanced crop quality.
products, is committed to tackling the challenges of climate Environmental impacts: The production plant treats and
change, including environmental degradation and reduced recycles rainwater, ensuring that all wastewater is processed
crop yields. By adopting circular economy practices, the to meet national environmental regulations. This sustainable
cooperative aims to maximize the use of coffee cherries and water management supports the cooperative’s broader
minimize waste. environmental goals.
Challenges and lessons learned: Extracting mucilage Social impacts: Consumers benefit from the nutritional
through a hermetic process was highly complex. The value and health advantages of the product, contributing to
development of the foliar fertilizer required three years of overall well-being.
research, testing, and refinement. As pioneers in this field, Cultural, educational and awareness impacts: The
COOPEAGRI also faced significant challenges in positioning cooperative has established demonstration plots to
NAOX in the market, particularly in finding supply chain showcase the effectiveness of organic farming practices,
partners willing to invest in the product’s success. allowing members to see firsthand the benefits of using
Economic impacts: The commercialization of this value- the bio-stimulant fertilizer. These efforts have helped raise
added product has created economic benefits for coffee awareness and promote sustainable agricultural practices
producers through profit-sharing mechanisms. Additionally, within the community.
cooperative members receive the biofoliar fertilizer at a

BEYOND COFFEE 61
Mechanical drying is particularly popular in regions prone to B.2.4.9 Circular opportunities for natural
erratic weather, such as unpredictable rains. This method uses
process by-products and waste
specialized equipment to control temperature and airflow,
significantly reducing drying time from weeks (as with sun There is growing interest in valorizing coffee husks into various
drying) to just hours or days. Mechanical drying helps maintain useful products, reducing waste, and promoting a circular
consistent quality and minimizes the risk of contamination from economy in the coffee sector.
adverse weather conditions.
Beyond their use in food and beverages as cascara, coffee
Once the cherries reach the desired dryness, they undergo husks have several other applications. In agriculture, coffee
hulling, where the dried outer layers – known as coffee husks are traditionally used as soil amendments or compost
husks, including the skin, dehydrated fruit pulp, mucilage, and material, enhancing soil structure and fertility by increasing
parchment – are mechanically removed. This process reveals organic matter and improving water retention. Unlike coffee
the green coffee beans, which are then further cleaned and pulp solids, which release limited nutrients, raw coffee husks
sorted to remove any remaining debris or defective beans, in line are rich in organic carbon, significantly enriching the soil. As
with market specifications (International Trade Centre, 2021). mulch, husks offer benefits such as moisture retention, weed
suppression, and soil temperature regulation, all contributing
B.2.4.7 Wider impacts of the natural processing to healthier crops and reduced soil erosion (Bomfim et al.,
method 2023). Coffee husks have also proven valuable as a substrate
for mushroom cultivation (Dissasa, 2022).
Coffee husks are the main by-product of the natural coffee
processing method, making up 45% of the coffee cherry (Oliveira Like coffee parchment, biochar derived from coffee husks
et al., 2021). Managing the disposal of coffee husks poses through pyrolysis serves as an excellent soil amendment
significant challenges, especially in regions with high coffee while also contributing to carbon sequestration. This process
production. Common disposal methods include landfilling, open enhances soil fertility and structure while helping mitigate
burning, and composting. In some high-production areas, coffee climate change by sequestering carbon. The high lignocellulosic
husks and other agricultural residues are burnt to manage the content of coffee husks makes them suitable for biofuel
large volumes of waste. However, open burning is particularly production through pyrolysis, fermentation, and anaerobic co-
problematic. It depletes soil organic matter, reducing soil fertility digestion, supporting the shift to biomass energy (Tamilselvan
and crop yields, and releases harmful pollutants like particulate et al., 2024).
matter, carbon monoxide, volatile organic compounds, and toxic
chemicals. These emissions contribute to climate change, air Coffee husks offer a cost-effective, eco-friendly alternative to
pollution, smog, and health risks, including harm to farmers and fossil fuels, reducing GHG emissions and addressing waste in
their families (Tamilselvan et al., 2024; UNECE, 2022). the coffee industry. Fuel briquettes made from coffee husks,
dried coffee pulp, or parchment, such as those produced by
As a result, some countries and regional institutions are the Dilla Briquette Factory in Ethiopia (The Zero Waste Coffee
considering guidelines or regulations to restrict open burning, Project, 2023), provide a sustainable alternative to fossil
aiming to mitigate its environmental and health impacts and fuels, using simple carbonization and pressing techniques.
prevent fire hazards and uncontrolled wildfires (ASEAN, 2023). While converting coffee husks into biofuels and briquettes
presents opportunities for local economic growth and energy
B.2.4.8 Natural processing method’s sustainability, challenges include fluctuating husk availability and
by-products and waste high processing costs (Flammini et al., 2020; Era of We, 2023).

Coffee husks consist of the dried skin, pulp, mucilage, and In Vietnam and Peru, pilot projects5 have implemented small-
parchment layers (epicarp, mesocarp, inner mesocarp, and scale pyrolysis systems to add value to coffee waste by
endocarp) of the coffee cherry. These layers are separated from converting it into three main outputs: heat energy for mechanical
the beans during milling. Coffee husks from natural processing coffee dryers, biochar as a soil amendment, and pyroligneous
are also used as cascara since they include the coffee cherry liquid (wood vinegar), which can be commercialized as a natural
skin. Chemically, coffee husks are rich in cellulose (43%), pesticide. These systems process 30-100 kg of dry material per
hemicellulose (7%), and lignin (9%), contributing to their high hour, producing 10-30 kg of biochar per hour. The project also
fibre content. They also contain various nutrients, including introduced thermal dryers that significantly reduce drying time,
proteins (up to 11%), lipids (up to 3%), and essential minerals and the risk of mould compared to traditional sun drying. Pilot
(3-7%) such as potassium and magnesium. Although in smaller results showed positive environmental and economic impacts,
quantities than in the beans, coffee husks also contain caffeine including additional income from biochar sales, higher coffee
(1%) and antioxidants like chlorogenic acids (2.5%), which yields, reduced climate risk, lower GHG emissions, less fertilizer
contribute to their unique properties and potential uses (Mendes runoff, reduced deforestation, and the creation of local markets
dos Santos et al., 2021). for biochar (Biochar Vietnam, n.d.; RePiC, 2020).

The aroma and flavour profile of coffee husks can vary Research has also highlighted innovative applications for
depending on the coffee variety and the drying process. The coffee husks, such as their effectiveness as biosorbents
aroma is often described as fruity or floral, while brewed cascara in environmental applications, particularly in wastewater
tea can have a mildly sweet flavour with notes of dried fruit, treatment. When converted into biochar with pyrolysis, these
berries, and a slight tartness. cellulose- and lignin-rich husks can effectively absorb pollutants

5 These pilot projects is carried out by partners United Nations Industrial Development Fund (UNIDO), State Secretariat for Economic Affairs (SECO), Sofies/dss+ (Switzerland), VNCPC,
Ökozentrum/ Generation Carbon GmbH (Switzerland), and Husk (Spain) from 2020 to 2023. Technical resources for biochar are available at: https://biocharvietnam.org/portfolio/

62 BEYOND COFFEE
like heavy metals, dyes, and pesticides due to their structure and A life cycle assessment of the carbon footprint of Arabica
chemical properties. This supports the use of coffee husks in a coffee cultivated in Brazil and Vietnam compared traditional
circular economy model for wastewater treatment, contributing and sustainable cultivation methods. It found that sustainable
to more sustainable practices within the coffee value chain in coffee production can reduce the carbon footprint by 77%
producing countries (Quyen et al., 2021; Castillo et al., 2021). compared to conventional methods, mainly due to two factors:
exporting coffee beans via cargo ship instead of air freight and
B.2.5 Trade and transport reducing agro-chemical inputs. Specifically, CO2 – equivalent
emissions per kg of green coffee decrease from 72-73% of the
Concerns about the sustainability and circularity of packaging total to about 6-11% when choosing sea transport (Nab and
materials used for storing raw coffee parchment and green Maslin, 2020).
beans are growing. Efforts to reintroduce jute bags for shipping
green coffee beans are part of this discussion. However, B.2.5.1 Enhancing circularity in transportation
these initiatives must balance the need to protect the quality
and integrity of the product, particularly against water and Improved due diligence in supply chain assessments can help
odour, which are significant drivers of innovation. There is a optimize logistical opportunities along the value chain. Multi-
need for organic, chemical-free procedures and materials for modal transport (combining road, rail, and sea) should be
storing, drying, and transporting coffee and other agricultural considered when it offers more fuel-efficient and less polluting
commodities. alternatives to traditional routes and modes of transport
(International Trade Centre, 2021). Although air freight for coffee
Improving warehousing efficiency and consolidating or reducing is rare compared to cargo shipping, comprehensive global
the number of operational warehouses can increase efficiency statistics on transportation emissions are needed, along with
and reduce waste, contributing to a smaller carbon footprint. further exploration of ways to reduce emissions from shipping.
The transportation phase, particularly, generates significant
GHG emissions (International Trade Centre, 2021). Coffee producers, mills, and exporters often reuse and
recirculate bags for collecting cherries and parchment. The
challenge lies in consolidating and transporting them back to
Logistics and shipping partners play a crucial role in producing countries.
reducing the environmental impact of “food miles” (or
“coffee miles”), which affect the sustainability of the coffee Finally, promoting, developing, and incentivizing local and
industry. regional trade and value-addition at origin can help reduce the
need for international shipments.

FIGURE B.13
Value-addition uses for natural coffee process by-products

Source: ITC Coffee Guide Network’s Circular Economy Working Group and Center for Circular Economy in Coffee, 2024.

BEYOND COFFEE 63
BOX B.7
NetZero: Biochar from biomass

CASE STUDY

NetZero:
Partner(s): Industry/sector:
NetZero, COOCAFÉ Agri-business
Country: Technology readiness level:
Biochar from Brazil and Cameroon Implemented action

biomass Year launched:

2020
Input:
Coffee husk
Coffee value chain area:
Output:
Post-harvest processing
Biochar

Description: Biochar is a type of charcoal produced from

enriched coffee waste through a rapid process known as
pyrolysis, which occurs inside a reactor with minimal oxygen
in about 20 minutes. Unlike traditional charcoal, biochar is
produced sustainably and can be made from any organic
material, including kitchen scraps. NetZero, a company
specializing in biochar, focuses on using coffee waste and
offers their product at an affordable price for coffee growers,
setting them apart from other producers.

Motive: In Brazil, coffee farmers traditionally burnt coffee

husks to dispose of them, but this practice has been banned
due to environmental concerns. Additionally, coffee husks
had little impact as a fertilizer. This created a need to find
a new, sustainable use for coffee husks, which led to the
development of biochar as an alternative that could provide
both environmental and economic benefits.
Challenges and lessons learned: A key challenge for more than a decade, improving soil quality over time. The
NetZero is ensuring that biochar is sourced and sold locally increased nutrient retention reduces the need for chemical
to maintain feasibility and scalability. Another obstacle has fertilizers, which in turn lowers CO2 emissions, contributing
been educating farmers in Brazil and Cameroon, many of to climate change mitigation.
whom were unaware of biochar’s benefits, making market Social impacts: NetZero’s biochar initiative has created
development difficult. Scaling up production has also been 120 direct jobs in biochar production. Additionally, the
a challenge, as the necessary technology for large-scale company subsidizes the cost of biochar for participating
biochar production was not readily available. farmers, making it accessible and promoting its adoption in
Economic impacts: Experimental production data from sustainable farming practices.
Colombia over a three-year period showed a significant Cultural, educational and awareness impacts: NetZero
increase in coffee yields – over 33% – which continued in has played a pioneering role in fostering collaboration
subsequent years. This highlights the economic potential of between industry, research institutions, and coffee producers.
biochar in improving agricultural productivity. This collaborative approach has driven innovation in product
Environmental impacts: Biochar enhances soil health by development and improvements in production processes,
providing a stable structure that retains water and nutrients. increasing awareness and education around sustainable
It acts as a carbon sponge that remains in the soil for agriculture.

B.2.6 Roasting and Packaging This rapid cooling is essential to prevent over-roasting, which
can lead to the loss of desirable flavours and the development
B.2.6.1 A breakdown of roasting of unwanted burnt notes.

Roasting is a critical phase that transforms green coffee beans Once cooled, the beans undergo a rest period known as
into the final product, ready for consumption. This process degassing, during which they release carbon dioxide. This step
involves heating the beans to change their chemical and physical is important for achieving optimal flavour development before
properties, unlocking complex flavours and aromas that create the beans are ground and brewed. Finally, the roasted coffee
different sensory profiles. beans are packaged and sealed to preserve freshness and
protect them from light, air, and moisture, which can degrade
After reaching the desired roast level, the beans are rapidly their flavours over time.
cooled, usually through air cooling, to stop the roasting process.
64 BEYOND COFFEE
B.2.6.2 The wider impacts of roasting B.2.6.3 Roasting by-products and waste
The roasting phase of coffee production has significant Silverskin is the thin, papery layer between the coffee cherry
environmental implications, primarily due to energy consumption and the green bean, which tends to fragment into small flakes
and emissions. Roasting is energy-intensive, typically relying during handling. Its dimensions and morphology can vary
on gas or electricity, which contributes to the carbon footprint depending on the coffee variety, but it consistently exhibits a
of coffee production through carbon dioxide emissions. The fragile structure.
environmental impact varies depending on whether the energy
source is renewable or fossil based. Chemically, silverskin is primarily composed of cellulose and
hemicellulose, which make up about 30% of its total composition,
Since most roasters are natural gas-fired, they produce carbon contributing to its fibrous and brittle characteristics.
monoxide (CO) and carbon dioxide (CO2), contributing to air
pollution and posing potential health risks to workers and Nutritionally, silverskin contains up to 20% protein and up to
nearby communities. 3% lipids. It also has essential minerals like potassium and
magnesium, though in smaller amounts (about 8%) compared to
the coffee bean. Caffeine is present in minimal amounts, ranging
from 0.6% to 1.1%, reflecting its lower concentration relative
Coffee roasting emits carbon to the beans. Additionally, silverskin contains antioxidants,
dioxide, volatile organic including polyphenols and chlorogenic acids, though these
compounds (VOCs), organic are present in lower concentrations than in the coffee beans
acids, and by-products from (Mendes dos Santos et al., 2021).
natural gas combustion.
FIGURE B.14
Chemical compounds of silverskin (roasting)

The process also generates a by-product known as chaff or

silverskin. Proper management of this flammable material
is crucial, as its accumulation can pose disposal and safety
challenges. Some facilities incinerate silverskin, which can
increase air pollution, while others explore more sustainable
practices, such as industrial composting. However, limited
production quantities make it difficult to justify the adoption
of advanced valorization processes, even for large roasteries.

Efforts to mitigate these environmental impacts include

adopting more energy-efficient roasting technologies and using Note: Adapted from Mendes dos Santos et al. (2021).
renewable energy sources. For example, Café William has
started using a roaster powered by electricity from hydropower
instead of natural gas. This roaster, with a capacity of 3.5 tonnes B.2.6.4 Circular opportunities for roasting by-
of green coffee per hour, is the world’s first industrial-scale products and waste
hydroelectric roaster (GCR Magazine, 2024). The company
anticipates reducing CO2 emissions by approximately 800 Silverskin, a by-product of coffee processing, offers several
tonnes annually through various carbon reduction strategies practical applications beyond its traditional use in agriculture.
(Food in Canada, 2024). As industry standards tighten, roasting Studies have highlighted its unique chemical and physical
plants are adapting by minimizing emissions and increasing properties, presenting opportunities for valorization through
efficiency through advanced equipment, which lowers energy lipid extraction, high-value molecule recovery, and as a source of
consumption and emissions. Some companies are also cellulose. These attributes open possibilities for its use across
implementing carbon offset programmes to further reduce various industries.
their environmental impact.
In agriculture, silverskin primarily serves as an organic fertilizer.
Its high cellulose and hemicellulose content improves soil
N.B: This report does not cover the decaffeination process structure, enhances water retention, and stimulates microbial
or instant coffee and its various methods due to limited activity. When combined with coffee dust, another by-product
research and time, as analysing these would require rich in nitrogen, the nutrient profile becomes even more robust.
additional studies beyond the scope of this report. Reground, an Australian initiative, collects coffee waste, including
silverskin and spent coffee grounds, and redistributes it to local
community gardens and home gardeners (Reground, n.d).
BEYOND COFFEE 65
Silverskin’s potential extends to other industries due to its B.2.6.5 Packaging
bioactive compounds, including antioxidants, fibre, and lipids.
It contains phenolic compounds and flavonoids, known for their The main challenge for the coffee industry lies in developing
anti-inflammatory and anti-aging properties. Lipids extracted packaging that incorporates renewable and recycled materials,
from silverskin, similar to cocoa butter, are valuable in cosmetic minimizes quantities and weight, and promotes reuse, recycling,
formulations. The Italian company Intercos has optimized or composting at the end of its life. This challenge is especially
these molecules, particularly polyphenols and lipids, for use in complex with coffee capsules, which have seen rapid growth
skincare products (Intercos, 2024). and pose significant waste management issues. An analysis
by Tchibo (PCF Pilotprojekt Deutschland, 2008) estimates that
In the broader CirCo research project (Overturf et al., 2021), by- packaging produces 0.13 kg of CO2 per kg of green coffee,
products from supercritical CO2 extraction for cosmetics were accounting for 1.8% of the total emissions for a cup of coffee
repurposed in the paper-making industry. Favini, a paper mill, (PCF Pilotprojekt Deutschland, 2008). Similarly, a life cycle
used cellulose-rich silverskin to replace 15% of virgin cellulose assessment in Finland (Usva et al., 2020) found that packaging
in its crush paper, aligning with sustainability goals by reducing contributes to less than 2% of the total carbon footprint.
waste and introducing innovative solutions like tree-free paper.
Roasted coffee, which is delicate and deteriorates when exposed
In materials science, silverskin’s cellulose content presents to moisture, air, and light, requires high-barrier packaging to
opportunities for polymer production, crucial in developing preserve its quality. The shelf life typically ranges from 12 to
biopolymers as alternatives to petroleum-based plastics. 24 months, depending on the packaging type and storage
Researchers are exploring how silverskin-derived cellulose conditions.
can be processed into films, fibres, and composites (Oliveira
et al., 2021). Volkswagen has experimented with using Coffee roasters commonly use aluminium as a barrier layer
silverskin as a filler in a PVC/polyurethane-based vegan leather in flexible packaging, cans, and capsules. Aluminium is often
alternative, providing an eco-friendly and cruelty-free option. combined with plastic or paper for flexible coffee bags containing
Similarly, Danish furniture company Mater has created Matek™ ground coffee or whole beans. While flexible packaging uses
material, combining silverskin, coffee husks, and plastic waste less material than metal cans or glass jars, it is difficult to
for use in office furniture (MaterUSA, n.d.). However, end-of- recycle on a large scale.
life management for these biopolymer products remains a
Multilayer coffee packaging, which combines materials like
challenge, requiring sustainable disposal or recycling methods.
polymers, paper, aluminium, and coatings, faces increasing
Silverskin also has potential in the food industry due to its pressure due to its complexity (Bauer et al., 2021). In the U.S.,
nutritional profile, which includes dietary fibre, protein, and very few kerbside programmes accept this film and flexible
antioxidants. It could be incorporated into products like cereal material, and as a result, less than one percent of the nearly 4.8
bars to enhance nutritional value, though its taste, texture, million tonnes of this material generated annually is captured
and safety must be carefully considered. As silverskin and its (Appel et al, 2024). However, as film and flexible material become
extracts are novel food products, regulatory approval would be more prevalent in products, investment in their recyclability has
required in markets such as the US and the EU. become crucial. In Europe, over 40% of the population lacks
access to separate collection for flexible packaging (EMF, n.d.).
Finally, some larger roasting companies, like J.J. Darboven
in Germany (Tomblog, 2018) and CF Nielsen & BKI Foods in As regulators tighten their focus on reducing waste – with
Denmark (CF Nielsen, n.d.), are pressing silverskin into pellets for measures like the Packaging and Packaging Waste Regulation
use in biogas plants, providing a sustainable waste management (PPWR), an ambitious EU regulation aimed at reducing
solution. packaging pollution and promoting a circular economy for

FIGURE B.15
Value-Addition Uses for Silverskin

Source: ITC Coffee Guide Network’s Circular Economy Working Group and Center for Circular Economy in Coffee, 2024.

66 BEYOND COFFEE
packaging, and the pending Extended Producer Responsibility and production cycles.
(EPR) in the US – there is growing interest in compostable
materials and reusable capsules. B.2.6.6 Opportunities for Circular Packaging
In response, packaging producers and brand owners are Circularity should be a key consideration in product and
increasingly focusing on designing recyclable, high-quality packaging design, ensuring that materials can be recovered and
flexible packaging. reused. For packaging, this approach builds on long-standing
principles of minimizing resource extraction and reducing waste.
The packaging industry is working to improve recycling
processes and enhance sustainable design to meet emerging The sustainability of packaging is closely tied to the context
legal requirements, such as mandatory recycling targets, and to in which it is used. Therefore, selecting the best eco-design
advance the circular economy by closing the loop on materials strategies requires scientific analysis and measurable key

BOX B.8
Cir.Co: High-value compounds from silverskin

CASE STUDY

Cir.Co
Country: Partner(s):
Italy ISTM-CNR - Istituto di Scienze e Tecnologie
Year launched: Molecolari, Università degli Studi di Milano,
High-value 2018 (ended in 2021) Dipartimento di Scienze e Politiche Ambientali,

compounds from Coffee value chain area:

Roasting and packaging
EURAC Research, Istituto per le Energie Rinnovabili,
Intercos Group, Favini Srl and ILSA SpA.
silverskin Industry/sector: Input:
Cosmetics, nutraceuticals, Silverskin
paper production
Output:
Technology readiness High-value compounds such as cellulose, lignin,
level: lipids, and some phenolic compounds
Tested solution

Description: The project aims to maximize the potential

of coffee silverskin, a by-product of coffee roasting, by
extracting valuable components such as cellulose, lignin,
lipids, and phenolic compounds. These compounds have
promising applications across various industries, including
cosmetics, nutraceuticals, and paper production, all while
reducing environmental impact. The initiative promotes
cross-sector collaboration by involving multiple industrial
sectors and research centres.

Motive: Although silverskin makes up a small fraction of the

coffee bean, it has valuable physical and chemical properties.
Traditionally, it has been used for low-value applications like
agricultural fertilization, but this project seeks to explore
higher-value uses and prevent it from being disposed of as
waste.
Challenges and lessons learned: While the extraction of
lipids and other valuable compounds from silverskin holds
promise, the high extraction costs have limited its adoption with anti-aging and anti-pollution benefits. Additionally, the
for commercial purposes. Nonetheless, the project has development of crush paper has replaced 15% of virgin
generated valuable data on the quality and functional potential cellulose with coffee by-products, reducing environmental
of silverskin extracts. Although not yet fully integrated into impact.
company operations, silverskin has been successfully Social impacts: The project has fostered new circular
incorporated into Favini’s production of crush paper, which industrial collaboration models, connecting different sectors
includes coffee grounds and other agricultural by-products. and creating new job opportunities, thus strengthening local
Economic impacts: The revalorization of silverskin has economies.
unlocked new commercial opportunities, particularly in the Cultural, educational and awareness impacts: The
paper production industry. initiative has raised awareness of the environmental and
Environmental impacts: Research has demonstrated economic benefits of reusing coffee silverskin, promoting
that silverskin extracts have potential for use in cosmetics sustainability within the coffee industry and beyond.

BEYOND COFFEE 67
performance indicators (KPIs). These strategies might focus Recent studies show that protecting contents is crucial for
on promoting reuse, material recycling, or compostability. sustainable consumption while minimizing packaging material
Economic viability remains a key factor in packaging decisions use. This supports the adoption of advanced, customized, and
for brands and providers. often combined material flexible packaging solutions (Ecoplus,
BOKU, Denkstatt, OFI, 2020).
BOX B.9
Packaging and Packaging Waste Regulation (PPWR) Recycling plays a crucial role in enabling packaging to
contribute effectively to a circular economy, especially after
waste prevention. Significant progress in this area is expected
The proposed Packaging and Packaging Waste in the short to medium term. Recyclable packaging requires
Regulation (PPWR) from the European Union aims to systems capable of industrial-scale recycling. However, the
prevent packaging waste, promote reuse, and enhance development and implementation of collection, sorting, and
recycling and recovery methods. It sets out requirements recycling technologies vary across countries and regions. The
that all packaging placed on the EU market must meet, goal of recycling is to produce secondary materials that are
with the goal of reducing waste disposal and fostering a safe and viable substitutes for “virgin materials,” meeting the
more circular economy. As part of the European Green quality and safety standards required to replace primary raw
Deal and the new circular economy action plan, the materials in production processes.
European Commission proposed a revision of the PPWD
in November 2022. The initiative’s goal is to ensure that In recent years, various design-for-recycling criteria have been
all packaging is reusable or recyclable in an economically developed to promote effective packaging design and avoid
viable way by 2030. It seeks to strengthen packaging solutions that might inadvertently increase environmental
requirements to ensure reuse and recycling, increase impact. Examples include Recyclass guidelines, CEFLEX D4ACE,
the use of recycled content, and improve enforceability. 4evergreen guidelines, and APR guidelines.
The measures also address over-packaging and aim to
reduce packaging waste. FIGURE B.16
Source: European Parliament (2024). Packaging, emissions and waste

Packaging, coffee capsules,

and logistics required to
BOX B.10 meet consumer demands
Strategies for circular packaging design for convenience and quality
generate greenhouse gas
emissions and produce
To avoid food waste, packaging must be designed
waste that is difficult to
to preserve the product throughout its entire shelf
recycle efficiently
life

Eliminate unnecessary packaging and reduce the

weight of materials used

Packaging typically has a short lifespan, so it is

essential to minimize the environmental impact
of the raw materials used in its production

Where feasible, and if it improves environmental

performance over single-use options, design
packaging to be reusable

Focus on creating mono-material packaging Source: International Trade Centre (2024).

that can be recycled on a large scale, avoiding
components that hinder the recycling process Significant efforts are currently focused on redesigning
multilayer flexible packaging to improve recyclability within
When packaging cannot be emptied after use, existing collection, sorting, and recycling systems. Recyclable
compostability is a smart option to valorize both film solutions based on polyolefins, such as polyethylene (PE)
the "bio-waste" and the packaging and polypropylene (PP), have been developed, as these materials
have established recycling streams, at least for mixed polyolefin
waste.

Packaging must fulfil several functions, including protecting To achieve large-scale recyclability, it is essential not only to
contents, conveying product information, and facilitating design packaging that is ready for recycling but also to guide
transportation. It should also minimize environmental impact consumers to properly dispose of packaging in the correct
by closing the resource loop for extended use or reuse. collection stream. This includes using specific labelling and
Environmental performance must align with product protection, avoiding misleading treatments, such as making plastic
ensuring quality and hygiene throughout the product’s life packaging look like paper. Environmental labelling guidelines
without compromising machinability, aesthetics, or usability. have been developed to help consumers dispose of packaging
correctly.
68 BEYOND COFFEE
Flexible packaging generally generates less material loss B.2.7.1 A breakdown of consumption and end
throughout its lifecycle compared to alternative solutions and
of life
is increasingly fitting into a circular economy (Wellenreuther,
2019; 2016). The major benefits of multilayer packaging The coffee we drink represents only a small fraction of the
include efficiency, and a low carbon footprint compared to total material produced, processed, and transported to brew a
other packaging options (Marrone, M., and Tamarindo, S., 2018). cup. From every tonne of cherries, only about 200 kg of green
coffee beans are obtained, and just a minimal portion of that
A comprehensive lifecycle analysis comparing different types
ends up in our cup.
of packaging shows that flexible packaging can be more
environmentally friendly than steel or plastic containers, both Around 3 billion cups of coffee are consumed daily worldwide
in terms of carbon footprint and the amount of solid waste (International Coffee Organization, 2021). The sustainability
generated (Franklin Associates, 2008). of ingredients frequently added to coffee, such as milk, should
be carefully considered due to their significant environmental
However, when it comes to coffee, reusable packaging
impacts. For example, dairy milk generates about three times
presents challenges in maintaining freshness. Typically,
more GHG emissions, uses 13 times more land, and consumes
reusable packaging is heavier than single-use alternatives to
22 times more freshwater than soy milk (Poore et al., 2018). A
ensure durability and quality over multiple uses. This requires a
recent study found that replacing dairy milk and plastic cups
minimum number of reuses to achieve environmental benefits.
with oat milk and oat cups can reduce coffee’s carbon emissions
Consumer behaviour is crucial in realizing these benefits, so
by 70% (Zhao et al., 2024).
choices must be supported by scientific analysis, such as LCA
assessments and material circularity indices, to determine the The method of brewing coffee influences both the characteristics
best packaging solution for each context. of the final beverage and its environmental impact. Each method
– whether drip brewing, espresso, or coffee capsules – employs
In addition to end-of-life valorization, priority should be given
different techniques that affect taste, experience, and the
to materials derived from renewable sources, provided they
amount of waste produced.
do not compete with the food supply chain, such as second or
third-generation bio-based materials. Transitioning to a circular Drip brewing, one of the most common methods globally,
economy involves moving away from packaging made from involves passing hot water through coffee grounds held in
finite resources. Increasing the use of recycled content reduces a paper filter. This process generates considerable waste,
the need for raw materials. including used filters and spent coffee grounds.6 For a 180 ml
cup of drip coffee, about 10 grams of dry spent grounds are
produced. These filters and grounds often end up in landfills
Reusability is a key priority in a circular economy, aiming rather than being composted or recycled.
to reduce the resources used for single-use items. Where
applicable, reuse models should be favoured over single- Espresso, known for its rich and concentrated flavour, is made by
use packaging to minimize waste. While improving recycling forcing hot water through finely-ground coffee under pressure.
is important, it alone cannot solve the packaging waste While efficient at extracting strong flavours, it results in a higher
crisis. Reuse business models should be explored wherever amount of fine spent grounds per cup. An average Italian
feasible to reduce reliance on single-use packaging. espresso, following a 1:3 coffee-to-water ratio, produces about
6-7 grams of spent grounds for a 20-25 ml cup (La Marzocco
Home, 2014), though this can vary with brewing style.

B.2.7 Consumption and end of life FIGURE B.17

Global daily coffee consumption
Section B.2.7 focuses on the environmental impact and circular

3
economy opportunities at the final stages of the coffee value
chain. It examines how coffee is consumed, the waste generated
during this process, and how end-of-life solutions for coffee
by-products, such as spent grounds and coffee capsules, can billion cups
be improved. With over 3 billion cups of coffee consumed of coffee are
daily, the section highlights how ingredients like dairy milk and consumed in the
the brewing method significantly influence coffee’s carbon world daily
footprint. It also discusses the environmental challenges
posed by disposable coffee capsules and cups, with varying
regional capacities for recycling or composting. Additionally,
B.2.7 explores the composition of spent coffee grounds, rich in
organic material, which holds great potential for valorization in
sectors like agriculture, energy, and cosmetics. The subsections
delve deeper into the breakdown of consumption and end-of-
life management, addressing the impacts of different brewing
methods, the challenges of capsule disposal, and innovative
approaches to upcycling coffee waste into valuable products.

6 https://athome.starbucks.com/brewing-guide/how-brew-drip-brewer

BEYOND COFFEE 69
BOX B.11
Lavazza sustainable packaging roadmap

CASE STUDY

Lavazza
Country: Partner(s):
Italy Lavazza Group with participation of research
Year launched: centres, laboratories, associations, and
Sustainable 2020 converters

Packaging Coffee value chain area:

Roasting and packaging
Input:
More recyclable and low environmental
Roadmap Industry/sector: impact material for packaging
Food and beverages
Output:
Technology readiness level: Packaging with improved sustainability
Tested solution / On the market performances

Description: Lavazza’s Sustainable Packaging Roadmap

is a measurable path undertaken in 2020 to help reduce
the Group’s environmental footprint and make its entire
packaging portfolio recyclable, reusable or compostable by
2025. Based on the Group’s sustainable-by-design concept,
the Roadmap is founded on the following indicators: i)
reduction of CO2eq emissions with the packaging emission
category; ii) reduction of the ratio of the packaging
weight to the product weight; iii) material circularity index
iv) recyclability (ratio of recyclable to total packaging),
consisting of 100% reusable, recyclable and compostable
packaging.

Motive: Packaging is essential to maintain the quality, taste,

and freshness of coffee and at the same time allows its safe
storage, transport, and use. The utilization of non-renewable
or non-recyclable materials has a significant impact on Environmental impacts: Increase in the material circularity
the environment in terms of both emissions and scarcity through recycling, reduction in the amount of material used
of resources. A sustainable packaging solution that meets in packaging, and reduction in CO2eq emissions related to
consumer demands for quality and convenience while packaging material. Examples are the 18% reduction in the
working within available consumer waste management weight of the flexible packaging for the 1 kg beans format
services is needed. and the decrease in the weight of the tin packaging with a
Challenges and lessons learned: In 2023, through its consequent 7% saving in CO2eq emissions.
activities, the roadmap enabled the Lavazza Group to make Social impacts: Strategy is focused on UN Sustainable
76% of its product portfolio packaging recyclable. In detail, Development Goals 12 – Responsible Consumption and
77% of the packaging produced at the three main plants Production and Goal 13 – Climate Action.
(Turin and Gattinara in Italy and Lavérune in France) – where Cultural, educational and awareness impacts: The
91% of the total production is concentrated – is recyclable. company has joined major European collaborative platforms
Economic impacts: The Group has allocated a significant (RecyClass and CEFLEX) developing new recyclability
investment of approximately 25 million euros to convert 23 guidelines in the packaging sector.
production lines.

Coffee capsules have recently become a popular alternative consistency and ease of use. The convenience and growing
for brewing espresso-like beverages at home or in the office. variety of flavours have made them popular. Due to their high
In Europe, capsules account for 16% of the coffee consumed,7 extraction efficiency, capsules require less roasted and ground
approximately 400,000 tonnes (Panhuyzen, S. and De Vries, coffee to brew a cup compared to filter or espresso methods.
F., 2023). This reduced coffee usage means that the GHG emissions of
a single-serve unit (SSU) brewed cup are comparable to other
Single-use coffee capsules, containing pre-measured doses brewing systems, while also minimizing coffee waste (Quantis
of coffee, are designed for specialized machines that ensure Environmental Consulting, 2023).
7 https://www.osti.gov/servlets/purl/1649439

70 BEYOND COFFEE
However, the single-serve coffee system faces criticism for its Analysing coffee consumption requires considering various
higher material usage compared to flexible packaging, leading contexts beyond the home, including cafes, coffee shops, and
to greater material waste. The main concern with capsules is vending machines. In cafes, the practicality of serving beverages
the pollution they may cause during disposal, rather than their to-go often involves disposable cups, lids, and straws, which
emissions impact. pose environmental concerns due to their single-use nature.
Similarly, vending machines rely on disposable containers,
Managing the end-of-life disposal of coffee capsules is a contributing to the environmental impact of coffee consumption
significant challenge, addressed through various strategies. outside the home.
These include dedicated collection systems, recycling
facilities that separate the capsule body from the coffee, and B.2.7.2 Impacts of consumption and end of life
compostable solutions that can be processed in industrial
composting facilities. The disposal and valorization of spent coffee grounds and
associated waste materials remain critical environmental
concerns. Most spent coffee grounds are still treated as waste,
There is no one-size-fits-all solution for recycling coffee representing a significant missed opportunity for revalorization.
capsules, as recycling systems vary significantly between When disposed of in landfills, these grounds contribute to
countries, especially in waste collection, sorting, and GHG emissions, producing methane as they decompose
recycling processes. anaerobically – a potent contributor to climate change.

The main barriers to valorizing spent coffee grounds are

logistical and regulatory, including challenges in collection,
For instance, industrial compostability is not uniformly available management, and stabilization. Despite these hurdles, recent
or developed across regions. Some countries primarily use years have seen the emergence of several promising initiatives
anaerobic treatment facilities, while others rely on aerobic that suggest a future where used coffee grounds are increasingly
treatment plants. Among these, some accept bioplastics (e.g., viewed as a valuable resource rather than waste.
Italy), while others do not (e.g., Germany, Belgium). Similarly,
aluminium and plastic recovery centres are often not yet Regarding coffee capsules, their convenience comes with
equipped to handle the specific recycling needs of capsules. an environmental cost. Capsules, often made from plastic or
aluminium, are not always recyclable due to variations in local
In recent years, various initiatives in Europe have aimed to facilities, regulations, and consumer disposal habits. This has
improve the recyclability and compostability of coffee capsules, raised concerns about their sustainability, as effective collection
such as Arecafe (Spain), Green Deal (Netherlands), Aluminum and processing schemes are challenging to establish.
& Plastic Recovery Plan (Netherlands), Blue Bin (Belgium),
recycling communication and Best in Class sorting technology B.2.7.3 Consumption and end of life by-
(Germany), Alliance pour le Recyclage des Capsules en products composition
Aluminum (ARCA) and Alliance Recyclage Petits Plastiques
(France), Podback (UK), and ReCap (Italy). Spent coffee grounds are the leftover coffee grounds after
brewing, regardless of the method used. They are typically
In addition to improving end-of-life management, there is a dark brown to black with a granular texture, though particle
growing focus on using biobased or recycled materials to size and moisture content can vary depending on the brewing
reduce reliance on virgin raw materials. New materials on process and grind size.
the market aimed at replacing fossil-based sources include
cellulosic materials, biopolymers like PLA (Polylactic Acid) and Chemically, spent coffee grounds retain significant organic
PHA (Polyhydroxyalkanoates), and recycled materials. compounds and nutrients. They are rich in carbon (45-55%) and
nitrogen (2-2.5%), making them a valuable source of organic
matter. They contain around 40% total fibre, including cellulose
BOX B.12
(8%) and hemicellulose (36%). While much of the caffeine is
Circular coffee capsule design critical
extracted during brewing, spent grounds still contain small
elements
amounts (<0.5%). Additionally, they have notable levels of
proteins (around 10%) and lipids (up to 16%), contributing to
The circular design of a coffee capsule should their nutrient profile. Spent coffee grounds also contain bioactive
consider several crucial aspects: compounds, including chlorogenic acids (2.3%) with antioxidant
properties (Mendes dos Santos et al., 2021).
Reduce the number of materials used without
compromising the capsule’s functionality. B.2.7.4 Circular opportunities for consumption
Choose materials with a reduced environmental and end of life
impact, such as biobased or recycled materials.
Spent coffee grounds are the most extensively explored coffee
Create capsules that are easily recyclable or by-product for valorization, largely due to their availability in
compostable, considering the specific recycling large quantities and their rich organic content, oils, and bioactive
infrastructures available in different markets. compounds, which make them suitable for various circular

BEYOND COFFEE 71
FIGURE B.18 pharmaceutical and cosmetic use, the grounds were used
Chemical compounds of spent coffee grounds (after as a substrate for cultivating edible mushrooms (Pleurotus
coffee brewing) ostreatus), with the remaining substrate then used for
vermicomposting.

In Egypt, Cupmena,8 launched a project that repurposes spent

coffee grounds as a substrate for specialty mushroom cultivation
and organic fertilizers. These sought-after mushrooms are grown
using coffee grounds, requiring effective collaboration with
coffee chains for efficient collection and market development
to sell the mushrooms as a sustainable product.

In vermiculture, worms thrive on spent coffee grounds, often

enriched with other food and agricultural by-products. They
convert these into nutrient-rich vermicompost, a high-quality
fertilizer. The worms themselves can be processed into protein-
rich flours for animal feed, as seen with Entocycle,9 a UK-based
company pioneering in this field.

Spent coffee grounds can also be used in animal diets. A

study found that incorporating up to 10% of this by-product
into the feed of dairy ewes improved both milk production
and composition (De Otalora et al., 2020), without negatively
affecting feeding behaviour or digestibility. Similar applications
Note: Adapted from Mendes dos Santos et al. (2021).
have been explored with other animals, particularly cows,
economy opportunities. The concentration of spent coffee with positive results, such as in a programme that repurposes
grounds in consuming countries likely drives more research spent coffee grounds in partnership with Starbucks locations
and development funding compared to producing countries. in Japan.10

In agriculture, spent coffee grounds are valued as an organic The cosmetics industry extracts valuable oils and bioactive
fertilizer, rich in nitrogen, potassium, phosphorus, and compounds from spent coffee grounds, including polyphenols
micronutrients. Although caffeine levels are low, researchers with antioxidant properties and caffeine, known for its skin-
continue to study potential negative effects on certain plant toning and anti-inflammatory effects. These extracts are
varieties, soil, and groundwater. used in skincare products for moisturizing, anti-aging, and
protection. The natural texture of spent coffee grounds also
Additionally, converting spent coffee grounds into biochar makes them an excellent exfoliant in scrubs and soaps, offering
through pyrolysis creates a stable, carbon-rich soil amendment a sustainable alternative to synthetic microbeads, which are
with multiple benefits, reducing fertilizer use by about one- harmful to the environment. Kaffe Bueno,11 founded in 2016 by
third, sequestering carbon, and decreasing nitrogen dioxide three Colombian entrepreneurs, exemplifies this approach by
emissions from the soil. using green chemistry and biotechnology to transform coffee
by-products into ingredients for cosmetics, nutraceuticals, and
Pyrolysis is a key focus in the recovery of coffee waste, with functional foods, including Kaffoil (an active oil) and Kaffibre
processed coffee grounds yielding three outputs: bio-oil, which (an exfoliating agent), with ongoing research into haircare and
requires upgrading for better performance; biogas, which has a sunscreens.
lower calorific value than natural gas (14 MJ/Nm³ vs. 38 MJ/
Nm³); and biochar, which can be used as a soil amendment In energy production, spent coffee grounds are a valuable
or in other innovative applications (Matrapazi et al., 2020). biomass resource with a relatively high calorific value, suitable
For instance, activated carbon from coffee grounds has been for combustion or gasification to produce heat and electricity.
successfully used in double-layer capacitors, showing good They can also be processed into bio-logs and pellets, offering
capacitance in high-rate charge-discharge cycles (Kikuchi et a sustainable alternative to fossil fuels. In Joure, Netherlands,
al., 2013). Additionally, CNR Nanotech has explored high-tech Jacobs Douwe Egberts partnered with Veolia to use spent coffee
uses, such as incorporating coffee grounds into the production grounds as biofuel for its plant (Circular Economy Stakeholder
of accumulators and batteries. Platform 2020), replacing natural gas to generate the steam
needed for coffee production. This biomass boiler system
In agriculture, spent coffee grounds have been utilized as a reduces the plant’s carbon footprint and exemplifies a closed-
growing medium for mushrooms. This concept was researched loop circular economy.
by the Department of Architecture and Design at Politecnico
di Torino in collaboration with Lavazza. Since 2007, they have Spent coffee grounds are also being used in the development
developed a systemic solution to add value to spent coffee of biocomposites, where they serve as fillers combined with
grounds (Barbero and Toso, 2009). After extracting lipids for various polymers. While efforts to incorporate this by-product

8 https://cupmena.com
9 https://entocycle.com
10 https://www.thefuturescentre.org/signal/starbucks-japan-closes-loop-from-waste-coffee-grounds-to-milk/
11 https://www.kaffebueno.com

72 BEYOND COFFEE
into polymers and biopolymers have been made, challenges fabrics with unique properties such as natural odor control, UV
remain in terms of recyclability, cost-effectiveness, and overall protection, and quick-drying capabilities – ideal for activewear
performance. and casual clothing. S.Café yarns, developed by Singtex in
Taiwan, use a patented process to integrate micronized spent
Coffeefrom, an Italian project by Il Giardinone Cooperativa coffee grounds into polyester or nylon filaments (Singtex, n.d.).
Sociale in collaboration with Politecnico di Milano, developed an This innovative textile is versatile, suitable for products including
innovative biopolymer using spent coffee grounds (Coffeefrom, t-shirts, socks, footwear linings, and bed sheets. Additionally,
2023). Their first industrial product is a coffee set – cup and spent coffee grounds are used to produce natural dyes, offering
saucer – made with a percentage of spent coffee grounds, an eco-friendly alternative to synthetic dyes and providing warm
certified for food use and featuring a refined design. The project tones to fabrics.
also has a strong social foundation, as Il Giardinone integrates
vulnerable individuals into production through its circular In the food industry, a women-led startup from Denmark called
economy initiatives. Although the product is not compostable Connecting Grounds has developed a product called Coffee
due to its thickness, Coffeefrom is exploring certifications and Base, a versatile ingredient used in confectionery and snack
improved end-of-life options. products, replacing coffee aromas and artificial colourants
while adding dietary fibre, protein, and caffeine. Coffee Base
In the fashion industry, spent coffee grounds are increasingly can also substitute all-purpose flour in gluten-free recipes,
being valorized, transformed into materials like yarn and

FIGURE B.19
Value-addition uses for spent coffee grounds

Source: ITC Coffee Guide Network’s Circular Economy Working Group and Center for Circular Economy in Coffee, 2024.

BEYOND COFFEE 73
offering a sustainable and multifunctional solution for various Nespresso purchases rice cultivated with compost derived from
culinary applications. It is made by drying spent coffee grounds, collected capsules and donates it to charity projects. This not
enabling cafes to locally produce sweets and baked goods. only closes the recycling loop but also supports social causes,
Similar initiatives have been undertaken by companies like exemplifying corporate social responsibility and sustainable
RFine Biomass Solution (RFI Enbiomass, n.d.) and GroundUp practices that address both environmental and community
Eco Ventures (Ground Up EV, n.d.), in Canada, and The Kawa needs, while considering local contexts.12
Project in the US (The Kawa Project, n.d.).
Recently, various compostable capsules have been introduced,
In recent years, various extraction processes for producing aiming to enhance sustainability by enabling waste collection
food-grade oils and extracts have been evaluated. However, where the biowaste stream accepts compostable capsules. This
legislative barriers and market constraints have gradually design simplifies disposal for consumers, allowing compostable
reduced production. capsules to be easily composted with organic waste without
releasing harmful residues.
Similar to using silverskin, coffee grounds can be integrated
into paper production. Favini, a paper company, has tested and Disposable coffee cups, used in vending machines and for
produced crush paper containing about 15% coffee grounds, take-away coffee in shops, represent a significant waste
reducing the need for virgin cellulose. Research at Politecnico stream, especially when they are not properly collected for
di Torino also demonstrated the potential of using spent coffee recycling. Their widespread use contributes notably to waste
grounds as an ingredient in ink production (Barbero and Fiore, production and challenges in urban solid waste management.
2015). Addressing this issue requires exploring sustainable alternatives
to traditional disposable cups and promoting conscious
The issue of coffee capsules presents both logistical and consumption practices. This approach extends beyond just
complex challenges. In response, brand owners have played a coffee consumption, aiming for more sustainable management
pioneering role in launching comprehensive recycling initiatives of materials from daily habits.
for aluminium and plastic capsules.
This data highlights the potential of circular practices in the
For example, Nespresso facilitates the collection of used coffee sector, not just as strategies to add value to process
capsules through its boutiques and collection points at landfills. outputs and reduce inputs but also as ways to generate
The collected aluminium is recycled and repurposed into high- positive impacts on the coffee system. These strategies include
value products such as bicycles, coffee machines, products regenerating ecosystems where coffee is grown, easing the
like Victorinox Swiss knives and Caran D’Ache pens, as well as burden of agricultural and processing activities, supporting
new Nespresso capsules. The residual coffee grounds from local economies and coffee farmers’ incomes, and developing
the capsules are composted and used as fertilizer. innovative products from what was previously considered waste.
A notable aspect of this initiative is the development of localized The issues outlined here reveal an underexplored opportunity:
strategies tailored to specific countries. In Italy, this led to systematically utilizing waste as materials for new products
the creation of the “Alliance for the Recycling of Aluminum that benefit both society and the environment. Circular economy
Capsules,” which recently welcomed Illy as a partner, further and regenerative agricultural practices offer a path to achieving
expanding the programme’s impact. In a fully circular approach, sustainable system transformation.

12 https://www.nespresso.com/it/it/caffe-sostenibile

74 BEYOND COFFEE
BOX B.13
Kaffe Bueno: Upcycling coffee by-products

CASE STUDY

Kaffe
Partner(s): Technology readiness level:
Kaffe Bueno Implemented action
Country:

Bueno:
Input:
Denmark
Coffee grounds
Year launched:

Upcycling coffee 2016

Coffee value chain area:
Output:
KAFFOIL, a lipophilic extract, KAFFIBRE,
by-products Consumption and end of life a coffee exfoliant, KAFFAGE an active
biopolymer extract, KAFFAIR, an active
Industry/sector:
Personal care, human and animal ingredient for hair care
nutrition, soil and crop health

Description: Kaffe Bueno converts coffee by-products –

such as coffee grounds – into active and multifunctional
ingredients which can be applied in a wide range of products
across several industries. From a lipophilic extract used
in a body lotion, to a natural exfoliating ingredient used in
a body scrub, this company is extracting the benefits of
coffee beans for human health and wellbeing. Experiments
were also conducted in the food sector to produce coffee
flour and coffee extracts, which are used as preservatives or
flavourings.

Motive: The coffee that ends up in the cup is about 15%

to 20% of the ground coffee, the rest becomes spent coffee
ground. To date, the industry has not adopted widespread
applications for coffee by-products, which are instead
treated as waste. However, coffee plants are a source of
antioxidants, fatty acids, diterpene esters and proteins.
Through bioscience and circularity, this company intends to
upcycle coffee grounds into innovative ingredients to unlock also for overcoming regulatory hurdles.
the potential of coffee bioactive principles. Economic impacts: Revalorization of coffee by-product.
Challenges and lessons learned: The valorization of coffee Environmental impacts: Transformation of by-products
grounds remains an open and promising field, as proven by of the industrial coffee processing into ingredients for
the continually expanding range of extracts produced by the cosmetics, nutraceuticals, and functional foods.
company. However, the use of ingredients derived from by- Social impacts: Improved access to circular, healthy and
products by various industries still needs to demonstrate its functional ingredients.
full potential, as it requires a shift in entrepreneurial culture Cultural, educational and awareness impacts: Enriched
and business models. Moreover, significant investment and the supply of upcycled cosmetic products through circular
time is needed not only for research and development but practices.

BEYOND COFFEE 75
BOX B.14
Nespresso’s Da Chicco a Chicco: Coffee capsule recycling schemes

CASE STUDY

Nespresso’s Partner(s):
Nespresso
Country:
Technology readiness level:
Implemented action

Da Chicco
Input:
Italy Aluminium and organic waste from
Year launched: coffee capsules

a Chicco:
2011
Output:
Coffee value chain area: Recycled aluminium, compost, rice
Consumption and end of life
Coffee capsule Industry/sector:
recycling schemes Food and beverages, agriculture

Description: The Italian name of the initiative “Da chicco

a chicco” can be translated as “from (coffee) bean to (rice)
grain”. Capsule collection is carried out through Nespresso
boutiques and selected landfills, then aluminium is recycled
to build other valuable products (bikes, coffee machines,
other Nespresso capsules) and coffee is turned into compost
for rice fields in northern Italy. Finally, rice is bought back by
Nespresso and donated to charity projects.

Motive: Coffee capsules pose a significant waste

management challenge. Whether they are made of a single
material or multiple materials, they are difficult to recycle due
to the presence of used coffee grounds. This makes it often
Economic impacts: Nespresso has allocated over 7 million
necessary to dispose of them in non-differentiated waste
euros to develop and implement its own capsule collection
collection, resulting in the loss of opportunity to recycle the
system.
materials they are made of.
Environmental impacts: Since its first day, the project has
Challenges and lessons learned: The definition of
enabled the recovery of 8,000 tonnes of used capsules, over
capsule collection schemes clashes with the limitations
480 tonnes of aluminium, and more than 4,950 tonnes of
and restrictions imposed by the Italian regulation, which
used coffee grounds.
significantly undermines the development of new strategies
Social impacts: The project contributes to national charities
such as reverse logistics and home collection. The main
by donating the rice produced with the coffee grounds
alternative identified by the other competitors is the
compost.
development of compostable capsules. Despite the creation
Cultural, educational and awareness impacts: The
of a national programme for the recovery of aluminium
revalorization of coffee capsules into different outputs,
capsules (Alleanza per il riciclo delle capsule in alluminio),
which has proved the feasibility of their recycling.
only one company (Illy) joined the initiative, which is still
limited in terms of collection points and partners.

76 BEYOND COFFEE
BEYOND COFFEE 77
PART II Challenges and recommendations for
SECTION C a more circular coffee sector

The need for transformation in the coffee sector is Post-consumption: Systems for collecting and recycling
evident, along with the sustainable opportunities offered coffee by-products, including spent coffee grounds, must
by scaling circular economy practices. However, this shift be developed to turn waste into biofuels, compost, and
presents challenges, and effective change requires a other value-added products. Local networks and regulations
clear baseline. This section draws on a global survey by should support the collection and reuse of these by-products,
the ITC Coffee Guide Network Circular Economy Working fostering innovation in their use.
Group, highlighting key challenges and recommendations
for implementing and mainstreaming circular economy C.1 Challenges in implementing
practices in the coffee sector.
a circular economy across the
Key findings coffee sector
Strategic recommendations: Collaboration across The shift towards a circular economy in the coffee sector
governments, NGOs, private sector, and coffee producers presents immense opportunities for sustainability, but also
is essential for implementing circular economy practices. comes with significant challenges. To effectively implement
Over 40 million tonnes of coffee waste are generated circular economy practices, collaboration across the value
annually, representing an untapped economic opportunity. chain, from research and development (R&D) centres to farmers
Inclusive frameworks are needed to help small businesses and industry players, is critical. This section explores the core
and farmers adopt circular practices, supported by policy barriers that must be overcome, ranging from isolated actionable
measures and transparent reporting. knowledge and fragmented policies to financial limitations and
logistical hurdles. Each of the following subsections delves
Farming and production: Regenerative practices like
into these challenges and offers insights into how the coffee
agroforestry and crop rotation can restore ecosystems
sector can move towards a more integrated and sustainable
and increase biodiversity. The use of coffee by-products
circular economy.
(e.g. husks and cherry pulp) offers economic opportunities
and environmental benefits. Financial support should
help farmers adopt these practices, with living income
C.1.1 Actionable knowledge is isolated
benchmarks addressing income gaps for producers.
More coordination is required between research centres, R&D,
Processing: Coffee processing generates large amounts local solutions, farmers, and the industry throughout the C-GVC.
of waste, with 95-99% of the coffee cherry becoming While innovative models have been proven and tested, and much
by-products. Governments and industry should support research exists on circular economy opportunities, it remains
transforming this waste into valuable materials, while isolated and fragmented, hindering the practical and accessible
promoting energy efficiency and better wastewater implementation of circular economy. This underscores the
management. Investments in R&D for by-product use and need for a practical way to develop, implement, and scale pilot
emissions reduction are critical. projects to apply circular economy technologies and processes
in different contexts. Standardized guidelines, practical how-to
Packaging and transport: Industry should adopt best practices, and research must be consolidated and made
compostable and recyclable packaging aligned with local accessible.
waste management systems. Packaging should be designed
with its end-of-life use in mind, prioritizing the reuse and Training, piloting, and adapting circular economy practices
recycling of materials. Circular business models can create in coffee-growing countries through the demonstration and
economic value while reducing waste. Decarbonizing dissemination of solutions to local cooperatives, coffee
transport systems is also a priority. farmers’ associations and programmes is important. A change
of mindset is just as vital. Local indigenous knowledge of
Consumption: Public campaigns should educate consumers regenerative agricultural practices and the use of by-products
on circular economy benefits. Certification schemes should are at risk of being forgotten or undervalued with the emergence
highlight sustainable practices, ensuring economic rewards of innovative and novel solutions coming from start-ups in
for those adopting them. Retailers should minimize energy, consumer countries. Local knowledge and practices need to be
milk, and packaging waste to reduce environmental impacts. understood, documented, shared, and uplifted for the effective
78 BEYOND COFFEE
and contextualized uptake of circular economy principles and C.1.3 Early adopters of innovation, R&D,
processes.
and industrialization of circular products
C.1.2 Fragmented policies, regulations, and processes will run into high costs
and standards need adaptation and and risks
consensus
High risk and costs are inevitable when entering a market that
is still in development, especially for small-sized enterprises,
Technologies and products associated with a circular economy
producers, and producer organizations. The feasibility and cost
model are new, and the food safety requirements, labelling, and
implication for new product development made with coffee by-
regulations for using a traditional food by-product as a new
products need to first be carefully assessed by entrepreneurs
food ingredient are fragmented. Regulations and standards
considering that market segment. Costs of production at scale
for import/export of new products can be either absent or too
are high – biochar and coffee mucilage concentrate are some
stringent. There are no specific or clear harmonized codes for
examples – and while successful pilots and early technologies
the classification of coffee by-products as goods for import
exist, they are not always cost-efficient at scale.
and export. Coffee husks, skins, and substitutes are included
in the broad category for coffee, but none of them has its own Product manufacturers, farmers, and farmer organizations take
clearly assigned code. This also makes it more challenging to on considerable risk in devoting time, space, and resources to
track the amount of coffee by-products being traded globally. In new operational processes. Cascara production, for example,
the same way, novel food products that use coffee by-products requires extra operational costs and processes such as
may not have a clear harmonized code. additional processing lines, equipment, and skills. There is
no shortcut – a product that is easily contaminated requires
BOX C.1 learning through trial and error. Innovation requires the resources
Harmonized codes for coffee and capacity to take risks and experiment.

R&D in technology at industrial scale is required to reduce

09.01 Coffee, either roasted or decaffeinated;
costs, increase efficiency, and ensure compliance with existing
coffee husks and skins; coffee substitutes
regulatory frameworks. International donor and development
containing coffee in any proportion.
organization projects and investments that traditionally focus
Coffee, not roasted: on capacity building through established and proven techniques
could help by prioritizing innovation and pioneering new
0901.11 Not decaffeinated processes and technologies.
0901.12 Decaffeinated
Overall, a lack of investment in public-private partnerships for
collaborative research limits the potential for open-source or
Coffee, roasted:
pre-competitive innovation.
0901.21 Not decaffeinated

0901.22 Decaffeinated C.1.4 There is limited access to

finance sources for circular economy
implementation
Policies and regulations vary across countries and contexts,
and food safety regulations and labelling requirements differ by Opportunities for funding have remained few and far between
country and region. In some contexts, regulations for exporting to date. New models for linkages and funding mechanisms
a coffee by-product are more strict or complicated than for are being explored to reduce the gap in access to finance for
exporting coffee. Whether new or existing legislations for MSMEs, farmers and producers from developing countries.
coffee also apply to coffee by-products (e.g. dried coffee husks, In the Global South, circular economy is steadily climbing up
cherry, or novel products made from these byproducts) remains governments’ priority lists, but they need technical and financial
under consideration. It is particularly challenging for MSMEs support to navigate this transformation and to apply already-
and coffee producers in developing countries to keep up with proven solutions. Connecting existing small-scale actors,
and adapt to a global and fragmented regulatory panorama. individual farmers, producers, and MSMEs in the Global South
Inconsistent regulations across countries around the use of with investment for innovations will be crucial. They often
cascara as an ingredient, and new regulations forbidding the use lack the information on how to apply for financial support for
or import of plastic in selected countries are some examples innovations, even if it is available, which substantially limits
of this challenge. entrepreneurial efforts. Mobilizing financial resources and
mechanisms to enable funding that promotes equitable access
to technology could help bridge this gap.
For example, the distribution of coffee cherry mucilage fruit
concentrate is restricted due to the stringent regulations
C.1.5 Supply and demand may be
and certifications required for export. The regulatory
requirements for coffee fruit concentrate differ significantly mismatched
from those for regular coffee, creating additional barriers
for its broader market availability. Logistical challenges exist in consolidating and distributing
coffee by-products, often leading to mismatches between supply

BEYOND COFFEE 79
and demand. The collection, management, and stabilization for upcycled products are becoming available, there is no open
of agricultural and food by-products, like used coffee grounds, marketplace. Some feedstocks are free, while others are sold as
can pose challenges for implementation. Efficiently gathering high-quality materials, but pricing varies widely among suppliers,
and transporting these by-products to entrepreneurs who can buyers, and locations without any consistent standards. The
utilize them requires careful coordination to ensure sanitary market for such products is also still in its infancy, which means
conditions and timely delivery. It is also essential to consolidate that standards for quality, collection methods, units of sale, or
and process these materials in a centralized location. packaging are not yet in place.

Currently, there is no established standard for collecting and

storing coffee by-products. Coffee shops and cafes require The lack of established standards also creates a lack of
standard operating procedures for the collection, preparation, opportunity for price discovery or competition and means
and storage of used coffee grounds intended for collection, there are no established logistics for packing and storing,
ensuring a quality process for food-grade products. Additionally, nor regulatory frameworks for importing countries.
developing effective packaging and logistical solutions is
essential. This process can be time-consuming and requires
collaboration between the public sector and industry processors. Farmers and producers lack important information about prices,
best practices, logistics, and quality expectations. The concept
There may be a mismatch between the demand for a product, of a circular economy is new and promising, but it requires a
the best location for manufacturing, and the availability of deep understanding and involves a steep learning curve. The
by-products. To promote environmental sustainability, significant costs, risks, and unique operational processes are
the movement of these by-products should be minimized. not always reflected in the prices farmers receive. In Ethiopia,
Developing local and regional markets for a new product can there is indigenous knowledge, such as that surrounding cascara
be difficult if there is not enough demand. If local markets are tea, but this knowledge is often undervalued by potential buyers
underdeveloped, it may be necessary to create new global and markets.
supply chains and logistics, including international transport.
However, this can have negative environmental impacts if C.1.7 A niche market development requires
not managed properly. Economies of scale are essential for
achieving profitability, sharing knowledge, and building capacity entering new, competitive supply chains
within the industry (processors).
Most upcycled products are traded between industry processors
BOX C.2 (B2B) rather than directly between producers and consumers
Industrial symbiosis in the coffee sector (SISSI) (B2C). Markets for upcycled products and coffee byproducts
often exist outside the coffee industry. Sellers of coffee by-
The SISSI (Information Tools to Support Industrial products, upcycled consumer products, and ingredients need to
Symbiosis) project was developed by Area Science Park, find new customers beyond the coffee sector. However, coffee
an Italian national research centre, as a pilot initiative industry actors may lack the connections and knowledge to
under the ARGO project (MIMIT, MUR, FVG Region) at access supply chains in other industries. This necessitates
the industrial port of Trieste, Italy. the development of new B2B relationships, industry expertise,
and networks.
Using a Decision Support System (DSS) that consolidates
and georeferences data from multiple sources, SISSI Coffee industry actors (processors) need more educational
maps the local industrial landscape, aiding consortium resources and trainings on how to sell coffee by-products,
managers and policymakers in crafting strategic policies. both within and outside the coffee sector. Most of the industry
This tool enabled numerous coffee companies in Trieste focuses solely on coffee as a beverage, and the fast pace of daily
to identify waste streams from coffee processing that operations makes it challenging to dedicate time and resources
could be repurposed as inputs for other industries. to develop markets for new products. In producing countries,
The initiative received backing from technical and legal awareness and experimentation are required at the local level,
authorities, as well as support from local and national particularly among smallholder farmers and cooperatives.
coffee associations. SISSI exemplifies how industrial
Many farmers and organizations lack awareness of new
symbiosis can be achieved, integrating logistics at the
processes, and a business-as-usual mindset can make
industry level to create a network of users and producers
adaptation difficult. Additionally, legal and regulatory
of coffee by-products.
challenges may hinder the introduction of new processes
and products.

For example, extracts and biorefined byproducts can be sold as

ingredients in other sectors – biorefined oils from used coffee
C.1.6 Niche and developing markets for
grounds can be used in cosmetics and nutraceuticals. Silverskin
coffee by-products are fragmented and can serve as an ingredient in vegan leather for apparel and
lack transparency automotive applications, while cascara and refined pulp can be
sold as food ingredients for energy and sports drinks. However,
There is a lack of transparency in the market for coffee by- suitable product packaging may not be easily available.
products, including pricing and quality. Although new feedstocks
Product testing and engagement in industries like food,

80 BEYOND COFFEE
renewable energy, or health and beauty can help gauge consumer C.1.9 The value is not always circular but
expectations and reduce investment risks for entrepreneurs. But
farmer organizations face significant restrictions, so it is crucial
should be
that they receive subsidies and support. Direct feedback from
end users can also ground the process and provide motivation. The market for circular upcycled products is currently niche,
resulting in limited total value available for distribution. This lack
C.1.8 There is low consumer awareness of a market means there is also no transparent compensation
for the raw materials, efforts, and transport costs associated
of circular economy products with collection and distribution.

Upcycled and circular products remain a niche market, making To address income gaps in the coffee global value chain,
investments by coffee producers and processors less viable. the added premiums and value from these products should
Low consumer awareness of the circular economy and the flow back into the earlier stages of the chain. However, the
benefits of upcycled products lead to reluctance to pay, economic impact of adopting circular economy practices
limiting the current market for these products. With so many must be evaluated on a case-by-case basis, considering pre-
certifications and sustainability concepts related to coffee, competitive data on costs and investments. Farmers need to
consumers may find the circular economy even more confusing. assess the costs and benefits of these opportunities in their
specific contexts.
The complexities, nuances, and sustainability challenges within
the coffee global value chain are already difficult to explain to
consumers. Communicating the holistic and multi-faceted
benefits of circular economy in coffee is an added challenge.
Products that require extensive explanation to sell or that are
not pleasing to customer tastes will not last long in the market.

Consumer awareness and education

are required to help shift the
“take-make-waste” mindset and
underscore that waste is avoidable
in systems of production.

A key challenge lies in the farmers’ lack of

awareness regarding how circular economy
practices can positively impact their profits.
Understanding varies – for consumers, the
circular economy is seen as beneficial for
the planet while, for producers, it can mean
increased profits, new income streams, or
cost savings.

The high costs of new innovations or processes at an agro-

industrial scale also hinder progress, as not all technologies
have achieved the efficiency of economies of scale. In some
cases, subsidies or cost offsetting may be necessary.

Currently, circular economy practices at the production level are

not recognized as environmental services that could yield coffee
price premiums. To gain appreciation from buyers, the costs,
time, and risks associated with implementing these practices
To effectively reach consumers, processors must identify must also be recognized by consumers.
the messaging that aligns with local consumer preferences.
Product-led and consumer preference-driven innovations will Additionally, while carbon credits might be available for some
also be crucial for effective implementation. practices, they can be claimed only by one actor within the
value chain (such as the coffee producer, upcycled product
manufacturer, or coffee roaster). This complicates the challenge
of distributing the financial benefits generated by regenerative
agriculture, biochar, renewable fuels, and other carbon offsetting
practices.

BEYOND COFFEE 81
C.2 How to transform the coffee diversify income sources, enhancing resilience and growth,
especially for farmers and MSMEs in producing countries.
sector through circular economy:
To address these challenges and work towards a more
policy recommendations prosperous and sustainable future, there is a significant
opportunity to transition to a circular economy. This shift will
Below are policy recommendations organized by stages in the strengthen the C-GVC and enhance its resilience in the decades
C-GVC. These recommendations are grounded in the recognition to come. By improving how we produce, process, and consume
that fostering a circular economy within the C-GVC presents a coffee, we can cultivate a future where the C-GVC thrives in
significant and promising opportunity, driven by the following harmony with the planet. Transitioning to a circular economy
factors: will also contribute to achieving many of the United Nations
Sustainable Development Goals (UN SDGs) (Opmeer and Van
In the coffee industry, most waste is controlled by
Eijk, 2020).
processors and remains largely out of sight for consumers.
The main consumer-facing elements of this waste are This section examines how the coffee global value chain (C-GVC)
packaging materials—like containers, cups, and sleeves. can transition from a linear to a circular economy. The authors
outline key strategies and policy recommendations designed
During processing, an astounding 95-99% of the coffee
to facilitate this transformation. These recommendations are
cherry becomes a by-product. Although these by-products
intended to serve as a roadmap for stakeholders dedicated to
are valuable and versatile, they remain consistently
turning this vision into reality.
undervalued, leaving a significant economic opportunity
largely untapped.

Globally, the coffee value chain generates over 40 million HOW TO READ THESE
tonnes of waste annually, equal to the combined weight RECOMMENDATIONS
of every person in North America, or 365,000 blue whales.

Structurally, the coffee industry resembles an hourglass:

while tens of millions of people engage in farming and Recommendations are presented by C-GVC stages, outlining
harvesting and millions more work in coffee shops, only specific actions, impacted stakeholders, and expected
a small group of processors control most of the trade, outcomes. These include:
processing (including instant coffee and decaffeination), and
• Stage Identification: Pinpointing where in the value chain
retail. This concentration creates an imbalance across the
the recommendation applies
value chain but also opens a unique window for impactful,
large-scale change. • Policy Recommendation: Offering detailed guidance on
implementing circular practices
C.2.1 Why now? • Stakeholder Impact: Identifying affected groups and
organizations
Coffee is not only one of the most widely consumed beverages
• Impact Assessment: Evaluating social, environmental, and
in the world but also one of the most significant internationally
economic effects, and alignment with SDGs
traded commodities. However, as outlined in this report, the
coffee industry generates substantial amounts of by-products • Strategy and Implementation: Providing actionable steps
at every stage of the value chain. This waste s challenging for for effective execution
coffee value chain actors to manage, contributing to global
pollution and climate change. Instead, it could be repurposed C.2.2 The guiding principles behind the
for productive uses.
recommendations
The coffee sector provides jobs and income across more than
50 coffee-producing countries, impacting millions of people The recommendations are based on ten guiding principles for
globally. the C-GVC. All organizations involved in the C-GVC can leverage
these principles, alongside the broader document, to develop
Farmers, who already face increasing risks due to their circular strategies.
environmental degradation and economic uncertainty, are
particularly vulnerable to the adverse effects of excessive C.3 Strategic and overarching
supply chain waste. However, this same waste can be
redirected for new, productive purposes.
recommendations
Circular economy solutions must prioritize inclusivity, particularly
By adopting circular economy principles and regenerative for farmers and MSMEs. These key actors in the value chain
practices, the industry can unlock opportunities for value often struggle to adopt circular practices due to constraints
addition and create new economic prospects by utilizing by- in resources, technical know-how, and access to markets and
products that would otherwise become waste. This approach finance.
has the potential to foster job creation for young people and

82 BEYOND COFFEE
BOX C.3
Ten guiding principles for the coffee global value chain

1 2 3
Circulate materials at their Regenerate natural Design to eliminate waste
highest value systems and pollution

4 5 6
Uplift local approaches to Embrace open-source solutions Foster peer-to-peer learning
generate local value by sharing technologies and
business models

7 8 9
Recognize that local actions can Focus on innovations that Shift from a linear value chain
have a global impact—“Think address the sector’s most to a circular value system that
global, act local” pressing challenges promotes shared economic
value for all

10
Embrace progress over Most importantly, enjoy the journey!
perfection

FIGURE C.1
To ensure that circular economy benefits are widely Key new approaches required to accelerate the
accessible, supportive frameworks, tools, and policies transition from linear to circular
should be developed through a participatory approach
that enables coffee growers, producer organizations, and
MSMEs in coffee growing countries to engage meaningfully
and benefit from circular practices.
REGENERATIVE
AGRICULTURE
Inclusivity here fosters sustainable growth, diversifies income, Combined with local approaches
and strengthens innovation and resilience across the economic for coffee processing, can make
ecosystem, respecting both nature and community while agricultural production circular
promoting economic empowerment. and add value for coffee producer
communities
In complex systems, traditional, linear problem-solving is
insufficient. Addressing these challenges requires a circular,
systemic approach that engages multiple issues in an COLLABORATION,
interconnected way. No single solution or isolated actor can COORDINATION, AND
tackle these challenges alone. Instead, a collaborative approach GLOBAL NETWORKS
allows diverse participants to take purpose-driven actions within
Can help design and implement
the ecosystem, observe systemic changes, and adapt their next
circular economy actions and
steps accordingly.
effective cooperation between
Table C.1 provides strategic and overarching recommendations public and private sector actors
for implementing a circular economy across the coffee to activate processes.
global value chain, while tables C.2 to C.6 offer more detailed
recommendations for each value chain segment.

Source: International Trade Centre (2024).

BEYOND COFFEE 83
TABLE C.1
Overarching recommendations for implementing a circular economy in the coffee sector

Policy Stakeholders Impact Strategy

0.1 Governments and Environmental and • Develop and share open-source databases featuring
associations socio-economic global best practices. For example, the Center for
Establish best benefits Circular Economy in Coffee (C4CEC) curates and
practice and shine Plus: Farmers shares replicable models for widespread impact.
a light on good (producers), NGOs, SDGs 2, 8, 12, 17
examples industry (traders • Provide access to technologies, business models, step-
and processors), by-step guides for farmers, specifications, datasets,
entrepreneurs, and other practical resources, enabling others to adopt
development effective solutions.
partners, research • Build local capacity by co-creating training packages
and educational with farmers, ensuring resources are accessible in
institutions, and various formats (e.g., videos, photos, and multilingual
consumers guides).
• Highlight the potential of small, localized solutions by
showcasing their innovation, scalability, and value to
the broader community.

0.2 Governments Environmental and • Establish and adopt standardized reporting metrics
socio-economic and key performance indicators (KPIs), integrating
Set metrics and Plus: NGOs, benefits existing standards to enhance transparency and
measure progress associations, prevent greenwashing. This approach will align
industry SDGs 12, 16, 17 practices across the supply chain – from farm-level
(processors, traders, activities to mid-chain actors – and support clear
retailers), research consumer messaging.
and educational
• Define collective metrics to track progress toward
institutions
circular economy goals, including waste reduction,
recycling rates, and resource efficiency.
• Implement independent third-party verification for
existing standards, and incorporate new metrics as
needed.
• Set achievable targets and maintain clear, evidence-
backed communication.
• Develop a circularity score for each organization to
benchmark circular economy efforts.
• Create a streamlined monitoring, evaluation,
and reporting system to ensure accountability in
implementing circular standards. Prioritize accurate
reporting that avoids overburdening farmers while
providing consumers with trustworthy information.

0.3 Industry (traders Environmental and • Allocate dedicated budgets to Research and
and processors) socio-economic Development (R&D) to fuel innovation across the coffee
Undertake benefits value chain.
pre-competitive Plus: Governments
research and and development SDGs 12, 17 • Conduct Life Cycle Assessments (LCAs) of coffee
development partners, NGOs, products and processes to pinpoint improvement areas
for industry start-ups, and quantify the benefits of circular practices.
(processor) waste entrepreneurs,
streams • Support sustainable product-service design and
MSMEs, research prioritize R&D in by-product innovation at every stage.
and educational Invest in technologies that transform by-products and
institutions waste streams into valuable, clean ingredients for other
industries.
• Promote open-source innovation across the coffee
global value chain (C-GVC).
• Foster partnerships between academia, industry, and
government to advance research on sustainable coffee
production and effective waste management.
• Create incentives for companies to integrate indigenous
knowledge, ensuring that technological advancements
are practical and applicable at the grassroots level.
• Direct funding to coffee producers, producer
organizations, local institutions, and NGOs to support
farmer-driven innovation and local solutions.

84 BEYOND COFFEE
Policy Stakeholders Impact Strategy

0.4 Governments and Economic and • Identify strategic industries adjacent to the coffee
associations environmental sector and establish collaborative, cross-industry
Collaborate with benefits programmes. Industries such as cosmetics, chemicals,
adjacent industries Plus: NGOs, flavour and fragrance, and building materials present
industry SDGs 9, 12, 17 valuable opportunities for incorporating coffee by-
(processors) and products into their products and processes.
farmers (producers)
• Engage these industries in circular innovation hubs and
pre-competitive collaborations focused on developing
circular economy solutions for the coffee sector.
• Expand circular and regenerative agricultural
practices to include adjacent crops, enhancing both
environmental benefits and income generation for
farmers.

0.5 Governments and Environmental and • Promote policies that assign responsibility across the
industry, traders, socio-economic entire product lifecycle, from farming (upstream) to
Develop economic and development benefits retail and consumer use (downstream). Encourage
incentives and partners sustainable business models, take-back programmes,
promotion SDGs 9, 10, 12 and recycling initiatives. Offer government incentives,
programmes Plus: NGOs, such as tax breaks, grants, and subsidies, to support
start-ups, MSMEs, stakeholders in adopting circular economy and
research and regenerative practices.
educational
institutions and • Develop and enhance reward models to compensate
consumers farmers, producer organizations, start-ups, and MSMEs
engaged in regenerative agriculture and circular
economy initiatives, especially in coffee-growing regions.
• Integrate regenerative agriculture and circular economy
practices into carbon insetting and compensation
programmes across industry supply chains.
• Evaluate carbon markets to ensure credible offsetting
mechanisms, such as coffee land use offset by
reforestation projects, effectively support environmental
goals.

0.6 All stakeholders Environmental, • Foster public-private partnerships (PPPs) to scale

including economic and circular economy initiatives by forming alliances with
Partnerships and government, social benefits farmers, processors, retailers, NGOs, impact investors,
pre-competitive development and academic institutions.
collaboration partners, industry SDG 17
(processors/traders/ • Collaborate within existing pre-competitive networks,
retailers), start-ups associations, and initiatives – locally and globally – to
and entrepreneurs, share best practices, foster innovation, and support
MSMEs, research collective research. Examples include the ICO Coffee
and educational Public-Private Task Force (CPPTF), ITC Coffee Guide
institutions, Network, C4CEC, Global Coffee Platform (GCP),
consumers and Sustainable Coffee Challenge (SCC), International
NGOs Women’s Coffee Alliance (IWCA), World Coffee
Research (WCR), CGIAR, and the Swiss Sustainable
Coffee Platform.
• Partner with farmer organizations, regional
associations, and producer-led movements in coffee-
growing regions, such as CLAC-Fairtrade, Fairtrade
International, and Solidaridad Network, to amplify
farmer voices and support their innovations.
• Publish regular reports on progress, initiatives, and
challenges to ensure transparency and accountability.
• Design multi-stakeholder collaborations with an
inclusive, participatory approach, ensuring solutions are
driven by and beneficial to coffee producers. Enable
conditions that encourage new partnerships and
innovations.

BEYOND COFFEE 85
 Policy Stakeholders Impact Strategy

0.7 Industry Economic and • Launch initiatives that promote innovative approaches
(processors) environmental within the coffee industry, particularly among
Adopt waste benefits processors. For example, the UK’s Time After Time Fund
reduction Plus: Farmers demonstrates how targeted funding can effectively
approaches (producers), SDGs 8, 9, 12, 13 support sustainable practices.
NGOs, research
and educational • Facilitate collaboration across the coffee value chain
institutions – from producers and processors to retailers and
consumers – to build a fully circular system (e.g., the
SISSI model).
• Utilize life cycle assessments (LCAs) to identify
improvement areas and quantify the benefits of circular
economy practices.
• Enhance the value of by-products through product-
service design and creative innovation, transforming
waste into valuable resources.

0.8 Farmers Economic and • Support and strengthen Business-to-Business (B2B)

(producers) environmental networks that enable the effective reuse of waste and
Create a market and industry benefits maximize the value of by-products.
for coffee by- (processors)
products SDGs 8, 12 • Provide financial incentives for farmers, MSMEs, and
Plus: Start-ups, industry stakeholders to aggregate and clean waste
entrepreneurs, streams, making them suitable for reuse.
MSMEs, adjacent • Invest in research and development of technologies that
industries, research efficiently collect, sort, clean, and process waste into
and educational viable feedstock for new products.
institutions
• Increase awareness among farmers, MSMEs, and
processors about the economic and environmental
benefits of repurposing waste streams into valuable
ingredients and products.

0.9 Governments and Economic and • Encourage the adoption of international standards for
NGOs environmental circular economy practices in the coffee sector, such
Standards and benefits as those set by the International Organization for
certifications Plus: Industry Standardization (ISO).
(traders and SDGs 8, 12
processors), farmers • Support the use of harmonized codes under the World
(producers), Customs Organization (WCO) Harmonized System
retailers, and (HS) to classify imports and exports accurately; these
consumers codes are updated every five years.
• Develop certification programmes to recognize and
reward circular practices in coffee production and
distribution.
• Identify circular economy and regenerative agriculture
practices already covered by existing third-party
sustainability certifications. Integrate these practices
into both existing and new second-party verification
schemes, such as the GCP Equivalence Mechanism, to
reinforce sustainability commitments across the industry.

86 BEYOND COFFEE
Policy Stakeholders Impact Strategy

0.10 Governments, Economic and • Implement educational campaigns to raise awareness

development environmental among coffee value chain actors about the importance
Education and partners, and benefits and economic opportunities of circular economy
awareness NGOs practices.
SDG 12
Plus: Farmers • Offer training programmes for coffee farmers and
(producers), retailers on sustainable practices and waste reduction
industry (traders strategies across the value chain.
and processors), • Embed circular economy and regenerative agriculture
research and training within existing coffee sector support initiatives.
educational
institutions • Leverage pre-competitive platforms, local institutions,
and regional coffee associations to disseminate
knowledge on circular practices and their benefits.
• Develop "Training of Trainers" programmes to empower
local coffee support organizations, institutions, and
associations, fostering local ownership and blending
global insights with local expertise.
• Promote ongoing learning by documenting and sharing
lessons learned, fostering collaborative action among
value chain actors beyond individual projects.
• Create online learning modules with case studies for
higher education students and professionals, supporting
knowledge-building for future leaders in the coffee
sector.

0.11 Governments Economic and • Engage in joint advocacy to shape policies that
and development environmental promote circular economy practices within the coffee
Regulatory partners benefits industry.
frameworks and
advocacy Plus: Farmers, SDGs 12, 17 • Identify and address regulatory barriers that hinder the
industry, NGOs sale and trade of coffee by-products as raw materials,
ingredients, or new products.
• Propose legislation that incentivizes circular economy
initiatives.
• Introduce financial mechanisms (e.g., waste fees)
to discourage unsustainable practices and support
transformative changes.
• Set ambitious sector-wide targets for waste reduction
and resource efficiency.
• Leverage policy windows to drive change; for example,
recent volatility in oil prices presents an opportunity
for governments to redirect funds toward regenerative
practices. Such policies can enhance national self-
reliance by using waste as nutrient inputs, reducing
dependence on imported, fossil fuel-derived fertilizers.

0.12 Governments, Economic and • Develop and expand innovative financial mechanisms to
development environmental support regenerative agriculture and circular business
Catalyse partners, NGOs, benefits models.
investment industry (traders
processors), and SDGs 8, 9, 17 • Link MSMEs, producer organizations, and local institu-
networks tions with finance, funding sources, and impact investors
to drive innovation and circular practice adoption.
Plus: Farmers • Showcase successful innovations and best practices
from coffee-producing countries to attract investment.
• Provide investment readiness training for MSMEs and
producer organizations in coffee-producing regions.
• Incorporate regenerative agriculture and circular econ-
omy practices into carbon insetting programmes, ena-
bling supply chain investments in sustainable practices.
• Subsidize the risks, opportunity costs, and operational
investments needed to implement new products and
processes.
• Mitigate investment risks by offering tailored technical
assistance, along with market and business develop-
ment services.

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C.3.1 Farming and production
recommendations

These recommendations target the coffee farming and

production stage and are aimed at achieving circularity in
coffee farming by integrating sustainable practices such
as regenerative agriculture, optimizing resource use, and
enhancing the value of coffee by-products. Recommendations
also focus on ensuring a living income for coffee farmers.

TABLE C.2
Farming and production recommendations

Policy Stakeholders Impact Strategy

1.1 Governments Primarily • Promote and support regenerative agriculture practices

and development environmental that restore soil health, enhance biodiversity, and build
Regenerative partners but also socio- ecosystem resilience.
agriculture and economic benefits
agroforestry Plus: Farmers • Encourage core regenerative methods, including no-till
(producers) and SDGs 2, 13, 15 farming, cover cropping, crop rotation, agroforestry,
industry (traders integrated weed and pest management, and the use of
and processors) enriched organic compost and natural fertilizers.
• Develop and share detailed guidelines explaining the
“what” and “why” of regenerative agriculture, along with
practical tools to help farmers choose and adapt practices
that align with their unique needs, goals, resources, and
local conditions.
• Adopt an inclusive, participatory approach to shape
policies and legislative instruments that support
regenerative agriculture while discouraging linear,
extractive farming practices.
• Offer financial incentives, including grants, subsidies, and
interest-free or low-interest loans, to encourage widespread
adoption of regenerative techniques.

1.2 MSMEs and start- Primarily • Encourage the use of coffee by-products at the farming
ups environmental stage (e.g., coffee husks) as organic fertilizer or soil
Commercialization but also socio- amendments through financial incentives and technical
and use of coffee Plus: Development economic benefits support.
by-products partners, farmers,
industry (traders SDGs 2, 13, 15 • Simultaneously combine incentives with disincentivizing
and processors), linear behaviours (e.g. increased levies on synthetic inputs),
NGOs, and to create a mutually reinforcing approach.
associations • Support coffee farmers, MSMEs, producer organizations,
and local and regional institutions with market assessment,
linkages, and training for coffee by-products.
• Existing regional and local institutions support MSMEs
and producer organizations with linkages to other sectors.
Develop and share know-how for accessing supply chain
partners in industries outside of the coffee industry.

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Policy Stakeholders Impact Strategy

1.3 Start-ups and Economic and • Encourage the repurposing of coffee by-products at the
farmers environmental farm level (e.g., coffee husks, cherry skins, and leaves) as
Market creation benefits organic fertilizers, compost, mulch, and soil amendments,
for coffee by- Plus: MSMEs, offering financial incentives and technical support to boost
products adjacent SDGs 12, 8 adoption.
industries,
and industry • Combine these incentives with measures that disincentivize
(processors) linear practices, such as levies on synthetic inputs, creating
a balanced, mutually reinforcing approach.
• Support coffee farmers, MSMEs, producer organizations,
and local and regional institutions through market
assessments, linkages, and training for developing coffee
by-products.
• Empower regional and local institutions to connect MSMEs
and producer organizations with supply chain partners
outside the coffee sector, helping them access new
markets. Explore both local and international opportunities
for coffee by-products.
• Facilitate market connections between producers and
buyers through coordination with regional institutions.
• Develop open-source technologies and business models to
effectively utilize farming by-products (e.g., cherry skins,
pulp, leaves, and branches) and establish milling processes
that convert these materials into value-added products.
• Establish milling processes to efficiently convert coffee by-
products (e.g., cherry skins, husks, leaves, and stems) into
high-value products.
• Encourage the use of coffee by-products as organic
fertilizers, compost, mulch, and soil amendments through
financial incentives and technical support. Repurposing
organic farming waste plays a vital role in fertilizing
coffee plants and, combined with regenerative practices,
can significantly reduce reliance on chemical inputs.
• Customize approaches to align with local and regional
contexts, considering farm size, specific farmer needs,
production and processing methods, available facilities,
and nearby crop ecosystems.

1.4 Governments, Primarily socio- • Develop a model to evaluate how circular and regenera-
development economic but also tive solutions reduce living income gaps in coffee-produc-
Circular economy partners, environmental ing countries.
and regenerative industry, NGOs, benefits
agriculture to close associations, and • Commit to paying and transparently disclosing premiums
living income gaps farmers SDGs 1, 5, 8, 17 to farmers adopting regenerative practices, strengthening
industry transparency and sustainability.
• Share information on the use of a living income framework
to help ICO Members meet Roadmap commitments.
• Collaborate with regional knowledge Hubs, such as the
InterAfrican Coffee Organization (IACO), PROMECAFE,
and the ASEAN Coffee Federation (ACF), to support
ongoing localized research, monitoring, and evaluation of
circular and regenerative contributions toward achieving
living incomes.
• Establish living income benchmarks across all ICO produc-
ing countries by 2030 and assess net income gaps.
• By 2030, facilitate PPPs in at least 50% of coffee-produc-
ing countries to close income gaps, focusing on achieving
living and prosperous income benchmarks.
• Build on existing momentum from ICO Members, CPPTF,
and the wider coffee sector to collaboratively address
income disparities.
• Provide farmers with economic incentives for adopting re-
generative agriculture, agroforestry, and circular practices,
including but not limited to carbon credit payments.

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 Policy Stakeholders Impact Strategy

1.5 Development Social, economic • Set up long-term education initiatives and support
partners, farmers and environmental programmes to help farmers learn about and implement
Farmer-focused and farmer benefits regenerative agriculture practices while safeguarding their
education organizations, future income.
initiatives associations, SDGs 1, 2, 4, 12,
governments, and 13, 17 • Design and implement training initiatives to support
NGOs farmers (producers) in proactively optimizing the
economic, environmental, and social benefits of
Plus: Industry regenerative approaches.
and educational • Enhance and expand educational resources for farmers,
institutions focusing on regenerative agriculture and circular
economy practices. Utilize materials from sources such
as the Alliance of Biodiversity and CIAT, ITC Coffee
Guide, C4CEC, World Coffee Research, Specialty Coffee
Association, and the EU Circular Economy Action Plan,
among others.
• Build upon and integrate resources developed at local
and regional institutions into global resources to further
exchange of good practices between regions and countries.
• Combine educational initiatives with longer-term
approaches that include monitoring and feedback
regarding training requirements.
• Combine educational initiatives with upfront financial
support to implement new know-how (e.g. supporting start-
ups and transition costs).

1.6 Farmers Socio-economic • Empower farmers with the skills and resources to maximize
(producers), and environmental income streams and promote co-product strategies
Diversification of MSMEs, and benefits that create additional income streams e.g. through
income streams start-ups intercropping coffee with banana and other fruits and
SDGs 1, 2, 5 vegetables.
Plus: Development
partners, adjacent • Promote entrepreneurial and development programmes,
industries, especially aimed at the “next generation” of farmers and
governments, entrepreneurs, to spark interest in new circular models and
NGOs, and regenerative techniques.
educational • Promote the synergic environmental, social and economic
institutions benefits of regenerative agriculture to ensure farmers
(producers) are aware of all the benefits.
• Focus NGO-led or micro-finance entrepreneurial
programmes at marginalized societal segments (e.g.
women, youth, etc.) to create additional co-benefits.

1.7 Industry (traders Environmental • Foster multistakeholder research collaborations to test and
and processors) benefits and improve innovations in circular economy and regenerative
Multistakeholder including farmers added socio- agriculture throughout the different stages of coffee
research and farmer economic benefits production, with a focus on economic viability.
collaborations organizations
for regenerative (producers), SDG 17 • Leverage existing networks, research focused entities, and
agriculture associations, local and regional institutions to bridge academic research
and by-product academic with coffee sector and value chain actors.
development and scientific
in producing • Invest in transdisciplinary research programmes that
institutions, integrate multiple fields (e.g., agriculture, environmental
countries research science, social policy, and innovation) and actively involve
organizations, a diverse range of stakeholders, including researchers,
development private sector producers, NGOs, and companies beyond
partners, and the coffee industry, such as tech firms.
technology
companies • Launch collaborative research projects and co-design
pilot programmes that combine traditional methods with
innovative approaches.
• Offer incentives for companies to integrate indigenous
knowledge into their operations, ensuring that technical
advancements are grounded, practical, and effective at
the grassroots level.

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C.3.2 Processing recommendations

These recommendations target the coffee processing stage

and seek to enhance efficiency and sustainability in coffee
processing by promoting innovative technologies, best
practices, and the utilization and repurposing of waste and
by-products generated during the coffee processing stage.

TABLE C.3
Processing recommendations

Policy Stakeholders Impact Strategy

2.1 Farmers, Environmental • Encourage the valorization of waste and by-products from
entrepreneurs, and benefits, and coffee processing through targeted research, financial
Value creation MSMEs economic incentives, and technical support. Beyond producing
from waste and opportunities for fertilizers from fermented organic residues (see Section
by-products Plus: Industry start-ups and 1.3), explore and incentivize other high-value applications
(traders and coffee processors of processing by-products
processors), via new markets
adjacent for clean and • Promote the use of processing waste as a valuable
industries, research aggregated feedstock by implementing supportive policies from both
institutions, start- feedstocks government and industry stakeholders.
ups, governments, • Engage local scientific and research institutions to provide
and NGOs SDGs 12, 8 essential training and technical support for effective
project implementation.
• Empower farmers to aggregate, clean, and add value to
coffee by-products, such as cherries and husks, unlocking
new economic opportunities at the production level.

2.2 Governments, Socio-economic • Establish policies and incentives to promote R&D and
development and environmental innovation in coffee processing facilities (instant, roasted,
Coffee processing partners, and benefits and decaffeinated) to adopt energy-efficient and
industry (traders renewable energy technologies, reducing both production
and processors) SDGs 1, 2, 5, 9, energy intensity and emissions.
12, 17
Plus: Research • Identify and pursue opportunities to decarbonize
institutions and manufacturing processes and enhance sustainable disposal
associations of processing waste.
• Explore and support alternative uses for coffee grounds to
reduce methane (CH4) emissions from land spreading and
decrease reliance on incineration.13

2.3 Governments Environmental • Promote water-saving practices in coffee processing to

benefits significantly reduce wastewater volumes.
Coffee wastewater Plus: Development
partners, farmers SDGs 6, 9, 12, 17 • Adopt biological treatments for coffee processing
(producers), wastewater to ensure that discharged effluents are safe for
industry (traders plants and surrounding ecosystems.
and processors) • Establish and enforce strict regulatory standards for
and research wastewater discharge to protect water quality and
institutions preserve local ecosystems.
• Support research into innovative, eco-friendly solutions for
wastewater reduction and safe effluent management.

13 Currently, used coffee grounds are incinerated to produce low-grade heat; however, this process is inconsistent, and the heat generated is insufficient for effective factory use, making
it more of a waste disposal method aimed at enhancing green perceptions. Another alternative, "land spreading", is impractical in large quantities for farmers and leads to significant
methane (CH4) emissions. Additionally, anaerobic digesters are generally ineffective with used coffee grounds, limiting viable options for sustainable disposal and utilization.

BEYOND COFFEE 91
 Policy Stakeholders Impact Strategy

2.4 Governments Environmental • Create a comprehensive guide detailing best practices

and potential and technological solutions for coffee processing, including
Technological Plus: Industry economic benefits catalytic emission cleaners, emission control systems, heat
solutions for (processors) from scaling- recirculation systems, gas abatement systems, flexible
emission control up innovative ventilation systems, and energy-efficient equipment.
technological
solutions • Transition coffee processing operations to renewable
electricity sources to significantly reduce GHG emissions.
SDGs 9, 12, 17 • Promote the adoption of sustainable technologies
through targeted training workshops and tax incentives to
encourage widespread implementation.

2.5 Governments and Economic and • Encourage the industry (processors) to invest in value
industry (traders social impacts addition at origin by establishing roasting plants and
Incentives for and processors) instant coffee manufacturing facilities within coffee-
processors to move SDGs 9, 12, 17 producing countries.
from countries Plus: Adjacent
of consumption industries and . • Develop skills and training programmes focused on value-
to countries of development added coffee processing and circular economy practices
production (origin) partners in producing regions, ensuring that local communities gain
skilled job opportunities and achieve a living income.

C.3.3 Packaging and transport

recommendations

These recommendations target the coffee packaging and

transport stages and seek to develop sustainable packaging
solutions, to implement transparent pricing that rewards
circular and sustainable practices, and to decarbonize
transport.

TABLE C.4
Packaging and transport recommendations

Policy Stakeholders Impact Strategy

3.1 Industry Economic and • Develop and implement innovative packaging solutions
(processors), environmental grounded in compostability, bio-based materials, and
Circular Economy governments, benefits mono-material designs to facilitate the separation of
in packaging and research biological and technical materials.
institutions SDGs 9, 12, 17
• Mandate sustainable, recyclable, and biodegradable
packaging throughout the coffee supply chain, promoting
re-usable containers over single-use bags.
• Support R&D for advanced packaging technologies that
reduce waste and improve recyclability.
• Encourage the adoption of Sustainable Product-Service
Systems (SPSS), where processors retain ownership of
packaging and products. This incentivizes design for
durability, recyclability, and optimized performance,
lowering costs, increasing profits, and enhancing
environmental sustainability.

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Policy Stakeholders Impact Strategy

3.2 Governments, Primarily • Ensure that all coffee packaging, including single-serve
industry environmental capsules, aligns with local waste management policies to
Alignment of (processors), benefits, but, if maximize recyclability and minimize environmental impact.
packaging choice packaging well-designed,
with local waste industry (traders can also yield • Design and procure packaging solutions tailored to the
policies and processors), economic waste management capabilities of the regions where they
coffee retailers advantages will be consumed and disposed of. For instance, using
and waste commercially compostable bioplastics is effective only if
management SDGs 9, 12, 17 composting and recycling facilities are available locally.
industry • Foster open dialogue with key stakeholders – including
(processors), and packaging processors, government agencies, and coffee
development retailers – to make informed, regionally appropriate
partners packaging choices.

3.3 Governments, Economic and • Implement transparent pricing structures that incentivize
NGOs, and environmental circular and sustainable practices upstream.
Transparent industry benefits
pricing structures (processors), • Establish meaningful price differentials for suppliers
including SDGs 9, 12, 17 who adopt circular economy practices, in line with best
wholesalers and practices, to ensure fair, living incomes for all supply chain
roasters actors.
• Reform internal structures that currently reward buyers for
minimizing supplier costs; instead, prioritize circularity and
efficient practices to foster green procurement and a fair,
sustainable circular economy.
• Leverage accessible digital technologies across the
supply chain to enhance traceability, transparency, and
management of social and environmental data, with
support from NGOs and industry partners.
• Align with downstream government policies in consumer
countries (e.g., procurement policies, compliance standards,
international commitments) to maximize impact and
effectiveness.

3.4 Industry Economic and • Adopt innovative business models that provide coffee as
(processors) environmental a service rather than just a product (e.g., "Coffee as a
Implement benefits Service" or "CaaS").
sustainable Plus: Retailers,
product-service instant coffee SDGs: 8, 9, 12, 13 • Sustainable Product-Service Systems (SPSS) could include
systems manufacturers, delivering coffee in reusable containers with collection and
manufacturers, refilling options, or leasing and buyback programmes for
farmers, coffee equipment that include maintenance and end-of-life
governments, services to ensure recycling or refurbishment.
NGOs, and • To support the widespread adoption of SPSS models,
development consider implementing: 1) supportive policies, such as tax
partners incentives for MSMEs investing in SPSS, and 2) industry
education campaigns that highlight the benefits of circular
economy practices in the coffee sector.

BEYOND COFFEE 93
C.3.4 Consumption recommendations

These recommendations target the consumption stage and

seek to promote responsible consumption choices.

TABLE C.5
Consumption recommendations

Policy Stakeholders Impact Strategy

4.1 Governments Environmental • Design and implement national and local policies to
benefits promote sustainable consumer behaviour.
Responsible Plus: Consumers,
consumption governments SDGs 12, 17 • Introduce mandatory or voluntary eco-labelling to guide
(national and citizens towards environmentally conscious purchases.
local), NGOs, • Provide clear disposal instructions to encourage
industry responsible consumer practices.
(processors), and
retailers • Test various information campaigns and pricing strategies
in real-world settings (e.g., cafes) to shift consumer habits,
such as offering discounts for reusable cups or surcharges
for single-use cups.
• Back these efforts with supportive policies. For instance,
France has introduced bans on the most harmful single-use
plastic coffee cups.
• Develop partnerships to explore effective behavioural
prompts, such as visual and verbal cues, to help consumers
adopt more sustainable habits.

4.2 Governments and Environmental and • Develop consumer-focused certifications and standards to
NGOs socio-economic help circular organizations stand out.
Certifications and benefits
standards Plus: Industry • Create voluntary standards, certifications, and codes
(processors), SDGs 12, 17 of conduct with clear circular economy criteria and
farmers, indicators. Encourage adoption to enhance transparency,
consumers, and accountability, quality control, and tracking across the
development supply chain. For instance, Starbucks has introduced
partners “green store” certification, evaluated by an independent
auditor, covering areas such as energy efficiency, water
stewardship, renewable energy, sustainable materials, and
waste reduction.
• Use certification to inform consumers about the
environmental impact of single-use capsules and ready-to-
drink (RTD) coffee products.
• Require that all environmental claims undergo verification
by an advertising ombudsman to prevent greenwashing
and ensure integrity.

4.3 Retailers Environmental and • Optimize water temperature for coffee brewing, ideally
economic benefits between 85-95°C, just below boiling, for optimal flavour
Resource efficiency Plus: Consumers extraction.
in coffee shops and industry SDGs 7, 12
(processors) • Use energy-efficient appliances for heating water.
• Refine frothing techniques to minimize milk waste and
lower costs.
• Optimize energy use by utilizing efficient, high-
performance coffee machines.
• Install renewable energy sources on-site or source
renewable energy from a provider.
• Switch from printed menus to digital displays such as QR
codes and offer digital receipts to cut down on paper
waste.

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C.3.5 Post consumption
recommendations

These recommendations target the post-consumption stage

and seek to promote better management and revalorization
of coffee waste, improved recycling efforts, and sustainable
disposal practices.

TABLE C.6
Post consumption recommendations

Policy Stakeholders Impact Strategy

5.1 Governments Environmental and • Invest in systems for the efficient collection and recycling
and development economic benefits of coffee grounds and by-products utilizing reverse
Resource recovery partners logistics as part of a Sustainable Product-Service System
and waste SDGs 12, 13 (SPSS).
management Plus: Waste
management • Introduce regulations governing the collection, disposal,
companies, and reuse of used coffee grounds and other coffee by-
industry (traders products.
and processors, • Encourage entrepreneurs, MSMEs, and industry
especially retailers stakeholders to create value-added products from coffee
and coffee waste, such as biofuels, compost, and innovative materials.
shops), research
organizations, • Implement economic incentives, such as tax credits or
and educational grants, to motivate retailers and cafes to sort coffee
institutions waste at the source. Retail shops could receive exemptions
from disposal fees for proper waste segregation and
management.
• Establish local monitoring and evaluation units to
develop data collection methodologies and implement
comprehensive tracking systems. Data-backed monitoring
and regular feedback will enhance compliance and
continuous improvement.

5.2 Governments Environmental and • Develop new pathways for local revalorization of coffee
and development social benefits waste, such as used coffee grounds.
Revalorization of partners
waste SDGs 2, 3, 11, 12, 17 • Establish local networks to manage the supply and
Plus: NGOs, demand for waste products from coffee shops and
community groups, consumers, enabling local revalorization efforts. These
and consumers exchanges can operate as for-profit ventures led by
entrepreneurs or startups, or as non-monetary initiatives
(e.g., through NGOs, community projects, or swapping
schemes), maximizing social impact by creating
opportunities for youth, women, and marginalized groups
to engage in circular practices.
• Seek support from local governments to strengthen these
networks, backed by enabling national policies to ensure
effective operations.

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 Policy Stakeholders Impact Strategy

5.3 Governments Environmental • Identify innovative uses for the 40 million tonnes of used
and development benefits and coffee grounds generated annually by households, coffee
Promote R&D in partners economic shops, and the instant coffee industry.
valorization of opportunities
coffee by-products Plus: Industry • Implement circular recycling programmes for coffee
(processors) such SDGs 12, 17 grounds and other by-products: coffee processors can
as coffee shops collect grounds from their own facilities and participating
and retailers, coffee shops to repurpose into new products or services.
start-ups and • Aggregate and purify feedstocks to prepare them for
entrepreneurs, various uses.
and research
and educational • Promote collaboration among government, industry,
institutions and academia to conduct research and develop new
applications for used coffee grounds.
• Establish a dedicated research fund to explore efficient,
location-specific repurposing solutions for coffee grounds,
such as energy production, chemicals, absorbents, food
ingredients, and construction materials. This valuable
resource should be optimized rather than wasted.
• Encourage and incentivize entrepreneurial ventures
dedicated to innovatively repurposing coffee by-products.

5.4 Governments Environmental • Promote R&D initiatives aimed at reducing material use in
benefits, economic packaging.
Promote R&D in Plus: Industry opportunities
packaging (processors), • Make it the responsibility of processors to ensure that their
especially SDG 12 packaging is easily recyclable on a wide scale.
packaging • Introduce innovative mechanisms, such as Extended
manufacturers, Producer Responsibility (EPR) fees, to fund advancements
and research in local sorting and recycling technologies.
and educational
institutions • Explore further opportunities to enhance recycling
capabilities through ongoing R&D efforts.
• Support reverse logistics and drive innovation in
packaging design and chemical recycling technologies
(especially for plastics) to optimize the potential for
"coffee cup-to-coffee cup" recycling.

The strategic recommendations in Section C provide a comprehensive roadmap for embedding a circular economy within the
coffee sector. This framework highlights the need for coordination, impact investment, and innovation, alongside the adoption of
sustainable practices at every stage of the coffee value chain. By fostering collaboration, research, and knowledge sharing, and
by establishing strong regulatory frameworks, financial incentives, and market mechanisms, the coffee sector can move towards
a more sustainable and resilient model.

Achieving this transformation requires the active involvement of all coffee stakeholders – farmers, industry players, government
agencies, NGOs, research institutions, financial institutions, investors, and development partners. By embracing circular economy
principles and scaling up both existing and new solutions, the sector can enhance its economic viability, environmental sustainability,
and social equity. This collective action will not only strengthen the coffee industry but also advance global sustainability goals.

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BEYOND COFFEE 97
PART III
SECTION D The coffee sector in numbers

Key findings D.1 Prices

International coffee prices refer to the ICO Composite
Indicator Price (I-CIP). In the 2022/23 coffee year, prices
D.1.1 I-CIP Prices
opened at 190.18 US cents/lb, fluctuating between a season
low of 145.54 US cents/lb on 11 January 2023 and a coffee The ICO Composite Indicator Price (I-CIP) is the benchmark
year high of 194.92 US cents/lb on 5 October 2022. for international coffee prices. In coffee year 2022/23,
prices opened at 190.18 US cents/lb, fluctuating between a
All coffee group indicators, except for Robustas, saw declines seasonal low of 145.54 US cents/lb on 11 January 2023 and
in 2022/23. Robustas rose by 5.1%, from 106.89 to 112.39 a high of 194.92 US cents/lb on 5 October 2022.
US cents/lb. In contrast, Colombian Milds underperformed
significantly, dropping 25.2% from 289.38 to 216.50 US The I-CIP averaged 165.39 US cents/lb in 2022/23, buoyed by
cents/lb. Other Milds and Brazilian Naturals also declined by a 4.9 million bag deficit that kept upward pressure on prices.
20.5% and 22.1%, settling at 209.83 and 174.03 US cents/ While the I-CIP declined year-on-year by 16.4% from 197.90 US
lb, respectively, largely due to weakened exports. The high cents/lb, it remained well above the previous 10-year average
prices of Colombian and Other Milds prompted roasters to of 130.63 US cents/lb. Over the coffee year, the I-CIP decreased
adjust blends, incorporating more Robustas to keep product by 14.2%, from 178.54 US cents/lb in October 2022 to 153.13
costs competitive. US cents/lb by September 2023.

The average annual volatility for the I-CIP was 8.8%, while The largest day-on-day increase occurred between 30 January
New York futures showed 11.3% volatility. Brazilian Naturals and 31 January 2023, with the I-CIP rising by 4.5% as stock
displayed the highest volatility among the groups, reaching levels hit their lowest point in nearly 20 years, driving up short-
11.7% during the 2022/23 coffee year. term prices.

Global coffee exports dropped by 5.7% to 122.9 million 60-

FIGURE D.1
kg bags, reflecting a drawdown in stock levels, particularly
ICO Composite Indicator Price (I-CIP) | October 2020
in non-producing countries. The decline was broad-based,
- September 2023
with the Americas, notably South America, experiencing the
steepest fall at 11.0%.

Green beans dominate global coffee exports, accounting

for 90.1% (110.7 million bags) of total exports in 2022/23.
The share of Arabica in green bean exports fell to 60.4%
from 63.6% in 2021/22, primarily due to shifts in pricing
and income dynamics.

In coffee year 2022/23, global coffee production declined

slightly by 0.04% to 165.5 million bags, with Asia and Oceania
experiencing a 3.0% production drop, mainly from Vietnam
due to adverse weather, resulting in a net loss of 1.5 million
bags.

That same coffee year, global consumption fell by 1.9% to

173.0 million bags, following a 3.8% expansion in 2021/22. D.1.2 Growths
The reduction in consumption was driven by high costs,
decreasing disposable income, and a base effect after the Prices for all coffee group indicators declined in coffee year
sharp rise in 2021/22, which marked the largest expansion 2022/23, except for Robustas, which rose by 5.1%, from 106.89
in over 20 years with an increase of 6.4 million bags—the to 112.39 US cents/lb. Colombian Milds saw the largest drop,
biggest net gain since 1978/99. contracting by 25.2% from 289.38 to 216.50 US cents/lb.

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Similarly, Other Milds and Brazilian Naturals fell by 20.5% and D.1.4 Arbitrage
22.1%, reaching 209.83 and 174.03 US cents/lb, respectively.
This decline was mainly driven by reduced exports throughout
Throughout coffee year 2022/23, the arbitrage between the
2022/23. Additionally, high prices for Colombian and Other Milds
London and New York futures markets narrowed steadily,
prompted roasters to reconsider their blends, incorporating
decreasing from 99.56 US cents/lb in October 2022 to 44.41
more Robustas to keep final products competitively priced.
US cents/lb by September 2023. On average, the arbitrage
for the 2022/23 coffee year was 70.63 US cents/lb—a 44.2%
FIGURE D.2 decline from the previous year’s average of 126.56 US cents/
ICO Group Indicator Prices | October 2020 - lb. Increased pressure on the Robusta futures market, driven
September 2023 by concerns over sustained high Arabica prices, contributed
significantly to closing the gap between the two.

FIGURE D.4
Rolling 30-day volatility of the I-CIP | October 2020 -
September 2023

D.1.3 Price volatility in spot and

futures coffee markets
In coffee year 2022/23, Arabica prices underwent a downward
adjustment, likely correcting a prior overvaluation. Day-to-day,
Arabica futures prices fluctuated between 145.03 and 212.28
US cents/lb. In the London futures market, the 2nd and 3rd
D.1.5 Certified Stocks
positions averaged between 80.97 and 124.10 US cents/lb,
with the lowest point on 16 November 2022 and a 28-year In October 2022, New York Board of Trade (NYBOT) certified
Arabica stocks hit a low of 0.41 million 60-kg bags, the lowest
FIGURE D.3 point of the 2022/23 coffee year. Stocks gradually recovered to
Average of 2nd and 3rd position of ICE Futures, US 0.91 million bags by January 2023, averaging 0.67 million bags
cents/lb over the year. In contrast, London International Financial Futures
and Options Exchange (LIFFE) certified stocks remained more
stable, averaging 1.14 million bags for the year and peaking at
1.52 million bags in October 2022.

FIGURE D.5
Certified stocks | October 2020 - September 2023

peak on 19 June 2023.

The I-CIP exhibited an average annual volatility of 8.8%,

compared to 11.3% in the New York futures market. Among
the coffee groups, Brazilian Naturals experienced the highest
volatility, reaching 11.7% in coffee year 2022/23.

BEYOND COFFEE 99
D.2 Exports for export and contributing to the declines from these two
South American origins.

D.2.1 Exports of all forms of coffee – • Honduras and Uganda saw the largest net gains in
total coffee exports, at 0.6 million and 0.3 million bags,
world and regions respectively, in coffee year 2022/23. Despite Honduras'
strong growth, exports remain below coffee year 2020/21
In coffee year 2022/23, global exports of all forms of coffee levels due to the lasting impacts of hurricanes Iota and
declined by 5.7% to 122.9 million 60-kg bags, marking the Eta on its 2021/22 performance. Uganda, Africa’s largest
largest downturn since a 9.5% fall in 1994/95. The global Robusta producer and exporter, managed to fill the gap
macroeconomic environment did little to bolster consumer left by Asia and Oceania, especially India, through a solid
confidence, with high inflation and rising interest rates across harvest and stock drawdown in the second half of the year,
key advanced economies increasing the cost of living and spurred by rising international Robusta prices.
reducing disposable income worldwide.
• India drove the slight dip in Asia and Oceania’s exports,
While these conditions likely contributed to a decline in coffee down by 0.9 million bags in 2022/23. However, this was
consumption and, consequently, green bean exports, much of due to a base effect rather than underlying industry issues,
the downturn’s magnitude was due to a drawdown in stocks held as India’s exports in 2021/22 had reached a record high of
in non-producing countries. Sustained high interest rates made 7.2 million bags, surpassing the previous five-year average
stockholding increasingly uneconomical. Green bean stocks by 1.2 million bags.
in Europe, Japan, and America dropped by 6.1 million bags in
2022/23—a 26.1% decrease compared to coffee year 2021/22.
FIGURE D.7
FIGURE D.6 Exports of all forms of coffee - regions, percent
Exports of all forms of coffee - regions, millions of share (%)
60-kg bags

The downturn affected all regions, with the Americas

experiencing the steepest decline, particularly South America,
which saw an 11.0% drop in exports. This regional disparity
partly reflected the global stock drawdown and the broader
division within the coffee industry: Arabicas, dominant in the FIGURE D.8
Americas, versus Robustas, more prevalent in other regions. Exports of all forms of coffee - top ten countries,
Stocks of Arabica beans in Europe, Japan, and America fell '000 60-kg bags
by 3.1 million bags (36.2%), while Robusta stocks dropped by
2.3 million bags (43.8%) in coffee year 2022/23 compared to
2021/22. Consequently, South America’s share of total exports
decreased by 2.4 percentage points in 2022/23.

A closer look at export data reveals the following:

• Brazil was the main driver of the global and South American
downturn, with a 7.9% decline and a net loss of 3.1 million
bags in coffee year 2022/23. This decrease was still
influenced by the frost in July 2021, which limited Brazil's
supply for the export market.

• Colombia and Peru recorded the second and third largest net
losses, with exports down by 12.0% and 36.7% respectively
in 2022/23. Heavier-than-normal rainfall adversely impacted
production in both countries, leading to reduced supplies

100 BEYOND COFFEE

FIGURE D.9
Exports of all forms of coffee - top ten countries, growth rates (%)

D.2.2 Coffee exports by form FIGURE D.11

Exports of coffee by different forms - regions, '000
Green beans remain the dominant form of coffee exported 60-kg bags
worldwide, comprising 90.1% (110.7 million bags) of total coffee
exports in coffee year 2022/23, a slight increase from the 90.0%
share in 2021/22. Processed coffee (roasted and soluble)
accounted for the remaining 9.9% (12.2 million bags) of exports.

FIGURE D.10
Share of exports by forms of coffee - world, percent
share of total (%)

D.2.3 Exports of Arabica and Robusta

– green beans
Green bean exports of Arabicas totalled 74.6 million bags
in coffee year 2022/23, a decline of 10.4%, while Robustas
increased by 2.7% to 43.8 million bags. Consequently, the
share of Arabicas in green bean exports dropped to 60.4% from
*Rounding to 0.1 decimal point may result in the percentage not adding to 100% 63.6% in 2021/22. This shift between Arabicas and Robustas
was largely influenced by price and income substitutions. The
Regionally, significant differences exist in the composition of Arabica-Robusta price differential had widened significantly
coffee exports. The Asia and Pacific region is positioned further in 2021/22 to 152.0 US cents/lb from 87.6 US cents/lb the
up the value chain compared to the world average and other previous year and remained relatively high at 90.4 US cents/lb
regions, with processed coffee (roasted and soluble) accounting in 2022/23. Global inflation peaked at 9.4% in 2021, while the
for 11.7% (5.1 million bags) of its exports. In contrast, Africa's benchmark interest rate across the EU, UK, and USA averaged
share of processed coffee exports was just 2.4% (0.3 million 4.9% by the end of September 2023 – the highest since 5.8%
bags). in 2000 – reducing net disposable income worldwide.

Coffee year 2022/23 was the first time since coffee year 2012/13
that exports of the Colombian Milds had fallen below the 11.0
million bags mark. The exports of this group of coffee are
primarily driven by Colombia, the main origin of this group, and

BEYOND COFFEE 101

there was weather-related disruption to its supply throughout was mainly driven by Brazil’s biennial production cycle,
most of coffee year 2022/23. For the year, Colombia’s exports while Tanzania and Uganda were the primary contributors
contracted 13.1%, decreasing to 9.42 million bags, the first time to Africa’s increase.
since coffee year 2013/14 the origin’s exports had dropped
below the 10.0 million bags level. • Production in Central America, Mexico, and the Caribbean
rose by 0.8%, reaching 18.9 million bags.
The Americas are predominantly Arabica producers, with the
Arabicas’ share of Caribbean/Central America and Mexico FIGURE D.14
exports of green beans at 99.2%, while it was 93.6% for South Production of coffee - regions, million 60-kg bags
America in coffee year 2022/23. This contrasted with Asia and and growth rates (%)
Oceania, where the Arabicas’ share was 11.5%. In the middle
was Africa, with the share of the Arabicas at 48.9%.

FIGURE D.12
Green beans exports - groups, millions 60-kg bags

The consequences of the differing fortunes of the regions were

that Asia and Oceania alone experienced its share of the world
production fall in coffee year 2022/23 by 0.9 percentage point,
decreased to 30.2%. However, Arabica holds the majority share
of global coffee bean production and dominates in three of the
four coffee-producing regions.
FIGURE D.13
Green beans Arabica/Robusta exports - regions,
'000 60-kg bags FIGURE D.15
Production of coffee - regions, percent share (%)

D.3 Production
D.3.1 Total coffee production – world
and regions
In coffee year 2022/23, global coffee production fell slightly by
0.04% to 165.5 million bags. This decrease was primarily due to: Arabica holds the majority share of global coffee bean
production, as well as dominance in three of the four coffee-
• Asia and Oceania, where production declined by 3.0%,
producing regions. In coffee year 2022/23, Arabica accounted
resulting in a net loss of 1.5 million bags. This drop was
for 56.3% of global output, marking a 0.5 percentage point
largely attributed to adverse weather conditions affecting
increase over 2021/22. South America led Arabica production
Vietnam, the region's main producer.
worldwide, with Arabica beans making up 73.3% of the region's
• The impact of Asia and Oceania’s decline was nearly offset total coffee output. Meanwhile, Asia and Oceania was the largest
by gains in South America and Africa, with a combined net Robusta-producing region, with Robusta beans comprising
increase of 1.3 million bags. South America’s 1.2% growth 86.2% of its total production in 2022/23.

102 BEYOND COFFEE

FIGURE D.16
Production of Arabica/Robusta share - regions, FIGURE D.17
percent share (%), 2022/23 Production of coffee - top ten countries,
'000 60-kg bags

FIGURE D.18
Production of coffee - top ten countries, growth
rates (%)

D.3.2 Total coffee production –

countries
A closer look at the data reveals that individual origins largely
mirrored the overall directional trends of their regions:

• Brazil was the largest positive contributor to global coffee D.3.3 Arabica coffee production
production in 2022/23, with a net increase of 2.4 million
bags. This gain was due to Brazil’s “on-year” in its biennial In coffee year 2022/23, global Arabica production reached 93.1
production cycle, though the impact was softened by million bags. Output increased across all regions except Asia
lingering effects of the July frost from 2021/22. andOceania, which experienced a decline of 3.4%. South America
led with a production increase of 1.5%, the highest among
• In contrast, Vietnam was the primary negative contributor,
regions, followed by Africa with a 1.0% rise. Consequently, Asia
with a net loss of 2.2 million bags. This decline resulted from
andOceania’s share of total Arabica production dropped by 0.3
prolonged rainfall in key coffee-growing provinces (Dak Lak,
percentage points to 7.4% in 2022/23.
Gia Lai, and Kon Tum), reduced fertilizer use, and a shift to
more profitable crops such as durian and pepper. FIGURE D.19
Production of Arabica - regions, million 60-kg bags
• Colombia registered the second largest decline, with a net
and growth rates (%)
loss of 1.1 million bags, as unfavourable weather conditions
persisted throughout 2022/23. This led to a 9.1% drop in
output, bringing production down to 10.7 million bags—the
lowest since 2012 and marking Colombia’s third consecutive
year of negative growth.

• In the Caribbean, Central America, and Mexico region,

Honduras saw the sharpest production increase, expanding
by 10.7%, with a net gain of 0.5 million bags. This rebound is
largely attributed to the biennial production effect following
a 19.2% output decrease in 2021/22.

• In Africa, Uganda achieved the largest net gain, with output

rising to 6.4 million bags, a 6.5% increase. This growth was
driven by a strong harvest in the South-Western region and
the maturation of new coffee varieties planted in 2019/20.

BEYOND COFFEE 103

FIGURE D.20 A closer analysis of the data reveals the following:
Production of Arabica - regions, percent share (%)
• Brazil was the primary positive contributor to global Arabica
production in coffee year 2022/23, with a net gain of 2.3
million bags. This increase was due to Brazil’s “on-year”
in its biennial production cycle, though the impact was
somewhat subdued as the industry continued to feel the
effects of the July 2021 frost.

• Colombia recorded the largest decline in global production,

with a net loss of 1.1 million bags.

• Nicaragua’s Arabica output fell by 8.1% in 2022/23, largely

due to the biennial production effect. Similarly, Guatemala
saw a 7.4% decline in Arabica production despite a significant
expansion of coffee-growing areas, from 275,576 hectares in
2018 to 302,000 hectares by 2019, with this area reportedly
maintained through 2022/23. Production was hindered by
factors common to Central American neighbours, including
high labour costs, labour shortages, and erratic weather.

• Peru’s coffee production decreased by 7.1%, totalling 3.9

million bags in 2022/23, due to exceptionally heavy rainfall.

FIGURE D.21
Production of Arabica - top ten countries, '000 60-kg bags

FIGURE D.22
Production of Arabica - top ten countries, growth rates (%)

104 BEYOND COFFEE

D.3.4 Robusta coffee production • Indonesia saw a 6.0% increase in output in 2022/23, adding
a net gain of 0.6 million bags. Despite heavy rainfall due to
the La Niña weather phenomenon – which typically hinders
In coffee year 2022/23, global Robusta production totalled 72.4
production – this growth resulted from an expansion of
million bags, representing a 1.1% decline. Asia and Oceania,
coffee-growing areas.
the largest producer of Robusta, accounted for 60.6% of global
output and was the primary driver of this reduction. Robusta • Côte d'Ivoire experienced a 20.5% decrease in production
production in the Caribbean, Central America, and Mexico in coffee year 2022/23, with a net loss of 0.3 million bags.
increased by 33.2%, largely due to the first-time inclusion of This reduction followed a period of strong growth in 2021/22
Robusta output, estimated at 120,000 bags. and was exacerbated by drought conditions in the country.
A closer analysis of the data reveals the following:
FIGURE D.25
• Vietnam was the largest negative contributor to global
Production of Robusta - top ten countries,
Robusta production in coffee year 2022/23, with a net loss
'000 60-kg bags
of 2.0 million bags. This decline was driven by prolonged
rainfall in key producing provinces (Dak Lak, Gia Lai, and Kon
Tum), reduced fertilizer use, and a shift to more profitable
crops such as durian and pepper.

FIGURE D.23
Production of Robusta - regions, million 60-kg bags
and growth rates (%)

FIGURE D.26
Production of Robusta - top ten countries, growth
rates (%)

FIGURE D.24
Production of Robusta - regions, percent share (%)
D.4 Consumption
D.4.1 Total coffee consumption –
world and regions
Global coffee consumption declined by 1.9% to 173.0 million
bags in coffee year 2022/23, following a 3.8% expansion
in 2021/22. The coffee industry continued to grapple with
issues stemming from the COVID-19 pandemic, alongside new
challenges posed by rising living costs and reduced disposable
income.

In the first two years of COVID-19, global coffee consumption

was significantly reduced, with an average growth rate of –0.4%,
compared to a long-term average of 2.3% (1990–2018). This
created a substantial pent-up demand, estimated at 10.2
million bags, which was released in 2021/22 as consumption
rebounded by 3.8%, or 6.4 million bags—the sharpest rise since
2000/01 (4.6%) and 1978 (7.0 million bags).

BEYOND COFFEE 105

Following this rebound, a modest positive growth was • Africa saw a 5.5% decrease in coffee consumption, falling
anticipated for 2022/23. However, high living costs and to 11.7 million bags.
declining disposable incomes reversed this trend. In 2021,
global inflation peaked at 8.7%, the highest since 1996, only • Caribbean, Central America, and Mexico reported a 1.5%
marginally decreasing to 6.9% in 2022—the second highest in increase in consumption.
27 years. Central banks responded with sustained monetary
tightening, raising nominal interest rates from near zero at the D.4.2 Coffee consumption –
end of 2021 to an average of 4.9% by September 2023 across producing countries
the EU, UK, and USA. This was the highest average since 5.8%
in 2000, placing consumers under dual pressures of high costs Coffee consumption in producing countries grew by 1.5% in
and reduced disposable income. coffee year 2022/23, reaching 55.5 million bags. Among the
top ten consumers:
Regional consumption trends in 2022/23:
• Brazil was the largest, with consumption rising by 0.3 million
• North America saw the largest decline in consumption
bags.
among all regions, down by 2.0 million bags, reducing its
share of global consumption to 16.9%. • India recorded the highest growth rate, expanding by 6.3%
to 1.6 million bags, a net gain of 0.1 million bags.
• Europe experienced a 3.8% decline in coffee consumption,
with a net loss of 2.1 million bags, resulting in a 0.6 • Mexico saw the lowest growth rate among the top
percentage point decrease in its global market share. consumers, with a 1.4% increase in consumption.
• South America posted the highest positive growth rate,
FIGURE D.29
with consumption increasing by 2.1% to 27.6 million bags.
Top ten consumption - producing countries, million
• Asia and Pacific recorded the largest absolute increase, 60-kg bags
gaining 0.7 million bags and raising its share of global coffee
consumption by 0.9 percentage points to 25.8%.

FIGURE D.27
Consumption of coffee - regions, million 60-kg bags

FIGURE D.30
Top ten consumption - producing countries, growth
rates (%)

FIGURE D.28
Consumption of coffee - regions, percent share (%)

D.4.3 Coffee consumption – non-

producing countries
In coffee year 2022/23, coffee consumption in non-producing
countries declined by 4.0%, reducing to 117.5 million bags, a
net loss of 4.9 million bags. Among the top ten consumers:

106 BEYOND COFFEE

• Russia was one of only two top consumers to post positive • The United States recorded the largest absolute decline,
growth, with consumption rising by 7.1% to 51 million bags, with consumption down by 1.6 million bags.
the highest growth rate among the group.

• Canada experienced the steepest decline, with consumption

dropping by 9.5%, a net loss of 0.5 million bags.

FIGURE D.31
Top ten consumption - non producers, million 60-kg bags

FIGURE D.32
Top ten consumption - non producers, growth rates (%)

BEYOND COFFEE 107

108 BEYOND COFFEE
ANNEXES

ANNEX A1 Monika Firl, Fairtrade International, Canada

Enselme Gouthon, Robusta Coffee Agency of Africa and Madagascar
(ACRAM), Togo
ITC Coffee Guide Network Akanksha Gupta, Berry Co., India
Abdulrhman Halafawy, Cupmena, Egypt
The Circular Economy Working Group is coordinated by ITC as Daniela Insignares, Coffee Kreis, Colombia
part of the Coffee Guide Network, a pre-competitive initiative Hans Jurgen Langenbahn, Happy Goat Coffee and The Zero Waste
within the Alliances for Action programme. The working group Coffee Project, Canada
is facilitated in collaboration with Lavazza Foundation and Henry Kamande, Rainforest Alliance, Kenya
Politecnico di Torino. Anne Kasong Yav, ITC, Switzerland
Peter Kettler, Consultant, USA
The working group’s members represent 62 value chain and Changhee Kim,Xi’an Jiaotong-Liverpool University, China
coffee sector actors in 36 countries globally who convene to Taye Kufa, Ethiopian Institute of Agricultural Research (EIAR), Ethiopia
co-create and share knowledge about the circular economy in Giulia Macola, ITC, Switzerland
the coffee sector. Through discussion, the goal is to understand Gustavo Magalhaes Paiva, ITC, Brazil
the state of the circular economy in the coffee sector in practice, Malisa Mukanga, ITC, Uganda
uncover challenges, gaps, and opportunities, and collaboratively Esther Makooma, SAWA World, Uganda
generate knowledge related to the application of the circular Hernan Manson, ITC, Switzerland
economy concept throughout the coffee value chain. Giulia Marchetti, Connecting Grounds, Denmark
Omer Maledy, The Interprofessional Council of Cocoa and Coffee
ITC Coffee Guide Network Circular Economy Working Group
(CICC), Cameroon
members and reviewers of this report:
João Mattos, The Latin American and Caribbean Network of Fair Trade
Kasahun Adelo Alato, PUR, Ethiopia Small Producers and Workers (CLAC), Brazil
Emi-Beth Aku Quantson, Kawa Moka, Ghana Christophe Montagnon, RD2 Vision, France
Ibrahim Al-Jubari, Brunel University London, United Kingdom Andrés Montenegro, Specialty Coffee Association (SCA), USA
Shemina Amarsy, ITC, Switzerland Ismael Ndjewe, ACRAM, Gabon
James Astuhuaman, Consultant, Peru Katherine Oglietti, ITC and C4CEC, USA
Walter Baethgen, Columbia University, USA Alexis Pantziaros, Coffeeco, Greece
Devon Barker, Cafe Imports, USA Gerardo Patacconi, ICO, United Kingdom
Ana Patricia Batalhone, ITC, Switzerland Mariano Ponce Fernández, Agrisanam, Costa Rica
Madhu Bopanna, Small Growers Symposium and Equinox, India Anja Rahn, Curious about Coffee Science, Canada
Martina Bozzola, Research Institute of Organic Agriculture FiBL, Pranita Rimal, UNIDO, Italy
Switzerland Chiara Scaraggi, United Nations Industrial Development Organization
Alessandro Campanella, Sys – Systemic Design Lab - Politecnico di (UNIDO), Italy
Torino), Italy Niels Schulz, UNIDO, Austria
Emmeline Cardozo, Accenture, USA Denis Seudieu, ICO, Côte d’Ivoire
Natalia Carr, Conselho Nacional Do Cafe (CNC) and Cooxupé, Brazil Mariamawit Solomon, Consultant, Ethiopia
Blanca Maria Castro, International Women’s Coffee Alliance (IWCA), Alison Streacker, African Fine Coffees Association (AFCA), Rwanda
Guatemala Dario Toso, Lavazza and C4CEC, Italy, Working Group Facilitator
Mario Cerutti, Lavazza Group and Foundation, Italy Marios Vlachogiannis, Coffeeco, Greece
Sarah Charles, ITC, Greece Johnnie Voutsas, Coffeeco, Greece
Frederic Couty, ITC, Switzerland David Lenny Waweru, Ruwawa Farm, Kenya
Safoura Dao, Togo Melissa Wilson Becerril, Cooperative Coffees, Mexico
Stephany Dávila-Hermeling, ENCAFE, Guatemala Chahan Yeretzian, Zurich University of Applied Sciences, Switzerland
Mory Diawara, ITC, Gabon
We are grateful for the dedication, insights, and research
Kathleen Draper, Ithaka Institute for Carbon Intelligence, USA
contributed by the Circular Economy Working Group’s valued
Rene Edde, Accenture, USA
members.
Pedro de Figueiredo, Net Zero, Brazil

BEYOND COFFEE 109

ANNEX A2
Global Biomass from Coffee Processing Calculations (coffee year 2022/2023)1

Million 60 kg bags Million tonnes %

2022/23 world production 165.50 9.93 100.00%

Total natural (production) 114.20 6.85 69.00%

Total washed and semi washed (production) 51.31 3.08 31.00%

2022/23 world consumption 173 10.38

Source: ICO and ITC Data Aggregation Working Group

Million tonnes %

Total cherries (2022/23 world production) 47.29 100.00%

Total cherries for natural (production) 32.63 69.00%

Total cherries for washed and semi washed (production) . 14.66 31.00%

Total cherries (2022/23 world consumption) 49.43

Dry weight Wet weight

%
(million tonnes) (million tonnes)

Coffee husks 14.68 /

Coffee pulp 1.09 5.72

Coffee mucilage 0.52 3.22

Coffee parchment 5.20 5.72

Coffee green bean 10.38 /

Coffee silverskin 0.20 /

Spent coffee grounds 6.92 11.14

Note: Coffee by-products from processing are calculated based on 2022/2023 world production figures. Coffee by-products from roasting are calculated based on
2022/2023 consumption figures.

1 These calculations are made using ICO production statistics from crop year 2022/2023. Known conversion rates from Oliveira et al. and calculations are applied. Source: Oliveira et al.,
2021).

110 BEYOND COFFEE

 Million tonnes %

Total dry biomass from natural coffee processes 14.68 /

Total wet biomass from washed coffee processes 14.68 /

Total dry biomass from washed coffee processes 6.80 /

Total biomass from coffee processes 29.34 62.05%

Based on the typical state (dry or wet) of each process output as it is produced

Million tonnes %

Total dry biomass from roasting and consumption 7.12 15.05%

Total biomass from roasting and consumption 11.34 22.94%

Million tonnes %

Total dry biomass 28.60 60.49%

Total biomass 11.34 86.03%

Based on the state (dry or wet) of each process output as it is produced. Percentages shown as a total of the total world production of coffee cherries.

BEYOND COFFEE 111

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