Turkey's Coffee Extract Price Rises 4% to New Record of $9,040 per Ton, Fluctuating Wildly over 2022

Turkey Coffee Extract Import Price in September 2022

In September 2022, the coffee extract price stood at $9,040 per ton (CIF, Turkey), with an increase of 4.2% against the previous month. In general, import price indicated a moderate increase from January 2022 to September 2022: its price increased at an average monthly rate of +4.9% over the last eight months. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on September 2022 figures, coffee extract import price increased by +4.2% against August 2022 indices. The most prominent rate of growth was recorded in June 2022 when the average import price increased by 46% m-o-m. Over the period under review, average import prices reached the peak figure in September 2022.

Prices varied noticeably by the country of origin: the country with the highest price was Switzerland ($22,248 per ton), while the price for India ($6,398 per ton) was amongst the lowest.

From January 2022 to September 2022, the most notable rate of growth in terms of prices was attained by Switzerland (+8.2%), while the prices for the other major suppliers experienced more modest paces of growth.

Turkey Coffee Extract Import Prices by Type

Prices varied noticeably by the product type; the product with the highest price was coffee substitutes containing coffee ($23.1 per kg), while the price for preparations with a basis of extracts, essences or concentrates or with a basis of coffee ($7,752 per ton) was amongst the lowest.

From January 2022 to September 2022, the most notable rate of growth in terms of prices was attained by coffee substitutes (+11.9%), while the prices for the other products experienced more modest paces of growth.

Turkey Coffee Extract Imports

In September 2022, approximately 1.4K tons of coffee extracts, essences and concentrates were imported into Turkey; falling by -17.2% compared with August 2022 figures. Overall, imports recorded a deep contraction. The pace of growth was the most pronounced in August 2022 with an increase of 75% against the previous month. Imports peaked at 3.1K tons in February 2022; however, from March 2022 to September 2022, imports failed to regain momentum.

In value terms, coffee extract imports declined to $13M (IndexBox estimates) in September 2022. In general, imports continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in August 2022 with an increase of 70% m-o-m. Imports peaked at 17K tons in March 2022; however, from April 2022 to September 2022, imports remained at a lower figure.

Turkey Coffee Extract Imports by Type

In September 2022, extracts, essences and concentrates; of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee (1.2K tons) constituted the largest type of coffee extract supplied to Turkey, accounting for a 86% share of total imports. Moreover, extracts, essences and concentrates; of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee exceeded the figures recorded for the second-largest type, preparations with a basis of extracts, essences or concentrates or with a basis of coffee (195 tons), sixfold.

From January 2022 to September 2022, the average monthly rate of growth in terms of the volume of import of extracts, essences and concentrates; of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee stood at -1.5%. With regard to the other supplied products, the following average monthly rates of growth were recorded: preparations with a basis of extracts, essences or concentrates or with a basis of coffee (-15.4% per month) and coffee substitutes containing coffee (-25.7% per month).

In value terms, extracts, essences and concentrates; of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee ($11M) constituted the largest type of coffee extract supplied to Turkey, comprising 88% of total imports. The second position in the ranking was taken by preparations with a basis of extracts, essences or concentrates or with a basis of coffee ($1.5M), with a 12% share of total imports.

Turkey Coffee Extract Imports by Country

Spain (367 tons), India (251 tons) and Brazil (174 tons) were the main suppliers of coffee extract imports to Turkey, with a combined 57% share of total imports. Malaysia, Germany, France, Poland and Switzerland lagged somewhat behind, together comprising a further 33%.

From January 2022 to September 2022, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Germany (with a CAGR of +12.0%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Spain ($3.3M) constituted the largest supplier of coffee extract to Turkey, comprising 26% of total imports. The second position in the ranking was held by India ($1.6M), with a 13% share of total imports. It was followed by Germany, with a 12% share.

From January 2022 to September 2022, the average monthly rate of growth in terms of value from Spain was relatively modest. The remaining supplying countries recorded the following average monthly rates of imports growth: India (+1.2% per month) and Germany (+17.7% per month).

Factors Affecting Coffee Extract Prices

Coffee extract is a coffee product that is made by extracting the coffee beans from the coffee plant. The most common type of coffee bean used for making coffee extract is Arabica. Arabica beans are grown in Ethiopia, Brazil, and Guatemala. Robusta beans are grown in Vietnam, Indonesia, and India. The price of Robusta beans also fluctuates depending on weather conditions and geopolitical factors.

The price of coffee extract in Turkey has been on the rise in recent years, due to a number of factors. One of the main reasons for this is the cost of raw materials. Coffee beans are one of the most important ingredients in coffee extract, and their price has been increasing steadily in recent years. This is largely due to increased demand from major coffee-producing countries such as Brazil and Colombia. In addition, the Turkish government has placed a number of taxes and tariffs on imported coffee beans, further driving up the cost.

Another factor contributing to the rising price of coffee extract is transportation costs. Turkey is not a major producer of coffee, so most of the beans used in extraction must be imported. This means that they have to be shipped long distances, which increases the overall cost. Additionally, fuel prices have been rising recently, which also adds to transportation costs.

The third factor influencing the price of coffee extract is production costs. Extracting coffee requires a lot of specialized equipment and expertise. In addition, many companies that produce coffee extract are located in Istanbul, which is one of the most expensive cities in Turkey. All these factors contribute to the high price of coffee extract in Turkey.

Source: IndexBox Market Intelligence Platform