Why Coffee Is the World’s Most Traded Beverage After Oil

When you sip your morning coffee, you’re participating in a global industry worth billions—traded more heavily than any commodity except crude oil. But have you ever wondered why coffee holds such a dominant place in worldwide commerce, or how much of what you drink is actually grown far from home?

The short answer: coffee is the second-largest internationally traded commodity after petroleum, with annual global consumption exceeding 700,000 tonnes. Over 200,000 tonnes are consumed in China alone, yet 90% of that is imported, mainly from tropical regions near the equator.

What Is the Global Coffee Trade?

Coffee ranks as the world’s second most traded commodity globally, trailing only petroleum. It also serves as a critical raw material in pharmaceuticals, food production, and light chemical industries. The coffee most people drink today comes from woody, tree-like coffee plants—known as “” in Chinese—and these are primarily cultivated in countries close to the equator, including Vietnam, Brazil, Colombia, Indonesia, and parts of Central America, Africa, and Asia.

Globally, coffee production thrives in tropical climates. These woody coffee varieties dominate the market, forming the basis of what is commonly recognized as coffee culture today. In contrast, China’s coffee cultivation is limited to just a few subtropical regions, namely Yunnan and Hainan, where production amounts to roughly 40,000 tonnes annually.

Where Does Most Coffee Come From?

The overwhelming majority of the world’s coffee supply originates in equatorial nations. Brazil leads as the single largest producer, followed by Vietnam and Colombia. Other significant contributors include Indonesia and various Central American and African countries. These regions provide the ideal climate and altitude for cultivating traditional woody coffee species.

China, despite being a major global player in many agricultural sectors, produces only a minimal amount of coffee. Yunnan and Hainan provinces contribute around 40,000 tonnes per year, a fraction of the over 200,000 tonnes consumed domestically. This heavy reliance on imports underscores the global nature of coffee supply chains.

As economies grow and coffee culture expands—especially with the rise of global coffee shop chains—demand continues to rise steadily. This trend positions coffee as an increasingly sought-after commodity, with supply struggling to keep pace, particularly for high-quality beans.

What About Non-Traditional Coffee Sources?

Beyond the well-known woody coffee plants, there exists another variety known as “” or herbaceous coffee. Originally a wild plant from Brazil that grew alongside traditional coffee trees, herbaceous coffee has a history that dates back centuries. Historical accounts suggest that as early as 1,400 years ago during China’s Sui Dynasty, monks used its fruit to create a health tonic for the imperial court, though this practice was later lost.

In modern times, Chinese researcher Li Zhanyi, with support from nine universities and research institutes—including the Chinese Academy of Sciences and the Chinese Academy of Agricultural Sciences—successfully cultivated and improved herbaceous coffee over more than a decade starting in 1988. Field trials across 500 counties in 22 provinces proved its adaptability, breaking the monopoly of traditional woody coffee.

Herbaceous coffee offers several advantages. It can be grown in a wider range of environments, has lower production costs, and boasts higher nutritional content. Its processed products also deliver higher value-added potential. Importantly, testing confirms that herbaceous coffee shares key chemical components responsible for the flavor, aroma, and color of traditional coffee. Nutritional analysis shows that it contains protein, amino acids, and essential trace elements—including iron, zinc, calcium, and selenium—at levels higher than those found in woody coffee. Its caffeine content is moderate and aligns with international food safety standards, and toxicity tests have shown no harmful effects, including no carcinogenic, teratogenic, or mutagenic risks.

This alternative coffee source also provides notable health benefits. It has been linked to improved diuresis, digestion, vision, liver function, heart health, kidney protection, cholesterol reduction, cancer prevention, weight management, mental alertness, memory enhancement, and anti-aging properties. Given these qualities, herbaceous coffee is considered a promising new resource for health-focused, functional foods.

The cultivation of herbaceous coffee is not restricted to tropical zones, which allows for broader agricultural application and helps supplement the global demand for coffee. This development is especially relevant as both domestic and international coffee markets face increasing pressure from rising consumption and limited supplies of traditional beans.

Frequently Asked Questions

What is the most traded commodity in the world?

The most traded commodity in the world is petroleum (crude oil). Coffee is the second most traded commodity globally.

Where does most of the world’s coffee come from?

Most of the world’s coffee is produced in equatorial regions, with the largest producers being Brazil, Vietnam, Colombia, and Indonesia. These countries have the climate and geography ideal for growing traditional woody coffee plants.

How much coffee does China produce and consume?

China produces around 40,000 tonnes of coffee annually, mostly in Yunnan and Hainan. However, domestic consumption exceeds 200,000 tonnes per year, with over 90% of that imported.

What is herbaceous coffee?

Herbaceous coffee is a non-tree-form coffee plant that was historically used in ancient China and has been rediscovered and cultivated in modern China. It has similar flavor profiles to woody coffee but offers higher nutrition and can be grown in more diverse climates.

Is herbaceous coffee healthier than regular coffee?

Herbaceous coffee contains higher levels of protein, amino acids, and essential minerals like iron, zinc, calcium, and selenium compared to woody coffee. It also has moderate caffeine and is non-toxic, with potential health benefits including improved digestion, liver function, and anti-aging effects.

Why does China import so much coffee?

China imports over 90% of its coffee because domestic production is very limited. With growing coffee consumption driven by economic development and lifestyle changes, the demand far outpaces local supply.

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