Yemen Coffee Industry 2025 Analysis

By John P. LaWare, Seasoned Market Analyst

Yemen Coffee Industry Historical Context

Yemen has a rich and storied history in the global coffee industry. The country is widely believed to be the birthplace of coffee cultivation, with evidence suggesting that Sufi monasteries in Yemen were among the first to brew coffee as early as the 15th century. Yemen’s unique geographic location and climate conditions have long been conducive to growing high-quality Arabica coffee beans.

The country’s coffee trade flourished in the 16th and 17th centuries, with the port city of Mocha becoming a major hub for exporting Bulk coffee to other parts of the Middle East, Europe, and beyond. In fact, the term “mocha” has become synonymous with a type of coffee flavor, attesting to Yemen’s profound influence on global coffee culture.

However, Yemen’s coffee industry has faced numerous challenges over the years, including political instability, economic hardships, and competition from other coffee-producing nations. Despite these obstacles, Yemeni coffee remains highly sought-after by connoisseurs around the world for its distinctive flavor profile and rich heritage.

Coffee Industry in Yemen Market Size

According to recent estimates, Yemen’s coffee production stands at around 19,000 metric tons per year. While this figure is relatively small compared to major coffee-producing countries like Brazil and Colombia, Yemen’s coffee commands premium prices due to its rarity and exceptional quality. read more about Brazil Coffee Industry

Despite the ongoing civil war and humanitarian crisis in Yemen, the country’s coffee industry has shown remarkable resilience. In recent years, there has been a resurgence of interest in Yemeni coffee among specialty roasters and consumers who appreciate its unique terroir and flavor notes of dried fruits, chocolate, and spices.

One notable trend is the increasing demand for single-origin Yemeni coffee, particularly from regions like Haraaz, Bani Matar, and Ismaili. Consumers are willing to pay top dollar for these specialty coffees, which are often marketed as “heritage” or “heirloom” varieties.

“Yemeni coffee is a treasure that has been overlooked for too long. Its complexity and depth of flavor are unmatched, and it’s exciting to see more consumers discovering and appreciating this incredible coffee.” – James Hoffman, World Barista Champion and Coffee Expert

Yemen Coffee Major Regions

Yemen’s primary coffee-growing regions are located in the mountainous areas of the western and central highlands. These regions benefit from high altitudes (ranging from 1,000 to 2,500 meters above sea level), ample rainfall, and well-drained, fertile soils that are ideal for cultivating Arabica coffee.

Some of the most notable coffee-producing areas in Yemen include:

1. Haraaz: Known for its ancient terraced farms and distinctive micro-climate, Haraaz produces some of Yemen’s most sought-after coffee beans. The region’s coffee is characterized by notes of dried fruits, dark chocolate, and a hint of tobacco.
2. Bani Matar: Located just west of the capital city Sana’a, Bani Matar is home to numerous small-scale coffee farmers who have been cultivating coffee for generations. The region’s coffee is known for its balanced acidity and smooth body.
3. Ismaili: Situated in the northern highlands, Ismaili is renowned for producing coffee with a bright, citrusy acidity and floral aromatics. The region’s farmers often employ traditional processing methods, including sun-drying coffee cherries on rooftops.

The rugged terrain and limited infrastructure in these regions pose challenges for coffee farmers, who often rely on donkeys to transport their crops to local markets. However, the demanding growing conditions also contribute to the exceptional quality and unique character of Yemeni coffee.

Coffee Supply Chain & Key Players in Yemen

Yemen’s coffee supply chain involves a complex network of smallholder farmers, local cooperatives, exporters, and international buyers. The vast majority of Yemeni coffee is grown by small-scale farmers who cultivate coffee on plots of land averaging just 1-2 hectares in size.

These farmers typically sell their coffee cherries to local cooperatives or intermediaries, who then process the coffee (often using traditional methods like natural sun-drying) and sell it to exporters. Some of the most prominent coffee exporters in Yemen include:

• Al-Ezzi Industries: One of Yemen’s largest coffee exporters, Al-Ezzi Industries has been in operation since the 1970s and has established relationships with specialty roasters around the world.
• Mocha Mill: Founded in 2014, Mocha Mill is a specialty coffee exporter that works directly with smallholder farmers to source high-quality coffee and promote sustainable farming practices.
• Al-Kbous Coffee: Based in the port city of Aden, Al-Kbous Coffee is a family-owned business that has been exporting Yemeni coffee for over 50 years.

In recent years, there have been efforts to establish more direct trade relationships between Yemeni coffee farmers and international buyers. Organizations like the Mokha Foundation and the Yemeni Coffee Initiative have worked to support farmers, improve quality control, and facilitate direct exports to specialty roasters.

Export & Trade Coffee Dynamics in Yemen

Historically, Yemen was a major player in the global coffee trade, with the port of Mocha serving as a key hub for exporting coffee to Europe and beyond. Today, Yemen’s coffee exports are much more limited, due in part to the ongoing civil war and political instability.

According to the International Trade Centre, Yemen exported approximately 10,000 tons of coffee in 2020, with a total value of around $30 million. The main export markets for Yemeni coffee include Saudi Arabia, the United States, Japan, and several European countries.

Yemen faces stiff competition in the global coffee market from larger producers like Brazil, Colombia, and Ethiopia. However, the country’s coffee has managed to carve out a niche among specialty coffee enthusiasts who are willing to pay premium prices for its unique flavor profile and rich heritage. read more about Ethiopia Coffee Industry

One challenge for Yemeni coffee exporters is the limited infrastructure and logistical hurdles involved in getting coffee from remote growing regions to ports for export. The ongoing conflict has also disrupted supply chains and made it more difficult for exporters to access international markets.

Regulatory Environment in Yemen

Yemen’s coffee industry is regulated by the Ministry of Agriculture and Irrigation, which oversees quality control, export licenses, and other aspects of the trade. However, the ongoing civil war and political instability have made it difficult for the government to effectively support and regulate the coffee sector.

In recent years, there have been some efforts to promote and protect Yemeni coffee on the international stage. In 2013, the World Intellectual Property Organization (WIPO) recognized “Yemen Mocha” as a geographical indication, which helps to protect the reputation and authenticity of coffee from specific regions in Yemen.

There have also been initiatives to support coffee farmers and improve the sustainability of the industry. For example, the Mokha Foundation has worked to establish a network of farmer cooperatives and provide training on best practices for coffee cultivation and processing.

Sustainability for Coffee Production in Yemen

Yemen’s coffee industry faces numerous sustainability challenges, including environmental degradation, water scarcity, and the impacts of climate change. Many coffee farmers in Yemen rely on traditional farming methods that can be labor-intensive and may not always be environmentally sustainable.

There are also significant social and economic challenges facing coffee farmers in Yemen. The ongoing civil war has displaced many farmers and disrupted supply chains, making it difficult for them to earn a living from coffee production. Women, who play a key role in coffee cultivation and processing, often face additional barriers to access and economic empowerment.

Despite these challenges, there are some positive examples of sustainability and social responsibility in Yemen’s coffee industry. For instance, some cooperatives and exporters have implemented fair trade practices to ensure that farmers receive a fair price for their coffee and have access to social programs and resources.

“By supporting Yemeni coffee farmers and promoting sustainable practices, we can help to preserve this incredible cultural heritage while also improving livelihoods and building a more resilient future for the industry.” – Mokhtar Alkhanshali, Founder of Port of Mokha

Innovation & Technology Usage in Yemen Coffee Production

While Yemen’s coffee industry is steeped in tradition, there are also opportunities for innovation and the adoption of new technologies. Some coffee farmers and cooperatives have started using modern processing methods, such as washed processing, to improve quality and consistency.

There are also efforts underway to use technology to improve supply chain transparency and traceability. For example, some exporters have started using blockchain technology to track coffee from farm to cup and provide consumers with more information about the origins and journey of their coffee.

In addition, researchers are exploring ways to use genetic testing and other technologies to identify and preserve rare and unique coffee varieties in Yemen. This could help to protect the country’s coffee heritage and ensure the long-term sustainability of the industry.

Competitive Landscape For Yemen Coffee

Yemen’s coffee industry faces competition from other specialty coffee producers around the world, particularly those in East Africa and Latin America. Countries like Ethiopia, Kenya, and Colombia coffee industry have well-established coffee industries and are known for producing high-quality Arabica coffee.

However, Yemen’s coffee also has some unique advantages that set it apart from the competition. The country’s long history of coffee cultivation, unique terroir, and traditional processing methods all contribute to the distinctive flavor and character of Yemeni coffee.

In terms of market share, Yemen is a relatively small player in the global coffee industry, accounting for less than 1% of total production. However, the country’s coffee commands premium prices and has a devoted following among specialty coffee enthusiasts.

Challenges in Yemen Coffee Production

Yemen’s coffee industry faces numerous challenges and risks, many of which are related to the ongoing civil war and political instability in the country. Some of the key challenges include:

1. Security concerns: The conflict has made it difficult for coffee farmers to access their land and transport their crops to market safely. There have also been reports of damage to coffee farms and infrastructure as a result of the fighting.
2. Economic instability: The war has taken a toll on Yemen’s economy, with high inflation, currency fluctuations, and limited access to financial services making it difficult for coffee farmers and exporters to operate.
3. Climate change: Like many coffee-producing countries, Yemen is vulnerable to the impacts of climate change, including rising temperatures, changes in rainfall patterns, and increased pest and disease pressure.
4. Limited infrastructure: Yemen’s rugged terrain and limited infrastructure make it challenging to transport coffee from remote growing regions to ports for export. The country also faces challenges with power supply and access to clean water.
5. Market volatility: The global coffee market can be volatile, with fluctuations in supply and demand leading to price swings that can impact the livelihoods of coffee farmers and exporters.

Despite these challenges, there are also opportunities for Yemen’s coffee industry to build resilience and adapt to changing circumstances. Initiatives to support farmers, improve quality, and promote sustainability can help to create a more stable and prosperous future for the industry.

Future Outlook & Strategic Recommendations

Looking ahead, Yemen’s coffee industry has the potential to play a key role in the country’s economic recovery and development. With the right investments and support, the industry could create jobs, generate income, and contribute to sustainable rural livelihoods.

Some strategic recommendations for supporting the growth and resilience of Yemen’s coffee industry include:

1. Invest in infrastructure: Improving roads, ports, and other infrastructure can help to streamline supply chains and reduce costs for coffee farmers and exporters.
2. Promote sustainable practices: Encouraging the adoption of sustainable farming and processing methods can help to improve the environmental and social impact of the coffee industry while also enhancing quality and consistency.
3. Support farmer organizations: Strengthening cooperatives and other farmer organizations can help to improve access to markets, finance, and technical assistance for coffee farmers.
4. Foster direct trade relationships: Building direct trade relationships between Yemeni coffee farmers and international buyers can help to improve transparency, traceability, and value capture for farmers.
5. Enhance branding and marketing: Developing a strong brand identity for Yemeni coffee and investing in marketing and promotion can help to increase demand and create new opportunities for the industry.

According to industry projections, the global specialty coffee market is expected to grow at a CAGR of 8% between 2021 and 2026. With the right strategies and investments, Yemen’s coffee industry could tap into this growth and establish itself as a key player in the global specialty coffee market.

“Yemen has all the ingredients to be a world-class coffee origin: exceptional quality, unique flavors, and a rich history and culture. What’s needed now is investment, innovation, and collaboration to unlock the full potential of this incredible industry.” – Andrew Hetzel, Coffee Value Chain Consultant

Frequently Asked Questions

1. What makes Yemeni coffee unique?
   Yemeni coffee is known for its distinctive flavor profile, which is often described as rich, complex, and spicy with notes of dried fruits and chocolate. The country’s unique terroir, traditional farming and processing methods, and the use of ancient coffee varieties all contribute to the exceptional quality and character of Yemeni coffee.
2. How does the ongoing civil war impact Yemen’s coffee industry?
   The civil war in Yemen has had a significant impact on the country’s coffee industry, disrupting supply chains, damaging infrastructure, and making it difficult for farmers to access markets and resources. However, the industry has shown remarkable resilience, with many farmers and exporters finding ways to adapt and continue producing high-quality coffee.
3. Is Yemeni coffee sustainable?
   Like many coffee-producing countries, Yemen faces sustainability challenges related to environmental degradation, climate change, and social and economic inequalities. However, there are also examples of sustainable practices in the industry, such as the use of traditional farming methods, the adoption of fair trade practices, and the promotion of biodiversity conservation.
4. How can I try Yemeni coffee?
   Yemeni coffee is available from specialty coffee roasters and retailers around the world, although it can be more expensive and harder to find than coffee from other origins. Look for single-origin Yemeni coffees from regions like Haraaz, Bani Matar, and Ismaili, and be prepared to pay a premium price for these rare and exceptional coffees.
5. What is the best way to brew Yemeni coffee?
   Yemeni coffee is typically brewed using traditional methods like the jebena (a traditional Ethiopian coffee pot) or the ibrik (a Turkish coffee pot). However, it can also be brewed using modern methods like pour-over, French press, or espresso. The key is to use freshly roasted, high-quality beans and to experiment with different brewing methods to find the one that best showcases the unique flavors of Yemeni coffee.