The Circular Coffee Economy: An Opportunity for the Global South

By: Antonella Ilaria Totaro

Across major coffee-producing regions such as Brazil, Vietnam, Colombia, Indonesia, Ethiopia, and India, millions of small growers continue to sustain a global industry that serves billions of cups each day. With more than 12 million farms cultivating coffee over more than 10 million hectares, the sector remains deeply tied to the economies of the Global South.

Yet many producing countries face similar challenges. Research from the Center for Circular Economy in Coffee (C4CEC) highlights declining yields, rising production costs, soil degradation, and limited profitability—factors that place pressure on small farmers and discourage new generations from entering the field. At the same time, opportunities exist in agroforestry, climate-resilient farming, and product diversification.

The sector generates an enormous amount of waste—estimated at around 40 million tonnes each year. Only a tiny fraction of the coffee cherry is used in the beverage we consume, while the vast majority, including pulp, skin, parchment, and spent grounds, is often discarded. These by-products hold significant potential for new uses in food production, cosmetics, renewable energy, and biochar. African producers, who generate most of this waste, stand to benefit greatly from initiatives that give it new value.

Industry leaders emphasize the need to reimagine how value is created. The International Coffee Organisation notes that turning by-products into marketable goods can support income generation, reduce environmental impact, and create local employment. A recent report developed by several global institutions outlines case studies and strategies for embedding circular-economy principles into coffee production, including regenerative farming and improved waste utilization.

C4CEC has been gathering best practices from experts, researchers, and private-sector partners, forming a knowledge platform aimed at helping coffee growers, cooperatives, roasters, and organizations implement sustainable solutions. The center promotes collaborations that can transform waste into new resources, improve producer income, and reduce the sector’s environmental footprint.

In Kenya, research aligned with the national Coffee Development and Marketing Strategy is exploring ways to turn coffee by-products into food ingredients, biofuels, fertilizers, and materials. Cascara is being tested for use in flour, tea, syrups, and beverages. Coffee waste is also being used for mushroom cultivation and for developing construction and packaging materials.

New businesses are emerging as well. Startups in Egypt and Colombia are experimenting with using coffee waste to grow fungi and support eco-friendly farming. Kenya already uses a large share of its coffee skins for fuel briquettes, while other projects are transforming waste into biochar or creating absorbent materials for treating wastewater.

Building a market for these by-products is essential. Experts from the International Trade Centre highlight the importance of connecting farmers with new industries—such as cosmetics—and creating financial incentives that encourage producers to reuse waste. Strong partnerships at local, regional, and international levels are seen as key to scaling these solutions.

For the Global South, adopting a circular model in the coffee sector represents not only a path toward environmental resilience but also an opportunity to diversify income and support more sustainable livelihoods for farming communities.

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