The Swiss Coffee Industry Navigates Turbulent Waters

Switzerland, the world’s largest roasted coffee exporter by value, sees its position increasingly challenged by global trade conflicts, economic uncertainty in Europe and a rise of powerful competitors. Despite the headwinds, the Swiss coffee industry, historically buoyed by one of the world’s highest living standards on the domestic market, is adapting and finding new avenues for growth. By Vladislav Vorotnikov.

Although no coffee trees are growing within Switzerland, the country is the world’s second-largest coffee exporter after Brazil. Over the last several decades, Switzerland emerged as a hub for coffee roasting and processing, significantly increasing the value of imported green coffee beans. In 2023, Switzerland’s coffee exports reached USD $3.69 billion, noticeably higher
than $2.5 billion in 2020.

Quite a few factors contributed to Switzerland’s rise as a global coffee superpower. “The foundations that propelled Switzerland to the top — [are] high-quality infrastructure, political stability, trade expertise, low taxes, skilled talent, a strong private sector, and a robust banking system,” commented Anita Aerni, executive president of the Swiss Sustainable Coffee Platform. She said Switzerland has built a reputation for adding value to coffee through roasting, capsule technologies, sustainable packaging, and flavour profiling innovation. The country has also taken a leading role in promoting sustainability and transparency in the coffee value chain in recent years.

Switzerland is a unique example of a country becoming one of the largest coffee exporters without growing a single coffee bean, according to Petar Reshovski, general manager at Williams & Marshall Strategy, a research firm. “This reflects Switzerland’s success in capturing value through processing and branding rather than primary production,” Reshovski said.

The Swiss coffee ecosystem has grown rapidly within a relatively short period of time, spurred by some of the world’s best roasteries, major global coffee traders, and some of the leading manufacturers of coffee machines.

This growth in global coffee consumption and a well-thought-out business development strategy embarked on by world-leading coffee companies headquartered in the country are two key factors behind the industry’s success, explained Stefan Legge, a lecturer in economics and head of tax and trade policy at the University of St Gallen in Switzerland.

Significantly, Legge said Swiss coffee companies have utilised the idea of selling a standard product in a luxurious manner. He cited the customer treatment in Nespresso stores – which are known for an exceptional level of customer care – as one of the examples of how such a strategy works. “This fits Switzerland as its high wages require companies to position themselves in the high-end niche of a market. Nestlé is the primary company behind this success, but several others, including smaller ones like No Normal Coffee, add to it as well,” commented Legge.

Strong Home Market

A relatively small but highly elaborated domestic coffee market leaning towards top-choice products has always served as a backbone for the Swiss coffee industry.

“Swiss people are very quality-aware. They know how good coffee can taste, and they expect great coffee at home and in the hospitality sector as well,” said Michael Eugster, communications manager of the Specialty Coffee Association of Switzerland (SCA Schweiz).

Historically, Switzerland, a country with a population of only 8.9 million people, saw domestic consumption of food and beverage being driven by some of the world’s highest living standards. However, the economic headwinds sweeping across the European continent have not left the Swiss coffee scene untouched.

According to Reshovski, consumers started noticing an increase in coffee prices, which lasted for five consecutive years in 2024 and is expected to continue this year. In 2024, Swiss consumers had to pay CHF 0.09 (USD $0.11) more for a cup of coffee in a restaurant, and the rising costs start biting.

“Local consumers are responding to these dynamics,” Reshovski shared, noting a study revealed that due to growing prices, 55 percent of respondents prefer making coffee at home instead of purchasing it in HoReCa locations.”

A study by Deloitte in September 2024 further supported that the Swiss are increasingly making their own coffee at home due to rising prices. However, the pressure from the rising inflation and the general economic problems has yet to derail the growth in demand for premium coffee.

“The market for specialty coffee – and coffee in general – is growing,” Eugster said, adding that the switch to home brewing is not necessarily related to economic factors. “The country’s legacy in capsule coffee, notably through Nestlé’s Nespresso, continues to influence retail dynamics. [The Swiss] know and search for convenience in consuming coffee — without making too many compromises in quality,” he explained, adding that this also leads to technical innovations such as alternatives to capsules, easier preparation with portafilter machines, and grinding by weight grinders.

Tea consumption is on the growth track, too, according to various studies.

In the Swiss tea market, demand is shifting toward herbal and green teas due to various factors such as health benefits, authenticity, and sustainability. “Brands are responding with blends that include superfoods and functional ingredients,” Reshovski said. “Sustainability is a top priority, with organic and sustainably sourced products seeing stronger demand. Private labels and local teas are gaining popularity for their perceived authenticity and national appeal. Flavour diversification and consumer interest in personalised, experience-driven tea products are shaping the future market direction.”

Global Competition Intensifies

The headwinds faced by the European economy and the rise of powerful competitors can put the Swiss position as the global trade hub in jeopardy, observers warned.

“Switzerland’s coffee export sector leverages its advanced processing capabilities and strategic trade networks. However, the current European economic climate presents challenges that could impact the sphere’s competitiveness and stability,” Reshovski said, noting that regulatory changes pose significant hurdles. The European Union’s Deforestation Regulation (EUDR) requires comprehensive due diligence to ensure that agricultural commodities, including coffee, are not linked to forest degradation, recent deforestation, and breaches of social and environmental laws.

The EU Commission proposed a twelve-month delay in implementing the law. As of December 2024, it was reported that the new obligations would apply from the 2025 year-end.

Nevertheless, the preparation required for full compliance remains substantial, Reshovski explained. “Compliance with these regulations may increase operational costs for Swiss exporters, especially those sourcing from smallholder farmers in developing countries. This initiative could pose a significant threat to the country’s dominance in the coffee sector in the short and medium term.”

He observed that this is especially concerning in light of the fact that the European Union accounted for almost half of Swiss exports of roasted coffee in 2023 (44 percent).

Switzerland’s position as the world coffee capital is dubious, with powerful competitors stepping on its heels. “We’re witnessing increased competition from countries investing heavily in coffee innovation and local value addition, including Brazil, Vietnam, and several European hubs,” Aerni shared. “That said, I don’t have a crystal ball — and in today’s world of geopolitical tensions, market volatility, and tariff disputes, making long-term predictions is more uncertain than ever.”

Market players noted that the tariff barrage the US administration unleashed on the world economy also promises to negatively impact the Swiss coffee trade. “While Switzerland is not a coffee-growing country, it plays a major role in processing, value addition, and the re-export of high-quality coffee. This means that tariff structures can have a direct impact on the competitiveness of Swiss coffee companies,” Aerni said. “Nevertheless, the coffee sector is building strongly on relationships. The relationships in the supply chain have developed over decades, built on trust and a high quality of service, which fosters commitment throughout the chain.”

Capitalising on Strengths

Despite the challenges, Switzerland has a good chance to remain at the top of the list of coffee exporters, at least if it plays its cards right.

“Today, sustainability, traceability, and inclusiveness have become critical competitive factors,” Aerni said. “This is where Switzerland continues to lead — if it doubles down on its commitment to responsible sourcing and coffee production. Through multi-stakeholder initiatives such as the Swiss Sustainable Coffee Platform, the relevant actors in the value chain are working together with shared ambitions to ensure that Swiss coffee is not just high quality but that coffee growing and manufacturing become more sustainable and resilient.”

He added that high living standards often go hand-in-hand with heightened awareness, and in Switzerland, this translates into a growing demand forethically sourced coffee and a sharp focus on quality.

“More and more consumers want to know who produced their coffee, under what social and environmental conditions, and whether their purchase contributes to a positive impact along the coffee value chain,” said Aerni.

Swiss consumers have been demanding in terms of coffee supply chain traceability and sustainability even before this became mainstream. Using the experience in meeting the sophisticated demand gained on the domestic market, Swiss companies can solidify their positions in global trade.

“Swiss consumers are increasingly valuing sustainability in their coffee choices,” Eugster said. “For a broad audience, certifications like Fairtrade and Rainforest Alliance are becoming more prevalent, reflecting a broader commitment to environmental and social responsibility in coffee production. In specialty coffee, sustainability is almost always a part of the concept.”

Looking ahead, the outlook for Switzerland’s coffee trade remains positive despite the obvious challenges, Reshovski said. “Sustainability is expected to be a central theme, as evidenced by initiatives like the Swiss Sustainable Coffee Platform launched in 2024.

“At the same time, the continued rise in demand for premium and single-serve coffee formats globally suggests that Switzerland’s specialisation in high-end products will remain a competitive advantage,” he concluded.

Vladislav Vorotnikov is a Batumi, Georgia-based multimedia B2B freelance journalist writing about the tea and coffee industries since 2012.