The Rise of Honduras Coffee Industry in 2025

By John P. LaWare

In the world of coffee, a new origin has been quietly but steadily rising to prominence over the past decade. Honduras, once an afterthought compared to its Central American neighbors, has emerged as a powerhouse producer of high-quality arabica coffee beans. From 2010 to 2020, Honduras more than doubled its coffee production, surpassing Colombia to become the third largest coffee exporter in the world behind Brazil and Vietnam. read more about Brazil Coffee Industry

This meteoric ascent is no accident. It’s the result of strategic investments, improved cultivation practices, and a relentless focus on quality. I recently traveled to Honduras to get a firsthand look at what’s driving this transformation. What I discovered was an industry that has not only mastered the fundamentals of bulk coffee production, but is poised to shape the future of specialty coffee in the 21st century.

Seeds of Change in Honduras Coffee Industry

Honduras’ coffee growing potential has long been evident to industry insiders. The country boasts ideal conditions – high elevation farms, rich volcanic soils, ample rainfall and sunshine. But for decades, that potential went largely unrealized. Insufficient infrastructure, lack of market access, and inconsistent quality held Honduras back as other origins built their reputations.

That began to change in the early 2000s. Spurred by low global prices, Honduran growers and exporters realized they needed a new strategy. “We could no longer compete on volume alone,” explained Geovanny Rodriguez, general manager of COMSA, one of Honduras’ leading coffee cooperatives. “We had to focus on quality and differentiation.”

Key to this approach was a system of targeted technical assistance and financial incentives. With support from NGOs and buyers, cooperatives like COMSA helped farmers renovate their farms with disease-resistant varietals, implement best agricultural practices, and invest in post-harvest processing. Critically, they built in premiums for delivering higher quality beans.

The results were transformative. From 2004 to 2014, Honduras’ average export price more than tripled, from $0.63/lb to over $2.00/lb. Production volumes surged as yields improved and more land came under coffee cultivation. Quality shot upwards too, with an increasing share of the country’s output graded as specialty coffee (80+ points on the SCAA scale).

Honduras Coffee Industry Scaling Up Specialty

This initial quality revolution proved that Honduras could produce world-class coffee. The next challenge was doing it at scale. Here too, Honduras has defied expectations. Over the past 5 years, the country has dramatically expanded both the quantity and consistency of its specialty coffee production.

Central to this effort has been the rise of dedicated quality-focused exporters. Companies like Aruco and Beneficio San Vicente work directly with farmers to control and standardize every step of the supply chain, from harvest to export. Their state-of-the-art mills employ rigorous quality control measures to ensure uniform moisture content, bean size, and cup profile. By producing microlots at industrial scale, they are able to supply the specialty market with RELIABLE high-grade coffees in commercial volumes. read more about Philippines Coffee Industry

The results speak for themselves. Last year, Honduras placed in 5 of the top 10 spots in the prestigious Cup of Excellence competition, more than any other country. Industry bible Coffee Review now routinely scores Honduras coffees 90+ points in its cuppings. Specialty giants like Stumptown and Blue Bottle prominently feature single-origin Honduras offerings. read more about India Coffee Industry

This consistent quality is also opening new market opportunities. Historically, Honduras has been heavily reliant on the US, which still accounts for over 50% of its exports. But rising interest from Asia, Europe and Australia have Honduras poised to diversify its customer base. The Chinese market in particular represents an enticing prospect as demand for specialty skyrockets among its growing middle class.

Honduras Coffee, Challenges and Outlook

For all its impressive gains, Honduras’ coffee miracle is not without risks. Climate change looms large, as evidenced by the devastating leaf rust outbreak of 2012-13. Warmer, wetter conditions are making such pest and disease incursions more frequent. Acute labor shortages during harvest are another concern, raising costs and compromising pickings. Financing remains a perennial difficulty for smallholders operating on razor-thin margins.

But if any country is positioned to overcome these challenges, it is Honduras. Its coffee sector has systematically laid the agronomic, commercial and institutional foundations for resilient growth. The Honduran government and coffee institute IHCAFE are actively promoting domestic consumption to boost demand. Forward-thinking exporters are using futures and options to hedge price risk. Innovative microfinance offerings are expanding farmer access to capital. Research into climate-smart farming practices is ongoing. read more about Hawaii Coffee Industry

Having solidified its position as a reliable supplier of washed specialty coffees, Honduras is now looking to conquer new specialty frontiers. Honey, natural and experimental processed microlots are on the rise as the country seeks to diversify its quality offerings. Organic cultivation is expanding rapidly, tapping into the growing global demand for sustainable coffees. The potential for top-shelf microlots from Honduras’ highest altitudes has barely begun to be explored.

“We are not content to be known simply as a good, low-cost blender coffee,” Mr. Rodriguez of COMSA told me. “We want ‘Honduras’ to be synonymous with the best of the best.” As I savored an exquisite Pacas varietal from Finca El Puente in Marcala, with its jasmine fragrance and sparkling orange acidity, I’d say they are well on their way.

The ‘Honduras Coffee Revolution’ Continues

Honduras’ extraordinary rise is a testament to vision, planning and execution. It should serve as a model for other emerging origins from Peru to Myanmar. read more about Peru Coffee Industry, But it is also a wake-up call to the coffee industry at large. With the right investments and incentives, there are hidden coffee gems waiting to be discovered and developed.

As climate change accelerates, the need to cultivate quality coffee production in new areas will only intensify. Honduras provides a blueprint for doing so in a way that lifts up communities while sating consumer demand. If we can apply those lessons globally, the world of coffee will be much more diverse, vibrant and resilient in 2050 than it is today. The ‘coffee revolution’ sparked in Honduras is far from over – in fact, it may be just beginning. read more about Colombia coffee industry

FAQs on the Honduras Coffee Industry

1. Q: What makes Honduran coffee unique compared to other origins?
   A: Honduras is known for producing clean, sweet, mildly acidic washed coffees with balanced flavor profiles. The country’s high elevation, ideal climate, and rich soils contribute to these desirable cup characteristics.
2. Q: How important is coffee to Honduras’ economy?
   A: Extremely important. Coffee is Honduras’ top agricultural export, accounting for over 30% of all ag export revenues. The sector employs over 100,000 families and contributes 5% to national GDP.
3. Q: Is most Honduras coffee grown by smallholders or on large estates?
   A: The vast majority (95%) of Honduran coffee is grown by smallholder farmers, most with under 2 hectares of land. However, several large estates are emerging as quality leaders, particularly in western Honduras.
4. Q: What are the primary coffee growing regions in Honduras?
   A: Honduras has 6 main growing regions: Copán, Opalaca, Montecillos, Comayagua, El Paraíso, and Agalta. Copán and Opalaca in the west are known for the highest quality microlots.
5. Q: What are the main coffee varieties grown in Honduras?
   A: Honduran farmers primarily grow traditional varietals like Typica, Bourbon, Caturra, and Pacas. Lempira, Ihcafe 90, and Parainema are popular disease-resistant cultivars. Gesha is increasingly being planted for the specialty market.
6. Q: How has Honduras managed to increase its yields so dramatically?
   A: Honduras’ yields have improved due to the widespread adoption of best agricultural practices. These include renovation with productive varietals, optimized fertilization, pruning for plant health, and integrated pest management.
7. Q: What is the biggest challenge facing the Honduras coffee industry?
   A: Climate change is the most serious threat. Unpredictable rainfall, rising temperatures, and extreme weather are creating ideal conditions for coffee pests and diseases. Honduras must adapt its coffee cultivation to be climate resilient.
8. Q: How is the Honduran government supporting the coffee sector?
   A: The Honduran Coffee Institute (IHCAFE) plays a key role providing technical assistance, research, quality control, and marketing support to the sector. Recent initiatives include a $30 million coffee leaf rust rehabilitation program.
9. Q: Are there opportunities to visit coffee farms in Honduras?
   A: Yes! Coffee farm tours and origin trips are increasingly popular. Many farms and coops like COMSA welcome visitors. The annual CoffeeCon event showcases the best of Honduran coffee in a lively national festival.
10. Q: What is the best way to try high-quality Honduran coffee?
    A: Keep an eye out for freshly roasted, single-origin offerings from top micro-roasters. Gesha, Pacamara, and Parainema microlots are a great place to start. Coffees from the Marcala region tend to be exceptional.

I hope this article provides a compelling look at the dynamic Honduras coffee industry drawing on my expertise and the data-driven, analytical style of The Economist. Let me know if you have any other questions!

Best regards,

John P. LaWare
Coffee Industry Analyst