Bangladesh Bank’s Import Data: A Decade of Coffee Consumption Growth

Walk into almost any café in Dhaka these days whether a polished chain outlet in Gulshan or a modest corner shop near a university and the aroma of coffee greets you before the menu does. For a country long defined by its deep attachment to tea, this feels like a quiet but unmistakable shift. Official import figures, drawn from Bangladesh Bank’s trade statistics and the underlying National Board of Revenue (NBR) customs records, reveal just how rapidly that change has unfolded over the past decade.

In 2012, Bangladesh imported roughly 264 tonnes of coffee. By 2022 the volume had risen to about 1,745 tonnes. The average annual growth rate works out to around 56 percent. In practical terms, coffee demand has been expanding roughly eleven times faster than tea, which has grown at a steadier 5 percent a year over the same period. Even so, tea still dominates: its market remains more than fifty times larger than coffee’s.

These numbers track a genuine change in everyday habits. Nestlé first introduced modern packaged coffee to Bangladesh in a meaningful way in the late 1990s. Before that, imports were irregular. In 2003 the country brought in only 139 tonnes, and instant coffee accounted for nearly the entire market. Growth remained modest through the 2000s. Then the 2010s accelerated everything. Rising incomes, rapid urbanisation, a young population exposed to global trends through social media and travel, and the steady spread of cafés turned coffee from an occasional indulgence into a regular part of student, professional and middle-class life.

More recent customs-linked figures show the trend continuing, with some short-term fluctuation. In fiscal year 2022-23 imports reached roughly 1,732 tonnes. The following year they eased to about 1,439 tonnes still many times higher than a decade earlier. Industry observers largely attribute the dip to higher prices rather than any loss of interest.

Almost all the coffee consumed in Bangladesh still arrives from abroad. The country sources from around forty nations, including eight of the world’s top ten producers. Yet five countries India, Indonesia, Malaysia, Brazil and Vietnam account for the large majority, roughly 88 percent in recent reporting. Instant coffee long ruled the shelves, but roasted and brewed styles have gained substantial ground; some estimates now put them at nearly two-thirds of the market. Local brands and café chains have multiplied. Conglomerates such as PRAN-RFL, Abul Khair and others have joined Nestlé, while independent roasters and café operators have filled cities and begun appearing in smaller towns.

Domestic production remains small by comparison, but it is no longer negligible. Government and private efforts, concentrated especially in the Chattogram Hill Tracts, have lifted output. Recent figures put local production in the range of 100-plus tonnes in a good year, up from much lower levels only a few years earlier. Projects aimed at expanding cultivation, distributing seedlings and supporting farmers are under way, with longer-term ambitions of several thousand tonnes. For now, however, imports remain the backbone of supply.

The tax structure has become a central part of the story. According to the official Bangladesh Customs Tariff under HS Code 09.01, the total tax incidence (TTI) on coffee is sharply differentiated by packaging:

- Packaged or retail coffee (wrapped or canned up to 2.5 kg) whether roasted or unroasted, decaffeinated or not faces a Total Tax Incidence of 93.16 percent (Customs Duty 25 percent + Regulatory Duty 3 percent + Supplementary Duty 20 percent + VAT 15 percent + AIT 5 percent + AT 7.5 percent).  

- Bulk or “Other” coffee faces a significantly lower TTI of 61.80 percent (the Supplementary Duty drops to zero).

This high burden on packaged coffee ranks among the highest in South Asia and has been repeatedly cited by industry players as a major driver of rising retail prices. Premium brands have seen noticeable price increases in recent years. Companies that have invested in local processing and packaging including Nestlé’s substantial factory investment argue that the near-parity in duty treatment between finished retail packs and bulk imports reduces the incentive for deeper value addition inside Bangladesh. High formal taxes have also encouraged some leakage through informal channels, leaving a portion of legally imported stock harder to clear.

What the import data ultimately capture is a cultural transition still in progress. Tea continues to sit at the centre of hospitality and daily routine for most households consumed in well over 90 percent of them, versus coffee in a much smaller share. Yet among younger urban Bangladeshis the rhythm is changing. Coffee has become the drink of study sessions, office breaks, late-night work and social meetings. Mini sachets have made it accessible even at roadside stalls. Premium cafés have made it aspirational. The result is a market that industry players describe as having expanded several times over since the mid-2010s, with current annual consumption estimates in the 2,500–3,000 tonne range and retail value well into the thousands of crores of taka.

The growth has not been frictionless. High duties protect revenue but also raise costs for legitimate importers and processors. Price sensitivity remains high, and global coffee markets themselves are volatile. Still, the underlying demand trend visible in the import statistics looks durable. As long as incomes continue to rise and urban lifestyles keep evolving, the cup of coffee is likely to keep claiming more space beside the traditional cup of tea.

Bangladesh Bank’s overall trade numbers, built on NBR customs records, do not always break coffee out in public summary tables the way they do major bulk commodities. The detailed volume figures that tell this decade-long story come from the same underlying customs system and have been consistently reported across independent media and industry analyses. They paint a clear picture: in little more than ten years, coffee has moved from a niche import to a fast-growing feature of everyday consumption. The absolute volumes remain modest on a global scale, but the trajectory is unmistakable. A tea-drinking nation is learning, cup by cup, to love coffee as well.

**References**

1. Prothom Alo. “Coffee market brews strong in Bangladesh.” 20 June 2023.  

   https://en.prothomalo.com/business/local/rju1kfhvx2  

   (Source for 264 tonnes in 2012, 1,745 tonnes in 2022, 56 percent average annual growth, comparison with tea, major source countries, and early market history including the 139 tonnes figure for 2003.)

2. Times of Bangladesh. “Coffee culture brews big shift.” 15 April 2026.  

   https://tob.news/coffee-culture-brews-big-shift/  

   (Updated consumption estimates of 2,500–3,000 tonnes, market value, shift toward roasted/brewed coffee, Nestlé commentary, and recent local production figures.)

3. National Board of Revenue (NBR) / Bangladesh Customs data (as reported in secondary sources).  

   Figures for FY 2022–23 (approximately 1,732 tonnes) and FY 2023–24 (approximately 1,439 tonnes).

4. Bangladesh Customs Tariff, HS Code 09.01 (Coffee, whether or not roasted or decaffeinated…).  

   Official duty schedule showing Total Tax Incidence of 93.16 percent for packaged coffee (wrapped/canned up to 2.5 kg) and 61.80 percent for bulk/other categories. (Document shared and verified May 2026.)

5. Bangladesh Bank. Balance of Payments and related trade statistics publications (various years).  

   https://www.bb.org.bd  

   (Overarching source for national import data methodology; commodity-level coffee volumes are derived from underlying NBR customs records.)

6. Industry statements from Nestlé Bangladesh and PRAN-RFL Group, as quoted in the Prothom Alo (2023) and Times of Bangladesh (2026) articles above.

7. Department of Agricultural Extension project data and related reporting on domestic coffee production in the Chattogram Hill Tracts.