proceedings

Proceeding Paper
Coffee By-Products: Economic Opportunities for Sustainability
and Innovation in the Coffee Industry †
Mariano Peluso

CoffeeBI, Via Messina 47, 20154 Milan, Italy; [email protected]

† Presented at the International Coffee Convention 2023, Mannheim, Germany, 30 September–3 October 2023.

Abstract: The coffee by-product market represents a transformative paradigm in the coffee industry,
capitalizing on previously overlooked resources and generating economic value through sustainable
practices. We will explore the multifaceted opportunities and economic benefits stemming from the
utilization of coffee by-products, and the diverse applications and industries that contribute to its
economic significance. The economic value attributed to the coffee by-product market encompasses
the overall sum of transactions and economic activities associated with the utilization, processing,
and commercialization of coffee by-products. This encompasses the worth derived from diverse
applications and industries that harness coffee by-products to generate products, services, and
various economic opportunities. Coffee by-products, once considered waste, now serve as valuable
feedstock for energy production, driving cost-saving initiatives. From coffee grounds powering
biofuel generation to coffee husks fueling biomass energy plants, the industry is witnessing an
impactful shift towards renewable and eco-friendly energy sources, mitigating operational expenses
and bolstering financial resilience. The convergence of sustainability and innovation finds expression
in the food and beverage sector, where coffee cherry pulp and cascara are harnessed for the production
of functional food ingredients and nutraceuticals. Leveraging the rich antioxidants and nutritional
benefits of coffee by-products, this burgeoning market segment presents lucrative opportunities, while
also promoting health-conscious choices for consumers. Apart from its conventional applications, the
coffee by-product market has a significant impact on sustainable infrastructure development. Coffee
silverskin, renowned for its remarkable insulating properties, presents an opportunity to transform
building materials, leading to energy-efficient construction and decreased long-term operational
expenses. Furthermore, coffee silverskin offers opportunities for market diversification, particularly
in niche segments like artisanal products. Through the transformation of coffee cherry pulp into
biochar, agricultural practices experience a rejuvenation, benefiting from improved soil health and
enhanced nutrient retention. In conclusion, coffee by-products play a crucial role in driving the coffee
Citation: Peluso, M. Coffee
industry towards a sustainable future in line with circular economy principles. Coffee by-products
By-Products: Economic
possess immense potential to create significant economic opportunities for coffee-producing regions,
Opportunities for Sustainability and
Innovation in the Coffee Industry.
fostering growth and prosperity within these communities. They can capitalize on their abundant
Proceedings 2023, 89, 6. https:// availability of these products and explore various avenues for utilization. The economic value of
doi.org/10.3390/ICC2023-14834 the coffee by-product market represents a dynamic amalgamation of innovation, environmental
consciousness, and sound economic principles. Regulatory support and consumer demand for
Academic Editor: Steffen Schwarz
sustainable practices further amplify the market’s potential, creating a compelling incentive for
Published: 12 August 2023 stakeholders to embrace the transformation from waste to wealth.

Keywords: biochar; biomass energy; cherry pulp; circular economy principles; coffee by-products;
coffee silverskin; coffee husks; cost-saving initiatives; eco-friendly; innovation; market diversification;
Copyright: © 2023 by the author.
nutraceuticals; renewable sources; sustainability
Licensee MDPI, Basel, Switzerland.
This article is an open access article
distributed under the terms and
conditions of the Creative Commons
Attribution (CC BY) license (https://
1. Introduction
creativecommons.org/licenses/by/ Recently, the coffee industry has experienced a notable news, brought about by the
4.0/). emergence of the coffee by-product market [1]. This innovation has introduced a trans-

Proceedings 2023, 89, 6. https://doi.org/10.3390/ICC2023-14834 https://www.mdpi.com/journal/proceedings

Proceedings 2023, 89, 6 2 of 6

formative paradigm, tapping into the frequently neglected resources of the coffee pro-
duction process to establish a sustainable and prosperous economic ecosystem [2]. We
will delve deep into the core of this paradigm shift, showing the multifaceted opportu-
nities and economic benefits that arise from the clever utilization of coffee by-products.
Through an exploration, we will uncover the variety of applications and industries that
contribute to granting remarkable economic importance to these previously overlooked
remnant products.

2. Type of Coffee by-Products and Their Economic Value

The coffee by-product market holds economic value that goes beyond monetary
exchange, involving a network of transactions and activities related to their utilization, pro-
cessing, and commercialization. This value arises from various applications and industries
that tap into the latent potential of coffee by-products, creatively turning them into a range
of products, services, and economic opportunities [3–5].
Coffee by-products refer to the various materials or substances that are produced as
a result of the coffee production process. They can be generated at different stages, from
coffee cultivation to processing and consumption.
Some common coffee by-products include [1,4–6]:
Coffee grounds: The most recognizable by-product, coffee grounds are the leftover
coffee after brewing. They are often discarded, but they can be repurposed for various uses,
such as composting, exfoliating scrubs, or deodorizing agents.
In some regions, used coffee grounds were sold as compost or fertilizer for a few
dollars per bag. On a larger scale, the value of coffee grounds might be tied to their
potential use as a feedstock for biofuel production or other industrial processes.
Coffee husks: Coffee beans are enclosed in a protective outer layer called the husk or
parchment. During coffee processing, this outer layer is removed to extract the coffee bean.
Coffee husks can be used as a source of biomass for energy generation or as an ingredient
in animal feed.
The economic value of coffee husks has been observed in regions where they are used
as biomass fuel for energy generation. Their value might be tied to the cost of other energy
sources and, in some cases, coffee husks were used as a low-cost alternative.
Coffee cherry pulp: The coffee cherry is the fruit that surrounds the coffee bean. After
removing the coffee beans from the cherries, the pulp is left behind. It can be composted,
used as fertilizer, or processed into various products, including cascara tea.
The value of coffee cherry pulp can be significant in areas where cascara tea production
is prevalent.
Coffee silverskin: Silverskin is the thin, silver-colored membrane that covers the coffee
bean. It is removed during coffee roasting and often discarded. Some research is exploring
potential applications for coffee silverskin, such as in food additives or as a source of
dietary fiber.

3. Coffee By-Products as a Source of Renewable Energy

One of the most captivating and innovative applications of coffee by-products is their
utilization as source of renewable energy. In a world striving for sustainable energy solu-
tions, coffee by-products have emerged as a beacon of possibility. These by-products, often
overlooked or discarded, hold significant potential for contributing to the global energy
landscape in an environmentally friendly manner. By employing advanced technologies,
the organic matter within coffee by-products, including spent coffee grounds and husks,
is harnessed to produce renewable energy, predominantly in the form of biofuels. This
transformation not only addresses waste management challenges, but also aligns with the
principles of sustainability by converting residual energy from coffee production into a
clean and renewable resource [3,5–7].
An example of application is Biofuel Generation: Coffee by-products, when processed
using modern techniques such as anaerobic digestion and pyrolysis, yield biofuels like
Proceedings 2023, 89, 6 3 of 6

biogas and biodiesel. These biofuels can be used for electricity generation, heating, and
even fueling vehicles. The economic value here is twofold: first, it reduces the reliance on
fossil fuels, thereby decreasing associated costs and environmental impacts; and second, it
transforms a once-discarded resource into a revenue-generating asset.
Moreover, by repurposing these by-products for energy production, businesses can
mitigate waste management expenses, thereby directly contributing to cost savings and
improved profitability.
In regions where governments incentivize renewable energy production through
subsidies, tax breaks, or carbon credit programs, coffee producers can benefit economically
by participating in these initiatives. By generating clean energy, they contribute to reducing
carbon emissions and can receive financial rewards for their eco-friendly practices.

4. Coffee by-Products as a Source of Food and Beverage Innovation

Coffee by-products have extended their influence beyond energy production, entering
into the world of food and beverages. This innovative usage showcases the interconnect-
edness of the coffee industry and culinary artistry, introducing new flavors, textures, and
dining experiences [3,5–9].
Examples of these applications include:
• Beverage diversification. Coffee by-products, including cascara (dried coffee cherry
husks), have inspired the creation of unique beverages. Cascara tea, for instance, has
gained popularity due to its naturally sweet and fruity flavor. This diversification
enables coffee companies to offer an extended range of products, catering to different
taste preferences and expanding revenue streams.
• Nutraceuticals and functional foods. The inherent bioactive compounds in coffee
by-products possess potential health benefits. Extracts derived from coffee husks,
for instance, are being explored for their antioxidant properties and possible use
in nutraceuticals or functional foods. This diversification not only introduces new
products to the market, but also taps into the growing consumer demand for health-
focused options.
• Culinary artistry. Coffee by-products, such as spent coffee grounds, can be repurposed
to infuse distinct flavors into a variety of dishes. Coffee-infused jams, chocolates,
and condiments are gaining traction among connoisseurs who seek novel flavor
experiences. This niche market caters to those who appreciate the fusion of coffee’s rich
aroma and taste in unconventional culinary creations. This innovation opens up new
market segments for coffee companies, extending their influence beyond beverages.

5. Coffee by-Products in Sustainable Infrastructure Development

The versatile applications of coffee by-products extend even further, manifesting in an
impactful sector: sustainable infrastructure development. The convergence of innovation
and sustainability has paved the way for the integration of these by-products into various
construction materials and practices, thereby redefining the boundaries of traditional
building methods. This intersection between coffee and construction not only introduces
novel solutions to age-old challenges, but also contributes to environmentally conscious
urban development [3,5,7,10].
Examples of these applications include:
• Sustainable building materials. Coffee by-products, when processed and treated, can
be incorporated into construction materials like bricks, tiles, and panels. Coffee husks,
for instance, can be used as a raw material for producing lightweight and insulat-
ing building blocks. These materials offer enhanced thermal properties, reducing
energy consumption for heating and cooling in buildings, thus generating long-term
cost savings.
• Urban greenery. Coffee by-products can also play a role in urban landscaping. Coffee
grounds, with their nutrient-rich composition, can be used as soil amendments in
urban gardens and green spaces. This contributes to the beautification of urban
Proceedings 2023, 89, 6 4 of 6

environments, enhancing the quality of life and adding economic value through
improved aesthetics.
• Carbon sequestration. Certain coffee by-products, like coffee husks, can be utilized as
biochar through pyrolysis. Biochar is known to have carbon sequestration properties,
effectively capturing carbon dioxide from the atmosphere and improving soil qual-
ity. This dual benefit addresses both environmental concerns and presents potential
revenue streams through carbon offset programs.
• Innovative infrastructure solutions. The integration of coffee by-products encourages
innovative solutions in construction. For example, coffee-based polymers have been
explored to enhance the durability and flexibility of asphalt pavements, potentially
leading to longer-lasting and more sustainable road surfaces. Such innovations drive
economic value through reduced maintenance and increased infrastructure longevity.

6. Coffee by-Products into Artisanal Creations

The evolution of the coffee industry extends beyond traditional roles, leading to the
creation of artisanal products that capitalize on coffee by-products. This diversification
not only enriches consumer experiences, but also opens doors to unique market segments,
where the fusion of innovation and tradition yields remarkable economic value [3,5,11].
Examples of these applications include:
• Artisanal cosmetics and skincare. Coffee by-products, particularly coffee grounds,
have found their way into the realm of cosmetics and skincare products. The gentle
exfoliating properties of coffee grounds are harnessed to create scrubs and masks that
rejuvenate the skin. The natural caffeine content is often used in skincare formulations
for its potential to reduce puffiness and improve circulation.
• Premium packaging. Coffee companies and artisans often collaborate to design unique
packaging using coffee by-products. Burlap sacks, adorned with intricate designs or
branding, serve as eco-friendly alternatives to traditional packaging materials. These
visually appealing packages enhance the perceived value of the products, attracting
consumers who prioritize sustainability and aesthetics.
• Home décor and crafts. Coffee husks and burlap sacks, once discarded, have now
become sought-after materials for crafting artisanal products. From decorative items
like lampshades and cushions to handwoven baskets and wall art, these materials
lend a rustic charm that resonates with eco-conscious consumers. This application
taps into the growing market for unique, sustainable, and locally crafted home décor.

7. Enhancing Circular Economy Principles

The integration of coffee by-products into various applications serves as a tangible
embodiment of the circular economy’s foundational principles. In this innovative approach,
resources are deftly harnessed, waste is minimized, and economic value is maximized.
The adoption of circular economy practices by businesses is not merely a matter of
procedural change, it is a strategic alignment with broader sustainability goals. Beyond its
immediate impact, this alignment reverberates in the sphere of brand reputation. Compa-
nies that proactively minimize waste and optimize resource utilization manifest themselves
as responsible stewards of the environment and visionaries of progressive change. This
perception resonates with environmentally conscious consumers, translating into a loyal
customer base and a distinct competitive edge in the market [3,5,8,12].

8. Promoting Development in Emerging Economies

The strategic utilization of coffee by-products in developing economies presents a
tremendous opportunity for comprehensive growth and advancement.
This strategy has the capacity to broaden economic activities, enhancing both stability
and resilience. Furthermore, it engenders employment prospects across the entire value chain,
contributing not only to improved livelihoods but also reinforcing community empowerment.
Proceedings 2023, 89, 6 5 of 6

By tapping into the potential of these by-products, developing economies pave a path
towards sustainable development, economic empowerment, and a promising future.

9. Coffee by-Products as Catalysts for Change

Amid the ongoing challenges of climate change, energy efficiency, and socio-economic
disparities, coffee by-products emerge as significant catalysts. The coffee industry’s adop-
tion of these by-products marks a paradigm shift, departing from conventional linear
production and waste disposal models to embrace circular practices that optimize re-
source utilization.
This strategic integration not only addresses environmental concerns, but also posi-
tions the industry to thrive within an ever-evolving global context. Looking ahead, coffee
by-products will continue to propel the industry toward sustainability, economic diversifi-
cation, and the strengthening of communities. By minimizing waste, harnessing renewable
energy sources, introducing innovative culinary experiences, and contributing to novel
construction techniques, coffee by-products embody a significant opportunity for the future
of the coffee industry.

Funding: This research received no external funding.

Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Not applicable.
Data Availability Statement: Not applicable.
Conflicts of Interest: The author declares no conflict of interest.

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