Illycaffè Plans to Double Coffee Production in Response to Increasing Demand in Europe and North America – CoffeeTalk

Coffee roaster Illycaffè is poised to double its production capacity in Italy to accommodate increasing demand for coffee beans in Europe and North America. In the first half of 2026, the company’s revenues surged 19% to €373 million (£319 million), primarily driven by a 19% rise in sales in Italy and the US. Despite high green coffee prices impacting costs, Illycaffè reported a 10% increase in its profits (EBITDA), totaling €53 million.

CEO Cristina Scocchia characterized the first half of 2026 as “extraordinary,” underscoring the effectiveness of strategic decisions and the value of the workforce, and emphasized the company’s resilience in a challenging market environment. In response to rising demand, a new roasting plant is set to open in Trieste, marking a significant milestone for the company.

Additionally, Illycaffè is pursuing a new growth phase in the United States through a packaging partnership with Westrock Coffee. Although Illycaffè had previously considered local production in the US, it will maintain roasting operations in Trieste while collaborating with Arkansas-based Westrock on a multi-year deal focused on packaging and distributing ready-to-drink coffee cans.

While coffee prices have slightly decreased from last year’s record highs, they remain above long-term averages, creating volatility that discourages most roasters from lowering prices. Industry leaders, including Giuseppe Lavazza, chair of Lavazza, note that the coffee sector requires at least two successful harvests in Brazil and Vietnam to restore depleted stocks. Current weather-related challenges, such as unexpected rainfall in Brazil and potential disruptions from El Niño, threaten supply chains. Farmers, benefiting from previous high prices, are in a position to withhold coffee, leading roasters to adopt a cautious buying approach as they wait to see if prices will drop.

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