This chapter discusses trends in coffee production, particularly factors affecting the low share of global revenue received by smallholders responsible for a large share of production. This situation has profound consequences for the economic and environmental sustainability of smallholder coffee production and therefore the sector as a whole. To provide a context to how best to address the problem, the chapter reviews key market developments such as the degree of concentration, developments in specialty, differentiated, Arabica and Robusta coffees. These provide opportunities for creating an enabling environment to support smallholders. The chapter discusses the example of Brazil as well as ongoing issues in improving livelihoods for smallholders in creating a more sustainable coffee sector.