Kopi luwak or civet coffee, refers to the coffee that includes part-digested coffee cherries eaten and defecated by the Asian palm civet. Producers of the coffee beans argue that the process may improve coffee through two mechanisms, selection and digestion. Selection occurs if the civets choose to eat cherries. Digestive mechanisms may improve the flavor profile of the coffee beans that have been eaten. The civet eats the cherries for the fleshy pulp, then in the digestive tract, fermentation occurs. The civet's protease enzymes seep into the beans, making shorter peptides and more free amino acids.[2] Passing through a civet's intestines the cherries are then defecatedwith other fecal matter and collected.

The traditional method of collecting feces from wild civets has given way to intensive farming methods in which civets in battery cagesystems are force fed the cherries. This method of production has raised ethical concerns about the treatment of civets due to "horrific conditions" including isolation, poor diet, small cages and a high mortality rate. A 2013 BBC investigation of intensive civet farming in Sumatra found conditions of animal cruelty. Intensive farming is also criticised by traditional farmers because the civets do not select what they eat, so the cherries which are fed to them in order to flavor the coffee are of poor quality compared to those beans collected from the wild. According to an officer from the TRAFFIC conservation programme, the trade in civets to make kopi luwak may constitute a significant threat to wild civet populations.

Although kopi luwak is a form of processing rather than a variety of coffee, it has been called one of the most expensive coffees in the world with retail prices reaching 550 € / US$700 per kilogram, close to the 850 € / US$1,100 price of Black Ivory coffee. The price paid to collectors in the Philippines is closer to US$20 per kilogram. The price of farmed (considered low-grade by connoisseurs) kopi luwak in large Indonesian supermarkets is from US$100 per kilogram (five times the price of a high quality local arabica coffee). Genuine kopi luwak from wild civets is difficult to purchase in Indonesia and proving it is not fake is very difficult – there is little enforcement regarding use of the name "kopi luwak", and there's even a local cheap coffee brand named "Luwak", which costs under US$3 per kilogram but is occasionally sold online under the guise of real kopi luwak.