The development of the market for specialty coffee

The coffee market has been under a lot of pressure recently. Climate change is destroying coffee trees and the covida pandemic has made people more economical with their coffee. Does it make sense to get into the business of selling coffee today?

What is happening in the coffee market?

Itis theproblems with the production of choice coffee and also the tendency of (not only) coffee consumers to be financially cautious, which has been fuelled mainly by the covida pandemic. Market competition and the arrival of large coffee companies in the coffee sector also play a role in the pricing policy in the coffee market.

The price of choice coffee is also rising the more problems farmers have on their coffee plantations. Logically, what is scarce is more expensive. The quality of choice coffee requires special conditions for growing such coffee. Unfortunately, climate change is not playing into the hands of coffee farmers at all. Could it be that choice coffee will become an expensive and unavailable commodity?

What are the challenges facing coffee growers?

Themost pressing problems for coffee growers at the moment are:

  • Loss of suitable land for coffee cultivation.
  • Stress from too much or too little water.
  • Poor flowering and cherry development due to rising temperatures.
  • Increased incidence of coffee tree pests and diseases.
  • The living situation of coffee farm workers and their families.

According to scientific forecasts, changes in temperature and rainfall could result in areduction of the suitable area for coffee growingin Central America by more than about 38%by 2050. At the same time, the minimum altitude suitable for coffee trees will increase.

Do you know who is happy about these climate changes? Hypothenemus hampei. It's a tiny beetle, a pest that attacks coffee plants. The scourge of coffee trees, which is clearly benefiting from the warmer climate. The warmth also favours a fungal disease called coffee leaf rust, which has appeared in waves in the past and can destroy almost the entire crop.

How to respond to the changes and sell coffee successfully?

I hope I haven't scared you too much, don't worry, there is still a future forthe coffee business . You just need to approach it a little differently. The key factors in the coffee market are innovation and sustainability.

Did you know that the SCA has been awarding Sustainability Awards since 2004? For example, World Coffee Resources has been working hard on innovative technologies for growing quality and resilient coffee plants? People don 't just give up quality coffee. On the contrary! Thedemand for choice coffee is growing and will continue to grow.

coffe market

What is and will be the consumer behaviour of coffee consumers?

The main changes can be seen in theage of coffee consumers, their values and the reasons why they drink coffee. The average age of coffee drinkers is regularly declining. Whereas I rarely drank coffee before my twenties, today Generation Z is speaking more and more prominentlyinto coffee sales statistics.

It's not just a trend with young coffee drinkers, the way people drink and buy coffee is changing too. Coffee is now an indulgent beverage. Above all, people want to enjoytheir coffee. Drinking coffee for its stimulating effect is not the main goal. On the contrary, coffee lovers try to limit their caffeine consumption. Which is also related to indulgence, because when I reduce the amount of coffee, and therefore caffeine, I want to enjoy that cup of fragrant beverage as much as possible.

Will it be more profitable to sell coffee beans or a coffee drink?

Are you saying that reducing the number of coffees per day will mean that fewer people will go to coffee shops? Although coffee market predictions indicate a higher demand for home brewed coffee, there will still be a need to have a cup of coffee in company. If you are selling coffee as a beverage, you are also selling a complete coffee drinking experience in a coffee shop.

Sales of coffee beans have grown significantly, especially in the online environment. Even after the covid situation has calmed down, further growth is expected in this area, but also indirect sales. There again, innovation and sustainability are the winners.

Trust in the seller and building a pleasant relationship with the customer are essential. Offering premium products and alternative options such as packaging-free buying of coffee beans at home differentiate the company from the competition. They also open the door tocomplementary sales such as vacuum coffee storage jars.

In conclusion

I hope this reflection on the risks and opportunities in coffee sales has given you a drop of inspiration to start your own coffee business. Whether you take the plunge and start your own coffee shop, bean shop, or combine the two under one roof, we're happy to support you. Let us know what we can help with in your coffee business. Just give us a call!

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