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It seems our unstoppable love affair with coffee has reached new heights, with world coffee consumption expected to reach record levels by the end of the year.
According to Bloomberg, world coffee consumption is expected to rise 1.2% in 2016, pushing the global coffee market to a record 150.8 million 60kg bags. This growth is largely being driven by coffee demand in the US it is thought, where per capita consumption of coffee will be 3.1kg by the end of 2016. Interest in artisan coffee and cold brews means four out of five people in the US now drink the beverage, while interestingly it’s also suggested that low gasoline prices may be a contributing factor, as drivers seek a stimulant to keep them on the road. Coffee demand in China, India and Japan is also the highest it’s ever been.
Supply and Demand?
However, there may be some problems meeting demand, especially given the current political turmoil and bad weather in producing countries like Brazil, and world coffee prices may increase to as much as $3 a kilo for Arabica beans it has been suggested (it’s around $2.90 currently). The economic repercussions of Brexit may also be felt in the global coffee market.
Perhaps it’s time to start stockpiling those beans?