Coffee: Sustained Rise in Global Demand Expected Until 2020

The International Coffee Organization estimates that global demand will reach 175 million sacks of 60 kilos in 2020, driven by the markets of China, South Korea and Russia.

Wednesday, November 19, 2014

The sophistication of consumers and a growing preference for coffee in markets such as South Korea, China and Russia will be part of the main factors driving the increase in demand for the grain in the coming years.

Roberio Oliveira Silva, Executive Director of the International Coffee Organization (ICO) told that "... the increased demand means that the global coffee market will register a deficit in production of at least 800,000 sacks in the harvest year which began last month, although that could be partially offset by supplies from inventories in Brazil. "

In the case of China, Russia and South Korea, Oliveira said "... They are seeing more growth, of between 4% and 4.5% ... " while " ... traditional markets are growing by between 1% and 1.5%. "

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Coffee: Global Report up to May 2015

June 2015

Coffee prices continued their decline as speculation over the current 2015/16 Brazilian crop suggests that the market has no immediate supply concerns.

From the monthly report by the International Coffee Organization (ICO):

Coffee prices continued their decline in reaction to speculation about the data on the current 2015/16 Brazilian crop, which suggest that there will not be market concerns over the immediate effects on global supply. The continued weakness of the Brazilian real has exerted more downward pressure on prices, although export volumes increased slightly in April.

Coffee Continues to Rise and Reaches $207 in 'C' Contracts

April 2014

The rise in coffee futures corresponds to expectations of lower production in Brazil and increased demand in the U.S., China and Europe.

From a report by Anacafé at the end of April 9th, 2014:

Coffee prices in "C" contracts closed at higher prices. The prices behaved in a volatile fashion.

Global Coffee Deficit Predicted

March 2014

In the period 2014/2015 demand for coffee will exceed supply due to lower levels of grain production in Brazil.

The next coffee crop cycle will be the first since 2009/2010 in which a deficiency will be registered in the market as an overall deficit of 612,000 bags of coffee is foreseen. "2014/2015 will see the lowest level of production since 2011/2012 and the largest annual percentage decrease since 2009/2010."

ICO: Global Coffee Production to Fall

December 2011

Following a review of the crops in Brazil and Vietnam, the world's largest producers, a decline of 4% in world production is projected.

Other influences include the crisis in Europe, one of the largest buyers of the grain, and flooding in Colombia which has produced crop losses.