Monday, December 23, 2013

Coffee Market Is One to Watch in 2014

The coffee market has been a great market to watch in the past because it has consistent growth due to the popularity of coffee on just about every continent, every continent except Antarctica, obviously. Due to stable growth of the drink and thus the companies involved in it, the coffee market is expected to grow again in the coming new year; however, the question to ask is, how much will it grow?

There is growing demand for emerging markets such as in China, Brazil, and India; this means the growth for the market will be promising for the long haul despite the clear saturation of Starbucks in developed countries; as we know, there is a Starbucks on every block in most United States cities.

There is the rising demand for coffee in South American countries, especially in Brazil, because of the coffee farmers have decided to focus more on the crops that bring in more profit; this will alter and shape the industry dynamics in 2014. Brazil is the leading producer of Arabica coffee.

Overall, coffee bean prices have been declining but the supply and demand is still there to support a healthy market; the lower prices per pound may even help fuel a bigger spike in demand for the next year.

A help for the coffee industry is the immense popularity of the single cup coffee that utilizes K cup coffee pods. People are responding to this new trend with open arms because of convenience and customization. Many coffee brands are releasing their coffee pod versions as well.

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