Investing

Current Trends In The Coffee Industry: Is It Worth Investing In?

Coffee is definitely the most consumed drink all over the world. People love their flavor, aroma, and how it affects their bodies.

The majority of us can’t imagine a morning without this caffeine booster, and it became part of the daily routine for many. Coffee consumption is indeed huge.

That’s why so many people are considering investing in the coffee industry. You should base your decision on multiple factors, including market trends, and in this article, you can find all the necessary information about it.

The high demand for Arabica coffee

Coffea arabica contains more lipids and sugar than different types of coffee. Its flavor and aroma are unique, it tastes great, and thanks to the sugar increase, the characteristic coffee bitterness is decreased. People appreciate these aspects and buy Arabica coffee more eagerly than Robusta – around 75% of the world’s coffee production is Arabica beans.

Growing demand in developing countries

The demand for coffee in developing countries is higher and higher. The amount of this beverage consumption in recent years has been growing, and the situation in 2020 won’t change.

But, even though consumption level is higher, it’s still far behind the Europe And North America markets – they are the most significant coffee consumers, and their market share is almost 70%.

Given the growing coffee consumption, it seems that investing in coffee is a very good idea. However, you need to know one thing – sometimes, the coffee market experiences significant short-term price swings.

There are many different reasons for the situation, but most often, it’s caused by natural factors, such as weather conditions, which heavily influence supply.

Long term investments may bring you higher profits, but at the same time, they are riskier – there are certain variables that you cannot predict.

Millennials coffee consumption

At the moment, millennials are the generation with the highest coffee consumption, not only in the United States but all over the world. It’s not surprising, though – due to their demanding lifestyle, coffee is almost a must for them.

However, the way that millennials consume coffee is way different. Their parents and older generations used to brew coffee at home. Millennials don’t usually do this; they prefer to drink coffee on-the-go.

It’s one of the reasons for Starbucks, Costa Coffee, and other coffee giant companies’ popularity. Also, for most millennial representatives, drinking coffee is not something mandatory, but rather a lifestyle choice.

Investing in coffee cup sleeves and similar coffee-related accessories might be a very good idea – they make the product visually attractive and social media friendly, and you clearly know about it – social media is king nowadays.

Higher consumption of specialty coffee

Specialty coffee is becoming surprisingly popular. For those of you who don’t know – it’s a coffee of exceptional quality, farmed and brewed in higher standards.

People are more wealthy than before, and even though they care about the price, what matters the most for them is quality.

That’s why people more and more often decide to buy specialty coffees, which often come with unique ingredients and delicious flavors.

New flavors are important

Cappuccino or espresso are worldwide popular. Classic types of coffee are still on top, but new coffee flavors are purchased more and more often, and it is an undeniable fact.

Iced Caramel Cloud Macchiato, Mocha Cookie Crumble Frappuccino, or Strawberry Frappuccino are just three of many examples. The coffee industry is constantly looking for a way to improve the customer’s experience and satisfy their needs.

People are looking for new aromas, exotic flavors, and exciting mixes. Consider investing in coffee innovations – maybe you’ll be lucky enough to hit the jackpot?

Fast service

We live in a crazy world, where faster means better. Of course, this principle is also valid when it comes to the coffee industry. People drink coffee the most often in the morning when they go to work, and in the afternoon, during their lunch break.

These are the times when coffee demand is the highest, but notice it’s also the times when we are very busy. That’s why shops and restaurants where you can quickly order and get your coffee are the most popular.

The speed of service is important, and according to statistics, it’s a critical factor for at least 70% of people who are buying coffee.

That’s why it’s never a bad idea to invest in stocks of companies like Starbucks, where people can get what they purchased in a matter of minutes.

Because of the constantly growing coffee consumption all over the world, it’s a good idea to invest in the coffee industry.

But, in order to make your investment as effective as possible, you should consider the industry trends. Keep in mind that people care the most about the quality of the product, and specialty coffee high demand proves it the best.

Also, stay open-minded and carefully observe people’s tendencies. They are demanding, but they like to experiment and look for new things. Maybe you can invest in something which they are going to love in the future? Good luck!

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