predicted china coffee consumption

Coffee Prices News today - predicted china coffee consumption : China is predominantly a country of tea drinkers. However, Euromonitor predicted coffee consumption will increase 18 percent by 2019, according to The Wall Street Journal. This growth comes as a result of the country's urbanization and an increase in travel to java-drinking locations, National Geographic explained. As the larger cities become populated with young middle-class businesspeople, China's procurement of coffee has had to increase as well. On trips to areas such as the U.S. and U.K., citizens have become accustomed to drinking the bitter beverage.

Large coffee corporations have realized the potential in China's market and have begun to expand their businesses overseas. Starbucks has plans to increase the number of its restaurants in China to more than 3,000 by 2019 and U.K.-based Costa Coffee will add 600 new stores by 2020, The Guardian reported.

Increasing business in China also benefits Brazilian and Chinese farmers, the source claimed. Starbucks uses strategic sourcing from the Yunnan region, which exports approximately 70 percent of its production. However, to meet higher coffee demands and to reach Starbucks' sustainability requirements, these farmers may see an increase in revenue and find ways to improve their growing methods. Local coffee consumption could help boost China's economy, just as it may for Brazil, where coffee prices have fallen due to a slow market, The Wall Street Journal explained.

China is poised to join the premier league in both coffee production and consumption – although with a sharp disparity between what it grows and what it drinks, according to an International Coffee Organization report.

While the world's most populous country retains overwhelmingly a preference for tea - retail sales of which outpace coffee by nearly 10 to one - Chinese consumption of the bean is "growing at double-digit rates, and shows few signs of slowing", the briefing said. Demand in 2013-14 reached 1.89m bags, more than quadruple the 446m bags consumed a decade before.

And even at this level, demand on a per capita level is equivalent to about 0.083 kilogrammes per year, equivalent to about five or six cups of coffee, and a fraction of per capita consumption of 4.9 kilogrammes a year in the European Union and 4.4 kilogrammes a year in the US.

China coffee market dynamics, 2013-14
Production: 1.947m bags, (+27%)
Consumption: 1.891m bags, (+27%)
Exports: 1.170m bags, (-7.8%)
Imports: 1.463m bags, (+14.7%)
Data by : ICO

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