Predictions on the Coffee Market for the year 2018
Coffee is a drink that is immensely popular in the United States of America. The global coffee exports itself is a $20 billion dollar industry; most of its consumption is done by industrialized nations.
Most astonishingly coffee is the most sought after commodity in the world after the crude oil; thanks to coffee lover. The total worth of coffee in circulation in the global markets $100 billion worldwide. It is a livelihood of 25 million people.
Coffee is often advertised as a refreshing drink to wake you up in the morning to get started with your daily work grind from nine to five. Coffee companies also work very hard to come up with attractive coffee boxes that are available in the from of bulk at PackagingBlue.com which is a selling factor.
There is very little doubt that coffee is a heath damaging drink if it is abused, just like any other substance that is consumed by the human body. There must be a balance and a control over its oral intake. Many experts do believe that this drink has mildly addictive properties and should be restrained psychologically when there is craving that exceeds certain levels.
The market patterns display that this drink in chased after more than gold and oil, this is why this is a luxury that has to be considered and studies more vividly in terms how this drink can impact the markets in 2018.
The Soaring Prices will degrade the Quality of Coffee
This anticipation has been deducted from a market even a few years back in the C-market where the price of coffee spiked $3 per lb. This generated a concern that the quality will plunge. This is not a rare fact. The high price of any product can demoralize the producers and they come with up with devices that would sometimes noticeably drive down the quality of that particular product. You cannot blame the produces because the producer has to squeeze out their profits and in some other case their earnings for survival. The take of in prices of any commodity will lower the demand of all such products to obtain a new demand and supply equilibrium. What is hidden is that it hurts the quality of the goods. This is a highly propagated fact in the third world countries where people who have disposable income to afford something better have to face products that have substandard qualities. It is the same cause and effect that runs through these developing markets.
There are very little doubts that quality of coffee will be compromised, still there is a dramatic rise in companies that aim to search for better sourcing for their coffee products to enhance the quality. The harsh economic times will also test the coffee companies that have obtained the status of being green.
The competition for high specialty coffee will be fierce in 2018 and there will be many companies that will accept a lower threshold that might compromised with the market. The coffee companies will certainly go with cut backs in the consumer market.
Amazon Whole Foods will Create Challenges
There are many coffee producing companies that work very hard to get enlisted on Amazon whole foods. They even struggle harder to get themselves rank better in that online market for wholesome food. Whole Food was a market mover in the US and the UK until it was acquired by the Amazon. It is expected by many analysts that there will be many food companies that will be listing themselves on the Amazon Whole Food.
It is quite unclear that if you are a coffee producer or a manufacturer and you sell both on Amazon and Whole food then how this is going to be reconciled and worked out in the world of online markets. A wild guess is that whichever option will give Amazon and better margin and give a better average spend will top the rankings of the product search engine.
Chinese Grown Coffee getting More Attention
China is a hefty produces of coffee for a long while, but the matter of the fact is that it has not been bought and sold by specialty coffee companies. However the coffee produced in the southwestern province of Yunnan has a rise in quality to an exceptional level. This will give rise to Chinese coffee to be exported and sold around the world.
The coffee that is being exported from China has shown promising quality and it is expected to be seen more on more in the different region of the world.
UK gets a Hard Hit in the Coffee Business
There had been many quality focused and acclaimed coffee business that vanished from the scene having a backlash from the economy. This had a hard hit on specialty coffee in the UK. The favorite hot beverage of the UK is tea and lots of it and in variety of different blends that sell very good. But, when it comes to a competitive beverage like coffee comes in the entrepreneurs stand a very little chance to survive when they introduce or invest in coffee. This trend will continue and give hard times to coffee producers and coffee lovers alike throughout 2018.
Coffee Producers Pose to Make a Big Decision
Starbucks will shine out in the New Year. The Starbucks continue to make specialty coffee to rock with their reserves and roasteries. There is no other coffee producer that can rival Starbucks.
In the UK, Caffe Nero acquired Harris & Hoole as a business strategy but as a matter of fact this decision of the Caffe Nero part does not come out to be much of a success.
On the other hand Costa Coffee report to find the market to be increasingly challenging, an action is expected from their side as they may lose market shares very rapidly. They may copy the reserve model from Starbucks, it is a speculation. There are chances that Costa Coffee will make a move to acquire a coffee venture.
