Coffee demand grew to a record high even as output dropped for a second successive season, the International Coffee Organization said, issuing data which suggest a production short of 7.4m bags.
The ICO, in its first estimate for world coffee consumption last year, pegged it at 149.27m bags, a rise of 2.3% on the 2013 total, a rate of increase in line with the long-term average.
With the organisation trimmed by 130,000 bags to 141.85m bags its forecast for the 2014-15 harvest, reflecting a cut to the estimate for African output of robusta beans, the data suggested a production shortfall of 7.42m bags.
Roberio Silva, the ICO executive director, last month pegged the 2014-15 output deficit at about 8m bags.
Developed countries vs emerging markets
The ICO said that its demand estimates factored in stronger growth in consumption in many emerging market and coffee exporting countries, compared with weaker expansion in developed nations.
“Traditional consuming markets, such as the EU, US and Japan, account for over 50% of the world total, but have been growing at a more modest rate of 1.5%” over the past four years, the organisation said.
A move by drinkers towards specialty beans, and coffee capsules, is believed to be “increasing the value of demand more than the volume”.
Asia, growing at 4.5% a year, and Africa, with 5% expansion, are leading demand expansion, and supporting ideas of demand continuing to rise apace.
“World coffee demand continues to show significant growth, with considerable potential for further increases,” the ICO said.
“Emerging markets, particularly in Africa and Asia, are recording significant increases, albeit from a relatively low base.”
(Source – http://www.blackseagrain.net/novosti/rising-world-coffee-demand-far-outpaces-falling-output)