Coffee lovers across the globe could see the price of their favourite cup of premium coffee go up! According to Allegra Strategies, food and drink market analysts based in London, the rise will happen because of limited supply of specialty beans.
“There are some worrying concerns at the supply level. Certainly the massive growth of specialty coffee on a world wide basis is increasing at 12-15% worldwide, this is happening all across the globe not just in Britain,”Allegra Strategies, Managing Director & Founder, Jeffrey Young
The European branded coffee shop market also showed stronger growth in 2015 compared with 2014. The total number of branded outlets is estimated at 19,472 stores, with 1,615 stores added in 2015. In Asia just over 2000 outlets were opened last year alone.
“We’ve got climate change, we’ve also got farmers who have to make economic decisions for their families and farms tend to be very small, there’s very low returns and hence they would perhaps prefer to work or send their children to work in the cities where they can earn more perhaps in the building sector and other parts of economies,”Allegra Strategies, Managing Director & Founder, Jeffrey Young
Experts say the industry badly needs investment and a new strategy, but that could take years. In the meantime customers are facing the prospect of paying more for their favourite cup of coffee and not everyone is happy about that.
“It would become more of like having a glass of wine that you just do once in a while as a luxury,” Lassi Jarvela, Coffee Drinker
“If coffee production goes down the whole world is going to be screaming out for coffee and we’re going to have to look for other ways to get around this,” Steve Hall, Chief coffee buyer, Caravan
Analysts predict a long term shortage of supply because it takes 4 years for a plant to come on tap, 4 and a half years for a coffee tree to actually turn into coffee that you can actually roast
