Coffee in emerging markets is growing rapidly

According to a report released by the London-based International Coffee Association (ICO), coffee consumption in emerging markets such as China and Russia increased by 10 per cent in 2012 compared with the same period last year, while coffee consumption in traditional coffee consuming areas such as Europe and North America fell by 1 per cent year on year. The growth in demand for coffee in emerging markets reflects a growing middle class, increased urbanization and rising incomes in these areas. Analysts predict that emerging markets may account for 50% of global coffee consumption in 2020.

ICO pointed out that the above changes in coffee demand have also affected the coffee export structure, and the lower-quality robusta beans used to make instant coffee are gradually eroding the market share of Arabica coffee beans, which are high-quality commodities mainly used to make espresso and hot milk coffee.