Overview and Prospect Analysis of World Coffee Market

Coffee is produced in the tropical regions of 20 degrees north and south latitude on both sides of the equator, with an annual global production of about 600 to 700 million tons. Based on the International Coffee Organization's 2004 guidance prices, the total annual world trade in coffee is approximately US $70 billion, while the total retail sales of international coffee products, analysed according to data originating in Italy, are US $140 billion. The main producers are Brazil (34 per cent), Viet Nam (13 per cent), Colombia (9.4 per cent) and Indonesia (5 per cent). Coffee is produced in Yunnan and Hainan in China.

World coffee consumption is about twice as large as cocoa and tea consumption. World coffee consumption is growing at 1.5 percent a year, while specialty coffee, such as roasted coffee, is growing at 8 percent.

For nearly 300 years, coffee has become popular in every corner of the world and has become one of the three major drinks in the world. Coffee consumption has become the mainstream of fashion and gradually formed a world cultural circle. Coffee bean physical market price to New York (CSCE), London (LIFFE) futures market prices for reference to daily fluctuations, high risk.

According to the analysis of the report of the International Coffee Organization, total coffee production in 2006/07 is expected to increase marginally over production in 2005/06, while total exports are likely to decrease by 4.67 per cent due to price changes, while consumption will increase by 0.69 per cent.

Ji Ming then analyzed the domestic coffee market situation:

At present, domestic coffee consumption is 30,000 tons, of which 60% is instant coffee, traditional brewing coffee consumption accounts for only 30%, and the rest is other forms. According to Nestle statistics, the annual growth rate of instant coffee in China is 40%, and the growth rate of traditional coffee is 30%. China's coffee consumption in the future growth space is very large, is expected to reach 120,000 tons in 2012, per capita consumption is still less than 100 grams.

As young people in the 1970s and 1980s gradually entered the workplace and their incomes increased, it is believed that the habit of drinking coffee in China will be greatly enhanced, and coffee consumption will increase rapidly. In 2010, domestic coffee consumption will increase to 120,000 tons, and the market retail sales will reach nearly 10 billion yuan.

Characteristics of China's coffee industry: The industry has greater growth potential and greater attractiveness. Competition situation is fierce, the market size determines the future risks and uncertainties of the industry, the impact of the world economic environment (such as hot money speculation in the futures market); counterfeit and inferior products bring high profits to some enterprises, and the problems faced by the whole industry are not too serious.

Main Countries of Coffee Import to China in 2004:

Main coffee exporting countries of China in 2004: