How does the specialty coffee market fluctuate during the economic downturn?
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After the COVID-19 pandemic and the Ukraine-Russia conflict, the economies in many countries around the world are in crisis. The world faces rising inflation rates and economic and political instability, leading to severe consequences for life and industries. So how is the specialty coffee market affected during the economic downturn? Explore with 43 Factory Coffee Roaster!
Prices in the specialty coffee market skyrocketed
According to analysts, starting in February 2022, the impact of the epidemic and prolonged political conflict caused supply and demand to be disturbed. Supply chains in many fields were disrupted, leading to serious shortages of many essential products. Inflation rates increased worldwide, and prices of food, energy, and some commodities were pushed up. Production and transportation costs increased sharply, leading to a sharp increase in specialty coffee prices. At one point, coffee prices in market C (coffee commodity market) reached their highest level in 10 years. Many people are forced to increase prices because prices and logistics costs are too high. This can cause both businesses and consumers to face difficulties because of sharp increases in prices.
Market demand for specialty coffee increased sharply during the economic recession
Specialty coffee market researchers predict demand for premium products such as specialty coffee will plummet during the economic downturn. Because in theory, consumers will tighten spending while focusing on saving and hoarding. However, according to its 2021/22 annual review, the International Coffee Organization found global coffee consumption increased by 3.3% to 170.3 million 60kg bags. Roasted coffee sales are likely to reach more than $192 billion by the end of 2023 by 52%. The specialty coffee market also shows signs of growth. Although it only accounts for a small segment, the number and scale of stores around the world are gradually expanding. During the pandemic and afterward, in particular, demand for high-quality coffee increased, much to the surprise of experts. Many specialty coffee auctions take place, attracting large participation from the world’s coffee enthusiast community.
Many opinions say that this may be due to the influence of the Cup of Excellence or Best of Panama competitions. Their success and spread could help transform the specialty coffee industry, highlighting unique varieties and making them more accessible to consumers.
The world is going through an economic crisis, causing the coffee industry to suffer many impacts on costs and prices. But it seems that the specialty coffee market is still growing with increasing consumption. This can show the enormous attraction of the value of specialty coffee. If you want to experience specialty coffee, visit XLIII Coffee – the brand developed from 43 Factory Coffee Roaster!
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