ICO analyses consumer trends in new consumer markets

On the afternoon of Tuesday, March 5, the second day of meetings of the Council of the International Coffee Organization (ICO) in London, was held the "Seminar on new trends in consumer markets coffee" in which international analysts have explanations focusing mainly countries with emerging consumption, such as Asia and Eastern Europe.
Rob Simmons, research director in coffee and cocoa in the LMC International presented the impact of new markets on the balance between supply and demand in the world. He said the growth in traditional markets was quite small, but on the other hand, consumption in emerging nations has doubled in the last twenty years, rising recently to 40 million bags annually.
Rob Simmons reported that global consumption grows, currently about 2.5% per year, driven by emerging markets, where this ratio exceeds four percentage points. Nevertheless, global consumption per capita is still quite low, since much of the population does not consume coffee. So for the future, still provides a significant increase in the number of people who drink the product due to potential entry of these potential consumers. At the other end, it is believed that there stagnation in the level of coffee consumption in developed countries.
The research director of CML also noted that emerging markets have a high level of absorption of Robusta coffee due to the high consumption of soluble and specifically in Brazil, due to the high availability and lower price of this variety. In "mature" markets, was also been an increase in the amount of Conilon in their blends, the proportion jumped from 35% to 45% over the past five years. Finally, Rob Simmons mentioned that consumption has increased by 2.5 million bags a year, of which 2.0 million were related to absorption of Robusta in new markets.
Also ministering a lecture at the seminar, the analyst Judy Ganes-Chase, CEO of J. Ganes Consulting, maintains the same line of reasoning, it expects world consumption will continue warm, supported by emerging markets, with greater tendency to purchase the Robusta variety, as these nations begin their movements by coffee. She stressed, though, that the process of steam cleaning, begun in 2007, also contributed to the increased use of Conilon by industry.
Judy Chase analysed that the increase in prices of Arabica coffee in recent years was another factor that helped boost the consumption of Robusta. She pointed out that if in mature markets increased participation in Conilon blends jumped from 35% to 45% growth in emerging markets is even greater, especially for the high consumption of the beverage in its soluble form. These facts explain to a large extent, the frustration of expectations that existed a year ago, for the recovery of Arabica prices depending on the expected shortage in world supply. That is, increasing the use of Robusta "aborted" this prognosis.
In his presentation on consumption outside the home, the Brazilian Carlos Brando, Director of P & A International Marketing, cited that the act of drinking the product in cafeterias is a phenomenon driven by the increasing middle class around the world and is associated with a pleasant environment where people meet. As he goes to Starbucks as the biggest global phenomenon, but there are other examples to be considered, such as the network Coffee Day, very popular in India that serves 400 thousand customers daily, offering cups of coffee at more affordable prices than international networks. "Good product, good coffee and good environment promoting social interaction. These are the main factors that have led to the growth of coffee shops around the world", he explains.
Carlos Brando also points out that another important form of consumption away from home is what occurs in commercial offices, highlighting the growing tasting soluble coffees and machines. However, he cites that the quality is not as visible in these environments. In Brazil, he calculates that consumption outside the home represents 30% of the total. Finally, the director of the P & A believes that one of the challenges we have is to bring consumption off into homes.
After the presentations made at the ICO "Workshop on new trends in consumer markets", we believe that we should make at least a reflection of reviewing strategies for coffee producers in Brazil.
Sincerely,
Silas Brasileiro
CEO of CNC
Source: Revista Cafeicultura