A few quality cups and a multinational industry of specialty coffee
Millions of people around the world can not imagine a day without a cup of coffee. Coffee industry is so massive that it is second most popular drink in the world after water and the second most exported commodity in the world after oil. People love it because of its flavor, smell, the effect caffeine does and the atmosphere that coffee break gives. Over 2.25 billion cups of coffee are consumed daily all over the globe. In this way coffee consumption is indeed huge.
What is specialty coffee?
Specialty coffee is the highest grade of coffee available, typically relating to the entire supply chain, using single origin or single estate coffee. Specialty coffee is defined as coffees that have scored between 80 and 100 out of a possible 100 on a standardized scale scored by coffee professionals. The term was first used in 1974 by Erna Knutsen in an issue of Tea & Coffee Trade Journal. Knutsen used specialty coffee to describe beans of the best flavor which are produced in special micro-climates. Specialty coffee shops are referred as outlets that sell premium specialty coffee along with other foods and beverages. Usually, specialty coffee shops generate almost 55% of its sales from coffee or products closely associated with coffee.
Worldwide consumption
Specialty coffee is becoming surprisingly popular. People are more wealthy than before, and even though they care about the price, what matters the most for them is quality. That’s why people more and more often decide to buy specialty coffees, which often come with unique ingredients and delicious flavors.
According to WorldAtlas, Finland consumes an average of 26.45 pounds of coffee per capita per year — more than any other country in the world.
In Australia and New Zealand, specialty coffee is considered mainstream. This is perhaps partly due to a long history of espresso consumption, fuelled by large Italian and Greek migrations in the mid-twentieth century.
While specialty coffee in North America is rarely offered in major coffee chains, the Third Wave of Coffee has resulted in a significant increase in specialty coffee consumption.
Europe is already a major coffee market accounting for 30% of global consumption but is seeing a growth in demand for specialty coffee while overall demand remains stable.
Asia is projected to soon represent the world’s largest consumer of specialty coffee, with over US$3.7 billion in new value growth projected from 2016–2020.
Most expensive specialty coffee in the world
In 2019 the most expensive coffee in the world was a Geisha from Panama that was sold for $1029 per pound. Geisha is way more expensive than any other kind of coffee, and it has won way more prizes. Geisha coffee is originated in the village of Gesha, Ethiopia, though it is grown in several other nations such as Colombia. Geisha is known for its sweet flavor and aroma of floral notes, jasmine, chocolate, honey, and even black tea. These sweet floral notes and complex flavor profiles are some of the many characteristics that Geisha coffee shares with most other African coffees. Additionally, this unique flavor is also one of the contributing factors for Geisha’s high price tag and prestige.
Top players on the market
The market is fragmented, and will progressively continue to be so. Barista Coffee Co. Ltd., Caffe Nero Group Ltd., Coffee Day Enterprises Ltd., Costa Ltd., Dunkin’ Brands Group Inc., McDonald’s Corp., MTY Food Group Inc., Restaurant Brands International Inc., Starbucks Corp., and Whitbread Plc. are some of the major market participants. The increasing consumption of coffee will offer massive growth opportunities.
The global market
Global specialty coffee market was valued at a revenue of USD 35.9 billion in 2018. The market is further expected to grow and reach USD 83.6 billion in revenue by the year 2025. The retail value of the U.S. coffee market is estimated to be $48 billion dollars with specialty comprising approximately 55% value share. Coffee Shops market worldwide is projected to grow by US$58.7 billion, driven by a compounded growth of 4.1%.
