It is no secret that 2021 was a challenging year for the coffee industry. Since April 2021, prices for coffee beans have been rising rapidly. In eight months, the price for futures increased from $1.40 per pound to $2.50 per pound, reaching its maximum in December. The main reasons for the sharp jump (especially Arabica, its price has risen by about 80% this year) are the crop failure in Brazil and the high shipping cost (from 2 to 8 times).
How Crisis Affected The Coffee Industry In 2021
A significant market change in the price of raw materials began only in autumn. That’s because many manufacturers had inventory in warehouses and unclosed contracts. The prices will go up until the summer of 2022. After that, there is a chance to stabilize these processes. The industry should expect an increase in sales prices for roasted coffee by another 30-50%. Even if one of the manufacturers has not yet raised prices, it is a matter of several months.
How Did Coffee Companies Cope With Last Year’s Crisis?
The company needs to choose a policy of maintaining the high quality of its products at this difficult time despite rising raw material prices. A quality product will always be in demand and popular.
What Will Happen To The Coffee Market In 2022?
The market situation has stabilized, and companies do not expect a strong rise in raw material prices. Stock prices may even fall, but the consumer market will not be affected soon. Everyone expects a 30-50% increase in prices for roasted coffee from producers, as the coffee market is very inert.
Main Trends In The Coffee Industry In 2022
There is a trend in the world that coffee is becoming more expensive. Manufacturers are not interested in producing cheap products. They strive to produce unique coffee at a high price and increase the cost of production. Why has coffee and fermentation become more expensive? That’s because the consumer is able and willing to pay a higher price for coffee. Compared to what was 5 years ago, and even a year ago, the consumer began to pay much more for coffee than before. This trend will grow.
- Quality: The main trend of the coffee industry is, of course, attention to product quality! Over the years, the customer has become good at coffee and more demanding. Therefore, only those manufacturers who monitor quality and use modern technologies will be most in trend.
- Technologies: One of the strongest trends is in the growth of technologies that will make growing grains easier, the production process more efficient, and the quality of coffee higher. The consumer now has every opportunity to buy high=quality coffee for relatively little money. Technology will affect how coffee is served, how it is consumed, how it is distributed. This is the most significant trend you can see right now.
- Customized Lots: There is also a trend of growing smaller and customized lots at the request of specific buyers. The Internet helps make online sales and organize a good delivery system to other parts of the world.
- Green Coffee: People used to buy green coffee to roast and make at home. More and more equipment is being created for these purposes.
The pandemic has also made adjustments to the coffee consumption segment. Self-service coffee shops and other automated services without the direct participation of people are gaining popularity.