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Volcafe points to ‘the new demand’ for coffee outside of Western markets

Brazil coffee consumptionT he 6 billion people outside of Western Europe, North American and Japan show some of the best potential for coffee consumption growth, according to a report by Volcafe, with their per capita demand of just 0.5 kilograms a year.

Volcafe points to slowing demand in the United States, which has grown at an annualised rate of 1.4 per cent in the last decade. That rate slowed to 0.6 per cent in the last five years.
European data shows that growth in Europe was just 0.6 per cent in the last decade, and contracting by -0.2 per cent in the last five years.

Volcafe highlighted Australia as an example of a market showing strong growth figures, with demand growing by 5.4 per cent per year in the last decade, with that demand accelerating to 6.9 per cent in the last five years.

The report notes that although “the Brazilian ‘producer becomes consumer’ coffee demand story is an old one,” it is significant in looking at the balance of supply and demand. Although per capita demand is already very high, the report says we’re likely to see reduced demand growth rates, down 2 per cent or less, with Brazil’s economic slowdown.

Volcafe points to recent publications that have identified coffee as the commodity with the most to gain in China. Recent trade data is showing that Chinese demand is reaching a tipping point, and will reach 1 million bags this year. Consumption is still sitting at just 0.04 kilograms per person per year, compared to America’s average of 4.2 kilograms and Europe’s at 4.9 kilograms.

North America and Western Europe markets currently account for 45 per cent of global coffee demand, according to the Volcafe report.

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