Coffee production on a large scale i.e. 90% takes place in the developing regions whereas consumption mainly takes place in the industrialized economies. The top 50 coffee companies comprise of more than 70 percent of industry sales. The exports of coffee alone account for $20 billion dollar. The top exporters of coffee include Brazil, Germany, Colombia, Indonesia, Vietnam, Guatemala, Indonesia and Mexico. Coffee is grown mostly in warm and humid climates. Coffee can be processed via – roasting, bulking, blending, picking, drying and hauling and sorting, grading and packing. The top importers of coffee are United States of America, Germany, Italy, France, Japan, Belgium, Canada, Spain, United Kingdom and Austria. Specialty coffee market is increasing at a rapid pace in the United States. Millions of people worldwide are now dependent on a good brew.
Café Coffee Day, Costa Coffee, Nescafe, Star bucks, Caribou Coffee, Green Mountain Coffee Roasters, Peet’s, Dunkin’ Donuts are some of the major coffee players in the industry. Starbucks by far is America’s coffee giant and is the third largest restaurant chain in the U.S. Starbucks has over 13,000 coffee shops in more than 35 countries. Their outlets offer coffee drinks, food items, coffee beans, teas and coffee accessories.
Consumer taste and personal income are the main factors that drive the demand. The edge that companies can attain or their reason for success mainly depends on the ability to secure prime locations, drive store traffic and deliver high quality products. The typical age group of coffee drinkers is between the ages of 20 to 45 year. Another factor that is driving the coffee shop industry is the domestic and international expansion. The channel of distribution in this industry are stores operated by companies located in high-traffic and in high visibility centers and industry competition is structured around inducing growth in market share by establishing new retail shops in countries around the world. Another force driving this industry is product innovation. Many of the major coffee shops are now offering a product selection which is much more than just the traditional cup of coffee.
Lately many cooperatives have been established by coffee growers to negotiate better price terms and improve the quality of life in their communities. The livelihoods 25 million people in the tropics depend on coffee cultivation, which are mostly exported to the U.S. The United States coffee industry is valued at about $ 19 billion every year.