Global coffee market seeing its largest revenue generated by Nestlé

Press Release   •   Oct 19, 2012 13:48 BST

Coffee is regarded as the highest consumed beverage in developed regions, such as the US and major European countries, with over 2.25 billion cups of coffee being consumed across the globe every day. The beverage is the second most traded commodity in the world, next only to oil, and on a global basis the coffee market is worth more than $100 billion.

Production within the global coffee market is forecast at a record 148 million bags for 2012/13, up 10 million from the previous year. Half the gain is attributed to Brazil's Arabica crop entering the on-year of the biennial production cycle, while record Robusta harvests in Brazil and Vietnam are also expected to contribute to the growth.

Almost 75% of adults in the US report consuming coffee regularly and about half of the American adults consume it daily. The Scandinavian countries however have the highest per-capita consumption of coffee in the world, with the Finns at the top of that list with reportedly an average consumption of more than four cups of coffee per day.

In the 1980's and '90's there was an explosion of new coffee shops opening and serving specialty beverages. The number of coffee stores is now approaching saturation in many developed countries, with the past couple of years being characterised by a reduction in chain coffee stores in developed markets, most notably the US and UK.

The number of independent coffee shops has remained flat while corporate chain stores such as Starbucks are closing stores and have a net loss in the number of shops. However, Starbucks, is still by far America's coffee giant, and is the third largest restaurant chain in the US.

The company could however face a boycott in the UK having avoided tax outgoings and making payments of just £8.6m in corporation tax in the UK over 14 years.

Nestlé has by far the largest revenue and it is also the only truly global coffee company, spanning many categories and regions. The company's fresh coffee brand Nespresso and Nescafé instant coffee are the basis of Nestlé's strength in the coffee business.

For more information on the global coffee market, see the latest research: Global Coffee Market

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