World coffee consumption is resuming its steady growth of the last 10 years as before the outbreak of the Covid-19 pandemic, the International Coffee Organization (ICO) said in the latest monthly report.
Consumption is projected to rise by 1.9% to 167.15 million bags in 2020/21 as compared to 164.02 million bags for coffee year 2019/20, it added.
With the prospect of further easing of pandemic restrictions related to Covid-19 and subsequent expectations of economic recovery, world consumption is expected to continue growing. According to the ICO, over the last 10 coffee years the average growth of world consumption has been 1.9% per year boosted by significant increase in emerging markets versus more stable trends in traditional coffee consuming markets
“The inelasticity of world consumption is expected to tighten the demand and supply ratio and increase the possibility of the current upward trends of coffee prices continuing,” the ICO said.
Estimates of total production for coffee year 2020/21 remain unchanged at 169.64 million 60-kg bags, representing a 0.4% increase as compared to 168.980 million bags during the previous coffee year.
“While Arabica production increased by 2.3% to 99.26 million bags, a 2.1% reduction has been recorded in the production of Robusta coffee to 70.38 million bags, the ICO said in the report.