Increase in Coffee Demand

Americans’ Coffee Guzzling Is Pushing Bean Prices Higher

With huge coffee chains around the world and more specifically in the United States,  Americans coffee addiction is penetrating higher bean prices.  According to the article, “World demand for coffee beans is poised to hit a record this year as people around the world are consuming more of the beverage.” In the article it also mentions, “With the U.S. being the largest consumer, any demand growth there will create massive changes to the demand-supply balance.”  The high demand in coffee  seems to be the result of the high demand for coffee beans.   The increase in demand for global need or consumption for coffee  in country’s like China, Japan and India could also affect the upward pricing of different types of coffee beans.  As a result of this upward pricing, chains like Starbucks and Dunkin’ Donuts could be increasing the price of their coffee.

1 Comment »

  1. nguyelin Said,

    December 9, 2016 @ 3:53 am

    It makes sense that as the demand goes up, Starbucks and Dunkin’s Donuts would increase their prices, is this because the farmers and original producers of coffee beans raised the prices of coffee beans? Also, would this price change lead to the price change of complementary products such as milk, sugar?

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