Coffee is a beverage enjoyed by people all over the world. The addressable market has been expanding given that traditional tea-drinking Asia has seen an influx of coffee shops popping up all over the continent. The Asian continent has the two most populous nations, China and India. The total global population stands at around 7.459 billion people as of March 12. China and India together account for almost 36% of the people on the earth with over 2.68 billion inhabitants.
Starbucks (NASDAQ:SBUX) has opened thousands of stores across China, and the growth of demand for coffee has been rising over recent years. To the delight of coffee drinkers around the world, the price of the beverage has been moving lower as ample supplies have satisfied the growing demand. However, like many agricultural commodities, each year is a new adventure in the coffee market, and it is the weather and growing conditions in the countries with climates that support coffee production that determines the path of prices. Coffee has been in a bear market since November 2016, but the technical picture is improving as the level of technical resistance has been declining alongside the price of the beans.