Coffee is without a doubt one of the world’s most popular beverages today. Coffee, which is made from two major types of beans, Arabica and Robusta, is becoming more of a lifestyle than just a drink. Coffee has always been a go-to drink for any scenario, whether it’s an early morning business call, bringing visitors over, or holding a short meeting. Not only that, but coffee supports the livelihoods of nearly 125 million people worldwide. According to the Fairtrade Foundation, coffee is one of the most frequently traded tropical agricultural goods, with 25 million smallholders producing 80 percent of the crop. The world’s leading coffee businesses also respond to their consumers’ demands by continuously changing their menus. With 400 million cups consumed each day, the United States is the world’s largest coffee consumer.
The publication of the novel Covid-19 has had an impact on the coffee business. The epidemic has resulted in substantial differences in statistics across the board, from daily consumption to exports, as compared to prior years. According to a research by World Coffee Portal, the branded café market in the United States lost $11.5 billion in sales over the last year and is now worth $36 billion. Despite the fact that coffee output is expected to increase by 0.5 percent to 169.6 million bags, global consumption is expected to remain 2% below total production in the coffee year 2020/21. Furthermore, coffee shipments are expected to drop by 5.3 percent in 2020.
Coffee shops are already preparing to recoup their losses by adding drive-thrus, digital integration, and new trade forms. Starbucks Corporation (NASDAQ: SBUX) and Dunkin Brands Group, Inc. (NASDAQ: DNKN), two of the world’s largest coffee businesses, are focusing increasingly on drive-thru or “pickup” facilities, rather than traditional sit-in restaurants. Even before 2020, coffee was a top ecommerce grocery commodity, and the closure of locations throughout the world encouraged online sales at various eateries. Starbucks Corporation (NASDAQ: SBUX) is pushing users to buy using its app, reporting that mobile orders accounted for a record 22% of all transactions in 2020. These developments have undoubtedly boosted coffee sales at some of the world’s top coffee firms.
During this period, the habit of brewing coffee at home grew in popularity. Several social media sites provided lessons on how to make ‘Dalgona Coffee’ at home without needing to travel to a coffee shop. Various retailers, including Amazon.com, Inc. (NASDAQ: AMZN) and Walmart Inc. (NYSE: WMT), offer coffee pods from some of the world’s largest coffee businesses, such as Keurig Dr Pepper Inc. (NASDAQ: KDP). Nespresso, a coffee pod manufacturer, has stated that it would increase production in response to the growing popularity of at-home coffee. The Swiss firm announced a $170.5 million expansion of its manufacturing plant in Switzerland, according to the World Coffee Portal.