Analyzing of Potential Market of China for Ethiopian Coffee

According to a survey conducted in Shanghai shows that 24% of those aged 41-50 years old and between 20 -30 years old there is 18% people often go to sip a coffee. Therefore, The Coffee Club target market will be people working in offices and university students and faculty.

The caffeine in coffee become an ethical increase over alcohol and have become a fashionable social beverage. It was interesting to see how it started off as this very exotic drink only for the upper class and then turned into what it is now. Coffee is a very fashionable drink that does not cost much that many have led their days with in today’s society.

Political: workers drank coffee to have better concentration and improve the mind and perks their ability to work. There were differences in the coffeehouses of the French and English.

Coffee consumption is expected to increase through 2015 at an average annual rate of 2.7%, while tea consumption is expected to increase through 2015 at an average annual rate of 3.1%. Positive expectations for continued growth in coffee sales, despite its “mature” product position in the market, are due to the innovations in premium coffee products (pods, single-serving instants, etc.)

There are a very few drinks with a richer history and culture as coffee. Coffee has hundreds of

The world in terms of development is divided in two, which is known as the ‘North-South divide’ this shows a separation between developed and developing countries. This separation is caused by economic, social and environmental factors, economy being the clearest and most prominent influence. For many countries in the Global South coffee is their main income, and as a result is highly important to their economy. For instance if coffee decreases in price then farmers will not earn enough surplus to keep their farms and what follows is a life of poverty. The following are the world’s top exporters in coffee (as of July 2016, in thousands 60kg bags):

Coffee has become an international popular drink with a record of 2.25 billion cups of coffee consumed daily (Climate Institute, 2016). People simply love, enjoy and need coffee. In fact, some people have considered coffee as a critical part of their day. Keeping that in mind, the demand of coffee will increase because people will be driven to buy coffee and drink based on the scientific data of advantages it provides.

No matter where we go, there seems to be a coffee shop around the corner or a shop/diner that provides the option of coffee or tea to their customers. Lets take starbucks as an example, they have many options as from tea to warm coffee drinks or even a nice cold coffee frappuccino. Coffee and tea is a demanded product in the market industry. From coffee or tea product in the market store or businesses buying the product to make coffee for customers, people are willing to buy the beverage to drink mainly to keep them awake. Some people need it as a daily thing.

According to the Beijing Coffee Industry Association, it shows that China's coffee consumption growth rate is estimated to be at around 15%, which is 2% above the world average. Using the international standard to calculate the average coffee consumption market, they found out that the mainland Chinese market alone, has a consumption of coffee which amounts to 1 trillion (yuan) , however , the current annual sales of coffee is only at around 700 billion yuan , with the market just at the eve of the blowout.

In coffee producing countries, which account for over 26% of world consumption, the situation is more diverse. In some countries, prices of coffee have fallen in local currency and consumption may therefore be stimulated. In Brazil, the largest coffee market among producing countries, the devaluation of the real has maintained prices of green coffee at pre-crisis levels. As a whole, consumption in these markets is not expected to suffer any major negative impact.

Statistics show that over half of the American population consumes coffee on a daily basis. You may drink coffee hot, cold, mixed, or even in a frappuccino. Individuals are able to make coffee at home, or buy it on the go. Coffee provides people with caffeine, which ultimately gives energy for hardworking people all around the world. The main focus for this paper will cover the following topics, with coffee as the basis: causes for shifts in supply and demand, how coffee supply and demand influence price, quantity,

Around one hundred and twenty five million people are dependent on coffee, making coffee the most valuable and widely traded tropical agricultural product. It is also one of the highest earners in the market with a worth of $70.86 billion dollars, therefore it is highly tradeable but it is largely investing into global poverty due to the rural coffee farmers earning such a small percentage of the overall profit. (Foundation, F. (n.d.). Fairtrade International. 2015) There are over seventy countries producing coffee but over eighty percent of the worlds coffee is only being produced in four main states which are Brazil, Colombia, Vietnam and Indonesia. With

Coffee is the second largest export commodity in the world after oil and is exported from 52 countries in the south. The current crisis has evolved through a series of changes in the industry. Since the liberalization of the coffee market, the price volatility has amplified. The world production of coffee has risen dramatically in the past three years mainly due to the production increase in the two world leading countries Brazil and Vietnam. Vietnam has for example increased production by 1400 % between 1990 and 2000, and Brazil has contributed even more than Vietnam to the global oversupply during the past five years. Both countries also have large numbers of trees in development, which will lead to an overproduction for at least the

I would like to thank Professor Neil R. Abramson for his endless support and help.

In terms of opportunities in China, it has the world’s 2nd largest economy. The population of Shanghai 23000 million people, which makes a market segmentation widen. Moreover, consumer-buying behavior in choosing products are highly influenced by western cultural perception. China’s top economic policymakers set domestic consumption as a main driver for the country’s economic growth. Business threat is cultural barrier, as Chinese people are used to drink tea, rather than coffee.