Research from the global media intelligence company Mintel shows that in the long term, coffee consumption may decline – at least in the developed world.
According to Mintel's research, while 40 percent of 18-to-24-year-olds think that coffee improves their cognitive function, only about a quarter drink it every day.
Demand is strongest among those over 45, and the fastest-growing demographic by consumption are those over 55.
Another shift may be driven by the prevalence of cafes like Starbucks, which offer elaborate beverages with less emphasis on coffee itself. Forty percent of the 18-to-24 demographic prefer sweetened coffee drinks, compared to less than a quarter of those between 45 and 54.
"Offering products that are similar to those found in popular cafes, but can easily be prepared at home or at the office could prove successful with 18-24-year-old reluctant drinkers," said Bill Patterson, a senior Mintel analyst. "Among young adults in particular, understanding the choice between energy drinks and coffee needs significant marketing focus. If coffee companies can't convert these younger drinkers to everyday users, long-term growth may suffer."
Still, falling consumption in America and the developed world may be more than compensated for by growing middle classes in the emerging world, whose demand for coffee is growing, not slackening.
On the IntercontinentalExchange, arabica "C" coffee futures rose 4 percent to 185.8 cents per pound.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
