This post is Part 6 for "Coffee market and business in the world". One basic question came to my mind is "How much does the coffee market have been growing?" Let's look back where the history of coffee starts.
I found three sources talking about coffee prices as below:
According to this coffee news.com, there are two phases in history: the regulated phase before 1989 and free market phase after 1990. After releasing the regulation around 1989, the coffee price was dropped from $1.34 per pound to $0.77 per pound in 1995.
Wall Street Journal
Right now in 2019, it is the time when the lowest price per pound in more than a decade according to Wall Street Journal.
In macrotrends.net, there is a historical chart of the coffee price per pound over 45 years as a time series graph. By looking at this chart, I wondered if the above two sources were true or not.
I saw the price drop after 1989. Yes, but it is just one of the repeated cycle and the similar or larger price movement occurred from 1977 to 1980 ($3.19 to $1.15). In addition, when looking at the price during the last decade, it was a similar price from 2005 to 2010.
On the other hand, I saw some article like this saying the coffee price and market will grow more like 5-7% in the future through 2025.
- A Brief History of Global Coffee Production As We Know It (1963-2013)
- The Cost of a Cup of Coffee: Where Does the Money go?