The Different Approaches In Improving Global Coffee Consumption

The coffee market’s concerted approach to improving labeling, consumer perception and quality while using effective market segmentation provides lessons that are relevant for other countries wanting to expand consumption. Emerging markets in Asia, Eastern Europe, and the former Soviet Union, which are not traditional coffee consumers, are posting rapid growth in consumption. This is primarily for inexpensive, soluble coffees, though tastes are evolving toward improved quality and novel characteristics, such as premixed cappuccino.

These can be traded through more lucrative channels than the typical industrial grades that flow in the undifferentiated commodity channels and include:

Geographic Indications of Origin or appellations

Gourmet and specialty .

Organic

Fair trade

Eco-friendly or shade grown

Other certified coffees

Soluble is an important key to developing these traditionally tea-drinking markets because most consumers are unfamiliar with coffee-brewing methods and paraphernalia and less able to afford these. North America and Japan are growing slowly in the production of coffee. It seems that in this region the differentiated product market other than coffee market is growing the fastest. The differentiated product market requires that producers distinguish their products by distinct origin, defined processes, or exceptional characteristics, such as superior taste or few defects.

While these differentiated segments provide some coffee producers with competitive advantages and added value, but they are not necessarily easy to access and are still relatively small. They are important because of their growth rates and their potential in providing better social, economic or environmental benefits for farmers.