COFFEECONOMICS
76
REVISTA ACADÉMICA ECO (23) : 73-92, JULIO-DICIEMBRE DE 2020
coffee producers and coffee sellers. This study found that at the end of the process,
coffee brokers earn a profit that can range from 25 % to 35 %.
The third main group of players in the coffee market structure are the coffee sellers,
likewise classified as large, medium or small. The main role of coffee sellers is to fix
the final price for whole coffee consumers in any given market. The profit margin of
sellers is between 15 % to 25 % during good selling seasons. The success of coffee
sellers depends highly on the good quality of coffee, broker prices, marketing
strategies, channels of distribution (domestic and international), diversity and
creativity of new coffee beverages, and good customer service. Sellers always play
an important role in keeping the demand of coffee active and sustainable in the short
and long run. Seizing 62 % of the global coffee market, currently these large sellers
are Starbucks, Coffee Bean, Gloria Jeans Coffee, Caribou Coffee, Dunkin’ Donuts,
McCafe (McDonald’s), Tully’s Coffee, Costa Coffee, Lavazza Coffee, and Nestle. On
the other hand, medium coffee sellers embrace 28 % of the world coffee market,
whereas small coffee sellers are left with the remaining 10 % of the market.
Last but not least, the fourth player in the coffee market structure is the coffee
consumer. Basically, it was found that the consumption of coffee is directly
connected to the following main factors: (i) the fast expansion of income-per-capita
(economic growth); (ii) accessible prices amongst coffee producers and coffee
brokers; (iii) new young consumers (new ways to attract potential coffee buyers);
(iv) fast changes of preference and taste in coffee consumers worldwide (especially
in the Chinese and Asian markets); (v) strong and sustainable marketing strategies.
According to recent indicators, coffee consumption has had an exponential growth
rate of 35 % per year since 2001. This increase is largely the result of the official
incorporation of China into the World Trade Organization (WTO, 2019). Additionally,
several markets in Asia have been increasing considerably their consumption of
coffee; such is the case of Malaysia, whose growth rate of coffee consumers is 23
% per year; Singapore, with a 35 % annual consumer growth rate; Indonesia, with
a growth rate of 27 %; Thailand, of 23 %; Taiwan, of 15 %; South Korea, of 33 %;
Japan, with a 21 % growth rate and finally the Philippines, whose growth rate of
coffee consumers is 12 % per year.