Extreme weather and rising transportation costs made the price of coffee beans hit a new high in August. Despite this, coffee chains and convenience stores still launched many coffee promotions on October 1 to celebrate “International Coffee Day,” hoping to let more consumers understand the hard work of coffee farmers through the aroma of coffee and express their gratitude.
London, UK (WS News Publisher) – Coffee is the source of vitality for many people’s day. To celebrate the prosperity of the coffee industry, The International Coffee Organization (ICO) in London, UK, and the World Coffee Association have set October 1 every year as International Coffee Day. Although the coffee prices in August hit a new high, coffee shops worldwide are still welcoming International Coffee Day with many preferential activities, hoping that consumers can express their support for coffee suppliers through these activities.
According to the report published by ICO, The monthly average of the ICO composite indicator rose by 5.2%, from 152.24 US cents/lb in July 2021 to 160.14 US cents/lb in August 2021. The level reached in August 2021 represents a 51.3% increase compared to 105.85 US cents/lb recorded in October 2020. Prices for all group indicators increased in August 2021 and achieved their highest levels in several years. Brazilian Naturals had the highest price increase among them, reaching 174.89 US cents/lb in August 2021. This is an increase of 8.9% from last year’s 160.62 cents/lb.
The increase in coffee supply and freight is one of the main reasons for increasing coffee prices. Brazil, the largest producer, suffered the worst drought in the past decade, causing damage to the coffee bean crop. The covid-19 pandemic and climate have seriously threatened the livelihoods of coffee farmers. More and more young people in coffee farm families are switching from “family businesses” to other locations that they believe will be more progressive and helpful for the future And work. In addition, many jobs frequently held by young people in the coffee value chain have recently disappeared, threatening the supply chain and quality of coffee. This year, ICO used the theme of “Next Generation Coffee” to make people aware of the plight of coffee growers, call on coffee lovers around the world to celebrate coffee, and give more encouragement to the next generation of coffee markets.
With the gradual relaxation of covid-19-related pandemic restrictions and subsequent economic recovery, various consumer products are expected to grow. Although coffee prices continue to rise, the popularity of coffee continues to increase, leading to an increase in global coffee bean consumption. As a result, world coffee consumption is projected to increase by 1.9% to 167.01 million bags in 2020/21 compared to 163.9 million bags for the coffee year 2019/20. However, this figure is still 0.3% lower than the level of 167.6 million bags prevailing before the pandemic outbreak.
When coffee is welcomed by consumers worldwide, fair trade in coffee and understanding the plight of coffee growers around the world have gradually gained attention. The member states of ICO set October 1 as International Coffee Day in March 2014, creating a single celebration day for coffee lovers all over the world. International Coffee Day is a celebration of the diversity, quality, and passion of the coffee industry. This is a way for coffee lovers to share their love for this beverage and express support for the millions of farmers who grow this aromatic crop.
During the celebration of International Coffee Day, many coffee brands or coffee shops will launch celebration promotions. In Taiwan, which has the highest density of coffee shops, many coffee chain shops and convenience stores, have launched coffee discounts, including Starbucks launching a half price for the second cup, 7-Eleven launching a buy-one-get-one discount, and FamilyMart’s convenience store launching a raffle to get a free second cup. Thus, consumers can seize the opportunity to welcome a brand new day with a cup of coffee.