AUSTRALIA’S coffee industry has seen a boom in demand over the past five years, with a massive boom in volume, but there’s still a lot of room for improvement.
Key points:Coffee industry to face major challenges as climate change shifts its focus to more green productionKey pointsCoffees are more reliant on imported ingredients as they growCoffeemakers have to find ways to keep up with demand and produce more efficientlyThe challenge will be getting more people in the coffee marketMore than a third of coffee grown in Australia is sourced from outside the country, according to new research.
It is expected the global demand for coffee will peak in 2020, with demand from developing countries like China, India and South Korea expected to eclipse demand from developed nations, with global demand projected to rise to $1.7 trillion by 2025.
The Australian Coffee Association (ACAA) said more than a quarter of the world’s coffee comes from outside Australia, and the industry will have to adapt to meet this demand.ACAA CEO John Kavanagh said the key to success was to take a holistic view of coffee sourcing and make sure there was enough of it.
“It’s a real challenge, it’s a big challenge, to have a strong coffee business that can sustainably operate across the globe,” Mr Kavanah said.
“We have to be very strategic and very pragmatic with what we’re sourcing.”
If we can’t do that, we’re going to have to grow a little bit more locally and find other places that we can grow that coffee.
“Mr Kavanagah said while coffee was a global market, he would not be surprised if more than half of the global market was sourced from the United States.”
That’s a market that we need to be at, it needs to be in the top five,” he said.
He said the market was already starting to grow organically, with more people choosing to purchase locally grown coffee.”
I think the growth of this market is already happening and we’re seeing a lot more organic growth and that’s great, but we still need to continue to work on the logistics and the marketing of it,” Mr Yee said.
Mr Yee believes a good coffee business can thrive on a diverse workforce, with some being from Indigenous communities and others being from other regions.”
The only way that we’ll be able to sustainably grow the coffee industry is if we have a diverse coffee workforce, that’s the only way we can survive, it won’t be sustainable,” he explained.”
So we need the right people to come into the coffee business, that way we will be able maintain our culture, our heritage, and our community.
“There’s not a single coffee business out there that can support that.”
He said there was still a long way to go in terms of the growth in coffee supply, but the industry was already seeing strong growth.
“Coffemakers have got to be smart in terms in what they’re sourcing,” Mr Sayers said.
“If you’re sourcing from one of the top three or four suppliers in the world, you have to make sure that you’re getting quality.”
Mr Yees prediction is a big leap, but he believes there are opportunities.
“For the future, the biggest challenge for the coffee community is climate change,” he added.
“Climate change is changing the environment and changing how coffee is grown and the way it’s consumed, and we’ll see some very interesting developments in the next five years.”