By IFCMarkets

Demand for coffee products increased

Demand for coffee in South Korea expanded mainly due to sales of bottled coffee drinks. They increased by 60% last year. Investors believe that because of the coronavirus epidemic, people cannot visit cafes often. Wherein, the sale of bottled coffee drinks that you can drink at home is unlikely to be significantly reduced. Earlier, Nestle and Starbucks announced the development of new coffee products in competition with JAB Holdings. It might also be considered good news for the coffee market. Particularly, Nestle intends to sell capsules under the Starbucks brand in 50 countries for its Nespresso and Dolce Gusto disposable coffee makers. To minimize the negative impact of coronavirus, it is proposed to use online orders and sales via the Internet. Тhe statement of the Brazilian National Coffee Council (CNC) may be another positive factor for the coffee quotes. They declare that Brazil has very small stocks of coffee that may not be enough before the new harvest in May. Note that according to INTL FCStone, the historically expected maximal coffee yield in Brazil this year is 65.1 million bags of 60 kg. This is already included in the price. The cost of coffee can greatly depend on the weather.

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