Worldwide demand for coffee beans is set to record this year as people around the world consume more drinks and Americans are leading. According to Bloomberg News, global coffee consumption will increase by 2% from October next year, US consumption is forecast to increase by 5% this year. The popularity of coffee in China, Japan and India has also reached its peak, and local coffee is expected to increase more than ever. Due to high demand, coffee bean prices are rising. Arabica coffee futures prices rose by 20% in June, the biggest monthly rise since February 2014. The Arabica coffee futures price is now around $ 1.4565 per pound, whereas Citigroup predicts the price will reach $ 1.50 in the second half of 2017. Robusta coffee beans prices of instant coffee rose by 2% last month.
From the beginning of 2009 until May 2011, Arabica coffee bean prices have more than doubled to about 300 cents per pound. As Arabica coffee prices rise, Nestlé and other food manufacturers are transitioning from Arabica coffee beans to low-priced premium robusta coffee beans. According to Macquarie, as of September 2012 consumption of Arabic coffee decreased by 2%, Robusta consumption increased by 11%. Since mid-2011, the price of arabica coffee beans has fallen by half, but the price of robusta coffee beans has declined by 15%. In late January, Arabica and Robusta's premium was only 50 cents per pound (New York's spot price). Recent coffee futures price trends suggest that the premium may further narrow to about 45 cents per pound. The current premium is the lowest level since March 2009. However, according to the standards so far, this is still very high and the average price from 2000 to 2009 is less than 40 cents per pound.