Coffee demand in Brazil, the world's biggest producer and second biggest consumer, is set to increase nearly 5 percent in 2014, Euromonitor International data shows. Brazilians will drink 4.7 percent more coffee in 2014 year over year, exceeding 707,000 tonnes, well above the expected global growth rate of 2.5 percent. Most of Brazil's coffee is consumed at home, Euromonitor said in a July report.
This comes after Brazilian coffee consumption rose by 4 percent in 2013 versus 2012, the report showed. The rise in consumption is steep compared to that of the United States, the world's biggest coffee drinker by volume. Euromonitor said it expected a modest 1.8 percent increase in US consumption, to a total of more than 828,000 tonnes in 2014.
The forecast for rising demand in Brazil comes after the country's arabica-growing region experienced a drought in January and February, a critical time when beans were developing on the trees. The unprecedented drought reduced output, causing some in the coffee industry to switch their global supply forecasts to a deficit from a surplus.
Brazil's primary coffee export is arabica, the type of bean roasted for brewed drinks, while most of its robusta is consumed domestically. Robusta coffee is either processed into instant coffee or added to roasted blends to reduce costs. Brazilian coffee drinkers are increasingly switching their taste preferences to arabica brews, however. Between 2013-2018, Brazilian coffee consumption will surge by 20 percent to nearly 808,000 tonnes, generated by rising demand for gourmet and high-quality coffee, according to Euromonitor. That compares with an expected rise of 5 percent in US consumption over the same time period, to a total of more than 835,000 tonnes.