World is drinking less coffee now
In a work-from-home world, hitting the local cafe for a daily caffeine fix has become a ritual of the nowforgotten past. No matter how much kitchen brewing consumers take up, that just can’t seem to make up for the demand blow.
Global coffee consumption is set to fall this year for the first time since 2011, the US Department of Agriculture predicts. That’s even with a huge surge in bean buying at the grocery store amid pantry loading. Shutdowns for cafes and restaurants— which typically account for about 25 per cent of demand—were overwhelming, and it could be a while before things pick up again.
The disappearance of cafe culture is happening in every major region. Researcher Marex Spectron estimates globally more than 95 per cent of the out-of-home market was shuttered at some point during the pandemic. It’s the latest cruel twist of the coronavirus, which has ripped so much away from people that not even the simple pleasure of lingering over a latte is safe.
For Notes, a coffee-shop chain in London, restrictions are easing in the city, but most of its 10 cafes that cater to office workers remain closed.
“It will be a slow and staggered comeback for us as a lot of the offices in London are not coming back on until after summer, and some may even open only next year,” said co-founder Robert Robinson.
Consumers have shown they’re hesitant to dine out in droves again as economies reopen. Coffee shops, which often depend on morning commuters and afternoon breakers, have been especially hard hit. Dunkin’ Brands Group Inc has lost much of its breakfast crowd during the coronavirus pandemic, while Starbucks Corp. is retooling its model, rolling out a “pickup” store format that doesn’t have any of the tables and chairs.
“If you feel like having a cappuccino, ordering it online doesn’t really work as coffee is all about the social aspect,” said Robinson.
—Bloomberg