Coffee in our US Economy



For some of us, waking up in the morning we need a crucial item before we can start the day, sometimes before we can even get out of bed. If you guessed coffee as that item, you would be correct. Coffee is not just a drink, but is referred to as a “global commodity”. It is one of the world most traded products and is responsible for half of the exports in tropical countries.

Personally, I need to have at least one cup of coffee a day otherwise I can’t function after 3pm. When you look at the number of coffee shops there are in this country, you can see that I am not alone in this feeling. In 2015, $225.5 billion was spent on the coffee industry, making it the most consumed beverage in the US. Not only that it has helped the US economy because in 2015 it had also generated nearly $28 billion in taxes off of the coffee that was sold. 

Most of the money generated from this economy is a result of the foodservice industry instead of at home services like an Espresso Machine. People enjoy having coffee being made especially for, like a caramel cinnamon latte, instead of being able to make yourself a “plain, old” drip coffee. Especially among millennials, it has become a common thing to want to go out and spend money on this special coffee. People between the ages of 18-24 started to consume more “gourmet” coffees, as consumption rose from 13%-36%, between the years 2008-2016. This has become a good thing for coffee stores as business have been rising and stores are able to turn larger profits. 

So much of the coffee industry is in the retail of therefore having the economy focused on these products. What we don’t see as consumer is the list of products that go into making your cup of coffee, “roasters and packaging, transportation, flavorings, whiteners, disposable products (cups, stirrers), sweeteners, maintenance, and equipment.” There are so many other positive impacts of the coffee industry as it has created many jobs in order to bring you your cup of coffee in your local coffee shop.
https://associatedcoffee.com/blog/the-economic-impact-of-the-u-s-coffee-industry-2/http://www.ncausa.org/industry-resources/economic-impacthttps://www.pbs.org/independentlens/blackgold/economics.html


Comments

  1. AnonymousApril 22, 2019 at 8:04 PM

    I do agree with you when you say that the desire to buy coffee is especially growing in our generation when the smart thing to do if you want to save money is to make your own. The spike in coffee buying for our generation could also be a result of the many services coffee shops provide, one of the most important being: a place where you can sit down with you laptop and do some work undisturbed.

    ReplyDelete
  2. AnonymousApril 23, 2019 at 10:13 AM

    I really enjoyed the post and learned a lot about the coffee industry! Looking into the topic further, what I found out is that the effects of the coffee industry go beyond just the United States, and in fact, the impacts are even more immense globally. Coffee is the second most sought after commodity and the industry is worth over $100 billion. While coffee is popular in the United States, it is even more popular in other countries and the trends you mention expand globally through all populations. This has lead to a expansion of the coffee industry with production increasing throughout countries that grow coffee beans. Growth doesn't seem anywhere close to stopping and the trends of growth seem to be leading upward in the near future.

    Source : https://globaledge.msu.edu/blog/post/55607/the-global-coffee-industry

    ReplyDelete
  3. AnonymousApril 25, 2019 at 3:14 PM

    I agree, it is plain to see the extent to which cofee has become a staple of the American daily life. This has coincided with the rise of "gourmet drinks" as you mentioned in the article. Nowadays people are treating drinks like meals, and at times paying the same amount too. However, I can only see this benifiting the economy, as it has created many jobs as you stated. I can only see the coffee industry growing from here, barring some scandal regarding the health effects of caffeine.

    ReplyDelete

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