U.S. demand for coffee is expected to grow

Coffee consumption is expected to grow at 2% a year until 2020 in the U.S., London-based ICO said last week. Tt expects global consumption to grow at 1.3% a year.The U.S. accounted for 16% of global coffee consumption in 2015-16.

The global demand for coffee is expected to slow owing to sluggish economic growth in Europe and Brazil, which together account for about half of global demand, the ICO said. The forecast is a downward revision from the ICO’s prediction earlier this year that global consumption growth would stay at 2.5% annually.

Globally, market research firm Euromonitor estimates that for every 1% drop in global gross domestic profit, demand for coffee falls 0.3%, about the same as another daily beverage: green tea. Instant coffee, which is more popular in emerging markets, is more susceptible to falling incomes, while coffee demand in mature coffee markets is less vulnerable, said Matthew Barry, a beverage analyst at Euromonitor in Chicago.

By 2020, the ICO estimates global demand will reach 160 million bags of beans.

In the 2015-16 season, global coffee production hit roughly 143 million bags, compared with 142 million bags in the previous season, according to the ICO. Each bag holds 60 kilograms of coffee beans.