According to McDonald’s recent announcement on November 29, 2018, coffee production is shrinking. The company warned that by 2050, climate change will cause the amount of land suitable for coffee farming to shrink in half. Thus, McDonald’s will be investing in sustainable farms. If this prediction comes true, then your Starbucks and McDonald’s coffee might cost you twice more, in just a few years.
Coffee Production Will Decrease
All over the world, coffee production shortage is coming into focus. According to McDonald’s report, unsuitable weather patterns caused Colombia’s coffee production to shrink. In addition, farmers in Vietnam have started to see coffee fruits that are empty of beans; this is especially important because Vietnam is the world’s second largest coffee producer and the largest producer of robusta coffee. And, when the available land for sustainable farming shrinks, coffee production will decrease; companies such as Starbucks and McDonald’s must therefore pay more to invest in sustainable coffee farmland communities.
Coffee Demand Will Grow
The demand for coffee is still high, such as in areas like the United States. Eastern countries such as China are also starting to adopt coffee in their diets, particularly at their Starbucks and McDonald’s. In addition, other emerging markets with coffee demand include the Philippines, Thailand, and Malaysia. The Asian region is especially attractive for the coffee industry because of its large population and rising incomes. Based on this trend of coffee adoption in the diets of people in more countries around the world, coffee demand is expecting to grow.
Starbucks and McDonald’s Coffee Prices Will Increase
While the demand for coffee is growing, the amount of suitable land for coffee production is shrinking. Based on the laws of supply and demand, you should expect coffee prices to multiply. Most likely, in just a few years, you will be spending twice more on your Starbucks and McDonald’s coffee.