Coffee Demand Analysis

These days Coffee Has become the most traded commodity in the markets all over the world . and in the middle east and north African countries the number of coffee consumers has increased a lot and the united Arab emirates and Saudi Arabia , morocco and Egypt are the most country with high coffee consumption .

Studies have shown that the revenue for the most cafes comes from young people and students . Schaefer Says : Students and young people are a key demographic for coffee chains populations in deed .

With the increasing in the number of cafes , the cafes start to compete to include more consumers for example , Starbucks cafes are around the world , the number of starbucks cafes only in Gulf stats are 300 stores , and many cafes now tray

In the winter people like to drank coffee more than In summer , in this example the demand will rise in winter but in summer the demand will full because of the weather.

“Another factor that directly affects coffee prices is the taxes and tariffs that the government imposes. In the same boat as cigarettes and alcohol .” (Anon., 2015)

“The amount of coffee drinkers during the last decade has gone up from 71 to 76 percent and the average cups of coffee per day have increased from 3 to 3.5 cups. Another factor to this increase in consumption is the aging of the baby boomers and their increasing spending power, creating a good customer base for the coffee shops. This of course, has a very positive effect of the demand on the coffee industry.” (Anon., 2015) The price of related goods is most important to the demand on the coffee , in one of Arabic country they have did some survey to show how the price is affect to demand which they ask many people about their opinion about the price of the café in there contrary and 51% of people say that the price of the café is to high , and that will late people do not drinks coffee from global cafes , and the demand in the coffee will full because of the high income . (newspaper,

About writing about Competitive cafes , I have read in web site about Costa café and starbucks café how they are compete other from doing same advertisements and in 2011 Costa says to consumers that they will not raise The price of their drinks but starbucks they say will rise the price of drinks because of the coffee price the income has increased that will muck the consumers go to buy from Costa café more than buying from Starbucks . (Ali, 2015)

If Costa café be the monopoly power it’s tray to ensure maintaining a profit margin over its competitors for a longer period of time before economic profits becomes zero be tray to shift from product to process innovation for example Costa cafes can makes Coffee machine makes the coffee himself and creates many ideas on it and that had not been notified to cafes , so Costa could sell coffee in long time with good profit and also can raise the price and full the price