The coffee industry in the middle of a pandemic: The bad and the good news

Bad, but also encouraging, signs of the times for the coffee industry. 

In the weird days of Lockdown, our daily lives have changed violently and our lives have taken a course towards uncharted waters - and as much as the end of this crisis, even if it is too late, will have hurt many aspects. of our daily lives. How does the corona and the world quarantine affect our favorite habit, coffee?

Strange as it may seem, in addition to the bad, there is some encouraging news for the industry, as far as one can at least characterize "encouraging" news in the midst of a generalized pandemic.

The bad news - the emerging economic crisis and the catering sector

Closing of restaurants: the end of coffee sociability

The conditions of "quarantine", and even so generalized, are undoubtedly unprecedented, and even on such a large scale, it is enough to think that the measures of the so-called "social distancing" affect billions of people around the world. Globally, the first companies to be temporarily shut down to avoid overcrowding were catering companies.

In this context, it is logical that the global demand for coffee is declining, while the measures are affecting both entrepreneurs and a large number of employees in various sectors of the restaurant. Even giants such as Starbucks, for example, have seen their stores close one after the other or turn to take-away, with a clearly reduced turnover. Although this situation is a given that will not last indefinitely and will certainly be of limited duration, you will inflict overwhelming blows on the catering industry, and if we take into account the parallel hit in the tourism industry, we conclude that the catering will it takes a while for him to get up.

 

Financial uncertainty hurts our habits

In addition to the health threat, the corona crisis and the imposition of a generalized lockdown are hurting the economy and drastically reducing citizens' incomes. In this context, purchasing power is expected to decline, and this will affect all products, and of course coffee. However, given the downturn in the catering industry, home coffee consumption will increase, and this will balance things out.

The good news - coffee will continue to arrive in our homes without a problem

Coffee is considered a "necessity" worldwide

As part of measures to prevent the spread of Covid-19, many countries have restricted productive activity to businesses that are considered "vital", ie "absolutely necessary". According to international data, coffee production worldwide falls into this category and businesses that have reduced their production are few, but not because of government bans. So despite the declining demand and global lockdown, being in front of a lack of coffee is currently extremely unlikely.

Even in severely affected Italy, which is experiencing a real tragedy due to the corona, the coffee machines have not stopped, exports continue normally and in general the "machine" continues to work, despite the difficulties. Given Italy's importance to the global coffee market, this in itself is a very encouraging sign.

 

The 2020 harvests are forecast to be extremely good and producers have not yet been hit by the virus.

Coffee-producing countries have not, at least for the time being, been hit hard by Coronio and the situation seems relatively controlled. Wholesalers worldwide, as well as producers, claim that 2020's harvests are good and that if the corona crisis did not occur, 2020 would be a great year for coffee. So despite the problems faced mainly by the secondary and tertiary sector in the coffee industry, the fact that the primary sector maintains its resilience is a very encouraging fact.

 

Freight transport continues uninterrupted

Despite the difficulties, the import and export sector continues to operate normally, with the result that product adequacy is not compromised and the market is constantly and safely fueled. Since coffee is a product whose distribution depends on the smooth operation of the import and export industry, and keeping the fact that the movement of goods and products continues, despite the great difficulties, there is no shortage of goods in the market, nor of course and lack of coffee.

 

The days we live in are unprecedented and the health threat is really huge, along with the financial one. However, all unpleasant things have an end and we will soon be called upon to continue our lives from where we left off - with coffee always being a valuable ally for our daily lives.