Growing up, we were always told that breakfast was the most important meal of the day. But for millions of Americans, including yours truly, our morning routine eschews the more nutritional fare of yogurt, eggs or, heaven forbid, a piece of fruit.
Instead, our routine involves a more singular focus -- coffee. Lots of coffee! And woe to any family member, friend or work colleague who attempts to engage us before we delight in that first cup of the day.
According to the National Coffee Association, this year, Americans will consume roughly 3.5 billion pounds of coffee. That translates to about 517 million cups per day. Drive Research notes that 73% of U.S. adults drink at least one cup of coffee every day. Personally, I don't see how the other 27% survives the day. Thirty-six percent drink three to five cups a day. Ninety-three percent drink coffee at least once per week.
People are also reading... Iowa State coach Matt Campbell shares what he texted former quarterback Hunter Dekkers ahead of JUCO title game Davenport couple charged with stealing thousands from Davenport Hy-Vee stores Owner of Kona Ice in Davenport arrested for allegedly possessing child sexual abuse images Scott County Sheriff Tim Lane files ethics complaint against Chris Cournoyer Welcoming businesses: Happy Joe's, ice rink and other ribbon cuttings in the Quad-Cities One killed in late night Davenport crash Quarterback Rocco Becht reveals reason he is returning to Iowa State in 2025 Davenport double-murder defendant asks to represent herself in upcoming Scott County trial Tony's Pizzeria to add new location in Bettendorf Bettendorf man again sentenced in invasion of privacy case; appeals sentence again Man killed in Clinton County shooting identified After 8 surgeries, 23 days in intensive care with feeding tube - Eric Phillips is able to talk Iowa Gov. Kim Reynolds names LeClaire state Sen. Chris Cournoyer lieutenant governor Where to see holiday lights in the Quad-Cities in 2024 How to watch former Iowa State quarterback Hunter Dekkers, Iowa Western play in JUCO Championship
There are two main varietals of coffee bean that drive the global consumer marketplace. The first is the Arabica bean, which provides a smooth, rich and aromatic flavor. Its taste has hints of chocolate, caramel, nuts and even fruit. Arabica beans are typically grown at higher elevations along the world's equatorial regions. Brazil is the world's largest Arabica producer, followed by Ethiopia, Honduras and Peru. Among coffee aficionados, it is perceived as delivering a higher-quality and better-tasting cup of coffee. According to the U.S. International Trade Commission, Arabica beans comprise between 60-70% of the world's total coffee bean production.
The Robusta bean, by contrast, produces a stronger, fuller-bodied cup of coffee. It has a bitter, earthy flavor but has twice the caffeine content of the Arabica. It is typically grown in warmer, lower altitude climates. Vietnam is the largest producer of the Robusta, followed by Brazil, Indonesia and India.
But we coffee drinkers have likely noticed the price for our preferred drink steadily rise over the past few years. In January 2023, the price for Arabica was trading on the global markets at $200.70 per bag. One bag weighs roughly 203 pounds. Since then, its price has risen to $419.50 per bag, an increase of 109%.
The price for Robusta beans has soared even higher. In January 2023, the price for Robusta was trading at $1,806 per ton. Today, its price is $5,567 per ton, an increase of 208%.
According to a study by Toast, the average price for a cup of regular coffee at a quick-serve restaurant or coffee shop is $3.08. For a latte, the price jumps to $5.64. The state with the highest average price for your cup of coffee is Hawaii at $4.98. For you latte drinkers, your average price in Hawaii is $6.69. The second-highest state is California at $3.88.
The cheapest state for a cup of coffee is Nebraska ($2.12), followed by Montana ($2.56). Locally, Illinois ranks No. 24 ($3.07) while Iowa ranks No. 44 ($2.70).
But why are coffee prices rising so high and so fast? According to industry experts, a major factor has been a potent combination of high temperatures and droughts in the key global regions of production. This, along with the fact the world's supply of coffee beans comes from relatively few regions. Adverse weather in Brazil and Vietnam has had significant impact. Combined, these two coffee-producing powerhouses account for about 56% of the world's total production.
Global demand for coffee has also been steadily rising. This increase in consumption is being led by China and its massive population of 1.4 billion people. Much of China's young, middle-class population have been replacing the nation's traditional drink of tea with coffee.
In 2023, China overtook the U.S. as the country with the most brand-name coffee shops in the world. Starbucks, Tim Hortons, Costa Coffee and Dunkin' Donuts are just a few of the many global brands expanding into China. According to data from the World Coffee Portal, the number of brand-name coffee outlets in China grew 58% last year to nearly 50,000. The U.S., by comparison, has about 40,000 brand-name outlets.
For us die-hard coffee drinkers, the skyrocketing price of beans has left us with few options. Either munch on used coffee grounds or reduce our daily intake. Surprisingly, the coffee ground option doesn't sound that bad.
Mark Grywacheski is an expert in financial markets and economic analysis and is an investment adviser with Quad-Cities Investment Group, Davenport.
Disclaimer: Opinions expressed herein are subject to change without notice. Any prices or quotations contained herein are indicative only and do not constitute an offer to buy or sell any securities at any given price. Information has been obtained from sources considered reliable, but we do not guarantee that the material presented is accurate or that it provides a complete description of the securities, markets or developments mentioned. Quad-Cities Investment Group LLC is a registered investment adviser with the U.S. Securities Exchange Commission.
0 Comments Love 0 Funny 0 Wow 0 Sad 0 Angry 0
The business news you need
Get the latest local business news delivered FREE to your inbox weekly.
Sign up! * I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.