Coffee Industry Analysis Paper

Only second behind crude oil, Starbucks forms part of the coffee industry. The industries that follow after coffee are gold, natural gas, and sugar to name a few. Worldwide, coffee has managed to generate over 100 billion dollars (11 Incredible Facts About The Global Coffee Industry, 2011). This industry is comprised of many elements such as importers, shipping/trucking, roasters and packaging (The Economic Impact of the Coffee Industry). In the United States, over half of Americans over the age of 18 drink coffee, an average of 3 cups per day. Today, coffee shops are the fastest growing niche in the restaurant business at an annual growth rate of 7% (11 Incredible Facts About The Global Coffee Industry, 2011). Coffee influences the United States economy by generating tax dollars and

In a study done by the National Coffee Association, American consumers spent $74.2 billion on coffee in 2015; during that same year, the coffee industry managed to have an impact of $225.2 billion dollars in the U.S. This industry has managed to create 1,694,710 jobs in the United States while generating $28 billion in taxes. The coffee industry accounts for 1.6% of total gross domestic product in the U.S. (The Economic Impact of the Coffee Industry). Around the world, it is estimated that 500 billion cups of coffee are consumed globally. The coffee industry apart from its consumers also directly affects the coffee producers. Coffee growing is a livelihood for over 25 million people in over 50 countries stretching to Asia, Africa, South and Central America and the Caribbean. Today 67% of the world’s coffee is produced in the Americas. Roughly about 90% of coffee production takes place in developing countries. The top three coffee producing countries are Brazil, Colombia, and Vietnam (11 Incredible Facts About The Global Coffee Industry, 2011). Domestically, Starbucks has maintained dominance in this industry; however its two main competitors are McDonalds