Brewing Up Demand

Tea and coffee production is apparently struggling to keep pace with demand, according to many reports we have seen recently. Prices for both commodities, while showing signs of stability, may not be reacting quite as one might expect if the shortages are as dire as some are predicting (in other words, tea prices, for example, are not significantly higher than when there was a 10% surplus a few short years ago, and coffee prices are following a similar pattern), but clearly there is a growing demand for tea and coffee of all types and supplies need to catch up.

This is not a new phenomenon. The advent of Starbucks coffee shops and the many thousands of competing outlets that have grown apace globally over the last 20 years or so was clearly a major factor in the growth of the specialty coffee segment. Along the way there have been blips and bumps in the supply chain as the market grew and demanded more and better choices to satisfy consumer demand.

Similarly for tea, while consumption across the board has increased, in part perhaps because of the increasing popularity of RTD tea beverages in many markets, the specialty tea segment continues to attract more consumers looking for more tasty, healthful, exotic and sophisticated options to enhance their lifestyles and please their palates.

Whatever the reasons may be for the current imbalance, there can be no doubt that more and more consumers look forward to a refreshing cup of high-quality tea or coffee on a regular basis, both at home and in F&B outlets, fueling the demand for specialty teas and coffees accordingly. A demand that continues to put pressure on growers and traders alike to produce more and better tea and coffee crops.

While coffee and tea growers may yet hope to benefit from a hefty rise in prices if indeed shortages continue to pressure suppliers, in many cases it is not entirely clear how growers can hope to capitalize on the higher, specialty end of the market so long as there is a steady demand for leaves or beans of any quality to use in instant or RTD drinks.

Obviously, ensuring that there are adequate supplies of high quality specialty leaves and beans is where the various agencies and third-party accreditation and oversight groups concentrate their expertise, and why initiatives by tea and coffee companies that are designed to ensure sustainability and quality enhancement at the farm level are so valuable to ensure we can all continue to enjoy the special tea or coffee moments we crave in our daily lives.

And as the demand for sophisticated beverages grows throughout Asia, so does interest in the equipment used to prepare them. So, appropriately, this issue we are reporting on the latest batch of innovative tea and coffee brewing and espresso machines that are, or soon will be, finding their way into more and more homes, offices and refreshment venues across the region.

Glenn Anthony John
Publisher/Editor