A detailed overview of the Benefits of Organic Coffee industry
MARKET INTRODUCTION
Organic coffee is a coffee beverage free from artificial
chemical additives and sourced from naturally grown coffee beans. It is
produced or grown without the use of synthetic fertilizers and pesticides.
Organic coffee farms may use organic fertilizers in the form of compost,
manure, and coffee pulp. Organic coffee producers avoid using fertilizers and
pesticides in a coffee plantation and hence minimizing the ill-effects on the
ecology and the surroundings. The growing trend of sustainable living is
expected to promote the organic coffee industry
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MARKET DYNAMICS
The growing consumption of organic coffee grown without the
use of synthetic fertilizers pesticides, herbicides has led to significant
demand for organically grown coffee in the recent past. The substantial demand
for organic coffee owing to the public perception that organic coffee has
better flavor, aroma and nutritional value is likely to sway many consumers
and brewers towards organic coffee. The rising influx of Millenials and
Generation Z in cafes and coffee shops and the growing consumption of coffee
per capita across the world is expected to be major factors behind the growth
of the organic coffee market. Destruction of rainforests for coffee plantations
in South America, Southeast Asia, and Africa, and the loss of biodiversity is
also likely to persuade coffee drinkers to choose organically sourced coffee.
However, organic cultivation of coffee often entails substantial cost.
Implementation of integrated pest management, hand weeding, and pruning of
shade trees, acquisition of organic fertilizers, and certification fees, incur
additional labor and other miscellaneous costs to the farmers. High cost
associated with organic coffee plantations is likely to dissuade farmers
operating small farms from taking up organic farming and restrict the growth of
the organic coffee market to some extent.
MARKET SCOPE
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