IBISWorld, the largest coffee industry research firm in the US, projects that industry revenues will grow at an annual rate of 0.7% over the next five years and will reach US$9.1 billion in 2016. At the same time, lower coffee bean prices over the next few years will surely mean lower industry costs and result in higher profit margins.
IBISWorld estimates that the world price of coffee will decline at an average annual rate of 0.4% all the way through 2016. In 2011, coffee imports are likely to grow by 50.9% to $1.9 billion. Export volumes in 2011 are expected to increase by 24.7% to $1.1 billion and account for 12.0% of the industry’s total revenue.
A weak dollar will is anticipated to boost industry exports and revenue is projected to gradually increase from then on.
In spite of the global economic crisis, high rates of unemployment and poor consumer confidence, IBISWorld expects industry revenue to grow at an average rate of 3.2% per year during the next five years and eventually reach US$8.8 billion. Because of recent increases in coffee bean prices, revenue is projected to decline slightly in 2011, dropping by 0.5% as a result of lower consumption in response to the increased prices.
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