Asian taste for instant coffee to boost robusta demand

ASIA – World robusta coffee demand is expected to grow in the coming months, driven by rising consumption in emerging economies, and will sharply outpace stagnant demand for arabica, according to JakartaGlobe that reported a Reuters news.

Consumers in emerging economies, notably in Asia, are driving demand growth for robusta, used in cheaper instant coffees, while demand for arabica beans, blended in higher grade coffees, in the developed world is slower.

The demand for robusta is expected to grow faster than for arabica, because coffee demand in emerging markets is growing at a quicker pace than in developed markets. A short term stock market problem in China is not going to affect demand in the longer term, according to Rabobank. Robusta consumption is growing by around 3 percent year-on-year in 2015/16 and arabica demand up 0.6 percent. It forecasts a 5.5 million 60-kg bags surplus in arabica in 2016/17, and a deficit of 1.8 million bags in robusta.