It is fuelled by one of the world's most popular drugs, it is highly addictive, and its rapid expansion offers a multi-billion investment opportunity. Coffee is big business.
Just how big? According to Nestlé (CH:NESN), which depends on Nescafe, the world's largest coffee brand, for over a quarter of its £83.3bn revenue, coffee is the most consumed drink globally – bar water. Yet, despite its immense popularity, the growing global middle class means there are still markets that are relatively underserved. That nut (or rather, bean) is one Nestlé, Starbucks (US:SBUX) and countless other companies are spending billions trying to crack.
Doing so will not be easy. Despite, or perhaps because of, its long existence, coffee remains a fragmented market, one that is somewhat resistant to the big listed equity brands even in the countries that already love a cup. Added to this are big and growing threats to production, including the climate crisis, farmer exploitation and an unstable global order.