POTENTIAL OF THE COFFEE MARKET IN UKRAINE AND THE WORLD
Abstract
The article highlights the issues related to the current state and potential development opportunities of the coffee market. It defines the market, which operates under the influence of economic laws of demand, supply, monopoly, competition, demand elasticity, market value, and market equilibrium. It was found that the coffee market is characterized by perfect competition, inelastic demand, the assurance of fair trade by international organizations, and the promotion of the coffee industry’s development. The popularity of coffee is substantiated by its invigorating effect and its role in supporting daily life and the global economy. The dynamics of global coffee production and the regions where it is grown are analyzed. It was established that the total global coffee production increased by 15.9% during the period under study and is described by a power function with a high approximation coefficient (R2). Arabica dominates the coffee bean segment with a 70% market share. However, it is characterized by cyclical production due to climate changes and the reduction of coffee plantations, and thus is described by a power function with a low (R2) value. Robusta accounts for 25% of global demand, and its production dynamics are more stable over time compared to Arabica coffee, with a higher (R2) coefficient of the power function. The article outlines coffee categories by product quality and changes in the coffee market caused by the COVID-19 pandemic. Coffee market segmentation was conducted. The dynamic growth in demand for coffee and its consumption in various places and regions of the world, as well as the increase in the number of branded coffee shops, were established. A spectrum of issues forming the current coffee market trends was considered. Coffee consumption in Ukraine was examined, its global share determined, leading coffee-selling regions identified, and the volume of retail coffee trade was analyzed. The dynamics of coffee imports and exports, described by polynomial functions with approximation coefficients of 0.959 and 0.4219, respectively, were analyzed, along with the supply structure of the largest exporting countries, coffee consumers' tastes and preferences, and trends in the coffee shop market in Ukraine. It was found that the growing popularity of specialty coffee is associated with an increase in innovations within the coffee industry. The definition, benefits, market volume, and prospects for the development of specialty coffee were substantiated. The main suppliers of freshly roasted premium coffee for the Ukrainian restaurant business and the supply structure of coffee for Skrepkiy Coffee were identified. The advantages and disadvantages of elite coffee varieties were highlighted.
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