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Free Example of Coffee in Houston Essay

Free Business Essay Example about Coffee in Houston

Demographic Factors

The Specialty Coffee Association of America Expo held in Houston in 2011 indicated that the nature of the market that exists in Houston is picking up a tendency of preferences towards quality processed coffee. During the expo, a lot of quality information was presented about the rising demand from local consumers. In line with these findings, the expo highlighted that a vital direct link between growers and roasting companies is improving (“Report from the SCAA”).

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Taking into consideration the need for quality, experts handling the demand at Houston indicate that small processing firms better address this need because of the possibility to eliminate speculative intermediaries who are not updated on current market needs (“Report from the SCAA”). A growing number of new market entrants - providers and roasters of coffee like Java Pura - in Houston indicate that the masses appreciate quality roasted coffee more than coffee that lacks quality.

Economic Factors

According to the Report from the SCAA, the number of people who are visiting and even settling in Houston is increasing by the day. These people arrive and demand quality coffee, especially if they are coming from other cities where high-quality coffee is brewed. The other part of the Houston coffee market relates to costs of setting up roasting and packaging plants in Houston (“Report from the SCAA”). New investors have set up roasting plants in the area because of the minimal entry capital required for a coffee business. The rate of turnover, according to new entrants, is high, thereby encouraging any new investors to choose a business and invest heavily in it. For example, economies of scale that develop from roasters acquiring a lot of raw coffee beans directly from farmers reduce extra costs associated with buying same amounts from other coffee importers.

Political and Legal Factors

Political considerations in the coffee industry revolve around working conditions of producers and influence of production processes on the environment. In this regard, consumers in Houston are careful in determining if coffee is organic or not. The consumers also pay attention to the conditions of coffee growth. Consequently, the questions whether coffee is shade grown or not and whether it addresses the issue of sustainability or is it exploitative to some people in production chain arise With regard to licensing, the Houston coffee market prefers coffee processors who abide Fair Trade Certification regulations (“Coffee Franchise Industry Research”).

Technological Factors

The coffee industry has seen massive changes in the technology used in roasting and refining coffee for sale. Previously used roasting methods have been replaced by drum roasters which facilitate specialty coffee outputs. The processes of coffee filtering have also improved a great deal because the industry in Houston has shifted from traditional filter baskets to proprietary coffee filtering. Another current technological advancement in the coffee industry is the VST digital filter imaging system for controlling the end quality of processed coffee (“Report from the SCAA”).

Socio-Cultural Factors

Personal preferences towards coffee show that the customer base in Houston is shifting its focus from low-quality coffee to well-roasted and brewed coffee. A marked trend indicates that the population has developed a preference for coffee served in coffee shops as opposed to coffee that is sold in supermarkets for home preparation and consumption (Ryan). Such shift creates a wider market for owners of coffee shops, gas stations, and fast food chains. Almost 40 percent of the coffee drinkers prefer black coffee whereas the remaining number prefers sweetened coffee. The survey conducted on motivations of women to drink coffee indicates that they prefer coffee as a relaxation beverage over tea (“Coffee Statistics”).

Global Factors

Climate change coupled with effects of global warming are to a great extent influencing the availability of quality coffee on the world market. The major producers of coffee for the Houston market include Brazil, Kenya, and other countries with agricultural-based economies. Changes in rainfall patterns and the drought cycles have a negative impact on production of quality coffee for the market in Houston. Other key global factors include foreign exchange rates that have not maintained a stable trend. Constant changes in rates influence the capability of roasters to acquire capital for local roasting (Sinnott 69).

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