Coffee : A Beverage for the World

Author

Section 1, Group 5

Published

June 22, 2024

Introduction

Coffee, one of the most widely consumed beverages globally, plays a significant role in many cultures and economies. Its consumption patterns vary dramatically across different regions and demographics, influencing not only individual preferences but also broader societal trends. This project aims to delve into the intricacies of price per cup of coffee across various continents and other correlations and findings mapping multiple factors against each other . By employing statistical methods, we aim to provide insights that can inform decision-making processes in fields such as public health, economics, and market analysis. An interesting article in the blog https://cafely.com/blogs/research/which-country-consumes-the-most-coffee talks about the lifetime cup consumption, daily coffee consumption per capita and several other factors. Coffee as a beverage, holds a significant place in the daily routines of millions across the globe. Through this analytical study we aim to particularly understand how it is consumed worldwide. Being coffee aficionados the theme sparked curiosity among us to further explore its consumption patterns and economic impact in different countries.

Deep diving into the analysis of metrics like yearly coffee consumption per capita, daily coffee consumption,lifetime coffee consumption,price per cup of coffee, country across various continents is valuable for coffee industry experts, stakeholders, policymakers, and researchers interested in global coffee consumption trends. nds.

Data Analysis

import pandas as pd
import seaborn as sns
import matplotlib.pyplot as plt
df = pd.read_excel('CoffeeData.xlsx')
df
Country Continent Consumption(KG) Yearly coffee Consumption per Capita(KG) Daily Coffee Consumption per Capita(CUP) Coffee Drinking(YEAR) Lifetime Cup Consumption(CUP) Price per cup of coffee Total Lifetime Coffee Spending
0 Luxembourg Europe 13440000 20.53 5.31 61 118227 3.60 425618
1 Finland Europe 80880000 14.58 3.77 61 83939 4.00 335756
2 Norway Europe 54360000 9.93 2.57 62 58159 4.40 255900
3 Denmark Europe 46680000 7.90 2.04 62 44676 5.40 241250
4 Sweden Europe 106140000 10.00 2.59 62 58612 3.70 216863
... ... ... ... ... ... ... ... ... ...
60 Peru South America 15000000 0.44 0.11 55 2208 2.50 5521
61 South Africa Africa 39180000 0.65 0.17 41 2544 1.72 4376
62 Madagascar Africa 22500000 0.74 0.19 44 3051 1.19 3631
63 Uganda Africa 15240000 0.31 0.08 42 1226 2.86 3508
64 India Asia 87000000 0.06 0.02 50 365 1.83 668

65 rows × 9 columns

Parameters Defined

Column Name Description
Country Name of participant country
Continent Name of participant continent
Consumption(KG) Weight of coffee consumed
Yearly coffee Consumption per Capita(KG) This metric measures the average amount of coffee consumed by an individual in a year, expressed in kilograms. It provides insight into the overall coffee consumption habits and the importance of coffee in the daily lives of people across different nations.
Daily Coffee Consumption per Capita (CUP) This metric indicates the average number of cups of coffee consumed by an individual each day. It helps to understand the daily coffee drinking habits and preferences of people.
Coffee Drinking (YEAR) This parameter reflects the average number of years a person in a given country consumes coffee throughout their lifetime. It highlights the longevity of coffee consumption habits within the population.
Lifetime Cup Consumption (CUP) This metric calculates the total number of cups of coffee an individual consumes over their lifetime. It is derived from the daily consumption and the number of years a person drinks coffee, providing a comprehensive view of a person’s coffee consumption over their lifetime.
Price per Cup of Coffee This parameter shows the average cost of a cup of coffee in different countries. It helps to understand the economic aspect of coffee consumption and its affordability in various regions.
Total Lifetime Coffee Spending This metric estimates the total amount of money an individual spends on coffee over their lifetime. It is calculated based on the price per cup and the lifetime cup consumption, offering insights into the financial impact of coffee consumption on an individual’s budget.

Continent wise Average Price per Cup of Coffee (USD)

data = pd.read_excel("CoffeeData.xlsx")
average_price_per_continent = data.groupby('Continent')['Price per cup of coffee'].mean()
plt.figure(figsize=(8, 6))
average_price_per_continent.plot(kind='bar', color='skyblue')
plt.title('Average Price per Cup of Coffee by Continent')
plt.xlabel('Continent')
plt.ylabel('Average Price per Cup of Coffee (USD)')
plt.xticks(rotation=45)
plt.show()

Fact: Most of Oceania, including Australia, is under the Pacific, a vast body of water that is larger than all Earth’s continental landmasses and islands combined.

The bar graph illustrates the average price per cup of coffee (in USD) across different continents. Oceania exhibits the highest average price at greater than 3 dollars; followed closely by Asia and Europe, both exceeding 2.5 dollars. North America also shows a relatively high average price, while Africa and South America have the lowest average prices, around $1.5. This visual representation highlights significant regional disparities in coffee pricing, suggesting potential economic and market-driven factors influencing these differences.

country_consp=df.sort_values(by='Yearly coffee Consumption per Capita(KG)', ascending=False).head(5)
country_consp
Country Continent Consumption(KG) Yearly coffee Consumption per Capita(KG) Daily Coffee Consumption per Capita(CUP) Coffee Drinking(YEAR) Lifetime Cup Consumption(CUP) Price per cup of coffee Total Lifetime Coffee Spending
0 Luxembourg Europe 13440000 20.53 5.31 61 118227 3.6 425618
1 Finland Europe 80880000 14.58 3.77 61 83939 4.0 335756
4 Sweden Europe 106140000 10.00 2.59 62 58612 3.7 216863
2 Norway Europe 54360000 9.93 2.57 62 58159 4.4 255900
3 Denmark Europe 46680000 7.90 2.04 62 44676 5.4 241250 
percent_consumption = ( country_consp["Total Lifetime Coffee Spending"].sum() / df["Total Lifetime Coffee Spending"].sum() ) * 100
round(percent_consumption,2)
33.62

The table above lists the top 5 coffee-consuming countries in the world, ranked by their coffee consumption per capita. The countries included are Luxembourg, Finland, Sweden, Norway, and Denmark. Each country’s coffee consumption is expressed in kilograms per person per year, reflecting the significant cultural and habitual importance of coffee in these nations. This data underscores the prominent role of coffee in the daily lives of individuals in these countries, which are predominantly located in Europe and the Nordic region.

round(country_consp['Daily Coffee Consumption per Capita(CUP)'].mean(),2)
3.26

On average, daily consumption by these leading coffee markets is 3.26 cups per day. Most of these coffee consumers are European residents.

df1=df[['Country', 'Total Lifetime Coffee Spending']]
df2=df1.head()
df3 = pd.DataFrame(df2)
plt.figure(figsize=(8, 6))  # Optional: Adjust the figure size
plt.pie(df3['Total Lifetime Coffee Spending'], labels=df3['Country'], autopct='%1.1f%%', colors=['skyblue', 'salmon', 'lightgreen', 'orchid', 'gold'])
plt.title("Total Lifetime Coffee Spending")
plt.axis('equal')  # Equal aspect ratio ensures a circular pie chart
plt.show()

Explanation:

The data indicates that coffee spending varies significantly among all the countries, with Luxembourg leading in total lifetime spending. The high spending in these European countries underscores the cultural importance of coffee. Luxembourg’s particularly high spending suggests either higher coffee prices or a more substantial cultural emphasis on coffee. Finland’s spending is also notable, reflecting its strong coffee culture. Norway and Denmark show moderate spending, while Sweden, despite being the lowest, still demonstrates significant coffee consumption. This data highlights the cultural and economic factors influencing coffee spending in different regions.

total_spending_top_5 = country_consp['Total Lifetime Coffee Spending'].sum()
total_spending_all = total_spending_top_5 /(country_consp["Total Lifetime Coffee Spending"].sum()/df["Total Lifetime Coffee Spending"].sum())
remaining_spending = total_spending_all - total_spending_top_5
spending_data = [total_spending_top_5, remaining_spending]
labels = ['Top 5 Countries', 'Remaining 60 Countries']
plt.figure(figsize=(8, 6))
plt.pie(spending_data, labels=labels, autopct='%1.1f%%', startangle=140, colors=['#ff9999','#66b3ff'])
plt.title('Contribution of Top 5 Countries to Total Lifetime Coffee Spending')
plt.show()

Explanation:

This analysis highlights the significant impact of the top 5 coffee-consuming countries on global coffee spending. Despite representing a small fraction of the total number of countries (5 out of 65), they account for a substantial share (33%) of the total lifetime coffee spending. This indicates higher per capita spending on coffee in these countries, which may be driven by cultural preferences, higher coffee prices, and greater consumption rates.

sns.relplot(data=df, x="Yearly coffee Consumption per Capita(KG)", y="Coffee Drinking(YEAR)")

df["Yearly coffee Consumption per Capita(KG)"].corr(df["Coffee Drinking(YEAR)"])
0.5879664837087554

The scatter plot shown in the image illustrates the relationship between yearly coffee consumption per capita (measured in kilograms) and coffee drinking (measured in years).

Observations:

  1. There is a noticeable cluster of data points between 0 and 5 kilograms of yearly coffee consumption per capita. These points mostly fall within the range of age 45 to 60 years.
  2. A few outliers can be observed, with yearly coffee consumption per capita exceeding 10 kilograms. These outliers also correspond to a high number of years of coffee drinking.
  3. Most individuals appear to consume between 0 and 5 kilograms of coffee per year, with a corresponding coffee drinking period of around 45 to 60 years. There is no clear linear trend observable in the scatter plot, suggesting that the relationship between yearly coffee consumption per capita and coffee drinking years might not be straightforward or linear

Correlation between Yearly coffee Consumption per Capital and Coffee Drinking(YEAR) is nearly 58.80%.

Discussion

The analysis of coffee consumption across various continents reveals significant insights into global coffee consumption patterns, economic implications, and cultural habits. A comprehensive understanding of these metrics is crucial for stakeholders in the coffee industry, including policymakers, market analysts, and public health officials.

Price per Cup of Coffee

The bar graph depicting the average price per cup of coffee across different continents shows notable regional disparities. Oceania exhibits the highest average price, followed by Asia and Europe, both exceeding 2.5 USD per cup. North America also shows a relatively high price, while Africa and South America have the lowest average prices, around 1.5 USD per cup. These variations can be attributed to several factors, including economic conditions, market demand, production costs, and local consumption habits. The higher prices in Oceania and Asia might be driven by higher import costs and luxury market positioning, whereas lower prices in Africa and South America could be due to local production and lower cost of living.

Lifetime Consumption and Spending

The total lifetime coffee consumption and spending metrics provide further insight into the economic impact of coffee consumption on individuals. Luxembourg, with the highest lifetime cup consumption (118,227 cups) and significant lifetime spending ($425,618), illustrates the substantial financial commitment to coffee. The average lifetime coffee spending for individuals in these high-consumption countries is substantial, reflecting coffee’s integral role in their daily routines and its status as a valued commodity.

Consumption Patterns

The top five countries with the highest yearly coffee consumption per capita are Luxembourg, Finland, Sweden, Norway, and Denmark, all located in Europe. Luxembourg leads with an impressive 20.53 kg per capita annually, followed by Finland at 14.58 kg. These countries also exhibit high daily coffee consumption rates, with Luxembourg averaging 5.31 cups per day. This high consumption underscores the cultural significance of coffee in these regions, particularly in the Nordic countries where long, cold winters might drive higher coffee consumption as a means of socialization and warmth.

Conclusion

This analysis highlights the multifaceted nature of coffee consumption worldwide. The significant regional differences in coffee prices point to economic disparities and market dynamics that influence consumer behavior. European countries, particularly in the Nordic region, show the highest coffee consumption rates, both yearly and daily, indicating strong cultural ties to coffee. The correlation between yearly coffee consumption and the duration of coffee drinking suggests that coffee habits, once established, tend to persist over a lifetime. This persistence underscores the importance of considering long-term consumption trends in economic and public health planning. Overall, this study provides valuable insights for coffee industry experts, policymakers, and researchers. By understanding these consumption patterns and economic impacts, stakeholders can make more informed decisions regarding market strategies, public health initiatives, and economic policies. Future research could delve deeper into the factors influencing these patterns, such as socioeconomic status, cultural practices, and health considerations, to provide a more comprehensive understanding of global coffee consumption.