Coffee consumption on the rise in Asia.

According to the Food and Agriculture Organization of the United Nations, until prices collapsed in 1998-due mainly to oversupply-coffee was the second most valuable traded commodity after oil. Prices sank so low that farmers, most in developing countries, could not cover their costs.

Worldwide, at retail, where annual sales (us$55-billion) are far higher than total commodity sales (us$5.6-billion) coffee is gaining in popularity and consumption in markets-such as Asia-traditionally dominated by tea. Increasingly, the phrase "coffee culture" appears in the research literature, most recently in work completed by the well known global research firm Synovate (London).

In October 2006 the firm released a summary of surveys done in nine countries-three in the Asia Pacific Region: Hong Kong, Singapore, and Australia- on the resurgence of the coffee phenomenon.

Interestingly, the Asia Pacific Region was divided in terms of whether or not the coffee shop experience was served best by the global chains or local independents. Respondents in Hong Kong (50 percent) like the big chains. Only 11 percent in Australia said they did.

When all nine countries were considered, 76 percent of respondents said they felt the big chains gave consumers a wider choice than local independents.

When Synovate asked about the stimulant attribute of coffee, respondents in the Asia Pacific Region were far less interested than their counterparts in other parts of the world. Synovate said, "Our Asian markets, however, are the least caffeine-loving nations, with only 21 percent of Hong Kongers and 44 percent of Singaporeans reliant on their morning coffee and as little as 12 percent and 31 percent respectively admitting to drinking coffee throughout the day."

One explanation offered was that Asians have not replaced tea with coffee and are aware of the dangers of consuming too much caffeine.

Another perspective on coffee in Asia appeared in a posting on The Globalist website on June 5, 2006. The piece was titled. "Asia's Coffee Shop Revolution," and it concentrated on the social aspect of Western style coffee shops and their growth in the region. A sign of the times, said the piece, was that the leading chain in the United States had recently opened a small outlet in China's Forbidden City.

The posting also pointed out that coffee is prepared quite differently depending on the traditions of national markets, with many favoring iced blends.

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