| The main objective of this study is to identify the potential market for regular and gourmet coffee in the United States market, with emphasis on the Hispanic population. The research has three main components. The first is focused on the demographic and socioeconomic characteristics of the Hispanics and their geographic distribution within the United States. Secondly, the present coffee industry trend was analyze, including a description of consumption preferences, the main types of drinks and the identification of the main channels used to distribute and sell gourmet and regular coffee. The third element, consisted of evaluating the consumption function of regular coffee for the White, Hispanic, Black and total population of the United States for a 25 year period (1980-2005). This part also included analyzing the elasticities for price, income, and cross demand.;All used data was obtained from secondary sources. For the first and second part, descriptive statistics were used, e.g., graphics, numeric tables and comparative schemes. In the third part an econometric analysis was carried out in order to express in mathematical formulas the relationship between the variables used in the model. The study found that Hispanics use most of their income for consumption. On average they spend 47% more than non-Hispanic Whites.;For the coffee market new flavors and more sophisticated and colorful packaging, will attract high quality and sophisticated consumers. In the USA approximately 79% of the adult populations are coffee drinkers. These consumers prefer coffees produced with a good cause, i.e., coffees that are certified as "Fair Commerce". The study found that the demand for regular coffee is inelastic and it behaves as an inferior good and the consumer is not sensitive to price and income variations.;The research concludes that the market for special coffee shows a huge popularity among consumers, with an excellent acceptance in the USA, and that it constitutes a great potential market for Puerto Rican coffee producers. |
