Industry Analysis & Industry Trends
The Coffee, Tea and Spices Wholesaling industry imports and distributes important grocery staples, including tea, coffee, cocoa and spices. According to statistics published by UK Tea and Infusions Association, Britain is the world's third-largest consumer of tea per person and the largest drinker of instant coffee in Europe, with an average of 165 million cups of tea and 70 million cups of coffee consumed every day. Each Briton eats, on average, 16.3 pounds of chocolate a year, making the United Kingdom the fourth-largest chocolate consumer in the world. Additionally, Britain's palate for curry, Asian cuisine and new types of food maintains demand for spices.
Over the past five years, volatile commodity prices and changing consumer preferences have affected the industry... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity is an indicator of the proportions of capital and labour used in the day-to-day activities of the industry. Wage costs are used as a proxy for labour, while depreciation is used as a proxy for capital. IBISWorld estimates that the capital-to-labour ratio in the Coffee, Tea and Spices Wholesaling industry is approximately 1:4.39. This means that wholesalers spend £4.39 on labour for every £1.00 they invest in capital, indicating a moderate level of capital intensity. This reflects the industry’s need for warehousing and storage facilities, trucks and packing machinery. Nevertheless, industry operators are still highly dependent on a skilful workforce, especially if they perform hedging operations in-house.
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