Abstract
Coffee production and retail is a profitable business today, guaranteeing high income for parties involved in the industry’s functioning. However, it also has numerous social, environmental, and sustainability issues that should be addressed. The following paper delves into the coffee production and distribution supply chain, precisely the retail stage, to reveal and discuss the nagging problems that should be addressed. The central idea is that the existing coffee retail business lacks sustainability efforts and fails to prove its commitment to address the critical environmental issues. The social implications of the selected topic and its importance are discussed. Moreover, the possible methods to increase sustainability, such as designing recyclable cups, engaging social media, and having organic specifications, are also discussed. The paper contributes to the improved understanding of the current state of the coffee retail business regarding sustainability and community issues. It also emphasizes the significance of sustainable practices in the given sphere.
Introduction
Nowadays, coffee is a product that should be viewed as a part of popular culture. Numerous individuals view it as the part of their lifestyles and daily rituals. However, the industry and coffee farming have a negative impact on biodiversity and the environment. It means that the sector is associated with numerous social implications, such as preserving people’s quality of life and protecting ecosystems and environments. Coffee retail, as the stage of the supply chain, also has several critical issues that should be addressed. Thus, the proposed paper offers the following thesis:
The retail coffee business lacks sustainability efforts and transparency on its commitments to address environmental issues.
In this regard, there is a place for numerous social concerns and aspects that should be addressed. The paper contains sections representing the current state of the problem, major issues, their social importance, and possible sustainability measures that could be done.
Current State
Currently, the coffee retail business is an attractive sphere helping to generate stably high income and acquire numerous benefits. It leads to the fast evolution of the industry and the continuously growing demand for the final product (Cailleba & Casteran, 2009). Thus, statistics show that the retail market of coffee in the United States reached $47.4 billion in 2022 (Hirsch, 2022). Besides, in 2022, the retail coffee market demonstrated stable growth and increased by 2% (Hirsch, 2022). The number of consumers rises, and their demand also becomes more significant. At the same time, retailers have to use more effective strategies to meet clients’ needs and satisfy their diversified requirements. However, along with the obvious financial benefits, it leads to the increased topicality of social problems that should be addressed to avoid critical harm done to the environment and communities affected by the industry.
Major Issues
As stated previously, the retail coffee business lacks sustainability efforts, leading to the emergence of several critical issues. First of all, the problem of waste and its effective management emerges. From the sociological perspective, it is a vital issue affecting the lives of numerous communities. Statistics show that 1 billion disposable coffee cups are used annually (Samper & Quinones-Ruiz, 2017). Considering the problems with plastic recycling and the lack of areas for waste deposits, along with their complex management, it introduces a critical problem that might affect the lives of millions of people and lead to a significant reduction in its quality. Furthermore, climate change and the soil and water pollution associated with plastic waste is another social concern that can also be related to the retail coffee business. The growth in the demand and production creates the basis for the sophistication of the problem, and its becoming more relevant.
Another important social issue is linked to the quality of people’s lives responsible for the production of coffee and the existing approaches to farming. Thus, following the recent data, many coffee-producing countries have critical problems with poverty, social infrastructure, and farming (Samper & Quinones-Ruiz, 2017). The volatile and competitive coffee market influences families responsible for the production and makes them vulnerable. It means that the sustainability of the given industry critically depends on the sustainability of communities in various parts of the globe and engaged in its functioning (Samper & Quinones-Ruiz, 2017). Furthermore, the biggest part of coffee is produced on monoculture farms, which reduces biodiversity (Samper & Quinones-Ruiz, 2017). Chemical substances might also be used to save plants and increase their productivity (Samper & Quinones-Ruiz, 2017). In such a way, retailers become responsible for these issues and should be ready to address them.
Social Importance
Several factors can explain the high social importance of these issues. First of all, as stated previously, waste generated by the coffee retail industry becomes a severe threat to communities’ well-being and their further development. Statistics show that about 400,000 people die every year because of diseases and accidents involving poorly managed plastic waste in different countries (Bianco, 2020). Coffee retailers are responsible for generating a significant amount of waste, about 23 million tons per year (Bianco, 2020). The lack of attention to sustainability issues will lead to the further deterioration of the environment and decreased population health. For this reason, paying attention to this aspect is critical.
Moreover, the food system in general, and coffee production and retail in particular, can also be analyzed from the social perspective. Historically, the production of various products was associated with discriminative patterns (Winson, 2017). Products of privileged status cost much and were consumed only by a minority, while their producers lived in poverty. Coffee plantations were a powerful source of income for the dominant class, while slaves and other people working there suffered from difficult conditions and poverty (Winson, 2017). Today, this system does not exist; however, farmers or people working in the industry do not have access to infrastructure, health services, and stable income.
Factors mentioned above introduce the problem of social injustice and the unfair distribution of resources that affects numerous groups and communities. It becomes critical to reconsider the existing patterns and ensure that individuals producing the product has access to benefits associated with its distribution. Considering the ideas of social responsibility, addressing such aspects should be viewed as the primary goal of the retail coffee business. The growing industry’s size means firms acquire new means and methods to address the problem. They can guarantee that people and communities involved in the production of coffee can enjoy the benefits of the growing demand for the product.
Sustainability Measures
Under these conditions, the outlined problems mean that it is critical to start promoting positive social shifts in the industry. Coffee retailers can do it in numerous ways, ensuring that nagging problems will be addressed. First of all, increased social attention and engagement are critical for managing the problem. It can be achieved by embracing social media and employing this tool to outline topical problems and ensure the audience knows about them. Regular posting, discussion, and initiation of new social projects might help to attain improvement (Kumar & Aggarwal, 2018). First, it will familiarize people with the current state of the problem and ensure they provide their support. Second, it will help to resolve the problem of transparency mentioned above, as highlighting the current efforts and incentives via social media, retailers can prove their engagement and sustainable character.
At the same time, the social aspects mentioned above can be resolved by using recyclable caps or organic certifications. The first approach will lead to reduced waste and improve the quality of people’s lives globally. Thus, organic certification is critical for improving profitability, social capital, and reducing poverty (Samper & Quinones-Ruiz, 2017). Engaging in the given incentive, a retailer can demonstrate its adherence to sustainability ideas and invest in resolving social issues associated with coffee production. The colonial past embodied in poverty and poor infrastructure in areas where coffee is produced can be eliminated by the combined effort of retailers and producers. They should support the incentives and launch new social projects to support this vulnerable group.
Conclusion
Altogether, it is possible to conclude that the retail coffee business is on the rise today. The growing demand for coffee means critically increased revenues. However, it also results in the increased importance of social and sustainability issues. People producing coffee might need additional support because of poverty and lack of financing. Moreover, the industry causes substantial environmental damage, meaning there is a need for its management. Under these conditions, retailers should focus on making their transparency efforts more visible and influential. It is critical to engage in organic certification and to address the issues influencing the lives of communities and individuals affected by the industry. Using social media might also help to acquire better outcomes and ensure positive shifts globally. The retail coffee business possesses the resources needed to address this problem and resolve it.
References
Bianco, G. (2020). Climate change adaptation, coffee, and corporate social responsibility: Challenges and opportunities. International Journal of Corporate Social Responsibility,5(3). Web.
Cailleba, P., & Casteran, H. (2009). A quantitative study on the fair-trade coffee consumer. Journal of Applied Business Research (JABR), 25(6). Web.
Hirsch, P. B, (2022). The new, not normal. Journal of Business Strategy. Web.
Kumar, A., & Aggarwal, R. (2018). Sustainable development through social media tools. Journal of Management, 5(5), 47-51. Web.
Samper, L., & Quinones-Ruiz, X. (2017). Towards a balanced sustainability vision for the coffee industry. Sustainable Supply Chain Management, 6(2), 17. Web.
Winson, A. (2017). Spatial colonization of food environment by pseudo food companies. Precursors of a health crisis. In M. Koc, J. Summer, & A. Winson, (eds.), Critical perspectives in food studies (2nd ed., pp. 110-127). Oxford University Press.