The global coffee market size was valued at USD 33,234.0 Million in 2020 and is anticipated to reach USD 55,484.4 Million by 2028, growing at a CAGR of 6.9% during the forecast period, 2021-2028. Increasing demand for certified coffee products is likely to boost the market.
Coffee is the most consumed and popular brewed drink made from the seeds of Coffea species. It is one of the world’s most widespread beverages, as it offers high levels of beneficial nutrients and antioxidants. Coffee increases energy levels and is beneficial for people feeling less tired, as it contains a stimulant called caffeine, which is the most commonly consumed psychotropic substance in the world.
Coffee is the most popular beverage made from the roasted seeds of the Coffea plant. It is enjoyed by people all around the world for its stimulating effects and rich flavor. The Coffea plant belongs to the family Rubiaceae and is native to tropical regions of Africa, especially Ethiopia, and Sudan.
Coffee seeds are typically roasted and ground. The ground coffee is brewed by pouring hot water over it, allowing the water to extract the flavor compounds and oils from the beans. The resulting liquid is then consumed as a hot or cold beverage. Coffee contains caffeine, a natural stimulant that affects the central nervous system and increases alertness. It also contains various other biologically active compounds, including antioxidants and polyphenols, which are linked to potential health benefits.
Coffee comes in many different varieties, flavors, and brewing methods. Popular types of coffee include espresso, cappuccino, latte, Americano, and others. Coffee is often enjoyed with additional ingredients such as milk, cream, sugar, or flavored syrups to enhance its taste. It is commonly consumed in cafes, homes, and workplaces, and has become an integral part of many people’s daily routines.
Coffee Market Dynamics
Major Drivers
Rising consumption of coffee in all age groups
Coffee is a popular beverage worldwide and its consumption is growing, particularly in non-traditional markets, which in turn is likely to boost the coffee market growth. Global coffee consumption is expected to increase, particularly in non-traditional coffee-drinking countries in Asia, Africa, and Oceania.
Demand in traditional markets is estimated to grow by 1% in Europe and by 2.5% in North America. Caffeine intake is high in the young adult age group due to the high consumption of energy drinks. Coffee consumption use rises in the US in recent years.
New brands of coffee are increasing loyalty and customer satisfaction
Café, coffee shop, and coffeehouses primarily serve coffee and other hot beverages. The customer experience has improved with the launch of numerous flavors such as chocolate, caramel, cinnamon, mint, hazelnut, latte, Pumpkin Spice, and others. Excelso and Starbucks are certified brands, which have existing amenities and surroundings, and upgraded or maintained their visual appeal to grow strong brand loyalty and brand image.
Rising production of coffee in developed and developing countries
Caffeine present in coffee is used to make various beverages, which in turn, has increased the production of coffee and boosted the number of coffee plantations. Coffee is grown in more than 50 countries around the world. Indonesia is one of the world's largest countries, several of the larger islands Java, Sumatra, and Sulawesi are known worldwide for their fine-quality coffee.
Existing Restraints
Excessive coffee and/or caffeine consumption causes side effects such as insomnia, restlessness, nervousness, stomach upset, vomiting, nausea, and increases breathing and heart rate. Rising awareness regarding these effects is likely to hamper the coffee market growth. There is growing concern about the prospective adverse effects of caffeine in children on repeated use.
Emerging Opportunities
Various governments around the world are creating favorable policies to establish plant systems for large-scale coffee production, which is projected to create opportunities for market key players. Coffee is globally the second most exported commodity after petroleum and has enabled several countries to produce and grow coffee commercially.
According to International Coffee Organization (ICO), world coffee exports amounted to 10.88 million bags in December 2022, as compared to 11.89 million in December 2021. The rising popularity of coffee and coffee-derived products is increasing the need for a higher yield of coffee beans. The expansion of coffee production plants is expected to meet this demand for coffee effectively in the coming years.
Scope of Coffee Market Report
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Attributes
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Details
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Report Title
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Coffee Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Product Type (Whole-Bean, Ground Coffee, Instant Coffee, Coffee Pods, and Capsules), Grade (Arabica, Robusta, Specialty, and Others), Distribution Channel (Online and Offline), and Application (Hot Drinks, Ready-to-Drink Coffee, Flavored Beverages, Pharmaceuticals, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered
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F. Gaviña and Sons, Inc., H.J. Heinz Company Brands LLC, JDE Peet's, KAPAL API GLOBAL, Keurig Dr Pepper Inc., Leo Coffee, Matthew Algie & Company Ltd, MKC Food Products, Nestlé, Starbucks Coffee Company., Strauss Group, The Coca-Cola Company., The Folger Coffee Company, The Kraft Heinz Company; The J.M. Smucker Co., and Trung Nguyen Vietnamese Coffee.
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Coffee Market Segment Insights
Product Type Segment Analysis
In terms of product type, the Coffee Market is bifurcated into whole-bean, ground coffee, instant coffee, and coffee pods & capsules. The whole-bean segment is projected to expand at a considerable CAGR during the forecast period, as it has a longer shelf-life than ground coffee. Since the beans are complete, fewer volatile flavor oils are leaked into the air during storage. Whole beans need to be crushed before brewing, which involves the usage of a grinder or coffee machine.
Grade Segment Analysis
In terms of grade, the Coffee Market is segmented into Arabica, Robusta, specialty, and others. The others segment is further divided into Liberica (Coffea liberica), and Excelsa (Coffea Excelsa).
The Arabica segment is projected to expand at a significant CAGR during the forecast period, as these beans are popular among consumers, making up about 60% of the coffee production in the world. High-quality Arabica coffee has a slightly sweet flavor, with a hint of chocolate, caramel, and nuts. Arabica beans are broadly available in the market.
Distribution Channel Segment Analysis
In terms of distribution channel, the coffee market is bifurcated into online sales and offline sales. The online segment is further divided into e-commerce and company-owned portal. The offline segment is further split into supermarkets/hypermarkets, coffee houses, and departmental stores. The online segment is projected to expand at a significant CAGR during the forecast period, as coffee is extensively consumed worldwide.
The e-commerce segment held a considerable share of the market and is expected to continue during the projection period. Online sales are convenient and it is easier to purchase consumers’ favorite products without leaving home. Consumers can easily compare coffee across several brands. Several manufacturers improve brand awareness, increase sales, and expand into new markets.
Application Segment Analysis
Based on application, the market is segmented into hot drinks, ready-to-drink coffee, flavored beverages, pharmaceuticals, and others. The others segment is split into cookies, pastries, cupcakes, and brownies. The hot drinks segment is anticipated to expand at a significant CAGR during the forecast period. Hot brewed coffee has antioxidants and it takes a certain amount of heat to extract antioxidants from the coffee beans.
The coffee draws out heat from the skin and cools the body and those sweat glands are also stimulated by drinking the hot coffee, which boosts the segment in the market. The ready-to-drink coffee segment holds a considerable share of the market and is expected to grow during the forecast period. Packaged beverages are sold in a ready-made form in packages such as bottles and cans. Ready-to-drink coffee is gaining popularity in coffee shops and supermarkets.
Coffee Market Regional Analysis
Based on region, the global coffee market is fragmented into North America, Europe, Latin America, and Middle East & Africa. North America dominates the global coffee market, which is primarily driven by the growing consumption of specialty coffee in the region. Coffee is one of the most widely consumed beverages worldwide. United States leads the coffee industry with USD 90.2 billion in revenue as of 2022 and is expected to boost the market in the region.
The coffee market in Europe has been estimated to grow during the forecast period, due to the increasing demand for coffee in emerging countries such as Italy, Germany, Spain, and others. Germany is the most coffee-consuming country in Europe with 6.5kg per capita a year which is expected to boost the market in the region.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the global Coffee Market
- Historical, Current, and Projected Market Size in terms of Value and Volume
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Coffee Market Performance
Segments
Product Type
- Whole-Bean
- Ground Coffee
- Instant Coffee
- Coffee Pods and Capsules
Grade
- Arabica
- Robusta
- Specialty
- Others
Distribution Channel
- E-commerce
- Company Owned Portals
- Supermarkets/Hypermarkets
- Coffee Houses
- Departmental Stores
- Others
Application
- Hot Drinks
- Ready-to-Drink Coffee
- Flavored Beverages
- Pharmaceuticals
- Others
Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Key Market Players Profiled in the Report
- F. Gaviña and Sons, Inc.
- H.J. Heinz Company Brands LLC
- JDE Peet's
- KAPAL API GLOBAL
- Keurig Dr Pepper Inc.
- Leo Coffee
- Matthew Algie & Company Ltd
- MKC Food Products
- Nestlé
- Starbucks Coffee Company.
- Strauss Group
- The Coca-Cola Company.
- The Folger Coffee Company
- The Kraft Heinz Company
- The J.M. Smucker Co.
- Trung Nguyen Vietnamese Coffee
Competitive Landscape
Top players in the market include F. Gaviña and Sons, Inc.; H.J. Heinz Company Brands LLC; JDE Peet's; KAPAL API GLOBAL; Keurig Dr Pepper Inc.; Leo Coffee; Matthew Algie & Company Ltd; MKC Food Products; Nestlé; Starbucks Coffee Company.; Strauss Group; The Coca-Cola Company.; The Folger Coffee Company; The Kraft Heinz Company; The J.M. Smucker Co.; and Trung Nguyen Vietnamese Coffee.
These companies are considered as key manufacturers of coffee based on their revenue, product offerings, regional presence, and supply chain management system. The players are adopting key strategies such as acquisition, collaborations, and geographical expansion where potential opportunities for the Coffee market.
- On May 11, 2023, Keurig Dr Pepper launched ICED innovation to bring a deliciously Café Quality Iced Coffee experience from the comfort of consumers’ own homes. This new K-Iced brewer hit the spot for consumers to brew either a refreshing and delicious iced coffee or full-flavored hot coffee from one coffee maker at home.
- On November 10, 2022, Nescafe Dolce Gusto launched Neo, the brand of next-generation coffee machines and pods. Neo combines cutting-edge technology, high quality, and sustainability to create the ultimate coffee shop-at-home experience. In a Nestle first, Neo new range of coffee pods are paper-based, home compostable, and use 70% less packaging than current capsules.
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