Global Coffee Market - 2023-2030

Global Coffee Market - 2023-2030

The Global Coffee Market reached US$ 122.9 billion in 2022 and is expected to reach US$ 170.8 billion by 2030 growing with a CAGR of 4.2% during the forecast period 2023-2030.

The demand for specialty coffee continues to rise, with consumers seeking unique flavors, quality beans, and ethical sourcing, driving the growth of specialty coffee shops and artisanal roasters. Coffee blends are meticulously crafted combinations of different coffee beans, each with their distinct flavor profiles, to create a harmonious and balanced cup of coffee that showcases the best attributes of each component. The popularity of ready-to-drink coffee beverages, including cold brews, canned coffees, and coffee-based energy drinks, has soared, catering to the on-the-go lifestyle and convenience-seeking consumers.

Coffee varieties encompass a diverse range of flavors and characteristics, influenced by factors such as the type of coffee bean (Arabica or Robusta), growing region, altitude, processing methods, and roasting techniques, providing coffee lovers with a vast array of unique taste experiences. Coffee roasting is the process of transforming green coffee beans into aromatic and flavorful roasted coffee through carefully controlled heat application, enhancing the natural qualities of the beans and creating a delightful beverage enjoyed by millions worldwide. Coffee brewing is the art of extracting the rich flavors, aromas, and caffeine from ground coffee beans by combining hot water and coffee grounds in various methods such as pour-over, espresso, French press, or drip brewing, resulting in a satisfying and invigorating beverage.

Market Dynamics
Increase in Health Benefits and Awareness of the Coffee Consumption Drives Coffee Market Growth

Several studies have suggested that regular coffee consumption may lower the risk of certain diseases, including type 2 diabetes, liver diseases (such as liver cirrhosis and liver cancer), and certain types of cancer (such as colorectal and endometrial cancers). Moderate coffee consumption has been associated with a reduced risk of cardiovascular diseases, including heart attack, stroke, and heart failure. The antioxidants in coffee may help improve blood vessel function and reduce inflammation, which can benefit heart health.

Coffee has been found to have potential metabolic benefits, such as increasing metabolism and aiding in weight management. It may also improve insulin sensitivity and help regulate blood sugar levels. The caffeine in coffee can increase adrenaline levels, which can enhance physical performance and endurance during activities like exercise. It may also help reduce muscle pain and improve muscle recovery post-workout.

Increase in the Availability of Various Types of Coffee Options Drives Coffee Market Growth

The increase in the availability of various types of coffee options has significantly contributed to the growth of the coffee market. Coffee drinkers today have a wide range of choices beyond traditional brewed coffee, including specialty coffee drinks, flavored coffees, iced and cold brews, single-origin coffees, and artisanal blends. The expansion of coffee shop chains, independent coffee shops, and specialty cafes has made it easier for consumers to access a diverse selection of coffee beverages. These establishments often offer a menu with a plethora of options, allowing customers to explore different flavor profiles, brewing methods, and coffee origins.

Increase in the product launches of various types of the coffee helps to boost coffee market growth over the forecast period. For instance, On April 20, 2023, Chamberlain Coffee, a leading coffee brand launched a new line of Ready To Drink (RTD) plant-based cold brew lattes. The RTD beverages from Chamberlain Coffee are only available at Walmart in the ready-to-drink coffee department.

Growing Popularity of the Tea as Alternative Drink Hampers Coffee Market Growth

Tea generally contains less caffeine than coffee. This lower caffeine content appeals to individuals who are sensitive to caffeine or prefer a milder stimulant effect. Some tea enthusiasts appreciate the more gradual and sustained energy boost that tea provides compared to the rapid spike and crash associated with coffee consumption. Tea holds deep cultural significance in many regions around the world, such as China, Japan, India, and the United Kingdom. The influence of these tea-drinking cultures, combined with globalization and increased travel, has contributed to the spread and appreciation of tea in various parts of the world.

Increase in the new product launches by major key players helps to boost growth of tea market. For instance, On February 20 2023, Laval Green Tea launched effervescent green teain India. The companies green tea tablets are most convenient option to traditional green tea tablet. It is packed with nutrients and antioxidants which helps to boost health. These tablets are made from the high quality green tea extract which is 100% organic.

COVID-19 Impact
COVID-19 led to disruptions in the global supply chain, affecting the movement of coffee beans from producing countries to consuming markets. Lockdowns, travel restrictions, and reduced transportation capacity caused delays in shipments and logistical challenges, impacting the availability and distribution of coffee. The closure of cafes, restaurants, and other foodservice establishments due to lockdown measures resulted in a significant decline in out-of-home coffee consumption. With people staying at home and practicing social distancing, the demand for coffee in these establishments drastically decreased, leading to revenue losses and financial challenges for coffee businesses.

As people spent more time at home, there was a noticeable shift in consumer behavior towards home brewing. Many individuals turned to brewing their coffee at home, leading to an increased demand for retail coffee products, including whole beans, ground coffee, and single-serve coffee pods. This shift benefited retail coffee brands and e-commerce platforms. Coffee-producing countries faced numerous challenges during the pandemic. The restrictions on international travel limited the availability of seasonal workers for harvesting and processing coffee crops, leading to labor shortages and potential yield losses.

Russia-Ukraine Impact Analysis
The political tensions between Russia and Ukraine have resulted in trade disruptions and uncertainties. Both countries play significant roles in the coffee market, with Ukraine being a major coffee producer and Russia being a significant coffee consumer. Trade restrictions, tariffs, and political conflicts can create obstacles in the flow of coffee between the two countries, impacting supply chains and market dynamics.

The Russia-Ukraine conflict lead to changes in import and export dynamics for coffee. Ukraine, known for its robust coffee production, may face challenges in exporting coffee to the Russian market due to political tensions. Similarly, Russian coffee importers may seek alternative sourcing options to reduce reliance on Ukrainian coffee. This can result in shifts in trade patterns and a reconfiguration of supply networks.

Segment Analysis
The global coffee market is segmented based on form, type, distribution channel, and region.

Increase in the Consumers Demand for Robusta Due to its Taste
The global coffee market by type has been segmented by arabica, and robusta.

Consumers are increasingly seeking healthier beverage options, and Coffee drinks align well with this trend. Coffee drinks are perceived as a nutritious choice due to their probiotic content, which supports gut health, and their high protein content, which helps with satiety and muscle maintenance. The busy lifestyles of consumers have led to an increased demand for convenient and portable beverages. Coffee drinks provide a convenient option for a quick and nourishing snack or meal replacement, making them popular among busy individuals who prioritize nutrition on the go.

Major key players in the market launched new Coffee drink products in the market which helps to boost Coffee drink segment growth over the forecast period. For instance, On August 26 2021, Lactalis India launched protein-packed lactel turbo yoghurt drink in the market. It is on the go drink available in the strawberry and mango flavours. The beverage includes all of the advantages of natural, premium French-quality yoghurt.

Geographical Analysis
Increased Demand for Coffee in North America Region Due to its Health Benifits

United States and Canada are major share holding countries in the region due to increase demand for Coffee due to its health benifits. The North America Coffee market is a dynamic and competitive industry that has experienced consistent growth, driven by factors such as increasing consumer demand for healthy snacks, the popularity of Coffee as a breakfast option, and the availability of a wide range of flavors, formats, and specialty Coffees catering to diverse consumer preferences. The market is characterized by the presence of both established Coffee brands and innovative newcomers, as well as a growing emphasis on Coffee products with functional benefits, such as probiotics, high protein content, and low sugar options, in response to changing consumer lifestyles and dietary needs.

Canadian consumers are increasingly concerned about the environmental and ethical aspects of their food choices Also, increase in the merger, acquisition and partnership strategies in the region drives market growth. For instance, on November 17 2022, An broad line of plant-based seafood substitutes will be developed through a new partnership between Canadian companies Konscious Foods, Merit Coffees, and Canadian Pacifico Seaweeds.

Competitive Landscape
The major global players include Nestle, Jacobs Douwe Egberts, Smuckers, Starbucks, Strauss, Lavazza, Ueshima Coffee Co., Tchibo, Massimo Zanetti and Coca-Cola Company.

Why Purchase the Report?
• To visualize the global coffee market segmentation based on type, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of coffee market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.
The global coffee market report would provide approximately 61 tables, 60 figures and 122 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies