Global Coffee Market - 2023 - 2030

Coffee The Global Coffee Market reached US$ 122.9 billion in 2022 and is expected to reach US$ 170.8 billion by 2031 growing with a CAGR of 4.2% during the forecast period 2024-2031. Coffee brewing refers to the process of extracting the flavors and aromas from roasted coffee beans to create a brewed coffee beverage. Competitive rivalry intensifies Nestle, Jacobs Douwe Egberts, Smuckers and others operating in the market.

The rising popularity of specialty coffee and the increasing demand for unique and premium coffee experiences create opportunities for specialty coffee shops, artisanal roasters, and small-batch coffee producers to cater to discerning consumers. The growing interest in sustainable and ethically sourced coffee provides an opportunity for companies to promote fair trade practices, environmentally friendly cultivation methods, and traceability throughout the supply chain.

Additionally, the emergence of new coffee-consuming markets, particularly in regions with traditionally tea-dominant cultures, presents untapped potential for market expansion. Coffee roasting is the process of transforming green coffee beans into the flavorful and aromatic beans used for brewing coffee. Coffee varieties refer to the different types of coffee beans, such as arabica, robusta, bourbon, typica, gesha, and maragogype, each offering distinct flavors, aromas, and characteristics that contribute to the diversity of the coffee world.

Coffee Market Dynamics and Trends

Increasing Consumers Demand for Coffee is Expected to Drive the Coffee Market

One of the main factors for increased coffee consumption is the growing popularity of coffee among the youthful population in major countries such as India, China, and the Philippines, among others. Arabica and robusta beans are widely used owing to their caffeine content. Robusta contains 2.7% caffeine, which is almost double of 1.5% of arabica. Also, arabica type is pleasant in taste and contains almost 60% lipid and almost twice concentration of sugar than robusta owing to which people prefer arabica over robusta.

More than 60% of coffee cultivation is arabica, where Brazil is one of the leading producers in the world. Arabica has higher acidity than robusta, which adds a fruity, chocolate, and nutty flavor of the beans. Owing to growing popularity, various franchise retailers are entering these markets to meet consumer demand. The number of cafes is expected to increase in the coming years, which is expected to fuel demand for robusta and arabica beans over the forecast period.

Increase in the Health Benifits Awareness of the Coffee Consumption Drives Coffee Market Growth

The increasing awareness of the health benefits associated with coffee consumption is a significant driver of market growth. Research studies have highlighted various potential health benefits of coffee, such as its antioxidant properties, potential protective effects against certain diseases, and cognitive benefits. As consumers become more health-conscious, the perception of coffee as a healthy beverage has improved, leading to an increased demand for coffee products.

Coffee is rich in antioxidants, such as chlorogenic acid and polyphenols, which help protect the body against oxidative stress and inflammation. These antioxidants may have potential anti-aging effects and contribute to overall well-being. The caffeine in coffee acts as a mild stimulant and can improve alertness, concentration, and mental performance. It may also help enhance memory and reduce the risk of cognitive decline, including conditions like Alzheimer's and Parkinson's diseases.

Growing Popularity of the Tea as Alternative Drink Hampers Coffee Market

Tea is often associated with various health benefits. Different types of tea, such as green tea, black tea, herbal teas, and specialty blends, are known for their antioxidant properties, potential weight management benefits, and calming effects. The perception that tea is a healthier option than coffee has attracted health-conscious consumers and those seeking alternatives to high-caffeine beverages. Similar to coffee, tea offers a wide range of flavors, aromas, and blends. Tea enthusiasts can explore diverse options, including traditional teas, flavored teas, herbal infusions, and specialty blends.

Increase in the new product launches by major key players helps to boost growth of tea market. For instance, On March 14 2023, Tata Consumer Products launched Tata Tea Premium Street Chais of India. It includes the range of various flavors such as Mumbai Cutting Chai, Kolkata Street Chai, Hyderabadi Irani Chai, and Purani Dilli ki Mithai Chai.

Coffee Market Segmentation 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.

The flavor of these robusta beans is rich and intense, with a chocolatey aftertaste that lingers in the mouth. Furthermore, these beans contain a high amount of caffeine, which has a direct influence on the brain. Caffeine replaces adenosine, a neurotransmitter that stimulates the brain and keeps awake and alert. Over the projected period, this is expected to gain popularity among the working population. These beans are also high in natural antioxidants, which have anti-inflammatory properties.

Furthermore, they aid in the prevention of diseases such as Alzheimer's and gallbladder stones, as well as weight loss. Over the projected period, this is expected to boost robusta bean demand. According to the data given by International Coffee Organization in 2022, Robusta exports amounted to 48.29 million bags compared to 48.28 million bags in 2021. According to the coffee research data in 2022, In the decades preceding, the market for robusta (C. canephora) has had consistent, rapid expansion, increasing from 25% to 40% of total production.

Coffee Market Geographical Share

Increased Innovative Product Launches in the Region Helps to Boost North America Region Growth

Coffee is a popular beverage choice among North American consumers, with a growing trend towards specialty and gourmet coffee. The demand for high-quality and unique coffee experiences has led to the rise of specialty coffee shops and the emergence of artisanal coffee roaster. Health-conscious consumers are seeking healthier coffee options, such as organic and sustainably sourced coffee. There is also a growing demand for plant-based alternatives, such as oat milk and almond milk, to cater to various dietary preferences.

Increase in the innovative product launches by major key players in the region helps to boost segment growth over the forecast period. For instance, On January 25 2021, Coca Cola launched Coca Cola with Coffee in US. It is available in the three flavors such as dark coffee blend, vanilla and caramel and its zero-sugar

Coffee Market Companies

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

COVID-19 Impact on Coffee Market

COVID-19 Impact

The COVID-19 pandemic has had a significant impact on the coffee market. With widespread lockdowns and restrictions on social gatherings, the closure of coffee shops, cafes, and restaurants led to a decline in out-of-home coffee consumption. As people stayed at home, there was a shift towards home brewing and consumption, leading to increased sales of coffee beans, ground coffee, and single-serve coffee pods for home brewing.

However, overall coffee demand and prices were affected due to disrupted supply chains, reduced global trade, and economic uncertainties. The closure of coffee shops also impacted the sales of specialty and premium coffees. As the situation evolves, the coffee market is adapting to new consumer behaviors and preferences, with e-commerce and online coffee subscriptions gaining traction, while the recovery of the out-of-home coffee segment depends on the easing of restrictions and resumption of normalcy.

Russia-Ukraine Impact Analysis

The ongoing tensions and conflicts between Russia and Ukraine have had an impact on the global coffee market, albeit indirect. Russia is one of the largest coffee importers in the world, and any disruptions in its trade relations with Ukraine can influence coffee supply chains and prices. Ukraine plays a crucial role in the global coffee market as it is a significant exporter of green coffee beans. If tensions escalate or trade relations between Russia and Ukraine deteriorate, it can disrupt the supply of coffee beans, potentially leading to price fluctuations and supply chain challenges.

Furthermore, geopolitical uncertainties and economic instability in the region can affect consumer confidence and purchasing power, potentially impacting coffee consumption in both Russia and Ukraine. Changes in consumer behavior and preferences can have ripple effects on global coffee demand and market dynamics.

By Type
• Arabica
• Robusta

By Distribution Channel
• Supermarkets/Hypermarkets
• Retail Stores
• Coffee Specialty Stores
• E-commerce
• Others

By Application
• Beverages
• Food and Beverage Flavors
• Healthcare
• Cosmetics
• Others

By Region
• North America
The U.S.
Canada
Mexico
• Europe
Germany
The U.K.
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On April 18, 2023, Nestlé, a multinational food and drink processing company launched its first instant coffee for iced beverages. frozen Coffee brand launched its 2nd store in Kolkata.This launched of second store helps to fulfill consumers demand for the frozen Coffees demand. Nestlé created the specialised instant coffee product to imitate Blue Bottle Coffee's iced latte for consumers who want to drink coffee at home.
• On September 12, 2022, Coffee Board of India, a coffee organization launched four premium varieties under ‘India Coffee’ brand on Amazon. Under the 'Coffees of India' brand, the launch would also feature reasonably priced coffees including 100% Arabica and a blend of Arabica and Robusta.
• On January 09 2023, Rage Coffee, a fastest growing FMCG brand expanded its product portfolio by launching Easy-to-Make Coffee Sachets. That coffee sachets are holding 20 ml coffee.

Why Purchase the Report?
• To visualize the global coffee market segmentation based on type, distribution channel, application, 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 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies