Coffee Machine Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Coffee Machine Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The coffee machine market was approximately valued at USD 5.11 billion in 2020, and it is expected to record a CAGR of more than 4.5% during the forecast period, 2022–2027.

COVID-19 negatively impacted the market due to restrictions on manufacturing activities and the supply chain. The lockdown in China forced coffee machine manufacturers based in United States and Europe to halt production temporarily as they imported several input supplies. Even though there was a temporary slowdown during the pandemic, growth was still assured by the growth of commercial infrastructure and the number of offices.

The coffee industry has been evolving in terms of innovations, new launches, and rising consumer demand. The growing popularity of instant non-alcoholic beverages such as coffee in restaurants and office cafeterias propels the growth of the coffee machine market. Coffee machines reduce the time and effort required to prepare coffee in coffeehouses and office cafeterias. The increasing need for non-alcoholic beverage drinks among millennials, consumer awareness about low-sugar and non-alcoholic drinks, busy work schedules, and changing consumer tastes are a few of the reasons for the rise in the popularity of instant non-alcoholic beverages such as coffee.

Due to the increasing demand for coffee, coffee provider companies are investing in appropriate equipment and innovating methods such as coffee capsules to offer better-tasting coffee as more profitable options. Coffee machines are becoming more popular around the world because they are easy to use and always make good coffee.

The continuously increasing coffee consumption levels in various regions of the world, rising disposable income levels, a growing youth population, and the working class are propelling the demand for coffee machines. The demand for coffee machines is increasing rapidly, owing to the expansion of the coffee culture or the expansion of coffee shops and capsule systems.

The demand for automatic coffee machines is increasing significantly, thereby boosting the growth of the market. Smart coffee machines with Bluetooth or Wi-Fi connectivity are a recent trend in the global market. These smart coffee machines can be accessed through smartphones, and users can control them from anywhere inside the house and provide commands from a smartphone. The increasing awareness of the adverse effects of excessive caffeine consumption is expected to limit the growth of the market. Moreover, high maintenance costs may hamper the coffee machine market.

The growth in the coffee-drinking population worldwide and the mounting popularity of speciality coffee have led to significant market expansion in recent years. The commercial sector's strong growth, especially in developing countries, has also been favourable for the coffee machine industry. The emergence of the food service industry as a key end user and the surging number of offices with kitchenettes may also foster the sales of technologically advanced coffee machines in the coming years. Players are focusing on integrating various features into coffee machines, which may further drive the market's growth. During the forecast period, new growth opportunities are likely to open up because more and more people want coffee machines that can pre-grind and pre-infuse.

Asia-Pacific is expected to be the fastest-growing market, with a significant growth rate over the forecast period. The growth is driven by rapid urbanization and the expanding middle-income population base. The Asia-Pacific region is anticipated to dominate the global market over the forecast period due to the increasing population, technological advancements, rising disposable income levels, and the growing number of workplaces. Moreover, the growing population of young consumers and the burgeoning working class are propelling the demand for coffee machines in countries like China, India, and Japan. The demand for coffee machines is increasing rapidly due to the expansion of the coffee culture or the expansion of coffee shops and capsule systems in the Asia-Pacific region. The mounting number of cafés, restaurants, hotels, homes, and companies and the rising spending capacity of consumers in the region also add to the market value. The amount of coffee consumed in the Asia-Pacific region during the 2020–21 year was 36.503 million 60-kg bags, with a CAGR of 1.5% from 2017–2018.

The report covers the major international players operating in the coffee machine market. In terms of market share, a few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by launching innovative products and tapping into new markets. Some of the major players in the market are Keurig Dr Pepper, Inc., De'Longhi Group, Newell Brands, Nestlé SA, Philips, and Panasonic Corporation, among others.

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