Coffee creamer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Coffee creamer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The coffee creamer market is projected to register a CAGR of 4.5% during the forecast period, 2022-2027.

The demand for coffee creamer products is strictly associated with the increasing demand for non-alcoholic beverages like coffee. The growing demand for coffee beverages both in hot and cold forms is propelling the sales of these coffee products across the world. These products are often preferred by consumers to add flavor and thicken the coffee. This shift in demand for flavored coffee propelling the sales of these coffee creamer products, liquid coffee creamer products are commonly preferred by the consumers in the market as liquid creamer tends to blend within and can be evenly distributed easily when compared to powdered coffee creamer.

One of the primary functions of the coffee creamer products is to provide an RTD coffee experience at home with minimal involvement in preparation. This facilitates the consumers in the market to choose products of their favorite flavors and prepare those flavored coffees at home. Owing to the demand for flavored coffee creamers in the market, manufacturers started offering flavored coffee creamers with unique flavors. For instance, in Jan 2021, Danone North America partnered with Post Holdings, Inc. to launch a pair of coffee creamers inspired by Fruity Pebbles and Cocoa Pebbles cereal flavors. Another company, Starbucks offers their unique flavored coffee creamers in its product portfolio. A few of the flavors include, cinnamon dolce latte, white chocolate mocha, caramel macchiato and more. The company claims that these flavors closely imitates the taste and flavors offered in their dedicated RTD coffee retail spaces.

Due to the outbreak of Covid 19, the demand for coffee creamers increased with consumers shift in demand towards at home consumption of coffee with various flavors. This is mainly due to the inclination towards consuming novelty flavors in coffee. In addition, these coffee creamers tend to have a longer shelf life which facilitates the consumers in the market purchase products in bulk quantities.

Key Market TrendsShift in consumers preference towards vegan and free-from coffee creamers

With the increasing awareness about the impact of consumption of various chemicals-based additives/ingredients via various food & beverage products, there has been increasing demand for food & beverages with clean-label claims and free-from claims.​ The demand for plant-based coffee creamers has significantly increased in the market as many consumers are turning vegan. The health benefits of consuming vegan products encourage consumers to choose vegan-originated coffee creamers over conventional products in the market. There is a growing demand for dairy-free creamers made from oat, almond, coconut milk, and more, especially from the younger population with an increasing lactose intolerance among consumers around the world. Thus, an increasing number of players have a broad portfolio of dairy-free creamers with innovative flavors. In 2022, Nestle launched its plant-based coffee creamer under the brand, CoffeeMate in two new flavors, French Vanilla and Caramel.

North America dominates the coffee creamer market

Due to their flavor and prolonged shelf life, coffee creamers are frequently used by consumers. As the demand for coffee beverages for household consumption rises in the area, so does the need for coffee creamer. For instance, the USDA Foreign Agricultural Services reported that domestic coffee consumption in the United States in 2020 was estimated at 23 million 60-kilogram bags, which is a bit more than the 23.58 million 60-kilogram bags in 2015. Additionally, customers are more likely to choose items with clean labels because they want to avoid coffee creamer brands that contain allergens. Purchases of items with clean labels, such as vegan, sugar-free, and other options, are driven by the rising health concerns surrounding lactose intolerance, obesity, and other chronic diseases. Owing to the demand manufacturers in the market are introducing clean labeled products into the market. For instance, in September 2020, International Delight, a Danone Brand redesigned packaging for coffee creamers with a Sugar-Free claim. The new packaging puts “Zero Sugar” front and center of the products, making it easy for customers to notice the claim.

Competitive Landscape

The Coffee Creamers market is highly fragmented and comprises domestic and international players. The leading players in the Coffee Creamer include Nestlé SA, Danone SA, Walmart Inc, Heartland Food Products Group, Leaner Creamer LLC, Bay Valley Foods LLC, Nutpods, Shamrock Foods Company, Califia Farms LLC, Dean Foods, and others. The market is highly competitive, with major players making major strategic investments in order to attain the top position in the market. For Instance, In January 2022, Chobani, a leading dairy foods brand, launched Plant-Based Coffee Creamers that are available in four flavors namely, Sweet & Creamy, French Vanilla, Chocolate Hazelnut, and Caramel Macchiato.

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