“The global coffee market is projected to grow at a CAGR of 5.2% between 2024 and 2031. Forecast to reach USD 155.64 billion by 2031, the market value in 2022 was expected to be USD 102.15 billion. Having the largest market share, Europe led the way in 2022.
Driven by rising coffee consumption, booming cafe culture, and growing demand for specialty and premium coffee products, the coffee business has been consistently expanding internationally. Changing consumer preferences defines the sector; a drive toward sustainably, ethically made coffee beans reflects this transition. Moreover raising the possibilities of the industry are innovations in brewing techniques and the introduction of ready-to-drink coffee goods.”
Market trend: Premiumizing and specialty coffee growing in frequency
In the coffee industry, specialty coffee options and premiumizing definitely are gaining the stage. Consumers looking for unique, premium coffee experiences are driving demand for handmade roasts, bespoke mixes, and single-origin beans. Growing knowledge of coffee among consumers—who are more picky about taste sensations, brewing methods, and origin stories—fuel this trend. Customary coffee shops and micro-roasters are growing to satisfy this demand for first-rate coffee experiences.
Coffee manufacturers are also introducing limited-edition, seasonal varieties to capitalize on this trend. The premiumizing trend into at-home consumption is also being driven by consumers making daily rituals involving premium coffee beans and upscale brewing equipment.
Market Driver: Health benefits from a reasonable coffee consumption
Growing understanding of the various health benefits linked to moderate coffee use is one main engine of industry growth. various studies have proven how well coffee affects various aspects of health, including improved cognitive function, decreased risk of certain malignancies, and maybe protection against neurological diseases like Parkinson's and Alzheimer's. Packed with bioactive components and antioxidants, coffee might assist to explain certain health benefits. Customers who are becoming more health-conscious as part of a well-balanced lifestyle are including coffee into daily activities. This perspective of coffee as a good drink inspires more consumption across many various age groups and socioeconomic levels.
The introduction of functional coffee beverages enhanced with vitamins, proteins, or other health-conscious ingredients fuels market development in this category even more.
Variability in coffee bean pricing and disruption of the supply chain
One of the primary challenges facing the coffee industry is the volatility in coffee bean price and persistent supply chain disruptions. Coffee yield may be much affected by environmental factors such temperature, pests, and illnesses, which are very susceptible to it. Climate change has exacerbated these issues by producing irregular crops and supplies. Geopolitical problems, trade disputes, and logistical challenges might potentially throw off the global coffee supply chain, thereby affecting consumers as well as producers. These factors serve to explain price volatility, why retailers and coffee roasters find it difficult to maintain regular pricing and profit margins.
Moreover aggravating client satisfaction and maybe impacting buying behavior are the fluctuations in pricing and supply. To reduce these risks, industry players are broadening sourcing areas, investing in sustainable farming practices, and looking at alternative coffee types more resistant to environmental influences.
Arabica dominates the coffee market
Arabica coffee continues to be the dominant offering on the global coffee market with the largest market share. Arabica beans, valued by both casual consumers and coffee drinkers for their smooth, nuanced flavor profile and low relative caffeine content compared to Robusta, have become even more important in the market as demand for premium, specialty coffee grows.
Mostly grown in Latin America, East Africa, and certain parts of Asia, Arabica growth is confined in places with specific weather requirements. Arabica beans are a top choice in the coffee industry as its premium helps shops and producers to have larger profit margins.
Europe Overseas Coffee Market Drives
Europe controls the global coffee market with countries like Germany, Italy, France, and the Nordic countries driving noteworthy consumption. Rich local coffee culture distinguished by different brewing methods and consumption patterns helps to explain its market dominance. Europe's coffee market is growing from high per capita consumption rate and a huge concentration of both traditional and specialist coffee shops. The area on ethical sourcing, sustainability, and quality is focused on changing client preferences.
Coffee commerce and processing also center Europe; major ports and roasting facilities contribute to explain its worldwide predominance. Rising trend of premiumizing and increasing popularity of coffee capsules and pods help to further drive market progress in the region.
The global coffee market is defined by fierce competition, which blends smaller, specialized rivals with larger multinational corporations. Big companies are focused on strategic acquisitions, environmental initiatives, and product innovation if they are to remain in their markets. Specialty coffee roasters and boutique chains are growing increasingly and challenging major brands with unique products and experiences.
Growing in the sector is vertical integration; some large corporations are financing coffee farms to ensure supply chain management and quality. Direct-to- consumer methods and e-commerce are altering distribution channels to help smaller businesses to more effectively compete. These days, key differentiators are sustainability and ethical sourcing; companies attracting ethical consumers have made investments in farmer welfare and environmental preservation.
- Nestlé S.A.
- Starbucks Corporation
- JDE Peet's N.V.
- The Kraft Heinz Company
- Lavazza Group
- The J.M. Smucker Company
- Dunkin' Brands Group, Inc.
- Keurig Dr Pepper Inc.
- Tchibo GmbH
- Strauss Group Ltd.
Nestlé launched a new line of sustainably sourced, single-origin coffee products in 2023 to satisfy growing consumer demand for premium and ethical produced coffee.
Emphasizing specialized coffee experiences and goods, Starbucks Corporation launched new stores in India and Southeast Asia in 2022 thereby increasing its presence in underdeveloped countries.
1. INTRODUCTION
1.1. Market Definition
1.2. Study Scope
1.3. Currency Conversion
1.4. Study Period (2022- 2031)
1.5. Regional Coverage
2. RESEARCH METHODOLOGY
2.1. Primary Research
2.2. Secondary Research
2.3. Company Share Analysis
2.4. Data Triangulation
3. EXECUTIVE SUMMARY
3.1. Global Coffee Market (2018 – 2022)
3.2. Global Coffee Market (2023 – 2031)
3.2.1. Market Segment By Type (2023 – 2031)
3.2.2. Market Segment By Form (2023 – 2031)
3.2.3. Market Segment By Distribution Channel (2023 – 2031)
3.2.4. Market Segment By End-Use (2023 – 2031)
4. MARKET DYNAMICS
4.1. Market Trends
4.1.1. Premiumization and specialty coffee gaining popularity
4.1.2. Rise of ready-to-drink coffee beverages
4.1.3. Increasing adoption of sustainable and ethical coffee practices
4.2. Market Drivers
4.2.1. Health benefits associated with moderate coffee consumption
4.2.2. Growing cafe culture and out-of-home coffee consumption
4.2.3. Technological advancements in coffee brewing and packaging
4.3. Market Restraints
4.3.1. Volatility in coffee bean prices and supply chain disruptions
4.3.2. Increasing competition from alternative beverages
4.4. Porter's Five Forces Analysis
4.4.1. Threat of New Entrants
4.4.2. Bargaining Power of Buyers/Consumers
4.4.3. Bargaining Power of Suppliers
4.4.4. Threat of Substitute Products
4.4.5. Intensity of Competitive Rivalry
4.5. Supply Chain Analysis
4.6. Pricing Analysis
4.7. Regulatory Analysis
4.8. Pipeline Analysis
5. BY TYPE (MARKET VALUE (US$ MILLION) – 2022-2031*)
5.1. Arabica
5.2. Robusta
5.3. Others
6. BY FORM
6.1. Whole Bean
6.2. Ground Coffee
6.3. Instant Coffee
7. BY DISTRIBUTION CHANNEL
7.1. Supermarkets/Hypermarkets
7.2. Specialty Stores
7.3. Online Retail
7.4. Others
8. BY END-USE
8.1. Residential
8.2. Commercial
9. GEOGRAPHY
9.1. North America
9.1.1. United States
9.1.2. Canada
9.1.3. Mexico
9.2. South America
9.2.1. Brazil
9.2.2. Argentina
9.2.3. Rest of South America
9.3. Europe
9.3.1. Germany
9.3.2. United Kingdom
9.3.3. France
9.3.4. Italy
9.3.5. Spain
9.3.6. Russia
9.3.7. Rest of Europe
9.4. Asia-Pacific
9.4.1. China
9.4.2. Japan
9.4.3. India
9.4.4. Australia
9.4.5. South Korea
9.4.6. Rest of Asia-Pacific
9.5. Middle-East
9.5.1. UAE
9.5.2. Saudi Arabia
9.5.3. Turkey
9.5.4. Rest of Middle East
9.6. Africa
9.6.1. South Africa
9.6.2. Egypt
9.6.3. Rest of Africa
10. COMPETITIVE LANDSCAPE
10.1. Key Developments
10.2. Company Market Share Analysis
10.3. Product Benchmarking
11. SWOT ANALYSIS
12. COMPANY PROFILES
12.1. Nestlé S.A.
12.2. Starbucks Corporation
12.3. JDE Peet's N.V.
12.4. The Kraft Heinz Company
12.5. Lavazza Group
12.6. The J.M. Smucker Company
12.7. Dunkin' Brands Group, Inc.
12.8. Keurig Dr Pepper Inc.
12.9. Tchibo GmbH
12.10. Strauss Group Ltd.
12.11. Illycaffè S.p.A.
12.12. Costa Coffee (*LIST NOT EXHAUSTIVE)
13. MARKET OPPORTUNITIES
By Type:
- Arabica
- Robusta
- Others
By Form:
- Whole Bean
- Ground Coffee
- Instant Coffee
By Distribution Channel:
- Supermarkets/Hypermarkets
- Specialty Stores
- Online Retail
- Others
By End-Use:
- Residential
- Commercial
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