The Global Coffee Market Size Is Anticipated To Reach USD 1,43,828.7 Million By 2029, Registering A CAGR Of 5.12% During 2023 And 2030.

Coffee Market Overview

Coffee is a drink made from roasted coffee beans and water. These beans are the seeds of berries from some types of coffee plants. When coffee beans change from green to bright red, they are picked, processed, and finally dried. The berries are ready when their colour changes. Caffeine in coffee makes you feel more awake, which is likely to be a big factor in the growth of the global coffee market from 2020 to 2030, which is the time frame of the analysis.

This drink is one of the most popular drinks in the world and is drunk by a lot of people. Coffee is served either hot or cold, and it can be made and served in different ways. Some clinical studies show that healthy adults might benefit a little bit from drinking coffee in small amounts. It is thought that these things will help the global coffee market grow in the years to come. Young people's growing interest in café culture and the rapid growth of cities are also likely to increase the demand for coffee in the near future.

Market Dynamics

Drivers

Increasing consumption of coffee across the globe

Coffee is one of the drinks that people around the world drink the most. North America has a big share of the coffee market, and almost 71% of people in the US drink coffee every day. In Europe, the coffee market is getting bigger because specialty coffee and single-serve methods are becoming more popular. The International Coffee Organization (ICO) says that in February 2020, the world exported 11.11 million bags of coffee, which is 2.6% more than in February 2019, when 10.83 million bags were exported. Based on the most recent data from the International Coffee Organization (ICO), Europe was the largest consumer of coffee in the world. Asia-Pacific and North America are two other important areas where people drink the most coffee. Also, an ICO report says that between 2016/17 and 2019/20, the amount of coffee people in Europe drank went up by 2.6%. In the same time period, between 2016/17 and 2019/20, coffee consumption went up by 2.7% in North America and 2.1% in Asia Pacific. A big reason for the rise in coffee sales is that more people around the world are learning about the health benefits of drinking coffee. Also, in emerging economies, where cities are growing quickly and people's disposable income is going up, many coffee companies are coming up with new products to take advantage of growth opportunities. Many countries in South East Asia, like Indonesia, the Philippines, Thailand, and Malaysia, are seeing a rise in the number of people who drink coffee. The growth of the coffee market is helped by the fact that there are more cafes and places to buy drinks all over the world. Since more and more people around the world are drinking coffee, the market is likely to grow during the review period.

Restraint:

Fluctuating prices of coffee beans

Coffee is one of the things that is bought and sold the most around the world. The number of people who drink coffee is going up quickly in both countries that grow coffee and countries that don't. But it is hard to deal with the fact that there isn't enough coffee to meet the growing demand. Changes in the weather also affect how much coffee is grown, which makes the price go up and down even more. The plant disease called "coffee rust" or "la roya," which is caused by a fungus that attacks the leaf and kills the branch and coffee cherry, tends to spread when the temperature goes up. So, plant diseases, pests, and problems with the coffee beans all make it hard for the market to get enough coffee. This difference between what people want and what is available makes prices go up.

On the other hand, when there is too much of something, prices go down. For example, the International Coffee Organization says that bigger coffee supplies in 2017/18 led to more shipments in August 2018, when global exports went up 6.3% to 11.1 million bags from August 2017. In the year 2017/18, the world used about 1.8% more coffee, or 162.23 million bags. But the amount of coffee made was over by 2.58 million bags. Because of this surplus, coffee prices have been low during this time.

Changes in prices affect the cost of making a product, which in turn affects the price of the product. This could make it harder for the manufacturers to make money. So, coffee bean prices that go up and down slow the growth of the coffee market.

Opportunities:

Rising consumer preferences for organic coffee

The market for organic coffee is going up quickly. This growth is mostly due to changes in technology, competition, and new ways of marketing, especially in places with a lot of competition. People around the world are also becoming more concerned about their health, which has made them prefer organic food products. People are more likely to buy organic coffee, which is made without chemicals like most pesticides, herbicides, and fertilisers. Organic coffee is becoming more popular because it is good for your health and doesn't have any toxins left over from synthetic fertilisers, herbicides, pesticides, artificial flavours or colours, or preservatives. Organic coffee is also thought to be good for the environment because no chemicals are used in its production, processing, or packaging. This means that it doesn't pollute the environment.

So, the fact that people want organic products opens up a chance for people in the global coffee market. For example, Australia is thought to be the country that drinks the most organic coffee in the world. Because of this, Lavazza launched its first organic coffee, Tierra! Bio-Organic, in Australia in August 2018. Also, the demand for organic coffee is growing not just in developed countries, but also in some developing countries. This gives market players a chance to grow and expand.

Challenges:

Limited Product Awareness

The amount of coffee people drink around the world is going up, but coffee pods and capsules aren't used as much in developing countries. Even though Asia-Pacific is a centre for coffee production, most of the coffee grown there is shipped to the US and Italy to be put into pods or capsules. In the Asia-Pacific region, Indonesia, Vietnam, East Timor, Laos, Myanmar, the Philippines, and Thailand are some of the countries that produce the most coffee. But coffee pods and capsules aren't used as much in these countries as they are in North America and Europe. Most people in developing countries don't know about or use coffee capsules and pods because they aren't easy to find, there aren't many market players in rural areas, and fresh coffee, capsules, and pods are expensive. To keep their places in a growing market, coffee companies must find ways to deal with these problems. They can do this by focusing on marketing strategies and putting out new products at prices that middle-class consumers can afford.

Segment Overview

By Product Type

The global coffee market is split into fresh coffee and coffee pods and capsules based on the type of coffee. In 2019, 84.99% of the market was made up of the fresh coffee segment. But the coffee pods and capsules segment is expected to grow faster, at a CAGR of 7.88% from 2022 to 2030.

By Category

The conventional and organic segments of the global coffee market are based on the type of coffee. In 2019, 85.35% of the market was made up of the conventional segment. But the organic segment is expected to grow at a faster rate of 5.46% per year from 2022 to 2030.

By Distribution Channel

The global coffee market is divided into stores that sell coffee and other places that don't sell coffee. The store-based segment is further divided into supermarkets and hypermarkets, convenience stores, and others. In 2019, 72.51% of the market was made up of the store-based segment. The non-store-based segment, on the other hand, is expected to grow at a faster rate of 5.51%per year from 2022 to 2030.

Regional Analysis

By region, the global coffee market is split into North America, Europe, Asia-Pacific, and the Rest of the World. In 2019, 36.08% of the market was in Europe, and the market is expected to grow at the fastest rate over the next five years, at a CAGR of 4.72%. Asia-Pacific was the second-biggest market in 2019, and it is expected to grow at a rate of 5.57 percent per year (CAGR).

Europe is one of the best places for coffee makers to live. In 2019, Europe accounted for 36.08 percent of the market, and it is expected to grow at a high CAGR of 4.72 percent from 2021 to 2028. The fact that the regional market is so big is due to things like the growing demand for different flavours and packaging, the development of new products with improved technology, the growing demand for easy-to-use coffee capsules and pods, and the use of automatic bean-to-cup machines. Also, many European countries are the ones that drink the most coffee in the world. The countries that drink the most coffee in the world are Finland, Norway, Iceland, Denmark, the Netherlands, Sweden, Switzerland, Belgium, Luxembourg, and the United Kingdom. The growth of the market in the region is likely to be helped by strategic partnerships and collaborations between the major players. In May 2018, for example, Nescafé and Starbucks signed a long-term licencing deal. The partnership says that Nescafé will be able to sell Starbucks products in Europe, Asia, and Latin America. Major market players like Nestlé S.A., The Kraft Heinz Company, Luigi Lavazza S.p.A., and Dualit Limited are based in the area, especially in Italy. This helps the market grow.

Asia-Pacific also has a big share of the global coffee market, which is expected to grow at a CAGR of 5.57% from 2021 to 2028. The growth of the market in the region is expected to be driven by a number of things, such as the fact that more and more people are moving to cities and the number of people with middle-incomes is growing. During the forecast period, these things are also likely to speed up the demand for coffee. Coffee sales have also gone up because people have more money to spend now than they did before. People are willing to pay more for coffee products that add value. Some of the countries that drink the most coffee are China, Indonesia, the Philippines, and India. China and India, on the other hand, are likely to be big coffee consumers during the review period. Japan is one of the places where people drink tea. But over time, people have been drinking more coffee, which is what is making the coffee market in the Asia-Pacific region grow. Key coffee makers are also focusing on the Asia-Pacific region to increase the amount of coffee and coffee products they sell. These companies are putting out a lot of new and improved products to get more people to drink coffee.

Scope Analysis:

Recent Developments:

• In September 2022, CoffeeB, a Swiss coffee company, made a new type of compressed coffee balls that it calls "the next generation of single-serve coffee." It makes a capsule that keeps its shape by using wrappers made of seaweed instead of aluminium or plastic.
• In June 2022, Reliance Brands Ltd. announced a strategic partnership with Pret a Manger, a global chain of restaurants with fresh food and organic coffee, for the brand's launch and growth in India.
• In December 2021, FNC introduced a line of coffees made by women as a way to make the brand stand out.

Market Segmentation

By Product Type

Depending on the type of coffee, the global coffee market is split into fresh coffee and coffee pods and capsules. In 2019, the fresh coffee segment made up 84.99% of the market. But the market for coffee pods and capsules is expected to grow faster, at a compound annual growth rate (CAGR) of 7.88% from 2022 to 2030.

By Category

The types of coffee make up the conventional and organic segments of the global coffee market. In 2019, the conventional segment made up 85.35 percent of the market. But between 2022 and 2030, the organic segment is expected to grow at a faster rate of 5.46 percent per year.

By Distribution Channel

On the global coffee market, there are places that sell coffee and places that don't. The store-based segment is further divided into supermarkets and hypermarkets, convenience stores, and other stores. In 2019, the store-based segment made up 72.51% of the market. On the other hand, the non-store-based segment is expected to grow faster, at a rate of 5.51% per year from 2022 to 2030.

By Product Type

• Fresh Coffee
• Coffee Pods & Capsules

By Category

• Conventional
• Organic

By Distribution Channel

• Store-Based
• Non-Store-Based

By Companies

• Nestle SA (Switzerland)
• Tata Global Beverages Limited (India)
• Illycaffè S.p.A. (Italy)
• Keurig Dr. PepperInc. (US)
• Starbucks Corporation (US)
• The Coca Cola Company (US)
• Jacobs Douwe Egberts (Netherlands)
• Strauss Group Ltd (Israel)
• The Kraft Heinz Company (US)
• The J.M. Smucker Company (US)