Coffee Market

Global Coffee Market Size (2024 to 2029)

The global coffee market share value in 2024 was 128.34 billion, and it is expected to grow at a CAGR of 6.2% during the forecast period 2024-2029 to reach USD 165.51 billion by 2029.

The Coffee beans are found inside the plant's fruit. These fruits are known as cherries. There are two species of coffee plants, namely Coffea arabica and Coffea canephora. The coffee plants require mild temperatures, sufficient shade, and a lot of rain. These beans are slightly acidic and somewhat bitter. The processing of coffee beans involves various steps, such as grading, decaffeination, roasting, and grinding. This is one of the most consumed beverages across the globe. Coffee stimulates and acts as a mild stimulant, as it contains caffeine. The consumption of coffee helps to decrease pain and increases fibre intake. Coffee also helps to protect against liver cirrhosis. This lowers the risk of type 2 diabetes, Alzheimer’s, depression, and heart disease. Coffee is mostly harvested on the world’s coffee belt. This coffee belt runs down the equator. Coffee Arabica is popular; this is because of its quality. Most of the coffee is produced from this species only. The coffee arabica is not bitter in taste; it's smooth and flavourful. It has more acidity than other types. Robusta coffee is less expensive compared to Arabica coffee.

The increase in initiatives taken by the various governments is creating opportunities in the coffee market over the forecasting period. For instance, through collaborations with corporate institutions and local technological initiatives, numerous governments in the European Union and industrialized nations, notably the United States, support coffee growers. To deal with the economic and environmental vulnerabilities that the coffee industry faces, several governments are creating sustainable programs to increase coffee output. For instance, the Vietnamese government published the Vietnam Sustainable Coffee Plan up to 2020 and the Vision 2030 in 2014. The initiative aims to set environmental standards, including looking into water-saving irrigation methods and using ecologically friendly fertilizers and herbicides. It aims to stabilize the conditions for manufacturing in the future. In the Asia Pacific region, emerging countries like India are encouraging the increase in coffee production by providing subsidies to coffee cultivators. These factors are creating opportunities in the coffee market over the projected period.

DRIVERS

The increase in consumption of coffee among all age groups is one of the major driving factors in the Coffee market. This is due to the increase in the consumption of coffee among the millennial generation.

Hence the demand for coffee beans is increasing across the globe. Consumption of coffee has various health benefits. The health benefits associated with the consumption of coffee are it decreases the risk of diabetes, fat burning, and high energy intake. Additionally, the increase in disposal income, urbanization, and working culture increased the demand for coffee. With the increase in the trend of specialty coffee and single-serve methods, the demand for coffee is increasing. The variation in work culture in the corporate sector. This is due to an increase in living standards, which is expected to increase demand for the market. Many companies are revising their marketing strategies and creating modern brands, this increases consumer satisfaction. The increase in demand for organic coffee is anticipated to increase the demand for coffee over the forecasting period. The increase in consumption of coffee in cafes and restaurants by the millennial generation increases the demand for coffee. The increase in the variety of coffee served by various cafes, such as baristas, CCDSs, and Starbucks, is increased customer satisfaction. The increase in franchises taken by many coffee shops increased the consumer demand for coffee. The increase in the availability of a variety of Flavors in cafes increases the demand. The increase in consumption of ready-to-drink beverages is one of the major driving factors in the market. These are the driving factors that help to increase the coffee market growth.

RESTRAINTS

The environmental issues faced by the cultivators of coffee are one of the major restraining factors to the coffee market growth.

For the cultivation of coffee, there is a requirement for specific climatic conditions such as requires cool to warm tropical climate, rich soil, and the absence of most pests and diseases typical of the tropics. The major issue faced by cultivators is the increase in global warming; this has led to an increase in Earth’s temperature continues to warm. This increases the damage to the quality and quantity of end products. The increase in temperature leads to early development and ripening speed. This does not affect agriculture but decreases the quality and quantity of coffee beans. Coffee production may lead to cause water pollution. Despite the advantages of coffee consumption, overconsumption of coffee may lead to Insomnia. Nervousness. Irritability. Frequent urination or inability. These are the restraining factors to the coffee market growth.

Impact of Covid-19 on the Coffee Market

The pandemic had a negative impact on the coffee market. The pandemic severely affected the food and beverage industries, including the coffee market. The pandemic led to creating disruption in supply chain management in the coffee market. The cultivators of coffee faced many problems during the outbreak. This is due to the imposition of lockdown. There was a dearth of labor in the fields and also in the companies. As coffee production involves many steps, it requires many laborers to produce the final coffee grains or powder. Additionally, transportation delays and logistical issues faced by marketers decreased the demand for coffee. Additionally, the government imposed the rule to close all the restaurants and cafes, which decreased the demand for coffee from these places. Additionally, the economic issues faced by many regions during the pandemic created uncertainty among consumers. This reduced the demand for coffee across the world. Hence the pandemic had a negative impact on the coffee market across the globe.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Coffee Market Segmentation Analysis By Coffee Bean

 Among these, the Coffee Arabica segment dominates the Coffee Market. The Coffee Arabica segment is expected to show its dominance in the market over the projected period. This is due to Arabica coffee is a premium type of coffee. This type of coffee is used to enhance the flavor and taste as Arabica coffee is sweet, less bitter, and soft taste. Hence major of the population prefers arabica coffee. The Robusta coffee segment is anticipated to show the fastest CAGR growth over the forecasting period.

Global Coffee Market Analysis By Product type 

Among these, the instant coffee segment dominates the coffee market. The instant coffee segment is anticipated to show its dominance over the projected period. This coffee is in powdered or granulated form. The increase in popularity of instant coffee drives segmental growth. This coffee is available in numerous Flavors. Hence enhances consumer satisfaction. It is high in antioxidants which helps in metabolism and has low caffeine content. The ground coffee segment is expected to show the fastest CAGR growth over the forecasting period.

Global Coffee Market Analysis By Distribution Channel

Among these, the offline segment dominates the coffee market. The offline segment is anticipated to show its dominance in the market over the projected period. This is due to an increase in product availability in supermarkets or hypermarkets. This helps to expand the consumer base and increases the sale. Additionally, the increase in the number of people visiting cafes and restaurants to consume coffee leads to segmental growth. The online segment is anticipated to show the fastest CAGR growth over the coming years. This is due to the increase in the use of E-commerce, and also, after Covid-19, many companies are shifting online. Many consumers find it easy to order coffee from home, as it increases customer satisfaction because of the ease of convenience.

REGIONAL ANALYSIS

Regionally, the European region dominates the Coffee Market. The European region is expected to show dominance in the Coffee market over the forecasting period. This is due to an increase in the consumption of coffee by the working population. For instance, the Institute for Scientific Information on Coffee (ISIC) surveyed respondents, and 68% of them claimed they frequently drank coffee while at work. Additionally, the increase in development in technology is driving regional growth. The increase in collaboration among companies boosts their productivity and their presence in the market. The contributing countries to the regional growth are the United Kingdom and Germany.

The Asia Pacific segment is anticipated show the fastest CAGR growth in the coffee market over the forecasting period. This is due to an increase in urbanization and increased growth of the middle-income population category, and an increase in disposal income increases the demand for coffee in the Asia Pacific region. Emerging countries such as China and India in the Asia Pacific region drive market growth. Additionally, the increase in awareness among the population about the health benefits associated with the consumption of coffee increases the demand for coffee.

KEY PLAYERS IN THE GLOBAL COFFEE MARKET

The Key market players of coffee market are Nestlé S.A., Kraft Heinz Company, Starbucks Corporation, The J. M. Smucker Company, JAB Holding Company, Strauss Coffee BV, Luigi Lavazza SPA, Tata Consumer Products Limited, UCC Europe Limited, Tchibo GmbH.

RECENT HAPPENINGS IN THE MARKET

In June 2023, The launch of Tata Coffee Gold-Cold Brew marked Tata Consumer Products' (TCP) entry into the ready-to-drink cold coffee market and the company's unification of the primary food and beverage interests of the Tata Group under a single roof. This most recent product attempts to reinvent the coffee experience by supplying a special cold brew blend that maintains a balanced flavor profile free of bitterness.

DETAILED SEGMENTATION OF THE GLOBAL COFFEE MARKET INCLUDED IN THIS REPORT

This research report on the global coffee market has been segmented and sub-segmented based Coffee Bean, Type, Distribution & region

By Coffee Bean

• Coffee Arabica
• Coffee Robusta

By Product type

• Whole-Bean

• Ground Coffee
• Instant Coffee
• Coffee Pods
• Others

By Distribution Channel

• Offline
  • Supermarket/Hypermarkets
  • Convenience Stores
  • Specialist retailers
  • Other Distribution Channel

By Region

• North America 
• Europe 
• Asia-Pacific 
• South America 
• Middle East & Africa