Coffee Market Growth Prospects Forecast Till 2032

(MENAFN- Straits Research) Introduction

Coffee is a beverage that most people drink in the morning to give them energy. Coffee has an energizing impact as a result of the caffeine it contains. When the color of the coffee beans shifts from green to bright red, they are harvested, prepared, and dried. A change in hue indicates that the berries are getting close to being ripe. It is a fundamental component of food culture in many countries and is especially pervasive in the food service industry. A study found that drinking coffee consistently raises life expectancy, decreases pain, boosts fiber intake, protects against liver cirrhosis, and reduces the risk of type 2 diabetes, Alzheimer's, depression, and heart disease.

Market Dynamics Rising Number of Favorable Government Policies Drives the Global Market

Coffee is a commodity with significant global demand. Hence coffee market conditions and pricing are strongly impacted by worldwide supply and demand. The state of the crops influences the market expansion in the countries that produce coffee. Several governments in the European Union and industrialized nations, notably the United States, support coffee growers through alliances with corporate institutions and regional technological projects with the overriding goal of expanding coffee production. To meet the rising demand for coffee worldwide, nations like India are promoting an increase in coffee output in traditional coffee-growing regions by offering subsidies to coffee growers.

Growing Demand for Certified Coffee Products Creates Tremendous Opportunities

The food and beverage industry has a rising demand for "certified" and "sustainable" brands and labels due to consumer concerns about poverty, social injustice, and environmental harm. "Sustainable coffee" refers to diverse coffee varieties that follow various social, ecological, and economic requirements and are independently verified by a reputable third party. Several companies that offer coffee certification monitor the methods used in coffee production and the supply chain. UTZ Certification, Fair Trade Certification, Rainforest Alliance Certification, USDA Organic Certification, and others are just a few of them.

Regional Analysis

Europe is the most significant shareholder in the global coffee market and is expected to grow at a CAGR of 4.16% during the forecast period. Germany is the country that consumes the most coffee in Europe, with a per capita consumption of about 6.5 kg. Additionally, it is a significant importer of green coffee beans in Europe. Businesses like Tchibo use only this quality coffee bean in their coffee blends. Germans prefer Arabica coffee that hasn't been excessively roasted. According to a Nestle Nespresso SA survey, younger generations in Germany have a better feeling of coffee connoisseurship. A little over 24.1% of persons between 18 and 29 want the coffee industry to be diversified and to taste different types of coffee and coffee recipes. According to the British Coffee Association, 95 million cups of coffee are consumed daily in the UK, which gives the significant rivals plenty of room to innovate in the industry. Coffee pads and advanced ee machines are critical variables affecting the nation's ground-coffee business expansion.

North America is expected to grow at a CAGR of 4.84%, generating USD 42.33 billion during the forecast period. The United States controls the specialty coffee business by processing various coffee products and exporting them to the international market. Vietnam and Peru produce roughly equal amounts of coffee imported into the US. Coffee consumption across the country has increased imports of the product. As a result, the United States is currently the world's second-largest importer of coffee beans. Roasters play a critical role in the US coffee supply chain. Starbucks, Maxwell, and Dunkin' Donuts are some of the leading roasting companies that dominate the US industry. According to the Coffee Association of Canada (CAC), most Canadians prefer coffee to tea and are more interested in high-quality coffee. Canadian customers have shown a high awareness of label claims and sustainability when making coffee purchases. Many coffee industry operators focus on forging personal connections with their clients to enhance the perception of their brand.

Chinese consumers have acquired a taste for coffee as a trendy, western luxury, with coffee shops dotting the busy streets of cities like Beijing and Shanghai. With over 3,400 stores across China, Starbucks is now ahead of the competition in the industrial sector. Due to the growth of branded organic coffee blends and the current surge in concerns regarding trends and controversies with food safety in China, most producers now source their coffee from the Yunnan region in China. As India's coffee culture evolved, Aeropress coffee competitions have made way for experience centers and coffee-related events. The HORECA sector is dramatically changing the Indian coffee industry in addition to government initiatives.

Key Highlights

• The global Coffee market size was valued at USD 92.7 Billion in 2023. It is projected to reach USD 145.6 Billion by 2032, growing at a CAGR of 5.4% during the forecast period (2024–2032).
• Based on product type, the global coffee market is bifurcated into whole-bean coffee, ground coffee, instant coffee, coffee pods, and capsules. The instant coffee segment is the highest contributor to the market and is expected to grow at a CAGR of 5.63% during the forecast period.
• Based on distribution channels, the global coffee market is bifurcated into on-trade and off-trade. The off-trade segment owns the highest market share and is expected to grow at a CAGR of 4.98% during the forecast period.
• Europe is the most significant shareholder in the global coffee market and is expected to grow at a CAGR of 4.16% during the forecast period.

Competitive Players

Nestle S.A.

Starbucks Corporation

The J.M. Smucker Company

JDE Peets N.V.

Keurig Dr Pepper Inc.

Lavazza Group

Tata Coffee

Strauss Coffee

Massimo Zanetti Beverage Group

Melitta Group

Tchibo GmbH

The Coca-Cola Company

Peets Coffee & Tea, Inc.

Luckin Coffee Inc.

Caribou Coffee Company

Recent Developments

Recent Developments

• March 2024 - The Blume Founders Fund, the Gauri Khan Family Trust, Nikhil Kamath of Zerodha , and Bollywood actor John Abraham spearheaded a USD 10 million fundraising round that was completed by Subko Coffee Roasters, a specialty coffee and chocolate company. With this investment, the company's post-money valuation has increased to almost USD 34 million, demonstrating the strong belief in Subko's potential and dedication to growing the unique craft café experience in India and abroad.
• May 2024 - In addition to plant-based drinks and a first-of-its-kind recycled invention, Nestlé launched six new coffee brands in China. In response to the rising demand for sustainable, plant-based bottled beverages, global CPG giant Nestlé, which has led the coffee industry for 36 years, has expanded its coffee offering in China.

Segmentation

By Product Type

Whole Bean Coffee

Ground Coffee

Instant Coffee

Coffee Pods

Capsules

By Distribution Channels

On-trade

Off-trade

By Grade

Arabica

Robusta

Specialty

Others

By Application :

Hot Drinks

Ready-to-Drink Coffee

Flavored Beverages

Food & Beverage Flavors

Nutraceuticals

Pharmaceuticals

Cosmetics

Other Applications

By Sales Channel :

Supermarkets/Hypermarkets

e-Commerce

Coffee Houses

Traditional Grocery Stores

Other Retail Formats

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