Coffee is one of the most popular beverages consumed worldwide. It contains caffeine that provides an energy boost and antioxidants that are good for health. Regular coffee drinkers enjoy its taste and aroma. The global coffee market caters to the growing demand for premium coffee beans from chain coffee shops and cafes.
The global Coffee Market is estimated to be valued at US$ 132.99 billion in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing popularity of premium coffee beans is a major trend witnessed in the global coffee market. Consumers are willing to pay more for specialty coffee beans sourced directly from local farms to support small growers. They seek unique flavors and appreciate the craft involved in roasting specific coffee varieties. This high demand encourages farmers to cultivate new heirloom varieties and entices coffee shop owners to curate premium blends. The specialty coffee culture continues to expand worldwide, uplifting both coffee growers and businesses in the industry.
SWOT Analysis
Strength: Coffee is a beverage enjoyed globally and is a daily necessity for many. The market has established distribution and supply chains.
Weakness: Coffee prices fluctuate based on weather conditions affecting crops. Some countries place high import taxes on coffee which increases end consumer prices.
Opportunity: Emerging markets continue to see rising incomes and disposable spending on premium coffee products. New flavors and formats like instant coffee presents new avenues of growth.
Threats: Substitute beverages like tea and energy drinks are competing for consumer wallet share. Sustainability concerns around water usage and fair pricing for farmers could impact certain segments.
Key Takeaways
The global coffee market growth is expected to witness high over the forecast period driven by rising coffee consumption in developing economies. The Asia Pacific region currently accounts for over 35% of the global market led by countries like India, Indonesia, and Vietnam. Strong economic growth, rising wages, and changing generational preferences are fueling coffee shop and at-home coffee culture.
Key players operating in the coffee market are focusing investment on premium single-serve formats and cold brew coffee to tap emerging demand from time-pressed, affluent millennials and Gen Z consumers. Companies are also innovating new flavors and health-positioned products to appeal to evolving tastes. Additionally, sustainability sourcing and transparency around farmer wages are gaining prominence to attract ethically-conscious buyers.
The North American region currently dominates global coffee sales led by the United States. However, other regions are witnessing faster growth rates. Countries like China, Brazil, and Germany are among the top importers of green coffee beans indicating rising domestic demand. Changing work patterns due to COVID-19 are also supporting out-of-home coffee consumption in offices and travel locations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.