Coffee is one of the most consumed beverages in the world. It is cultivated from the coffee plant and seeds called coffee beans. The two major varieties are Arabica coffee and Robusta coffee. Coffee beans are roasted, brewed, and served in various styles such as espresso, cappuccino, etc. Coffee is consumed for pleasure and to boost energy and alertness. The global coffee market enjoys strong demand from the commercial sector including cafes, restaurants, coffee shops, and offices. The business to consumer (B2C) coffee industry is also growing with rising health-conscious consumers opting for specialty coffee products.
The global coffee market is estimated to be valued at US$ 132.99 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing demand for organic and specialty coffee from health-conscious consumers is driving the coffee market. With rising disposable income, people are willing to pay premium prices for high-quality specialty coffee. The specialty coffee segment features single-origin coffees that offer unique flavor profiles based on growing region. Another driver for the market is the growing café culture. Urbanization and western influence have increased the number of cafés, coffee shops, and restaurants worldwide which supply various coffee beverages. To attract customers, cafes offer innovative coffee recipes and beverages made from premium roasted beans. This growing café culture drives the demand from the commercial sector. Rising health awareness is also prompting consumers to switch from sugary soda drinks to coffee which is considered a healthier beverage and rich in antioxidants.
Segment Analysis
The global coffee market size is dominated by the roasted and ground coffee sub-segment, which holds around 60% of the total market share. This is because roasted and ground coffee is the most convenient form for consumers to brew coffee at home. The rising popularity of coffee pods is also boosting the growth of the portioned coffee sub-segment. The on-the-go coffee culture is driving demand for coffee capsules and pods as they allow consumers to quickly brew a cup of coffee without much hassle.
PEST Analysis
Political: Trade policies play an important role in the coffee market as coffee is one of the most traded agricultural commodities globally. Changes in tariffs and regulations in the major importing countries can significantly impact exports and prices.
Economic: The global economic growth has boosted the purchasing power of consumers, especially in developing nations. This has increased their disposable incomes which is translating into higher spending on lifestyle products and experiential goods like coffee.
Social: The social trend of coffee shop culture and on-the-go consumption of coffee has hugely contributed to the market growth. Coffee breaks and socializing over a cup of coffee have become daily rituals for urban populations.
Technological: Advanced coffee making machines that offer variety and customize beverages as per consumer requirements have gained popularity. Innovation in packaging like coffee pods and capsules is also driving the market.
Key Takeaways
The global coffee market is expected to witness high growth over the forecast period of 2023 to 2030, supported by rising coffee consumption worldwide. The global coffee market is estimated to be valued at US$ 132.99 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030.
Regionally, North America dominates the market currently due to strong coffee culture and high consumption levels in countries like the United States. However, Asia Pacific is expected to emerge as the fastest growing regional market owing to growing affluence, urbanization and exposure to western culture in nations like China and India.
Key players operating in the coffee market are Bristol-Myers Squibb Company, Novartis AG, Merck & Co., Inc., Genentech Inc., F. Hoffmann-La Roche AG., Amgen Inc., AstraZeneca, Daiichi Sankyo Company, Limited., AB Sciences., AgonOX, Inc., Eisai Co., Ltd, GlaxoSmithKline, plc., Pfizer, Inc., and Vical, Inc. These players are focusing on expansion in emerging markets through strategic partnerships and production facility investments to leverage opportunities in high growth regions.