Dublin, Nov. 28, 2024 (GLOBE NEWSWIRE) -- The "Coffee and Tea Global Market Opportunities and Strategies to 2033" report has been added to ResearchAndMarkets.com's offering.
The global coffee and tea market reached a value of nearly $116.7 billion in 2023, having grown at a compound annual growth rate (CAGR) of4.4% since 2018. The market is expected to grow from $116.7 billion in 2023 to $162.4 billion in 2028 at a rate of 6.8%. The market is then expected to grow at a CAGR of 5.2% from 2028 and reach $208.9 billion in 2033.
Growth in the historic period resulted from increased urbanization and demanding work schedules, changing consumer preferences, increased demand and use of coffee subscription services, government initiatives. Factors that negatively affected growth in the historic period was shortage of workforce.
Going forward, increased focus on ready-to-drink (RTD) beverages, increasing focus towards health and fitness, increasing investments, rising popularity of coffee among millennials, increasing number of coffee shops will drive the growth. Factor that could hinder the growth of the coffee and tea market in the future include global warming and climate change.
The coffee and tea market is segmented type into coffee and tea. The coffee market was the largest segment of the coffee and tea market segmented by type, accounting for 55% or $64.4 billion of the total in 2023. Going forward, the coffee segment is expected to be the fastest growing segment in the coffee and tea market segmented by type, at a CAGR of 7.1% during 2023-2028.
The coffee and tea market is segmented by distribution channel into supermarkets/hypermarkets, convenience stores, e-commerce and other distribution channels. The convenience store market was the largest segment of the coffee and tea market segmented by distribution channel, accounting for 48.9% or $60.8 billion of the total in 2023. Going forward, the e-commerce segment is expected to be the fastest growing segment in the coffee and tea market segmented by distribution channel, at a CAGR of 12.1% during 2023-2028.
The coffee and tea market is segmented by packaging into containers, bags and packets or pouches. The containers market was the largest segment of the coffee and tea market segmented by packaging, accounting for 38.3% or $47.8 billion of the total in 2023. Going forward, the containers segment is expected to be the fastest growing segment in the coffee and tea market segmented by packaging, at a CAGR of 6.9% during 2023-2028.
The coffee and tea market is segmented by form into liquid, powder and capsules. The powder market was the largest segment of the coffee and tea market segmented by form, accounting for 76.2% or $95 billion of the total in 2023. Going forward, the capsules segment is expected to be the fastest growing segment in the coffee and tea market segmented by form, at a CAGR of 7% during 2023-2028.
Asia-Pacific was the largest region in the coffee and tea market, accounting for 39% or $45.6 billion of the total in 2023. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the coffee and tea market will be Middle East and Africa where growth will be at CAGRs of 23.3% and 10.8% respectively. These will be followed by South America and Eastern Europe where the markets are expected to grow at CAGRs of 10.7% and 7% respectively.
The global coffee and tea market is fairly concentrated, with large players operating in the market. The top ten competitors in the market made up to 29.2% of the total market in 2022. The fairly concentrated market can be attributed to the presence of large players in different geographies. Nestle was the largest competitor with a 6.5% share of the market, followed by Starbucks Corporation with 5.9%, Louis Dreyfus Company B.V. with 4.2%, J.M. Smucker Company with 2.8%, Unilever Plc with 2.4%, The Coca-Cola Company with 2.1%, PepsiCo with 1.6%, Suntory Holdings Limited with 1.5%, Ito En Ltd. with 1.4% and Tata Consumer Products with 0.8%.
The top opportunities in the coffee and tea market segmented by type will arise in the coffee segment, which will gain $26.5 billion of global annual sales by 2028. The top opportunities in the coffee and tea market by distribution channel will arise in the convenience store segment, which will gain $20.5 billion of global annual sales by 2028. The top opportunities in the coffee and tea market by packaging will arise in the containers segment, which will gain $17.7 billion of global annual sales by 2028. The top opportunities in the coffee and tea market by form will arise in the powder segment, which will gain $34.5 billion of global annual sales by 2028. The coffee and tea market size will gain the most in Turkey at $8 billion.
Market-trend-based strategies for the coffee and tea market include focus on collaborations and sales partnerships to strengthen their market position, focus on launching innovative products such as single-origin coffee pods, introducing premium tea products to capitalize on the growing demand and increase revenues, focus on the expansion of their business by investing in facilities, focus using innovative technologies such as the blockchain platforms.
Player-adopted strategies in the coffee and tea market include focus on strengthening its operational capabilities through strategic partnerships, and focus diversifying its businesses by scaling up its capabilities through new product launches.
To take advantage of the opportunities, the analyst recommends the coffee and tea companies to focus on innovative product offerings, focus on premium tea offerings, focus on block chain technology integration, focus on the coffee segment, focus on the capsules segment, expand in emerging markets, continue to focus on developed markets, focus on strategic collaborations and sales partnerships, focus on facility expansion, focus on e-commerce expansion, provide competitively priced offerings, focus on value-based pricing, continue to use B2B promotions, focus on digital marketing channels and focus on consumer-centric approach.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 418 |
| Forecast Period | 2023 - 2033 |
| Estimated Market Value (USD) in 2023 | $116.7 Billion |
| Forecasted Market Value (USD) by 2033 | $209 Billion |
| Compound Annual Growth Rate | 6.0% |
| Regions Covered | Global |
Markets Covered:
- Coffee By Type Of Product: Roasted Coffee; Coffee Concentrates; Essences and Extracts; Other Coffee Products
- Tea By Type Of Product: Black Tea; Green Tea; Specialty Tea; Other Tea
- Distribution Channel: Supermarkets/Hypermarkets; Convenience Stores; E-Commerce; Other Distribution Channels
- Packaging : Containers; Bags; Packets Or Pouches
- Form: Liquid; Powder; Capsules
Customer Information
- Impact of Coffee and Tea Consumption on Consumer Spending Habits
- Rising Demand for Holistic Health in Asia Pacific
- People are Drinking More Coffee Whilst Working from Home
- Coffee Drinkers Perk Up in the Morning, Tea Drinkers in the Afternoon
- Coffee Consumption Hits Two-Decade High
- People are Slowly Moving Towards Vending Machine Coffee Over Handmade Coffee
- Increasing Popularity of Tea and Coffee Among Consumers in Britain
- Drinking Coffee and Tea Reduces the Risk of Developing Stroke, Dementia and Poststroke Dementia
Major Market Trends
- Strategic Collaborations and Partnerships Among Market Players
- Introduction of Innovative Single-Origin Coffee Pods
- Introduction of Premium Tea Products in the Coffee and Tea Market
- Expansion of Facilities to Cater to Increasing Demand for Coffee Products
- Integration of Blockchain Technology in the Coffee Industry
Competitive Landscape and Company Profiles
- Nestle S.A.
- Starbucks Corporation
- Louis Dreyfus Company B.V.
- J.M. Smucker Company
- Unilever Plc
Other Major and Innovative Companies
- Coca-Cola Company
- PepsiCo
- Suntory Holdings Limited
- Ito En Ltd.
- Tata Consumer Products
- Kraft Heinz Company
- Asahi Group Holdings, Ltd.
- Danone Co.
- Arizona Beverage Company
- CCL Products
- Coffee Holding Co. Inc.
- Vittoria Food & Beverage
- Java Coffee Company
- Neelamalai Agro Inds
- JAB Holding Company
Key Mergers and Acquisitions
- JDE Peet's Acquired Brazilian Coffee and Tea Business
- CCL Products (India) Ltd. Acquired Six Coffee Brands from Lofbergs Group
- Grind Acquired Bottleshot Coffee
- Lavazza Acquired MaxiCoffee
- Westrock Coffee Company Acquired Bixby Roasting Co.
- TH International Limited Acquired Silver Crest Acquisition Corporation
- JDE Peet's Acquired Les 2 Marmottes
- Olam Food Ingredients Acquired Club Coffee
- CVC Capital Partners Fund VIII Acquired Unilever Tea Business Ekaterra
- Gala Capital Partners Acquired Dunn Brothers Coffee
- SYSTM Foods Acquired Chameleon Organic Coffee
- Ningji Acquired Changsha-Based Coffee Brand RUU
- COFE App Acquired Sippy Ltd.
- Masan Acquired Stakes in Phuc Long Tea and Coffee Brand
- Melitta Group Acquired Corsino Corsini
- Zetland Capital Acquired Typhoo Tea
- JDE Peet's Acquired Campos Coffee
- Almarai Acquired Production Facility of Binghatti Beverages Manufacturing (BBM)
- Lifebrands Acquired Revolution Tea
For more information about this report visit https://www.researchandmarkets.com/r/wy2uib
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