Dublin, Nov. 24, 2022 (GLOBE NEWSWIRE) -- The "Global Coffee Market: Analysis By Product Type (Roast & Ground, Soluble and Single Serve), By Coffee Bean Type (Arabica and Robusta), By Region Size and Trends with Impact of COVID-19 and Forecast up to 2027" report has been added to ResearchAndMarkets.com's offering.
The global coffee market was valued at US$107.93 billion in 2021 and is expected to reach US$167.51 billion by 2027, growing at a CAGR of 7.60% during the forecast period of 2022-2027
Coffee is a natural and organic caffeine beverage, brewed by adding coffee beans (green beans, soluble or roast & ground) with either cold or hot water in a coffee maker. Coffee can be consumed as a readily made beverage from coffee houses & shops or by brewing coffee beans at home. There are different types of coffee products available in the market which vary according to nutrient content, caffeine amount, look and taste.
Due to increasing out of home coffee consuming population, rapid urbanization, rising e-commerce retail sales and increase in gen Z income, the market would propel in the forthcoming years. The global coffee market by production and consumption volume are expected to reach 203.88 million 60Kg bags and 194.99 million 60Kg bags, respectively in 2027.
Market Segmentation Analysis:
By Product
The report provides the bifurcation of the market into three segments based on the product: roast & ground, soluble and single serve. In 2021, roast & ground segment held a major share of more than 43% in the market. On the other hand, the single serve segment is expected to grow at a significant CAGR in the forthcoming years owing to rising purchasing power in developing countries.
By Coffee Bean Type
The report provides the bifurcation of the market production volume into two segments based on the coffee bean type: Arabica and Robusta. In 2021, Arabica segment held a major share of more than 57% in the market. Arabica coffee bean type dominates the coffee market owing to the less caffeine content and sweeter taste. On the other hand, the Robusta segment is expected to grow at a significant CAGR in the forthcoming years owing to its rising popularity among the working population.
By Region
The report provides insight into the coffee market based on the regions namely North America, Europe, Asia Pacific, South America, Africa and Mexico & Central America. Asia Pacific held the major share of above 31% in the market, owing to growing popularity of various coffee products among consumers in the region. The climate and geographical location of Southeast Asia make it ideal for growing coffee.
It is the region's coffee culture and coffee production expertise that helped create the region's booming coffee industry. Within Europe, Germany is expected to dominate the market in the forecasted period, driven by the rise in the number of coffee bars, small resident brands, small roasters, and baristas. Whereas, within the North America region, the US is dominating the region due to increased out of home coffee consumption.
Market Dynamics:
Growth Drivers
One of the most important factors impacting the global coffee market is increase in Gen Z income. The rise in the disposable income of Gen Z population has promoted the adoption of affluent lifestyle. Gen Z prefers to visit cafe and restaurants occasionally. Also, with increased product offerings such ad cold coffee beverages and ready to drink coffee is popular among the Gen Z population which has directly increased the sales of coffee market.
Furthermore, the market has been growing over the past few years, due to factors such as rapid urbanization, increasing out of home coffee consuming population, rising e-commerce retail sales, growing demand for speacialty coffee, inclining green coffee consumption in emerging economies, and many other factors.
Challenges
However, the market has been confronted with some challenges specifically, weather uncertainities, retail consolidations, etc.
Trends
The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as e growing penetration of premium coffee shops, surge in demand for certified coffee products, high demand for cold brew over iced coffee etc. Craze for cold brew coffee amongst consumers has grown in recent times.
Cold brew is prepared with cold water rather than plain iced coffee which is first brewed with hot water and then poured with ice. Consumers believe that cold brewing process enhances the taste and quality of the coffee and nearly 90% are willing to pay a premium price for a cold brew coffee. This is an emerging trend in recent times that has provided benefit to various roasters and coffee producers. This is likely to contribute to the growth of the global coffee market.
Impact Analysis of COVID-19 and Way Forward:
The outbreak of the COVID-19 pandemic caused disruption in the coffee industry. The out-of-home coffee consumption decreased significantly due to growing number of countries adopting a full or partial lockdown to contain COVID-19 spread. Offices, coffee shops and restaurants remain shut in order to restrict the spread of coronavirus which reduced the consumption of coffee in the pandemic year 2020.
Also, due to COVID-19 pandemic, the movement of farm laborers and migrant workers was limited by social distancing measures, lockdowns and travel restrictions which forced them to migrate to their hometowns thus reducing the overall labor supply in the farms during the harvest periods. Coffee bean picking is highly labor intensive activity involved in coffee making which was hampered due to shortage of labor, thus hampering the overall coffee production.
Competitive Landscape:
Some of the strategies among key players in the market for Coffee market are mergers, acquisitions, and collaborations. For instance, in 2022, Nestle S.A announced that the company is exploring emerging technologies for the development of animal-free dairy protein-based products.
Whereas, Keurig Dr Pepper introduced the K-Cafe SMART, the newest brewer in Keurig's connected line. The new brewer allows consumers to create delicious coffeehouse drinks right from home - the majority of which can be made in three minutes or less.
The coffee market is a highly competitive market, which is dominated by large number of players. The key players in the global coffee market are:
- Nestle S.A
- Keurig Dr Pepper Inc.
- The Coca Cola Company
- Tata Consumer Products
- Dutch Bros Inc.
- Starbucks Corporation
- The Kraft Heinz Company
- Jacobs Douwe Egberts
- JM Smuckers Company
- Strauss Coffee Ltd.
- Tchibo Coffee International Ltd
- Luigi Lavazza S.p.A.
- Luckin Coffee Inc
Market Dynamics
Growth Drivers
- Increasing Out of Home Coffee Consuming Population
- Rapid Urbanization
- Rising E-commerce Retail Sales
- Increase in Gen Z income
- Increasing Instant Coffee Preference
- Growing Demand for Specialty Coffee
- Inclining Green Coffee Consumption in Emerging Economies
Challenges
- Weather Uncertainties
- Retail Consolidations
- Stringent Regulations
Market Trends
- Growing Penetration of Premium Coffee Shops
- Surge in Demand for Certified Coffee Products
- High Demand for Cold Brew over Iced Coffee
- Inclining Desire for Functional Coffee
- Increasing Gourmet Coffee Sale in America
- Increasing Potential for Agri-tourism in the Coffee Industry
- Rising Popularity of Coffee as a subscription
For more information about this report visit https://www.researchandmarkets.com/r/em3gwn
