Dublin, Aug. 13, 2024 (GLOBE NEWSWIRE) -- The "Flavored Coffee Market - Global Forecasts from 2024 to 2029" report has been added to ResearchAndMarkets.com's offering.
The global flavored coffee market is projected to rise at a compound annual growth rate (CAGR) of 4.04% to reach a market valuation of US$9,039.126 million by 2029, from US$6,851.154 million in 2022. 
Several key factors are driving the global flavored coffee market. These flavors offer a range of tastes, including caramel, hazelnut, vanilla, blackberry, apple, and more. The market for flavored coffee is expected to expand significantly due to the rising popularity of customized flavors and increased awareness of the health benefits associated with coffee syrup consumption. As a result, companies have expanded their operations and product offerings to meet this growing demand, offering a variety of flavors.
The demand for unique and innovative flavor profiles in coffee is rising among consumers, especially younger generations, who are increasingly exploring beyond conventional choices. This trend corresponds with demographic changes, notably in countries like India, where a significant expansion is projected in the working-age population over the next years. India's age distribution forecasts an annual increase of approximately 9.7 million in the working-age group during 2021-2031, followed by 4.2 million per year from 2031 to 2041. Moreover, the surge in disposable income in developing economies is also fueling the global flavored coffee market growth.
Furthermore, social media platforms play a crucial role in creating buzz around new flavors and trends, further fueling market expansion. Companies leverage these platforms to promote their products and engage with consumers, capitalizing on the growing trend of coffee consumption worldwide
Moreover, in a competitive market, manufacturers are continually innovating by creating new flavor combinations and incorporating unique ingredients to distinguish their products. This involves experimenting with exotic spices, fruits, and dessert-inspired flavors. The cumulative impact of these efforts is fostering a dynamic and swiftly evolving global flavored coffee market.
Innovative product launches are anticipated to boost the market
The global flavored coffee industry is expanding as companies all around the world are launching innovative products to broaden their portfolio. Owing to the several launches, this market is anticipated to witness a surge during the projected period. For instance, in October 2022, Bevzilla, a D2C Beverage company and the creator of India's first Instant Coffee Cubes, extended its range and introduced Turkish Hazelnut, a unique and fascinating flavor that is a great treat for all coffee enthusiasts.
Bevzilla's newest acquisition demonstrates its commitment to providing smooth, tasty, nutritious, and foamy coffee to all of its customers. The Instant Coffee Powder is manufactured from 100% Pure Arabica Beans and contains no preservatives. This instant coffee mix contains plant-based vitamins and is sustainably obtained from Tamil Nadu farmers. Bevzilla is available in over 100 retail locations, Amazon, and other top retailers such as Nilgiris, Foodhall, The New Shop, and others.
Furthermore, in December 2021, Blue Tokai Coffee Roasters, India's largest specialty coffee company, released its long-awaited cold brew cans. The collection, which distills the traditional cold brew method and knowledge into a delightful and approachable form, is offered in six distinct flavors, Tender Coconut, Coffee Cherry, Passion Fruit, Classic Light, Classic Bold, and Ratnagiri Estate Single Origin. Arabica beans are sourced from prominent Indian farms and estates and roasted with precision by a professional team of roasters. The coffee is then steeped for at least 18 hours to produce the ideal brew with rich flavor notes and appropriate bitterness and sweetness. The cans use the nitro-flushing method to keep the original tastes in the can for a considerably longer time.
Moreover, Synergy Flavors, a major provider of flavorings, extracts, and essences to the worldwide food and beverage industry, launched coffee flavors in Asia to meet the rising demand for real coffee-flavored products. Robusta, Black, Brewed, Espresso, Roasted, Coffee mocha, Caramel macchiato, Latte, and Cappuccino are among the new flavors.
These new flavors were developed at Synergy's Thailand plant, which is located in Samut Prakan, near Bangkok, and has invested in a major gas chromatography-mass spectrometry (GC-MS) technology that allows it to conduct the high degree of analysis necessary to make realistic coffee flavors.
The whole-bean coffee market is expected to grow
According to USDA data, Brazil produced 66.4 million 60-kg bags of coffee in the Marketing Year 2023-2024 (July-June), an increase of 3.8 million bags over the previous season. Post projects that growing areas' favorable weather would result in a rise of 12 percent in arabica production to 44.7 million bags, compared to the previous season. Additionally, USDA projects robusta production was 21.7 million bags, a 5% drop from the previous season as a result of Espirito Santo weather-related productivity losses. Due to the growing use of coffee beans in a variety of industries, including medicines, cosmetics, and food and drinks, the demand for whole beans is predicted to increase significantly.
The flavored coffee whole bean industry grew due to rapid technological innovation and adaptability to adjust during times of stress. Furthermore, following a $7.2 million IPO earlier in 2022, Reborn Coffee is looking to expand its US and international presence. Reborn Coffee distributes whole bean coffee, pour-over packs, and cold brew products at retail locations, kiosks, and cafes across the United States. The company plans to open up to 40 company-owned retail locations and four flagship locations in the United States, with cities such as San Francisco, San Diego, Houston, and Kansas City as target markets.
The Coffee Culture is emerging across the nations. For instance, Third Wave Coffee, a premium artisan cafe brand that has created a popular and dedicated community of coffee lovers in Bengaluru, Pune, and Delhi since its inception, has inaugurated its flagship location in Mumbai at Lokhandwala in March 2022. With the addition of this new cafe, the company now has 43 cafes in India, with aspirations to expand to over 150 cafes in over 20 cities by March '23. Overall, the coffee culture is changing, with coffee shops and retailers increasingly seeking to provide customers with the experience of choosing their whole beans and brewing them using a variety of methods in addition to roasting and selling coffee.
India's flavoured coffee market is anticipated to increase
The flavored coffee market in India is expected to grow at a decent rate due to the presence of global and regional market players in the region. Regional start-ups like Sleepy Owl and multinational companies such as Nestle in the market offer various products according to the preferences of the consumer. Nestle offers a range of flavored tetra pack coffee products in the country, which come in flavored variants like hazelnut, latte, and intense cafe.
Furthermore, the growing disposable income in the country is also expected to contribute to the flavored coffee market growth by increasing the customer demographic for the market, which is expected to make coffee a more accessible commodity and hence drive the market demand.
Various market players innovate and launch various products and indulge in market activities to further strengthen their positions in the market, which is likely to hold lucrative avenues for the market. Many companies are now innovating their products by offering flavoring coffee variants in instant form. Many multinational brands and local coffee brewers are focusing on creating new innovative, and authentic flavors to meet localized taste preferences.
Further, the presence of multinational beverage companies like Starbucks in the country is expected to drive the market. The company has expanded vastly in the country and crossed the 300th store mark in India after launching the first-ever Starbucks outlet in Dehradun in September 2022. The company offers flavored coffees like Java Chip and Caramel Macchiato, among others and its increasing expansion in the country is expected to augment the regional market.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 142 |
| Forecast Period | 2022 - 2029 |
| Estimated Market Value (USD) in 2022 | $6851.15 Million |
| Forecasted Market Value (USD) by 2029 | $9039.13 Million |
| Compound Annual Growth Rate | 4.0% |
| Regions Covered | Global |
Key Market Developments:
- April 2023,Nescafe introduced Ice Roast, its inaugural soluble coffee tailored specifically for preparing with cold water or milk over ice. The launch of Nescafe Ice Roast commences in China in a month, with plans to expand to Mexico shortly thereafter.
- July 2023,Maxwell House is revolutionizing the at-home coffee experience with its latest innovation, marking the brand's first introduction in nearly ten years: the new Iced Latte with Foam. Utilizing groundbreaking cold-stirred foam technology, with innovation delivers a rich, creamy, and flavorful coffee experience, all achieved without the need for specialized cafe equipment.
Key Players:
- Nestle SA is the biggest coffee brand in the world. The company seizes the chances presented by new consumer trends. With three of the most recognizable coffee brands in the world - Nescafe, Nespresso, and Starbucks - the business provides an amazing range of flavored coffee for everybody while enhancing society via its sustainability initiatives.
- The J.M. Smucker Company focuses on its well-established knowledge of the coffee supply chain, which includes partnerships with coffee growers, its meticulous quality control procedures at roasting facilities, and the company's dedication to consistently providing customers with novel mixes.
- Luigi Lavazza Coffee has a century of coffee heritage, blending different coffee varietals to produce flavorful and harmonious blends. Every taste of this expertly blended blend of skill and knowledge is apparent making it one of the leading flavored coffee companies globally.
Competitive Environment and Analysis
- Major Players and Strategy Analysis
- Market Share Analysis
- Mergers, Acquisitions, Agreements, and Collaborations
- Competitive Dashboard
Companies Featured
- Starbucks Coffee Company
- Nestle SA
- The J.M Smucker Company
- Luigi Lavazza SPA
- The Kraft Heinz Company
- Strauss Group Ltd
- Tchibo GmbH
- JAB Holding Company
- Tata Global Beverages
- The Coca-Cola Company
Segmentation:
By Type:
- Whole-bean
- Ground Coffee
- Instant Coffee
- Coffee Pods and Capsules
By Flavor Type
- Vanilla
- Hazelnut
- Others
By Age Group
- Up to 18 years
- 18-30
- 30-50
- More than 50
By Distribution Channel:
- On-Trade
- Off-Trade
By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Europe
- UK
- Germany
- France
- Italy
- Middle East and Africa
- Saudi Africa
- UAE
- Asia Pacific
- China
- Japan
- India
- Australia
- Others
For more information about this report visit https://www.researchandmarkets.com/r/aui66n
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