Coffee is a popular beverage consumed worldwide for its stimulant properties and unique flavor. Coffee beans contain caffeine that stimulates the central nervous system and increases energy levels. Major products in the coffee market include whole coffee beans, ground coffee, coffee pods, instant coffee, and canned or bottled coffee. Coffee promotes mental clarity and alertness and offers antioxidant and anti-inflammatory benefits. 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing demand for coffee from the millennial and Gen Z population is one of the key trends driving the growth of the global coffee market. Millennials and Gen Z are the primary consumers and account for over 50% of total coffee consumption globally. These younger demographics view coffee as a lifestyle beverage and socializer. They are willing to pay more premium prices for specialty coffee and unique flavors. Consequently, coffeehouses and cafes are innovating their menu offerings to cater to the tastes and preferences of younger consumers. The expansion of chains such as Starbucks and specialty coffee shops focus on customization and flavors to attract millennial and Gen Z customers. This rising demand from younger populations is expected to accelerate the growth of the global coffee market over the forecast period.
Segment Analysis
The global coffee market is dominated by the roasted coffee segment. This segment holds around 80% share in the overall market owing to the increasing preference of consumers for ready-to-drink coffee available in different formats. The rising popularity of specialty coffee culture, growing trend of young professionals opting for gourmet and premium coffee and increasing coffee shop chains have further boosted the demand for roasted coffee globally.
Key Takeaways
The global coffee market forecast is expected to witness high growth over the forecast period of 2023 to 2030. Rapid urbanization, increasing disposable incomes and changing lifestyles are driving the growth of coffee consumption worldwide. The market is estimated to surpass a valuation of US$ 200 Mn by 2030.
Regional Analysis
The North American region currently dominates the global coffee market owing to high coffee consumption in countries like the United States. With the presence of major roasters and retailers, North America accounts for more than one-third of the global market share. However, the Asia Pacific region is expected to showcase impressive growth over the forecast period led by China, India, Indonesia and Vietnam. Availability of cheap labour and ideal climate conditions for coffee cultivation make Asia Pacific an attractive destination for farming and production of coffee.
Key Players
Key players operating in the coffee market are The Kraft Heinz Company, Starbucks Coffee Company, The J.M. Smucker Company, Luigi Lavazza SPA, Nestle SA, The Coca-Cola Company, JAB Holding Company, Tata Global Beverages, Tchibo GmbH, and Strauss Group Ltd. Major players are focusing on strategic acquisitions and collaborations with regional players to strengthen their market presence. Companies are also introducing new product lines and innovative packaging formats to appeal to the young population.
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