Coffee Market - Growth, Trends, and Forecasts (2023 - 2028)

The Global Coffee Market is segmented by Product Type (Whole-bean, Ground Coffee, Instant Coffee, and Coffee Pods and Capsules), Distribution Channel (On-trade and Off-trade), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East & Africa). The report offers the market sizes and forecasts in terms of value (USD million) for all the above segments.

Coffee Industry Overview

Coffee Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: South America
Largest Market: Europe
CAGR: 4.65 %

Major Players

Coffee Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Coffee Market Analysis

The Global Coffee Market is projected to register a CAGR of 4.65% during the forecast period (2022-2027).

Multiple factors drive the coffee market, a few being the increasing demand for certified coffee products, the acceptance of single-serve coffee brew systems by consumers, and the constant innovation led by the top players in the coffee market. In developed economies, some consumers are expected to switch from instant coffee to premium coffee due to its quality and flavor. Instant coffee was once considered a high-end product but has begun to lose its base of younger consumers, which is changing the market dynamics.

Coffee Industry Segments

Coffee is the most popularly consumed brewed drink and is prepared from roasted coffee beans, the seeds of Coffea sp.

The global coffee market is segmented by product type, distribution channel, and geography. By product type, the coffee market is segmented into whole-bean, ground coffee, instant coffee, and coffee pods and capsules. Based on distribution channel, the market is segmented into on-trade and off-trade. The off-trade channels include supermarkets/hypermarkets, convenience stores, specialist retailers, and other channels. By geography, the market covers the major countries in North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done in value terms (USD million).

Product Type
Whole-bean
Ground Coffee
Instant Coffee
Coffee Pods and Capsules
Distribution Channel
On-trade
Off-trade
Supermarkets/Hypermarkets
Convenience Stores
Specialist Retailers
Other Distribution Channels
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
France
Italy
Russia
Spain
Rest of Europe
Asia-Pacific
India
China
Australia
Japan
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
United Arab Emirates
South Africa
Rest of Middle East & Africa

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Coffee Market Trends

This section covers the major market trends shaping the Coffee Market according to our research experts:

Surge in Demand for Certified Coffee Products

Over the last few years, consumers have become more aware of the manufacturing of the products they buy and where their purchases are coming from. This is applicable especially in the case of the supply chains of food and beverage products, such as coffee. Consumers are looking for certified coffee products to ensure the credibility of their coffee purchases.

The consumers’ concerns about poverty, social injustice, and environmental destruction have driven the demand for certified sustainable brands and labels in the food and beverage market. Coffee types that adhere to various combinations of social, environmental, and economic standards and are independently certified by an accredited third party have been collectively termed “sustainable coffee.”

Certified coffee is also an assurance to the consumer about the product's reliability, as coffee is becoming an increasingly common target for food counterfeiters. A number of certification organizations are checking the production procedures and the supply chains of coffee. Some of these organizations include UTZ Certification, Fair Trade Certification, Rainforest Alliance Certification, and USDA Organic Certification.

Owing to the above factors, the demand for certified coffee is expected to grow significantly during the forecast period.

Coffee Market: UTZ Certified Coffee Production, Production Volume, thousand metric ton, Global, 2016-2021

Europe Dominates the Market

In a survey conducted by the Institute for Scientific Information on Coffee (ISIC), 68% of the respondents said they often consumed coffee while working. This trend is leading to a huge demand for coffee in European countries like Germany, Italy, Spain, and the United Kingdom.

Moreover, advancements in technology (like tabletop machines and traceability tools) are creating bean-to-cup solutions. The German coffee pods and capsules market is dominated by Nestle's Nespresso, with its wide product reach. However, Keurig Green Mountain merged with JAB Holding, intending to expand its presence. This is expected to hinder the growth of Nestle SA in Germany. As per a report published by Nestle Nespresso SA, in Germany, a growing sense of coffee connoisseurship was most noticeable among younger generations. About 24.1% of 18-29-year-olds want to try different types of coffee and coffee recipes and want diversity in the coffee industry.

Coffee Market: Market Size (%), By Geography, Global, 2021

Coffee Market Competitor Analysis

The coffee market is highly competitive and is dominated by players like Nestle, JM Smucker Company, Kraft Heinz Company, and Starbucks Coffee Company. Nonetheless, private-label brands, such as Massimo Zanetti Beverage Group and Tchibo GmbH, are also focused on increasing their market shares and global and domestic sales.

The leading players in the coffee market recorded a significant scope for growth in their market shares through innovations in products and expansions in other regions via joint ventures. For instance, in September 2021, Louis Dreyfus Company Asia Pte. Ltd signed a joint venture agreement with Zephyr Japan, a Japanese specialty coffee retailer that provides premium coffees. With this joint venture, the company aims for specialty business expansion, positioning it to increase premium coffee flows into Japan and other East Asian markets.

Coffee Market Top Players

  1. The Kraft Heinz Company

  2. The Coca-Cola Company

  3. Nestle SA

  4. JM Smucker Company

  5. JAB Holding Company

*Disclaimer: Major Players sorted in no particular order

Coffee Market Concentration

Coffee Market Recent Developments

  • September 2022: CoffeeB, a Swiss coffee brand, developed a new type of compressed coffee balls, which it calls "the next generation of single-serve coffee." It uses innovative seaweed-based material wrappers instead of aluminum or plastic ones to create a capsule that retains its shape.
  • June 2022: Reliance Brands Ltd announced a strategic partnership with the global fresh food and organic coffee chain, Pret a Manger, for the launching and growth of the brand in India.
  • December 2021: FNC launched a line of coffees produced by women to provide brand differentiation.

Coffee Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables and Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Whole-bean

      2. 5.1.2 Ground Coffee

      3. 5.1.3 Instant Coffee

      4. 5.1.4 Coffee Pods and Capsules

    2. 5.2 Distribution Channel

      1. 5.2.1 On-trade

      2. 5.2.2 Off-trade

        1. 5.2.2.1 Supermarkets/Hypermarkets

        2. 5.2.2.2 Convenience Stores

        3. 5.2.2.3 Specialist Retailers

        4. 5.2.2.4 Other Distribution Channels

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Italy

        5. 5.3.2.5 Russia

        6. 5.3.2.6 Spain

        7. 5.3.2.7 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 India

        2. 5.3.3.2 China

        3. 5.3.3.3 Australia

        4. 5.3.3.4 Japan

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Market Strategies

    2. 6.2 Most Active Companies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 The Kraft Heinz Company

      2. 6.4.2 Starbucks Coffee Company

      3. 6.4.3 The J. M. Smucker Company

      4. 6.4.4 Luigi Lavazza SPA

      5. 6.4.5 Nestle SA

      6. 6.4.6 The Coca-Cola Company

      7. 6.4.7 JAB Holding Company

      8. 6.4.8 Tata Global Beverages

      9. 6.4.9 Tchibo GmbH

      10. 6.4.10 Strauss Group Ltd

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Coffee Market Research FAQs

The Coffee Market is studied from 2018 - 2028.

The Coffee Market is growing at a CAGR of 4.65% over the next 5 years.

South America is growing at the highest CAGR over 2018 - 2028.

Europe holds highest share in 2021.

The Kraft Heinz Company, The Coca-Cola Company, Nestle SA, JM Smucker Company, JAB Holding Company are the major companies operating in Coffee Market.

Coffee Industry Reports

In-depth industry statistics and market share insights of the Coffee sector for 2020, 2021, and 2022. The Coffee research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Coffee report PDF.

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