Coffee - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Coffee Market size is estimated at USD 132.13 billion in 2024, and is expected to reach USD 166.39 billion by 2029, growing at a CAGR of 4.72% during the forecast period (2024-2029).
Key Highlights
The coffee market is rising due to the growing culture of consuming coffee as a refreshing drink among the younger population, especially in India, Italy, the United States, China, Japan, and the Philippines. In addition, the increasing disposable income coupled with urbanization is the primary factor contributing to the growth of the coffee market. On the other hand, the various health benefits of consuming coffee, such as reducing the risk of diabetes, burning fat, and consuming high energy from caffeine spikes, are also driving the market growth.
Consumers are shifting towards more organic or plant-based coffee to maintain a healthy lifestyle. Hence, key players are engaged in product innovations to maintain a stronger foothold in the market. For instance, in 2021, Nestle Japan launched a range of Nescafй lattes, including coffee capsules crafted with plant-based ingredients, to meet consumers rapidly growing interest in plant-based food. In addition, another significant factor driving the market growth is busy lifestyles, leading to coffee chains becoming more popular among customers who enjoy their coffee on the go.
Consumers demand premium products that emphasize quality. Therefore, they are attracted to top-notch coffee houses that offer the best coffee quality, which is a significant factor for repeated visits. Technology innovations, safety measures, and machine-based food processing units are projected to play an essential role in the demand for coffee over the coming years.
Coffee Market Trends
Demand for Certified Coffee
Coffee consumers are increasingly looking for ethical products from a social and ecological point of view. Organic certification in coffee is gaining popularity in world consumer markets, especially in Asia and Europe. The common belief among consumers about organically produced products being less exposed to synthetic chemicals and pesticides is boosting the trend for organic certified coffee.
Increased awareness about healthy eating habits has spurred a significant shift in meal patterns and dietary preferences, leading to a heightened demand for specialty and organic coffee products, particularly coffee pods and capsules. A prime example is Blue Tokai coffee roasters. This Indian coffee brand introduced biodegradable specialty coffee capsules in 2022, catering to the growing consumer interest in sustainable and eco-friendly options in the coffee industry.
Over the last few years, consumers have become more aware of the manufacturing of products they buy and where their purchases are coming from. Consumers are looking for certified coffee products to ensure the credibility of their coffee purchases.
Coffee that meets specific social, environmental, and economic criteria, independently verified by accredited third parties, falls under "sustainable coffee." Various certification bodies, such as UTZ Certification, Fair Trade Certification, Rainforest Alliance Certification, and USDA Organic Certification, scrutinize production methods and supply chains. As a result, the demand for certified coffee is expected to soar substantially in the foreseeable future due to these influential factors.
Asia Pacific Dominates the Market
Many countries in the Asia-Pacific region have been traditional consumers of tea. However, the increased penetration of instant coffee in markets such as India has boosted the overall sales of the coffee category. Japan is the fifth-largest importer of coffee and coffee products.
For instance, as per the International Coffee Organization, in 2020-21, Japan imported 6,751 bags ( in thousand 60 kg bags) of green coffee beans. Similar to imports, Japan consumed 7,479 bags (in thousand 60 kg bags) in 2021. Also, coffee has become a part of the culture in Mainland China. For instance, according to the US Department of Agriculture (USDA), from 2018–19 to 2020–21, coffee consumption in China increased by 140%. In addition, the growing affinity for drinking coffee and the surge in willingness to try new aromas have boosted the demand for coffee in the region.
Coffee manufacturers are opening new stores and expanding their geographical footprints in China to expand their market share further. For instance, in 2022, Vietnamese coffee chain Trung Nguyen began the international expansion of its premium cafй brand Trung Nguyen Legend and its instant coffee range by opening its first store in Shanghai.
Coffee Industry Overview
The coffee market is highly competitive and is dominated by players like Nestlй S.A., Kraft Heinz Company, JAB Holding Company, Luigi Lavazza S.p.A., and Massimo Zanetti Beverage Group. The leading players in the coffee market recorded a significant scope 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 excellent coffee flows into Japan and other East Asian markets.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Highlights
The coffee market is rising due to the growing culture of consuming coffee as a refreshing drink among the younger population, especially in India, Italy, the United States, China, Japan, and the Philippines. In addition, the increasing disposable income coupled with urbanization is the primary factor contributing to the growth of the coffee market. On the other hand, the various health benefits of consuming coffee, such as reducing the risk of diabetes, burning fat, and consuming high energy from caffeine spikes, are also driving the market growth.
Consumers are shifting towards more organic or plant-based coffee to maintain a healthy lifestyle. Hence, key players are engaged in product innovations to maintain a stronger foothold in the market. For instance, in 2021, Nestle Japan launched a range of Nescafй lattes, including coffee capsules crafted with plant-based ingredients, to meet consumers rapidly growing interest in plant-based food. In addition, another significant factor driving the market growth is busy lifestyles, leading to coffee chains becoming more popular among customers who enjoy their coffee on the go.
Consumers demand premium products that emphasize quality. Therefore, they are attracted to top-notch coffee houses that offer the best coffee quality, which is a significant factor for repeated visits. Technology innovations, safety measures, and machine-based food processing units are projected to play an essential role in the demand for coffee over the coming years.
Coffee Market Trends
Demand for Certified Coffee
Coffee consumers are increasingly looking for ethical products from a social and ecological point of view. Organic certification in coffee is gaining popularity in world consumer markets, especially in Asia and Europe. The common belief among consumers about organically produced products being less exposed to synthetic chemicals and pesticides is boosting the trend for organic certified coffee.
Increased awareness about healthy eating habits has spurred a significant shift in meal patterns and dietary preferences, leading to a heightened demand for specialty and organic coffee products, particularly coffee pods and capsules. A prime example is Blue Tokai coffee roasters. This Indian coffee brand introduced biodegradable specialty coffee capsules in 2022, catering to the growing consumer interest in sustainable and eco-friendly options in the coffee industry.
Over the last few years, consumers have become more aware of the manufacturing of products they buy and where their purchases are coming from. Consumers are looking for certified coffee products to ensure the credibility of their coffee purchases.
Coffee that meets specific social, environmental, and economic criteria, independently verified by accredited third parties, falls under "sustainable coffee." Various certification bodies, such as UTZ Certification, Fair Trade Certification, Rainforest Alliance Certification, and USDA Organic Certification, scrutinize production methods and supply chains. As a result, the demand for certified coffee is expected to soar substantially in the foreseeable future due to these influential factors.
Asia Pacific Dominates the Market
Many countries in the Asia-Pacific region have been traditional consumers of tea. However, the increased penetration of instant coffee in markets such as India has boosted the overall sales of the coffee category. Japan is the fifth-largest importer of coffee and coffee products.
For instance, as per the International Coffee Organization, in 2020-21, Japan imported 6,751 bags ( in thousand 60 kg bags) of green coffee beans. Similar to imports, Japan consumed 7,479 bags (in thousand 60 kg bags) in 2021. Also, coffee has become a part of the culture in Mainland China. For instance, according to the US Department of Agriculture (USDA), from 2018–19 to 2020–21, coffee consumption in China increased by 140%. In addition, the growing affinity for drinking coffee and the surge in willingness to try new aromas have boosted the demand for coffee in the region.
Coffee manufacturers are opening new stores and expanding their geographical footprints in China to expand their market share further. For instance, in 2022, Vietnamese coffee chain Trung Nguyen began the international expansion of its premium cafй brand Trung Nguyen Legend and its instant coffee range by opening its first store in Shanghai.
Coffee Industry Overview
The coffee market is highly competitive and is dominated by players like Nestlй S.A., Kraft Heinz Company, JAB Holding Company, Luigi Lavazza S.p.A., and Massimo Zanetti Beverage Group. The leading players in the coffee market recorded a significant scope 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 excellent coffee flows into Japan and other East Asian markets.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Deliverables and Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Increased Coffee Consumption Among Working Population
4.1.2 Coffee Pods and Capsules Demand Augmenting the Market Growth
4.2 Market Restraints
4.2.1 Trade barriers Restrict Access to Developed Markets
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Product Type
5.1.1 Whole-bean
5.1.2 Ground Coffee
5.1.3 Instant Coffee
5.1.4 Coffee Pods and Capsules
5.2 Distribution Channel
5.2.1 On-trade
5.2.2 Off-trade
5.2.2.1 Supermarkets/Hypermarkets
5.2.2.2 Convenience Stores
5.2.2.3 Specialist Retailers
5.2.2.4 Other Distribution Channels
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Italy
5.3.2.5 Russia
5.3.2.6 Spain
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 Australia
5.3.3.4 Japan
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East & Africa
5.3.5.1 United Arab Emirates
5.3.5.2 South Africa
5.3.5.3 Rest of Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Most Adopted Market Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Nestle S.A.
6.3.2 JM Smucker Company
6.3.3 The Kraft Heinz Company
6.3.4 Starbucks Corporation
6.3.5 JAB Holding Company
6.3.6 Luigi Lavazza S.p.A.
6.3.7 Massimo Zanetti Beverage Group
6.3.8 Tata Global Beverages
6.3.9 Four Sigmatic.
6.3.10 Keurig Green Mountain Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
1.1 Study Deliverables and Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Increased Coffee Consumption Among Working Population
4.1.2 Coffee Pods and Capsules Demand Augmenting the Market Growth
4.2 Market Restraints
4.2.1 Trade barriers Restrict Access to Developed Markets
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Product Type
5.1.1 Whole-bean
5.1.2 Ground Coffee
5.1.3 Instant Coffee
5.1.4 Coffee Pods and Capsules
5.2 Distribution Channel
5.2.1 On-trade
5.2.2 Off-trade
5.2.2.1 Supermarkets/Hypermarkets
5.2.2.2 Convenience Stores
5.2.2.3 Specialist Retailers
5.2.2.4 Other Distribution Channels
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Italy
5.3.2.5 Russia
5.3.2.6 Spain
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 Australia
5.3.3.4 Japan
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East & Africa
5.3.5.1 United Arab Emirates
5.3.5.2 South Africa
5.3.5.3 Rest of Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Most Adopted Market Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Nestle S.A.
6.3.2 JM Smucker Company
6.3.3 The Kraft Heinz Company
6.3.4 Starbucks Corporation
6.3.5 JAB Holding Company
6.3.6 Luigi Lavazza S.p.A.
6.3.7 Massimo Zanetti Beverage Group
6.3.8 Tata Global Beverages
6.3.9 Four Sigmatic.
6.3.10 Keurig Green Mountain Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
