APAC Coffee Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.20 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
APAC Coffee Market Analysis
Asia Pacific coffee market is projected to register a CAGR of 5.2% during the forecast period, 2022-2027.
With the growing culture of consuming coffee as a refreshing drink among the younger population, especially in India, China, Japan, and the Philippines, the market for coffee is rising. In addition, the increasing disposable income coupled with urbanization is the major factor contributing to the growth of the Asia Pacific coffee market. For instance, in 2020-2021, as per ICO (International Coffee Organization), Japan consumed nearly 7303 bags (in thousands of 60-kg bags) of coffee, boosting the coffee market.
Various health benefits of consuming coffee, such as reducing the risk of diabetes, fat burning, and high energy intake 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 region. For instance, in 2021 Nestle Japan launched a range of Nescafé lattes which include coffee capsules, crafted with plant-based ingredients, to meet the rapidly growing interest in plant-based food in Japan.
However, covid restrictions such as travel restrictions, limitations to global trade networks, and operational limitations caused supply chain disruptions resulting in huge revenue losses in the Asia Pacific coffee business.
APAC Coffee Market Trends
This section covers the major market trends shaping the APAC Coffee Market according to our research experts:
An increasing trend for organic certified coffee
Coffee consumers in the Asia Pacific region are increasingly looking for ethical products from a social and ecological point of view. The trend of organic certification in coffee is gaining popularity in consumer markets of the Asia Pacific region, especially in India and China. The common belief among consumers in the region about organically produced products reducing exposure to synthetic chemicals and pesticides is boosting the trend for organic certified coffee.
The organic trend is big in the coffee sector and it is gaining traction with more and more people becoming aware of the benefits of the organic, sustainable route. The trend is especially driven by young consumers who are eager to try out new aromas and are still concerned about the roots of where the product comes from. Thus, key players are engaged in the production of such products to meet consumer demand as well as increase their product portfolio. For instance, in 2019 Lavazza, the Italian coffee brand launched Tierra Bio-Organic, an organic ground coffee in India.
Throughout the Asia Pacific region, there has been significant growth in awareness regarding healthy foods, a significant change in meal patterns and existing eating habits, as well as a desire to taste new products that have been boosting the demand for specialty and organic coffee products, especially the coffee pods and capsules. For instance, in 2022 Blue tokai coffee roasters, an Indian coffee brand, launched biodegradable speciality coffee capsules.
China is the fastest growing country
There is a hike in the trend of drinking coffee among the urbanized and affluent population of various countries in the Asia Pacific region such as China, India, and Japan. According to the China Policy of 2021, almost two-thirds of China's population lives in urban areas, with much broader food and beverage options. According to the USDA (U.S Department of Agriculture), from 2018-19 to 2020-21, coffee consumption in China increased by 140%.
The boom in the Chinese economy gave rise to consumers with disposable income and eagerness to upgrade their lifestyles. In addition, the growing affinity for drinking coffee and the surge in eagerness to try new aromas have boosted the demand for coffee in the region. Also, until recently young Chinese consumers have turned their backs on western coffee and are preferring domestic coffee brands, boosting the domestic consumption of coffee.
Coffee manufacturers are opening new stores and expanding their geographical footprints in China to further expand their market share and boost the Chinese coffee market. For instance, in 2022 Vietnamese coffee chain Trung Nguyen begun the international expansion of its premium café brand Trung Nguyen Legend along with its instant coffee range by opening its first store in Shanghai. Additional stores in Beijing and Chongqing are expected to open in October 2022.
APAC Coffee Industry Overview
The Asia-Pacific coffee market is fragmented with the presence of numerous players. The key players are using growth strategies, including mergers and acquisitions, expansion, new product development, and partnerships, to fuel market growth.
There are several prominent players in this industry Nestle, The J.M. Smucker Co., The Kraft Heinz Company, Massimo Zanetti Beverage Group., JAB Holding Company, Four Sigmatic., LUIGI LAVAZZA SPA, Califia Farms, LLC, Cedar Lake, and F. Gaviña & Sons, Inc. hold a significant share of the market studied and embarking on business strategies including product innovations, partnerships, strengthening their hold over online and offline marketing, and mergers & acquisitions to expand their visibility and portfolio of offerings, thus, augmenting the growth of the market.
APAC Coffee Market Leaders
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JAB Holding Company
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The Kraft Heinz Company
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Massimo Zanetti Beverage Group
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LUIGI LAVAZZA SPA
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Nestle SA
*Disclaimer: Major Players sorted in no particular order
APAC Coffee Market News
- In September 2022, Nestle announced its plan of investing Rs 5,000 Cr ($613m) in India by 2025 following strong demand for key products, including its portfolio of coffee brands in the market. Nestlé sells a range of retailed Nescafé products in India, including the Nescafé Classic, Gold, and Sunrise blends.
- In September 2022, the Coffee Board of India, a body that represents coffee growers and the coffee industry in the country, announced to expand of its reach by launching four premium coffees under the 'India Coffee brand as well as two affordable coffees under the 'Coffees of India' brand on Amazon.
- In July 2022, China's new coffee chain brand 'Bestar Coffee' announced that it has lately raised millions to fund its expansion plans. BeStar announced the opening of a total of 500 locations in Jiangsu, Zhejiang, and Shanghai over the next three years. The chain also wants to establish a coffee education facility.
APAC Coffee Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Whole-bean
5.1.2 Ground Coffee
5.1.3 Instant Coffe
5.1.4 Coffee Pods, and Capsules
5.2 By Distribution
5.2.1 Supermarkets/Hypermarkets
5.2.2 Convenience stores
5.2.3 Online Retail Stores
5.2.4 Other distribution channels
5.3 By Geography
5.3.1 India
5.3.2 China
5.3.3 Japan
5.3.4 Australia
5.3.5 Rest of Asia Pacific
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 F. Gaviña & Sons, Inc.
6.3.2 The Kraft Heinz Company
6.3.3 Nestle SA
6.3.4 The J.M. Smucker Co.
6.3.5 Luigi Lavazza SPA
6.3.6 JAB Holding Company
6.3.7 Massimo Zanetti Beverage Group.
6.3.8 Four Sigmatic.
6.3.9 Califia Farms, LLC
6.3.10 Cedar Lake
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID 19 ON THE MARKET
9. DISCLAIMER
APAC Coffee Industry Segmentation
Coffee is the most popular and consumed brewed drink prepared from roasted coffee beans, which are the seeds of a certain Coffea species. Further, the coffee market is segmented by product type, distribution channel, and geography. Based on product type, the coffee market is segmented into whole-bean, ground coffee, instant coffee, and coffee pods and capsules. Based on the distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, online retail stores, and other distribution channels. By geography, the market is segmented into India, China, Japan, Australia, and the Rest of Asia Pacific. For each segment, the market sizing and forecasts have been done based on value (in USD million).
| By Type | |
| Whole-bean | |
| Ground Coffee | |
| Instant Coffe | |
| Coffee Pods, and Capsules |
| By Distribution | |
| Supermarkets/Hypermarkets | |
| Convenience stores | |
| Online Retail Stores | |
| Other distribution channels |
| By Geography | |
| India | |
| China | |
| Japan | |
| Australia | |
| Rest of Asia Pacific |
APAC Coffee Market Research FAQs
What is the current Asia Pacific Coffee Market size?
The Asia Pacific Coffee Market is projected to register a CAGR of 5.20% during the forecast period (2024-2029)
Who are the key players in Asia Pacific Coffee Market?
JAB Holding Company, The Kraft Heinz Company, Massimo Zanetti Beverage Group, LUIGI LAVAZZA SPA and Nestle SA are the major companies operating in the Asia Pacific Coffee Market.
What years does this Asia Pacific Coffee Market cover?
The report covers the Asia Pacific Coffee Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia Pacific Coffee Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
APAC Coffee Industry Report
Statistics for the 2024 APAC Coffee market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Coffee analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
