Coffee Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 132.13 Billion |
| Market Size (2029) | USD 166.39 Billion |
| CAGR (2024 - 2029) | 4.72 % |
| Fastest Growing Market | South America |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Coffee Market Analysis
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).
- 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 Nescafé 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 café 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 Nestlé 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.
Coffee Market Leaders
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JAB Holding Company
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Nestlé S.A.
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Luigi Lavazza S.p.A.
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Massimo Zanetti Beverage Group
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The Kraft Heinz Company
*Disclaimer: Major Players sorted in no particular order
Coffee Market News
- September 2022: CoffeeB, a Swiss coffee brand, unveiled a groundbreaking innovation: compressed coffee balls heralded as "the next generation of single-serve coffee." These balls are wrapped in innovative seaweed-based material instead of traditional aluminum or plastic capsules, ensuring shape retention and sustainability.
- March 2022: Melbourne's Beat Coffee introduced a specialty instant coffee packaged in single sachets, capturing the essence of quality, flavor, and convenience. This process preserves the coffee's vibrancy through freeze-drying, highlighting delightful caramel and honey notes in an instant format.
- January 2022: Starbucks marked a milestone by launching its first drive-thru in Italy in Erbusco, Lombardy. This initiative stemmed from a new collaboration between Percassi, Starbucks' exclusive licensee partner in Italy, and the Q8 service station company, showcasing Starbucks' expansion strategy.
Coffee Market Report - Table of Contents
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.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Coffee Industry Segmentation
Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain flowering plants in the Coffea genus.
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 the 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. The report provides an analysis of emerging and established economies across the world, comprising North America, Europe, South America, Asia-Pacific, and Middle-East and Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Product Type | |
| Whole-bean | |
| Ground Coffee | |
| Instant Coffee | |
| Coffee Pods and Capsules |
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| On-trade | ||||||
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Coffee Market Research Faqs
How big is the Coffee Market?
The Coffee Market size is expected to reach USD 132.13 billion in 2024 and grow at a CAGR of 4.72% to reach USD 166.39 billion by 2029.
What is the current Coffee Market size?
In 2024, the Coffee Market size is expected to reach USD 132.13 billion.
Who are the key players in Coffee Market?
JAB Holding Company, Nestlé S.A., Luigi Lavazza S.p.A., Massimo Zanetti Beverage Group and The Kraft Heinz Company are the major companies operating in the Coffee Market.
Which is the fastest growing region in Coffee Market?
South America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Coffee Market?
In 2024, the Europe accounts for the largest market share in Coffee Market.
What years does this Coffee Market cover, and what was the market size in 2023?
In 2023, the Coffee Market size was estimated at USD 125.89 billion. The report covers the Coffee Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Coffee Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Which innovative coffee trends hold potential to reshape the industry?
Plant-based milk alternatives, cold brew, & nitro coffee, are predicted to reshape the coffee industry.
What are the top plant-based & alternative milk options impacting coffee consumption habits?
The rise of oat, almond & other plant-based milk alternatives are impacting coffee consumption habits.
Coffee Industry Report
The global coffee market is characterized by a comprehensive industry analysis, underscoring the significant market growth driven by heightened global exposure to coffee culture and supportive government policies. The market segmentation by product type, including whole-bean, ground coffee, instant coffee, and coffee pods and capsules, highlights the diverse range of products available to consumers. Additionally, the industry outlook reveals an increasing demand for certified coffee products, which is further supported by the market leaders prioritizing quality, sustainability, and innovation.
The market overview indicates that Europe and North America dominate the market, while the Asia-Pacific region is emerging due to shifting consumer preferences. This industry research reveals that specialty coffee houses and innovations like coffee pods are reshaping the market, catering to the evolving needs of global coffee consumers. The market forecast suggests continued growth, driven by the beverage's health benefits and diverse product range.
Moreover, the industry statistics and market data provide insights into the industry's worth, market value, and market predictions, offering a detailed market review for stakeholders. The market report, available for free PDF download, includes an analysis example, report PDF, and industry reports, providing a comprehensive market analysis and industry information.
In conclusion, the global coffee market's growth rate, industry trends, and market outlook highlight the dynamic nature of the industry. The report emphasizes the importance of market segmentation, market value, and the role of research companies in providing valuable industry insights. The industry's evolution is marked by a focus on quality, sustainability, and innovation, ensuring that the market continues to thrive and meet the demands of coffee consumers worldwide.
