by Coffee is one of the most widely consumed beverages around the world. It contains antioxidants that can benefit health in multiple ways like reducing inflammation, lowering risk of type 2 diabetes, and protecting the liver. Coffee beans are roasted, ground, dissolved in hot water, and brewed to make coffee. The two major types of coffee are Arabica and Robusta. Arabica coffee beans have subtle flavor and aroma but require more care in cultivation compared to Robusta beans which have higher caffeine content. Coffee offers refreshing taste, smell and is often consumed for its stimulant properties. Cafes across the world provide different varieties of coffee drinks along with relaxed ambiance, fueling its social aspect.
The global Coffee Market is estimated to be valued at US$ 132.99 Mn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:Growing health consciousness among people is driving the demand for coffee worldwide. Research studies show coffee drinkers have lower risk of developing diseases like Parkinson’s disease, type 2 diabetes and liver cancer. This is attributed to antioxidants in coffee beans called polyphenols. The increasing awareness about potential health benefits of coffee is a major trend in the market. Organic andFairtrade certified coffee are also gaining popularity as consumers pay more attention to sustainability and ethical sourcing of products. Big coffee chains are offering more customized coffee drinks and food pairing options to attract diversified tastes. Innovation in coffee preparation methods like cold brew, nitro brew etc and introduction of flavored variety is further propelling the market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the coffee market is moderate. Some barriers that new players face are high capital requirements for infrastructure and brand building.
Bargaining power of buyers: The bargaining power of buyers in the coffee market is high. Buyers have a wide range of options to choose from when it comes to coffee brands.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While there are many coffee bean suppliers globally, some key inputs have limitations in availability.
Threat of new substitutes: The threat of substitutes is moderate. While tea and other beverages can substitute coffee to some extent, coffee has developed strong brand loyalties over the years.
Competitive rivalry: The competition in the global coffee market is high with the presence of global as well as regional players. Market leaders need to focus on different features to retain their customer base.
Key Takeaways
The global coffee market size is expected to witness high growth over the forecast period of 2023 to 2030. The market size for coffee is projected to reach US$ 194.06 Mn by 2030, expanding at a CAGR of 4.7% over the forecast years.
Regional analysis: North America currently dominates the global coffee market, accounting for over 30% of the total market share. Evolving consumption patterns and rising demand for premium coffee products is driving the market in the region. Asia Pacific is expected to be the fastest growing market during the forecast period, led by countries such as China and India. Growing youth population and changing lifestyles is supporting the coffee culture in the region.
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. Players are focusing on strategies like new product launches, packaging innovations and marketing campaigns to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
