June 16, 2024
Coffee Market

The Global Coffee Market is Driven by Increasing Consumer Base Seeking Health Benefits

The global coffee market offers a variety of products for both commercial as well as household consumption. Coffee beans are roasted, grounded, brewed and packaged in various forms including whole beans, grounded powder and instant coffee crystals to suit different tastes and preferences. Coffee contains antioxidants and caffeine that provide health benefits such as improved focus, metabolism boost and reduced risk of diabetes, Parkinson’s and Alzheimer’s disease. It is becoming increasingly popular among younger consumers and new fitness enthusiasts seeking an energy boost. The global coffee market is estimated to be valued at US$ 132.99 billion in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Key Trends
One of the key trends driving growth in the global coffee market size is the rising demand for specialty and premium coffee. Consumers are willing to pay higher prices for specialty coffee that offers unique flavors from single-origin beans. Specialty coffee shops offering unique blends and experiential retailing have seen increased patronage. Major players are focusing on specialty coffee offerings and collaborating with small batch roasters to cater to this segment. Another trend gaining traction is ready-to-drink coffee products such as cold brew coffee, coffee pods, premixes and flavored coffee. The convenience and portability offered by these formats is appealing to increasingly busy lifestyles. Product innovation led by flavors, varied formats and functional additions is also fueling market growth. New product launches in the healthier and organic coffee space alongside innovations leveraging new technologies will continue to present lucrative opportunities.

Porter’s Analysis
Threat of new entrants: Low barrier to entry in coffee farming but high costs for processing and distribution networks limit threats of new entrants.

Bargaining power of buyers: Large buyers like supermarkets have significant bargaining power over producers due to their size, however specialty coffee shops have limited power.

Bargaining power of suppliers: Coffee farmers have low bargaining power against large producers and distributors due to oversupply of raw coffee beans globally.

Threat of new substitutes: Tea and other beverages pose minor threats as coffee is widely popular but energy drinks are growing threats.

Competitive rivalry: Intense competition exists among large producers and specialty coffee chains to offer variety and niche products to maintainbrand loyalty.

Key Takeaways
The global coffee market is expected to witness high growth.

Regional analysis: North America commands the largest share in the global coffee market due to rising consumption of specialty coffees and retail expansion of cafes and roasteries. Europe also captures a significant share attributed to wide product offerings and increasing commercial consumption in countries like Germany, Italy and UK.

Key players operating in the coffee market are Bristol-Mye, Starbucks, Nestlé and Keurig Dr Pepper. Key players are focusing on offering variety through new product launches, promoting innovative brewing systems and expanding globally especially in emerging regions through partnerships and acquisitions. For instance, Nestlé acquired Chameleon Cold Brew aiming to leverage US demand for high-quality cold brew coffees.

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  1. Source: Coherent Market Insights, Public sources, Desk research

2. We have leveraged AI tools to mine information and compile it