by Coffee is one of the most popular beverages across the world. It is sourced from the coffee beans which contain antioxidants and caffeine. Regular consumption of coffee is associated with various health benefits such as reduced risks of type 2 diabetes, Parkinson’s disease, liver cancer and stroke. Coffee beans contain chlorogenic acids that help manage weight and reduce belly fat. Its consumption also boosts metabolism and energy levels.
The global coffee market is characterized by the presence of medium and large scale players. Key players focus on strategic mergers and acquisitions to strengthen their presence. They invest heavily in the research & development of innovative coffee products to cater to changing consumer preferences. With rising health consciousness, demand for functional beverages is increasing globally. Manufacturers are launching products enriched with nutrients, probiotics and vitamins.
The global coffee market is estimated to be valued at US$ 132.99 Mn 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:
The key trends in the global coffee market size include increasing consumption of specialty coffee and ready-to-drink coffee products. Specialty coffee made from high-quality beans harvested from a single origin is gaining popularity among health-conscious consumers. Specialty coffee has unique flavours and tastes better than regular coffee. On the other hand, demand for ready-to-drink coffee products such as cold brew coffee, latte and mocha is increasing rapidly due to the busy lifestyles of working professionals. Ready-to-drink coffee provides convenience without compromising on taste. Manufacturers are investing in product innovation and introducing various flavors as well as functional ingredients to cater to dynamic consumer preferences and drive the market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate. New players need resources and capital to invest in coffee plantations, processing and distribution infrastructure. However, the coffee market is growing attractively and offers opportunities for new specialized products.
Bargaining power of buyers: The bargaining power of buyers is moderate. Coffee is purchased by large distributors, retailers and restaurants. However, buyers have some influence over prices as they can negotiate contracts or switch to competitive brands if needed.
Bargaining power of suppliers: The bargaining power of suppliers is moderate to high. Major coffee producing countries like Brazil and Vietnam control a significant share of global production. Suppliers can influence commodity prices by limiting or boosting output based on weather conditions and demand-supply dynamics.
Threat of new substitutes: The threat of new substitutes is low. While products like tea offer an alternative, coffee has developed strong brand loyalty and a tradition of being part of morning rituals worldwide. There are limited substitutes that can offer the same sensory experience.
Competitive rivalry: Competition in the coffee market is high with the presence of large multinationals and regional players vying for market share. Players differentiate through quality, pricing strategies, innovation in products like capsules, single-serve packages and aggressive marketing campaigns.
Key Takeaways
The global coffee market is expected to witness high growth. The market size for 2024 is projected to reach US$ 132.99 Mn, indicating an overall increase in global demand for coffee products.
Regional analysis: The Asia Pacific region is expected to be the fastest growing market for coffee during the forecast period. Countries like China, India and Indonesia offer lucrative prospects due to changing lifestyle, rising disposable incomes and growingculture of coffee shop chains. Europe currently dominates global consumption led by countries like Germany, Italy and France with a strong coffee culture.
Key players: Key players operating in the coffee market are Bristol-Myers Squibb Company, Novartis AG, Merck & Co., Inc., Genentech Inc., F. Hoffmann-La Roche AG., Amgen Inc., AstraZeneca, Daiichi Sankyo Company, Limited., AB Sciences., AgonOX, Inc., Eisai Co., Ltd, GlaxoSmithKline, plc., Pfizer, Inc., and Vical, Inc. These companies are focusing on strategies like new product launches, partnerships and expanding distribution to increase market share.
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
