June 17, 2024
Coffee Market

Coffee Market is anticipated to Powered by Increasing Consumption of Coffee

The coffee market has seen significant growth in recent years driven by increasing consumption of coffee worldwide. Coffee beans contain caffeine and antioxidants that provide energy and various health benefits. There are various product segments in the coffee market including roast and ground coffee, instant coffee, and premium coffee which offer different taste profiles and convenience. Rising health awareness has led to growth in demand for premium coffee varieties that offer unique flavors. The increasing popularity of coffee shops has also supported market growth by making coffee a social beverage consumed outside the home.

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:
One of the key trends in the coffee market is the rising popularity of single-serve coffee pods and machines. Products like Nespresso and Keurig offer consumers simplicity and convenience to brew single cups of coffee with just a pod. Their compact size has made them popular for home as well as office use. Manufacturers are focusing on introducing new flavors and varieties in single-serve formats to attract consumers. Another trend is the growth of cold brew and flavored coffee. While traditional hot coffee remains popular, there is increasing demand for low-acid cold brew varieties as well as coffee-based beverages infused with flavors like vanilla, caramel, cinnamon etc. This has led coffee brands to roll out new product lines targeting health-conscious demographics.

Porter’s Analysis

Threat of new entrants: Low barriers to entry and costs associated with coffee production allow new companies to enter the market easily. However established brands and need for collaboration with growers pose challenges.

Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and branded as well as private label options. They can influence prices through bulk purchases and contracts.

Bargaining power of suppliers: Growers have moderate power given oversupply of raw coffee beans globally. Established multinational companies can influence prices through contracts and loans to farmers.

Threat of new substitutes: Alternatives like tea and other beverages pose threat but coffee is ingrained in culture and routines. New functional beverages could increase competition over time.

Competitive rivalry: Market has major global players competing on price, innovation and brand loyalty along with many regional and private label brands leading to high competition.

Key Takeaways

The Global Coffee Market Share is expected to witness high growth over the forecast period of 2023 to 2030. 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.

Brazil is the largest producer globally followed by Vietnam, Indonesia and Colombia. Europe represents the largest regional market for coffee followed by North America. The Asia Pacific region is projected to be the fastest growing market during the forecast period due to rising disposable income, growing young population and increasing coffee culture especially in countries like India and China. Countries such as Brazil, Vietnam and Colombia are the dominant growers in the global supply chain.

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 innovations, branding and collaboration with farmers for sustainable sourcing.

Note:
Source: Coherent Market Insights, Public sources, Desk research
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