The global coffee market in 2021 was valued at US$107. 93 billion. The market value is expected to reach US$167. 51 billion by 2027. Coffee is a natural, organic caffeine-based beverage brewed by adding coffee beans (green, soluble or roast and ground beans) with cold or hot water in a coffee maker.
New York, Oct. 10, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Global Coffee Market: Analysis By Product Type, By Coffee Bean Type, By Region Size and Trends with Impact of COVID-19 and Forecasts up to ‘in 2027’ – https://www.reportlinker.com/p06323448/?utm_source=GNW
Coffee can be consumed as an easy-to-prepare beverage in cafes and stores or by brewing coffee beans at home. There are different types of coffee products available in the market which vary in nutrient content, amount of caffeine, appearance and taste.
The market is expected to grow at a CAGR of 7.60% during the forecast period 2022-2027. Due to increasing population consuming coffee outdoors, rapid urbanization, rising e-commerce retail sales and rising incomes of Gen Z, the market would propel in the years to come. The global coffee market in production and consumption volume is expected to reach 203.88 million 60 kg bags and 194.99 million 60 kg bags, respectively in 2027.
Market Segmentation Analysis:
By Product: The report provides the bifurcation of the market into three segments based on product: Roast & Ground, Soluble, and Single Serve. In 2021, the roasted and minced segment held a major share of over 43% in the market. On the other hand, single serving segment is expected to grow at a significant CAGR in the coming years owing to increasing purchasing power in developing countries.
By Type of Coffee Bean: The report provides the bifurcation of the market production volume into two segments based on the type of coffee bean: Arabica and Robusta. In 2021, the Arabica segment held a significant share of over 57% in the market. The Arabica type of coffee bean dominates the coffee market due to its low caffeine content and sweeter taste. On the other hand, Robusta segment is expected to grow at a significant CAGR in the coming years owing to its increasing popularity among the working population.
By Region: The report provides an overview of the coffee market based on regions i.e. North America, Europe, Asia-Pacific, South America, Africa & Mexico and Central America. Asia-Pacific held the largest share of over 31% in the market, owing to the growing popularity of various coffee products among consumers in the region. The climate and geographical location of Southeast Asia make it an ideal place for growing coffee. It is the region’s coffee culture and coffee production expertise that has helped create the region’s booming coffee industry. In Europe, Germany is expected to dominate the market over the forecast period, driven by the increase in the number of cafes, small resident brands, small roasters and baristas. Whereas, in the North America region, the United States dominates the region due to the increase in out-of-home coffee consumption.
Drivers of Growth: One of the most significant factors impacting the global coffee market is the rising income of Gen Z. The increase in disposable income of the Gen Z population has driven the adoption of a comfortable lifestyle. Gen Z prefers to occasionally visit cafes and restaurants. Moreover, with the increase in product offerings, such as cold coffee drinks and ready-to-drink coffee are popular among the Gen Z population, which has directly increased the sales of the coffee market. Additionally, the market has witnessed growth over the past few years, owing to factors such as rapid urbanization, increase in outdoor coffee drinking population, increase in e-commerce retail sales , the growing demand for specialty coffee, the inclination of green coffee consumption in emerging economies, and many other factors.
Challenges: However, the market faced some challenges in particular, weather uncertainties, retail consolidations, etc.
Trends: The market is expected to grow at a rapid rate over the forecast period, owing to various recent trends such as increasing penetration of premium coffees, rise in demand for certified coffee products, high demand cold brew vs. iced coffee, etc. The craze for cold brew coffee among consumers has increased lately. Cold brew is made with cold water rather than regular iced coffee which is first brewed with hot water and then poured with ice. Consumers believe that the cold brew process improves the taste and quality of coffee and nearly 90% are willing to pay a premium price for cold brew coffee. This is an emerging trend in recent times that has benefited various coffee roasters and producers. This will likely contribute to the growth of the global coffee market.
COVID-19 impact analysis and way forward:
The outbreak of the COVID-19 pandemic has caused disruption in the coffee industry. Out-of-home coffee consumption has declined significantly due to the growing number of countries adopting full or partial lockdowns to contain the spread of COVID-19. Offices, cafes and restaurants remain closed in order to limit the spread of the coronavirus which reduced coffee consumption in the pandemic year 2020. Additionally, due to the COVID-19 pandemic, the labor movement farmers and migrant workers has been limited by social distancing measures, lockdowns and travel restrictions that have forced them to migrate to their hometowns, reducing the overall labor supply on farms during harvest periods . Coffee bean picking is a labor-intensive activity involved in coffee making, which has been hampered due to a shortage of labor, which has hampered the overall production of coffee. coffee.
The coffee market is a highly competitive market, dominated by a large number of players. The main players in the global coffee market are:
Keurig Dr Pepper Inc.
The Coca Cola Company
Tata Consumer Products
Dutch Bros Inc.
The Kraft Heinz Company
Jacobs Douwe Egberts
JM Smuckers Company
Cafe Strauss Ltd.
Coffee Tchibo International Ltd
Luigi Lavazza SpA
Cafe Luckin Inc.
Some of the strategies of the major market players in the coffee market are mergers, acquisitions, and collaborations. For example, in 2022, Nestlé SA announced that the company was exploring emerging technologies for the development of animal-free dairy protein products. While Keurig Dr Pepper introduced the K-Café® SMART, the newest brewer in Keurig’s connected line. The new brewer allows consumers to create delicious coffee drinks right at home, the majority of which can be prepared in three minutes or less.
Read the full report: https://www.reportlinker.com/p06323448/?utm_source=GNW
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