by The global coffee market has witnessed robust growth over the past decade primarily attributed to increasing demand for specialty coffee among health-conscious consumers worldwide. Coffee offers various health benefits such as improving mental alertness, reduced risk of type 2 diabetes, Parkinson’s disease and liver cancer. Coffee is a rich source of antioxidants that help protect cells from damage caused by free radicals. The increasing trend of healthy snacking along with coffee’s anti-fatigue and mood-enhancing properties have propelled the sales of coffee products globally.
The Global Coffee Market is estimated to be valued at US$ 153.21 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.
Coffee is one of the most popular beverages globally consumed on a daily basis. The various products in the coffee market include roast and ground coffee, instant coffee, specialty coffee and café and café-style drinks. Specialty coffee has gained substantial popularity in recent years with consumers willing to experiment unique coffee flavors and varieties. The availability of organic coffee and new coffee flavors catered for niche demands helps drive market growth. Coffee shops have proliferated globally creating a cafe culture and experience for customers beyond daily beverage consumption.
Key Takeaways
Key players operating in the coffee market include 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. Coffee manufacturers are innovating products to capture demand from health-conscious consumers. They are introducing new flavors and premiumizing the coffee offerings through innovative packaging and marketing campaigns.
The Coffee Market Growth has witnessed rising consumption fueled by changing lifestyles and growing disposable income. Developing regions like Asia Pacific have emerged as high potential markets attributed to increasing coffee culture and cafe business. Rising health awareness among consumers has also contributed to coffee’s growing popularity as part of a normal diet balanced with other food items.
Coffee giants have undertaken global expansion efforts through strategic partnerships and acquisitions. Producer countries are also getting engaged in direct-trade mechanisms and offering single-origin varieties to premium clientele. Digitization of coffee shops through mobile apps and web-based services has further boosted the ‘on-the-go’ coffee consumption trend worldwide.
Market Key Trends
Healthy snacking is one of the key trends boosting the coffee market growth globally. Coffee today is perceived by many consumers as a healthy and nutritional beverage that can be enjoyed as part of snacking routines for its natural energy boost. Premiumization through specialty coffee flavors and organic varieties has also attracted health-conscious premium customers. As awareness around coffee’s health benefits continues to rise supported by consistent research, its popularity as a healthy snacking accompaniment is likely to surge further over the coming years.
Porter’s Analysis
Threat of new entrants: The coffee market has moderately high barriers to entry as it requires huge financial capital and technological know-how. However, the growing popularity of coffee helps new firms to enter easily but they face competition from established players.
Bargaining power of buyers: The bargaining power of buyers is moderately high as there are many substitutes available and buyers can easily switch to alternative beverages. However, brand loyalty and distinct taste keep the bargaining power in check.
Bargaining power of suppliers: The bargaining power of suppliers is moderately low as there are many suppliers for raw materials like coffee beans. Suppliers are less integrated and some suppliers provide material for private label brands as well.
Threat of new substitutes: The threat of substitutes is moderately high as tea, fruit juices, carbonated drinks and energy drinks can replace coffee. However, coffee is consumed across demographic profiles and occasions worldwide.
Competitive rivalry: The competitive rivalry is high among global and regional players. Players compete on the basis of brand, quality, variety in product offerings and distribution reach.
Geographical areas where market value is concentrated:
North America and Western Europe accounts for around 60% of the global coffee market value led by high per capita consumption in the US and Western European countries.
Fastest growing region:
Asia Pacific region is expected to be the fastest growing market for coffee led by increasing consumption in countries like China, India and Indonesia due to growing disposable incomes, western influence and health benefits associated with coffee consumption.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
