Coffee Market | Contrive Datum Insights

Market Overview:

The Global Coffee Market Size Was Valued At USD 79.5 Billion In 2022. The Coffee Market Industry Is Projected To USD 118.5 Billion By 2030, Exhibiting A Compound Annual Growth Rate (CAGR) Of 5.12% During The Forecast Period 2023 - 2030.

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Coffee is a drink that is made from water and roasted coffee beans. Some types of coffee plants have berries that contain these beans as seeds. When green coffee beans turn a bright red color, they are picked, processed, and then dried. When the color changes, the berries are ready. The caffeine in coffee makes you feel more awake, which is likely to be a big reason why the global coffee market

A lot of people drink this drink, which is one of the most popular drinks in the world. Coffee can be served hot or cold, and there are different ways to make and serve it. Some clinical studies suggest that healthy adults might get a small benefit from drinking small amounts of coffee. People think that these factors will help the global coffee market grow in the coming years. In the near future, the demand for coffee is likely to go up because young people are becoming more interested in café culture and cities are growing quickly.

It is one of the most traded goods in the world. There are many kinds of coffee drinks on the market. A study found that drinking coffee regularly increases life expectancy, reduces pain, increases fiber intake, protects against liver cirrhosis, and lowers the risk of Type 2 Diabetes, Alzheimer's, depression, and heart disease. Coffee is one of the most-drank drinks that are brewed. Most of the time, roasted coffee beans are used to make it. These beans are the seeds of the berries that some coffee plants make.

COVID-19 Impact:

Many active people find out about organic coffee on social media and are more likely to try it. Since chemicals and pesticides aren't used to make organic coffee, it has benefits like fewer bad effects. So, more social media knowledge and fewer coffee side effects open up new market opportunities for people who are already working in the industry to advertise, promote, and grow their presence.

Market Dynamics:

Market Trends:

• Surge in Demand for Certified Coffee Products

In the past few years, people have become more aware of how their purchases are made and where they come from. This is especially true in the supply chain for food and drinks, and coffee is no exception. Because of this, people are always looking for certified coffee products to make sure that the coffee they buy is good.

Certified coffee lets the buyer know that the product is safe, since coffee is becoming an increasingly popular target for people who try to sell fake food. UTZ Certification: It is the biggest program for certifying coffee and cocoa. UTZ wants to make sustainable farming the norm by encouraging farmers to use eco-friendly farming methods and run their farms in a way that makes money and is good for both coffee drinkers and the environment. Several organizations that certify coffee are keeping an eye on how it is made and how it moves through the supply chain. Here are a few of them: Certification from Fair Trade, Certification from Rainforest Alliance, and Certification from UTZ

Driving Factors:

• Increasing Global Exposure, Western Culture, and Penetration of Established Coffee Brands

Recently, coffee shops grew quickly because they became popular places for friends, family, coworkers, and business partners to meet. High-end coffee shops like those run by Coffee Day Enterprises Ltd, Starbucks Corporation, and Barista Coffee Co Ltd are to blame for the growth of the coffee market. Also, by making nice and relaxing places to eat and drink coffee, these places have added an element of experience to coffee drinking. Changes in the way business leaders work are also making more people want to go to these coffee shops and cafes because they offer things like free Wi-Fi and entertainment areas.

• Rising Number of Favourable Government Policies

Since coffee is a good that people all over the world want, its price and availability are based on global supply and demand. The growth of the coffee market depends on how well the crops are doing in the countries that make coffee. With the goal of increasing coffee production as a whole, a number of governments in the European Union and industrialized countries, like the United States, work with corporate institutions and regional technology programs to help coffee growers.

Several governments are coming up with long-term plans to increase coffee production in order to help the coffee industry deal with its economic and environmental problems. For example, in 2014, the Vietnamese government published the Vietnam Sustainable Coffee Plan up to 2020 and the Vision to 2030. The goal of the proposal is to set up rules for the environment, such as looking into irrigation methods that use less water and using herbicides and fertilizers that are safe for the environment. It tries to make things stable for future production. Countries like India are helping to meet the growing demand for coffee around the world by giving subsidies to coffee growers in areas where coffee has traditionally been grown.

• Growth of Local and Global Franchise Coffee Shops

Customers are willing to pay for high-quality coffee, which has become a way to meet new people, because there are more local and international coffee shops with franchises. Because of this, coffee shops like Starbucks, Costa, and CCD are doing really well.

Restraining Factors:

• Erratic Climatic Conditions and Global Warming

Coffee grows well in the cool to warm climate and rich soil of the tropics, where most pests and diseases don't live. Coffee is grown all over the world, including in North, Central, and South America, the Caribbean, Africa, the Middle East, and Asia. Brazil is the country that makes the most coffee in the world right now. If the Earth's temperature continues to rise over the next few decades, it could make it harder to grow coffee. This could hurt the quality and quantity of coffee, which could hurt sales.

When temperatures are higher than average, the coffee plant's fruit grows and ripens faster. Even though faster ripening might not hurt farming, it could hurt the quality of the coffee beans in the long run. The CIAT and World Coffee Research are working to reduce the damage that coffee plants do to the environment. They are doing this by coming up with new ways to shade coffee plants, making hardier bean varieties, and using biological pest control. The Sustainable Coffee Challenge was started by companies like Starbucks to help make the process of making coffee more efficient.

• Fluctuating Prices of Coffee Beans

One of the things that people buy and sell the most around the world is coffee. In both countries that grow coffee and countries that don't, the number of people who drink coffee is growing quickly. But the fact that there isn't enough coffee to meet the growing demand is hard to deal with. The amount of coffee grown also changes with the weather, which makes the price go up and down even more. The plant disease "coffee rust" or "la roya," which is caused by a fungus that attacks the leaf and kills the branch and coffee cherry, tends to spread when the temperature goes up. So, it's hard for the market to get enough coffee because of plant diseases, pests, and problems with the coffee beans. Prices go up because there is a difference between what people want and what is available.

On the other hand, prices go down when there are too many of something. For example, the International Coffee Organization says that bigger coffee supplies in 2017/18 led to more shipments in August 2018, when global exports went up by 6.3% to 11.1 million bags from August 2017. The world used about 1.8% more coffee, or 162.23 million bags, in the year 2017/18. But the amount of coffee made was 2.58 million bags more than what was needed. Since there has been a lot of coffee, prices have been low.

Price changes affect how much it costs to make a product, which in turn affects how much the product costs. This could make it more difficult for the companies to make money. So, the coffee market can't grow as fast when coffee bean prices go up and down.

• Environmental Issues

Many countries that make coffee have had problems with the environment because they use wet methods to make coffee, which pollutes water on a large scale. There are new ways being thought up to lessen the damage to the environment.

Opportunities:

• Rising Consumer Preferences for Organic Coffee

The number of people buying organic coffee is rising quickly. Most of this growth is due to changes in technology, competition, and new ways of marketing, especially in places where there is a lot of competition. People all over the world are also becoming more worried about their health, which has led them to prefer organic foods. People are more likely to buy organic coffee, which is made without chemicals like most pesticides, herbicides, and fertilizers. Organic coffee is becoming more popular because it is good for your health and doesn't have any toxins left over from synthetic fertilizers, herbicides, pesticides, artificial flavors or colors, or preservatives. People also think that organic coffee is good for the environment because no chemicals are used to make, process, or package it. It doesn't hurt the environment in any way.

People want organic products, so this gives people in the global coffee market a chance. People think that Australia is the country where the most organic coffee is drunk. In August 2018, Lavazza released Tierra! Bio-Organic, its first organic coffee, in Australia. Also, the demand for organic coffee is growing not only in developed countries but also in some developing countries. This gives people in the market a chance to grow and get bigger.

• Rapid Technological Innovations

Advanced technologies are being used by coffee makers to make coffee in order to improve their products and grow their market share. With the invention of coffee pods and capsules, coffee's popularity has gone through the roof. This is because coffee is now easier to get, easier to drink, takes less time and effort to make, and comes in eco-friendly packaging. Because of this, more and more offices are opting for coffee pods and capsules. Also, more people are learning about the health benefits of coffee, which is also leading to a global trend of more people drinking coffee.

Challenges:

• Limited Product Awareness

The amount of coffee people drink around the world is going up, but coffee pods and capsules aren't used as much in developing countries. Even though Asia-Pacific is a centre for coffee production, most of the coffee grown there is shipped to the US and Italy to be put into pods or capsules. In the Asia-Pacific region, Indonesia, Vietnam, East Timor, Laos, Myanmar, the Philippines, and Thailand are some of the countries that produce the most coffee. But coffee pods and capsules aren't used as much in these countries as they are in North America and Europe. Most people in developing countries don't know about or use coffee capsules and pods because they aren't easy to find, there aren't many market players in rural areas, and fresh coffee, capsules, and pods are expensive. To keep their places in a growing market, coffee companies must find ways to deal with these problems. They can do this by focusing on marketing strategies and putting out new products at prices that middle-class consumers can afford.

Strategic Development:

• In September 2022 - A Swiss coffee company called CoffeeB made a new kind of compressed coffee balls. They called it "the next generation of single-serve coffee." It makes a capsule whose shape stays the same by using seaweed wrappers instead of aluminum or plastic.
• In June 2022 - Reliance Brands Ltd. and Pret a Manger, a global chain of restaurants with fresh food and organic coffee, announced a strategic partnership for the launch and growth of the brand in India.
• In December 2021 - FNC launched a line of coffees made by women as a way to make the brand stand out.
• In September 2022 - Starbucks started a new period of growth thanks to a plan that had never been done before.
• In July 2022 - Nestle SA said, "What's the coolest thing about coffee?" The Nescafé Gold ice cream is a first of its kind.

Key Vendor:

• Nestle SA (Switzerland)

Nestle S.A. is a multinational company that makes and sells many different kinds of packaged food. Milk, chocolate, candies, bottled water, coffee, creamer, food seasonings, and food for pets are all things that the company sells.

• Tata Global Beverages Limited (India)

Tata Consumer Products Ltd (TCPL) makes and sells food and drinks that don't contain alcohol. Their main products are tea and coffee. The company sells tea and coffee under the brand names Tata Tea, Vitax, Eight O'Clock Coffee, Tetley, Tata Coffee Grand, and Joekels. It also sells packaged water under the brand names Himalayan, Tata Water Plus, and Tata Gluco Plus.

• Illycaffè S.p.A. (Italy)

Illycaffe' S.P.A. makes and sells coffee-related goods. The company works with hotels, restaurants, catering companies, household companies, and office companies. Illycaffe' has customers from all over the world.

• Keurig Dr. PepperInc. (US)

Keurig Dr Pepper, Inc. makes and sells drinks that don't have alcohol in them. It does business in four different areas: coffee systems, packaged beverages, beverage concentrates, and beverages for Latin America.

• Starbucks Corporation (US)

Starbucks Corp. (Starbucks) is a store that sells specialty coffee. It roasts, sells, and markets gourmet coffee. Through its stores, the company sells different kinds of coffee blends, handcrafted drinks, goods, and food. Starbucks also sells whole beans and ground coffee, as well as drinks that are already made, snacks, and other drinks.

• The Coca Cola Company (US)

The Coca-Cola Co. is a company that makes, sells, and markets non-alcoholic drinks. These drinks include carbonated soft drinks, water, enhanced water and sports drinks, juice, dairy and plant-based drinks, tea and coffee, and energy drinks.

• Jacobs Douwe Egberts (Netherlands)

Douwe Egberts Nederland BV makes things with coffee. The company sells coffee that has been roasted and ground. Douwe Egberts serves clients in Netherlands.

• Strauss Group Ltd (Israel)

Strauss Group is an innovative, branded, and multi-category food and beverage group. The group is an international company with a strong base in Israel, where it is the second-largest food and drink group. Strauss Group is made up of four main business units: Strauss Israel, Strauss Coffee, SabraObela Fresh Dips and Spreads, and Strauss Water (which is active in Israel, the UK and China).

• The Kraft Heinz Company (US)

The Kraft Heinz Food Company makes and sells food and drinks. The business sells sauces, meals, soups, snacks, and food for babies. Kraft Heinz Foods serves customers worldwide.

• The J.M. Smucker Company (US)

The J.M. Smucker Co. (also known as J.M. Smucker) makes food and drinks. The company sells things like coffee, snacks for pets, peanut butter, fruit spreads, baking mixes, frozen handheld products, flour and baking ingredients, juices and other drinks, and portion control products. J.M. Smucker markets and sells these products under the 9Lives, Cafe Bustelo, Dunkin, Folgers, Jif, Kibbles 'n Bits, Meow Mix, Milk-Bone, Nature's Recipe, and Robin Hood brands.

Segmentation Analysis:

The market is segmented on the basis of product type, category, coffee beans, distribution channel and region.

Product Type Outlook:

Based on the type of product, the global coffee market is divided into whole bean coffee, ground coffee, instant coffee, coffee pods, and capsules.

The segment that makes the most money for the market is instant coffee, which is expected to grow at a CAGR of 5.63 percent over the next few years. Demand for instant coffee is mostly driven by how easy it is to use. Because there are so many international companies, the market for instant coffee is very fragmented. Large businesses work with other businesses to stay competitive on the market. They do this through joint ventures, collaborations, and product launches. Tata Global Beverages, an Indian multinational company that makes non-alcoholic drinks, made Tata Coffee Grand, its instant coffee brand, to compete with Nescafe and Bru. This product is a mix of Arabica and Robusta coffee. Also, a lot of businesses are adding flavors that are popular in certain areas. The market is also moving forward because coffee is being made healthier by adding vitamins and minerals to it.

Ground coffee is preferred by middle-income customers around the world because it smells strong and there are many good brands to choose from. A survey of 500,000 people in the United Kingdom, which mostly drinks tea, was published in the journal JAMA Internal Medicine. It found that 10-15% of coffee drinkers are less likely to die early than non-drinkers. So, companies try to improve their products and promote coffee as a healthy drink. The ground coffee industry is also growing because people like to buy green ground coffee. Green coffee contains chlorogenic acid, which slows the absorption of carbohydrates and helps break down fat. Large international companies like Kraft Foods, Nestle, JM Smucker Company, and Starbucks run most of the ground coffee business. These businesses sell a wide range of goods with different tastes.

• Whole Bean Coffee
• Ground Coffee
• Instant Coffee
• Coffee Pods
• Capsules

By Category:

The types of coffee make up the conventional and organic segments of the global coffee market. In 2019, the conventional segment made up 85.35 percent of the market. But between 2022 and 2030, the organic segment is expected to grow at a faster rate of 5.46 percent per year.

• Organic
• Conventional

By Coffee Bean:

With a 70% market share, Arabica is the leader in the coffee bean segment of the global coffee bean market. Arabica is a high-end coffee that tastes sweet and soft and smells like sugar, fruit, and berries. So, people who buy a lot of coffee and coffee shops choose the best Arabica coffee blends. Robusta coffee beans contain a lot of caffeine, which makes them much stronger and less sour. 25% of all coffee sold in the world is Robusta. Arabica coffee may continue to rule the market for the next six years because of how good it tastes and how well it is made.

• Foundation
• Concealer
• Powder
• Primer

Distribution Channel:

On-trade and off-trade are two different ways that coffee is sold on the global market.

The off-trade segment has the biggest share of the market and is expected to grow at a compound annual growth rate (CAGR) of 4.98 percent over the next five years. The wide range of products sold in supermarkets and hypermarkets attracts more customers and boosts sales. The actors have a big effect on the market. For example, business growth and the rise of supermarkets and hypermarkets, which boost sales of different retail formats, are both caused by the actors. Due to this segment's growing market share, the growth of the industry as a whole has been helped by the rise in demand for buying things in bulk, like coffee. Convenience stores sell cheap and convenient cups of coffee to people who are always on the go.

Also, many convenience stores have places to eat, which brings in even more customers. People know that specialty stores and webshops sell coffee products that aren't usually sold in chain stores. As part of its plan to grow its retail channels, the Indian company Sleepy Owl is turning its online sales into in-store sales. The company plans to get the word out about its coffee products in 100 shops.

As more and more people around the world drink coffee in cafes, restaurants, and at work, on-trade channels like cafes and bars are growing. Also, the demand for gourmet coffee has grown a lot, which is mostly because specialty coffee chains have grown. This has helped the coffee business grow, which in turn has helped the on-trade sector. The Coca-Cola Company bought Costa Coffee to grow its coffee business, for example. This $4.9 billion deal includes 4,000 stores and a lot of coffee vending machines. Local and international companies are investing more money to grow in developing countries. This has led to more sales of coffee products through the on-trade channel. In India, for example, there are about 3,500 well-run chain cafes. In the next three to four years, it is expected to grow by more than 50%, reaching 7,000 organized cafe chains across the country.

• On-trade
• Off-trade

Regional Insights:

By region, the global coffee market is divided into North America, Europe, Asia-Pacific, and the Rest of the World. In 2019, 36.08% of the market was in Europe. Over the next five years, the market is expected to grow at the fastest rate, with a CAGR of 4.72%. Asia-Pacific was the second largest market in 2019, and it is expected to grow at a rate of 5.57 percent per year (CAGR).
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Europe is a great place to live if you make coffee. Europe made up 36.08 percent of the market in 2019, and from 2021 to 2028, it is expected to grow at a high CAGR of 4.72 percent. The regional market is so big because of things like the growing demand for different flavors and packaging, the development of new products with better technology, the growing demand for easy-to-use coffee capsules and pods, and the use of automatic bean-to-cup machines. Also, the most coffee is drunk in the world in many European countries. Finland, Norway, Iceland, Denmark, the Netherlands, Sweden, Switzerland, Belgium, Luxembourg, and the United Kingdom are the countries that drink the most coffee in the world. Strategic partnerships and collaborations between the major players are likely to help the growth of the market in the region. For example, Nescafé and Starbucks signed a long-term licensing deal in May 2018. Through the partnership, Nescafé will be able to sell Starbucks products in Europe, Asia, and Latin America. Nestlé S.A., The Kraft Heinz Company, Luigi Lavazza S.p.A., and Dualit Limited all have their headquarters in the area, especially in Italy. The market grows because of this.

Asia-Pacific also has a big share of the global coffee market, which is expected to grow at a CAGR of 5.57 percent from 2021 to 2028. The region's market is expected to grow because of a number of factors, such as the fact that more and more people are moving to cities and the number of middle-income people is growing. During the period covered by the forecast, these things are also likely to make more people want to buy coffee. People are also buying more coffee now that they have more money to spend than they did before. People will pay more for coffee products that give them more value. China, Indonesia, the Philippines, and India are some of the places where people drink the most coffee. On the other hand, China and India are likely to drink a lot of coffee during the review period. One place where people drink tea is Japan. But over time, more and more people have started drinking coffee, which is growing the coffee market in the Asia-Pacific region. Key coffee companies are also trying to sell more coffee and coffee products in the Asia-Pacific region. To get more people to drink coffee, these companies are making a lot of new and better products.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• This report provides a quantitative analysis of the market segments, current trends, estimates, and dynamics of the computer microchips market from 2022 to 2030 in order to identify the current coffee market opportunity.
• The market research includes information regarding the market's key drivers, restraints, and opportunities.
• The contribution of each region's major countries to the global market's revenue is mapped.
• A comprehensive analysis of the market outlook for coffee market assists in identifying the prevalent market opportunities