Available in powdered form, coffee is a ready-to-drink beverage that is consumed in high volume due to its taste, feel, and caffeine content. A new report on the global coffee market, published by Market Research Future (MRFR), estimates that this market could notice expansion at 4.32% CAGR between 2018 and 2023. In terms of value, the market can be worth USD 102,279.2 Mn by the end of the forecast period.
The most important market driving factors for the global coffee market growth are rapid urbanization of cities, changing lifestyle, and need for pick-me-up beverages. Development of organic coffee and functional beverages can also assist in market growth. Coffee is seen as a suitable substitute to tea as it is not addictive like tea. Other market driving factors include emergence of various cafes, the launch of new brews, increasing preference for coffee over soft drinks, surging demand for coffee due to trends, expanding income levels of consumers. However, fluctuating prices of coffee beans can hinder the market growth.
Market Segmentation
The global coffee market segmentation encompasses distribution channels, form, and variety. MRFR’s take on the market surveys various facets of the market in-depth.
Based on distribution channels, this coffee market has been segmented into store-based distribution channel and non-store-based distribution channel. In the context of variety, the market has been segmented into Arabica, Robusta, and others. During the forecast period, Robusta segment can grow at 4.85% CAGR, attaining the market value of USD 30,046 Mn. The Arabica segment can grow at 4.07% CAGR during the forecast period.
Regarding form, the coffee market has been segmented into whole, ground, and others. The ground segment has been sub-segmented into instant coffee powder, portioned coffee, and other forms. The portioned coffee sub-segment has been further segmented into pods, premixes, and others. During the forecast period, the ground form can grow at 4.45% CAGR during the forecast period, and its market worth can be USD 63,644.5 Mn. The whole form segment is likely to grow at 4.12% CAGR, and its market worth can be USD 38,634.7 Mn by 2023.
Key Players
Big players in the global coffee market include The Coca-Cola Company (USA), Jacobs Douwe Egberts (The Netherlands), The J.M. Smucker Company (USA), The Kraft Heinz Company (USA), Nestlé S.A. (Switzerland), Strauss Group Ltd. (Israel), Starbucks Corporation (USA), Tata Global Beverages Ltd. (India), Tchibo Coffee International Ltd. (UK), and Unilever PLC (UK).
Regional Segmentation
A geographical outlining of the global coffee market covers North America, Europe, Asia Pacific, and Rest of the World (RoW).
During the forecast period, the North American Coffee market share is expected to grow at 23.88% CAGR, and its market worth can be USD 24,277.8 Mn. The consumption of Arabica coffee is high in North America, and many key coffee manufacturers are based in North America, especially in USA. In this region, the market is also growing due to innovation in flavor, focusing on the promotional activities by manufacturers, strong economy and high purchasing power of consumers. After USA, Canada and Mexico generate highest revenue in this region.
Europe is another important regional market due to the high density of population, developed economies and high purchasing power of consumers. Some of the major market players are based in Europe too. In Europe, the consumption of Arabica coffee is maximum. The most powerful country-specific markets in Europe are France, Germany, Italy, Spain, and the UK.
The Asia Pacific is another important regional market as the maximum consumption of Robusta coffee happens here. The major market driving factors in this region are increased per capita income, rapid economic growth, and growth of the retail sector. Remarkable country-specific markets in this region are China, India, and Japan. In this report, Australia and New Zealand have been clubbed into one segment.
The RoW segment covers South America, Africa, and the Middle East. South America and the Middle East are better markets compared to Africa. However, in South America, market is limited due to purchasing power of consumers being lower than North American consumers. Whereas in the Middle East, market can be strong, but it faces certain religious restrictions. Lastly, in Africa, the market is low due to low purchasing power of people.
Latest Industry News
- Private equity firm TPG is in talks regarding a possible acquisition of Coffee Day Global Ltd. Coffee Day Global Ltd. is the owners of Café Coffee Day (CCD) chain. 28 AUG 2019
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