by Coffee has been one of the most widely consumed beverages globally. It is valued for its stimulant properties owing to caffeine content. Changing lifestyles and health trends have been a major driver for increased coffee consumption. Coffee comes in various product forms including whole beans, ground coffee, frozen liquid coffee, instant coffee powder and pods that offer convenience of use. The variety and innovative product formats have further expanded the consumer base for coffee. The global Coffee Market was estimated at US$ 153.21 billion in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the global coffee market has been the rising popularity of specialty coffee. Specialty coffee refers to high-quality brews produced from premium beans processed through techniques like light roasting. This has allowed coffee drinkers to enjoy richer flavor profiles. Specialty coffee shops have grown multi-fold offering coffee connoisseurs curated menus and brewing experiences. Their success lies in focusing on coffee quality, unique flavors and creating an ambience. Alongside, health-conscious consumers have boosted demand for organic, fair trade and low-acid coffee variants. Furthermore, innovations in coffee pods, cold brew kits and instant coffee powder have expanded the reach of coffee into easy to prepare and on-the-go options. The availability of flavored varieties incorporating ingredients like chocolate and caramel has also heightened coffee’s appeal as an indulgent beverage.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the coffee market is already saturated by large players and requires huge capital investments to establish greenfield operations for coffee plantations and processing facilities.
Bargaining power of buyers: The bargaining power of buyers is high as there are many options for buyers to choose from and switching costs are low. Major players face pricing pressures.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as large coffee chains have to rely on a few suppliers for raw coffee beans but suppliers cannot influence prices significantly.
Threat of new substitutes: The threat of substitutes is moderate as tea and other beverages can replace coffee to some extent but coffee has strong consumer preference.
Competitive rivalry: Competition is intense as major players compete on the basis of strong brand recognition, wide global presence and product differentiation through premiumizations and innovations.
Key Takeaways
The Global Coffee Market Growth is expected to witness high over the forecast period.
Regional analysis: North America holds the majority share currently, driven by US, which has the highest consumption. Asia Pacific is poised to grow the fastest over the forecast period led by countries like China, India and Indonesia where disposable incomes are rising swiftly along with western influences. Latin American countries like Brazil and Colombia dominate production globally.
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 focused on introducing new varieties through innovations and using premiumization as a strategy to boost volumes.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
