Global Coffee Market Report by Product Type (Coffee, Ground Coffee, Whole Grain, and Others), Distribution Channel (Supermarket/Hypermarket, Convenience Store, Online Platform, and Others), Regions and Company Analysis 2024-2030

Global Coffee Market Size

Global Coffee Market Outlooks

Coffee is a popular beverage prepared from roasted coffee beans-the seeds of berries from the coffee plant. The two most common species of coffee are Arabica and Robusta, with each offering distinct flavor profiles. Coffee is very popular around the world due to its stimulating effects, primarily because of caffeine, which is a naturally occurring alkaloid in coffee beans. People drink it to be alert, have their attention enhanced and energized, thus forming an important part of many daily routines across the globe.

Besides being a beverage, coffee is used in many ways. It is a main ingredient in other foods such as desserts, ice creams, and snacks. Cosmetics also employ coffee since it has antioxidant features, therefore helping in the preparation of scrubs and lotions. The coffee industry contributes to hospitality, manufacturing, and retail industries, hence one of the most significant global commodities.

Growth Drivers

Increasing Coffee Consumption in the World: Global Emerging Markets

Emerging markets' increased demand for coffee, especially in Asia-Pacific countries, represent one of the factors driving the coffee market. Coffee consumption in regions like the Asia-Pacific is on an increase. Younger people in China and India now consume coffee as part of their everyday lifestyle, boosting the market. While there is growing consumption of coffee globally, especially in specialty coffee formats due to urbanization, rising disposable incomes, and changing lifestyles, much of this growth contributes significantly to the expansion of the market.

Specialty Coffee and Coffee Chain Growth

The force multipliers that accelerate growth come from specialty coffee movements and a generally growing presence of coffee chains like Starbucks, Dunkin', and local boutique cafes. Consumers have become more demanding about the quality of coffee, which has resulted in a premium, artisanal, and sustainably sourced level of coffee. Specialty coffee focuses on distinctive flavors, brewing methods, and experiences that have created its niche market. Expansion of coffee chains across the globe and their need to innovate in product offerings have also contributed to the growth of this market.

Coffee Innovation and Convenience

Innovation of coffee products and brewing technologies is what drives the market growth. Single-serve coffeemakers like Keurig and Nespresso, offer ease and quality, making them attractive for consumers who lead very hectic schedules. RTD coffee beverages are also coming up strongly, to the requirement of off-the-counter coffee options. Both retail and at-home consumption are being stimulated in this manner. Other newer product lines, such as plant-based coffee drinks and healthier options, are opening up wider markets and attracting a more diverse consumer base, thus accelerating the growth of the coffee market.

Challenges in the Coffee Market

Climate Change and Coffee Production

The adverse impact that climate change is causing on coffee production continues to challenge the global coffee market. Climatic conditions such as increasingly high temperatures and irregular rainfall and changing weather patterns affect coffee-growing areas, particularly Brazil, Colombia, and Vietnam. These factors jeopardize the coffee crops' stability and yield, thus decreasing supply and causing higher prices. Climatic factors associated with the existence of pests, diseases, and droughts also affect the crops' health. This means that there is a need for assistance to farmers to maintain production levels, which may result in supply shortages and higher consumer costs.

Price Volatility and Market Instability

Price volatility continues to be an entrenched challenge in the world market for coffee. Various factors, including weather conditions, political instability in major coffee-producing countries, and fluctuations in demand, influence coffee prices. This makes the coffee market prone to instability, resulting in unpredictable pricing for consumers and producers. Farmers, especially those in developing countries, often struggle with low prices and market unpredictability, which can impact their livelihoods. Similarly, coffee price fluctuations can affect coffee supply chain companies, making long-term business planning difficult.

Companies Recent Initiatives & Development

Starbucks

In March 2024, Starbucks unveiled its spring menu, featuring two new lavender-infused seasonal beverages, symbolizing a transition from winter to spring with its delicate flavor.

In June 2023, Starbucks unveiled "Triple Shot Reinvention With Two Pumps," a refined strategy following founder Howard Schultz's vision. This plan emphasizes scaling digital capabilities, enhancing store experiences, innovating products, global expansion, and prioritizing workforce loyalty for sustainable growth. It includes tech partnerships for advancing digital infrastructure and capabilities.

In January 2023, Starbucks launched a new filter coffee option in India priced at Rs. 290, eliciting various responses on social media platforms.

Nescafe

In April 2023, Nescafé introduced Ice Roast, its inaugural soluble coffee crafted specifically for cold water or milk consumption over ice, catering to the rising demand for at-home cold coffee.

In April 2023, Nestlé focuses on maximizing Malaysia's coffee sector potential through its NESCAFÉ sustainability strategy. Nestlé Malaysia aims to enhance local trends and crop yields, emphasizing its Grown Respectfully initiative.

In June 2023, NESCAFÉ introduced its new product line in Europe, NESCAFÉ Barista Style, featuring four flavors: Cappuccino, Latte, Latte Caramel, and Americano. Crafted with quality coffee beans, fresh milk, and flavor twists.

In November 2022, Nescafé Dolce Gusto unveiled Neo, its next-gen coffee machines and pods, blending quality, technology, and sustainability for a premium at-home coffee experience. Neo's paper-based pods use 70% less packaging, marking a Nestlé first.

In December 2022, Nestlé broadens its range of high-quality coffee selections across Nescafé, Nespresso, and Starbucks brands to excel in both in-home and out-of-home markets.

The Kraft Heinz Company

In July 2023, Maxwell House revolutionizes the home coffee experience with its first innovation in almost a decade: Iced Latte with Foam. Kraft Heinz continues its Coffee portfolio expansion, introducing IHOP Coffee to retail.

In May 2023, Kraft Heinz introduces IHOP® Coffee to retail shelves nationwide, offering three distinct roasts: Signature Blend, Buttery Syrup, and Chocolate Chocolate Chip. These premium arabica coffees provide a unique pancake-inspired experience at home.

In November 2022, Kraft Heinz Co. (KHC) unveiled its latest offering, Kraft Cafe Barista, a premium coffee prioritizing flavor. Available in Chocolate Hazelnut and Salted Caramel variants, it promises a delightful experience.

In June 2023, Kraft Heinz introduced the Remix sauce dispenser for foodservice, enabling over 200 condiment combinations. This innovative move mirrors beverage companies' strategies, enhancing brand reach and fostering collaborations with foodservice operators.

Lunchin Coffee

In January 2024, Luckin Coffee unveiled a new franchise model called "target location," signaling its plans to expand into hospitals and gas stations.

In January 2024, Luckin Coffee, the largest coffee chain in China, announced a partnership with Kweichow Moutai to introduce a special limited-edition Moutai latte with chocolate flavor for the Lunar New Year.

In January 2024, Luckin Coffee became the Official Coffee Partner for the Australian Open, featuring its logo on TV. The multi-year partnership includes launching Australian Open co-branded products in over 13,270 stores across China and Singapore.

In November 2023, Luckin Coffee reported 2,437 net new store openings in Q3 2023, reflecting a 22.5% quarter-over-quarter growth in store units, including 11 new stores in Singapore.

In August 2023, Brambati S.p.A partnered with Luckin Coffee for an innovative project. Brambati, known for technical innovation, supplied roasting machines and plant engineering for Luckin Coffee's new roasting factory in Jiangsu, Shanghai.

J M Smucker

In September 2023, J. M. Smucker Co. agreed to buy Hostess Brands for $5.6 billion, including $900 million in net debt, at $34.25 per share in a cash and stock deal.

In February 2023, J.M. Smucker unveiled plans to grow its premium Folgers Black Silk coffee line and venture into the US ready-to-drink (RTD) market.

In March 2021, J.M. Smucker Co. and JDE Peet's revealed a strategic partnership, enabling JDE Peet's to assist Smucker's Away From Home liquid coffee business with product development, production, and foodservice equipment innovation.

Coca cola

Coca-Cola aims for 100% globally recyclable packaging by 2025 and at least 50% recycled material in packaging by 2030.

In February 2024, Costa Coffee prepares for Leap Year celebrations with a new menu, featuring fresh, tasty additions and returning favorites, welcoming Spring across its nationwide stores.

In February 2024, Costa Coffee reintroduces its KITKAT drinks range, unveiling a new chocolatey addition. Costa Club members enjoy exclusive early access via the Costa Club app in-store.

Dutch Bros

In January 2024, Dutch Bros plans to open 150 to 165 drive-thru coffee shops, adding to its existing 831 locations. The expansion primarily focuses on corporate stores, with existing franchisees also poised for growth in their respective markets.

January 2024, Dutch Bros Coffee launched at Dutch Bros' newest drinks. With 20g of protein each and no added sugar, the Salted Caramel Protein Latte and Salted Caramel Protein Mocha.

Aug 2022, Dutch Bros accelerates development with plans to open 130 plus stores.

Keurig Dr Pepper

In February 2024, Keurig Dr Pepper expanded its partnership with Lavazza Group to include broader sales and distribution of Lavazza K-Cup® pods. Additionally, the company introduced Kicking Horse® Coffee, its Canadian brand, in the K-Cup® pod format.

In November 2023, Green Mountain Coffee Roasters® announced a collaboration with Academy Award Winner Kevin Costner for a new series of coffee blends. The first, Horizon Blend by Kevin Costner, is a bold dark roast inspired by the American West, set to debut next month.

In August 2023, The Original Donut Shop® unveiled its latest flavor innovation, the Cinnamon Toast Crunch™ One Step Latte K-Cup® pod, exclusively available at Walmart stores. Inspired by the beloved cereal, this new flavor promises the familiar, delicious taste of Cinnamon Toast Crunch™ in a convenient K-Cup® format.

In July 2023, Keurig Dr Pepper Inc. and La Colombe forged a strategic alliance, involving a long-term sales and distribution pact for La Colombe ready-to-drink coffee and a licensing deal for La Colombe K-Cup® pods. Keurig Dr Pepper also invested in La Colombe, anticipating value growth.

In June 2023, Keurig partnered with The Rolling Stones and Bravado to release a limited-edition "Start Me Up" iced coffee kit, capturing the band's vibrant energy for a thrilling summer coffee experience.

In May 2023, Keurig Dr Pepper unveiled the Keurig® K-Iced™ line, comprising three new brewers and five ICED K-Cup® pod flavors, enhancing their iced coffee offerings for a premium café-quality experience at home.

JDE PEET'S N.V.

In January 2024, JDE Peet's finalized the acquisition of Maratá's coffee and tea business in Brazil, which primarily operates in the northern region under the brands Café Maratá and CháMaratá.

In February 2024, JDE Peet revealed plans to produce, distribute, and market Costa Coffee branded aluminum coffee capsules in Great Britain. This expanded partnership signifies a pivotal step forward in driving future growth in the region.

In July 2023, JDE Peet's encourages consumers to opt for paper packaging instead of glass for its soluble coffee. The paper packs, containing a thin foil layer, are designed to separate easily during recycling, according to JDE Peet's.

In November 2021, JDE Peet's, the top coffee and tea company by revenue, shared details about Maxwell House and Moccona's successful debut in China's Cold Brew Pure Instant segment, marking a milestone in its renewed global innovation strategy.

Global Coffee Market is projected to increase at a CAGR of 4.84% between 2024 and 2030

Coffee, a Global Cash crop, is an essential monetary engine assisting thousands and thousands of farmers, roasters, baristas, and enterprise experts worldwide. Its cultivation, processing, and trade generate substantial financial interest in producing and consuming countries. Beyond its economic impact, coffee's versatility as a base ingredient fuels a creative wave in the beverage industry, inspiring concoctions from lattes and cappuccinos to nitro-cold brews and infused beverages. Coffee's integration with syrups, spices, and numerous flavors always pushes the boundaries of beverage possibilities. Coffee stores and cafes, evolve into cultural hubs, now entice foot traffic and enhance economic pastimes by serving as social spaces for groups.

Embracing moral sourcing and environmental consciousness, the coffee enterprise adopts sustainable production and packaging, influencing accountable practices across the broader beverage sector. This shift indicates a move in the direction of elevated responsibility and environmental cognizance. Concurrently, technological upgrades, along with smart gadgets and app-controlled machines, enhance comfort, precision, and personalization in espresso brewing. Artificial intelligence (AI) transforms the enterprise by imparting personalised suggestions, ensuring quality control, elevating industry standards, and reducing waste. Adhering to AI recommendations enables corporations to deliver advanced coffee experiences to Consumer.

Similarly, perceived health benefits, like enhanced cognitive function and reduced sickness risk, broaden coffee's appeal and market value. The "functional coffee" trend integrates nutrients, minerals, and adaptogens, blurring the line between beverage and health products. Latin America is anticipated to lead the global coffee market mainly owing to the presence of the biggest coffee producer, that is, Brazil. Moreover, Mexico has been a tough player in the coffee market lately. Also, Asia Pacific is further expected to see considerable growth due to Vietnam—the second largest producer of coffee. Growing population, influence of western culture, and urbanization will also contribute to the increasing coffee demand worldwide. Hence, the Global Coffee Market was US$ 116.14 Billion in 2023.

Instant coffee continues to dominate the worldwide coffee market because of its unprecedented convenience and fast preparation

By product type, the global coffee market is fragmented into Instant Coffee, Ground Coffee, Whole Grain, and Others. The brief dissolvability of soluble espresso granules caters to the quick-paced lifestyles of Consumer, presenting an instant caffeine restoration without the need for a brewing system. Moreover, its extended shelf existence and easy storage contribute to its reputation. Cost-effectiveness and accessibility make instant coffee a staple in various regions and attractive to an extensive demographic. Despite the growth of the area of expertise in coffee culture, the ubiquity of instant coffee continues to solidify its role as a convenient and broadly consumed beverage on a global scale.

Online platforms have surged to lead the global coffee market, remodeling how customers purchase and enjoy coffee

By distribution channel, the global coffee market is categorized into Supermarkets/Hypermarkets, Convenience Stores, Online Platforms, and Others. E-commerce and online coffee subscriptions provide unprecedented comfort, enabling consumers to discover numerous roasts and origins from the comfort of their homes. The digital space helps direct connections between forte coffee producers and enthusiasts, fostering a dynamic and handy market. Online opinions and guidelines similarly affect customer alternatives. With the growing preference for contactless transactions and the ability to tailor orders to individual choices, online structures redefine the coffee market landscape, providing a seamless and customized coffee shopping experience for a vast and numerous international target audience.

European Union is a significant player in the global coffee industry

By Country, the global coffee market is divided into European Union, United States, Brazil, Japan, Philippines, Canada, China, Indonesia, United Kingdom, Russia, Ethiopia, Vietnam, South Korea, Mexico, Australia, Colombia, Algeria, Switzerland, Turkey, India, Argentina, Saudi Arabia, and Morocco. Europe leads in global coffee consumption. The Nordic countries like Finland and Iceland display a high per capita intake. The EU champions a vibrant coffee lifestyle where cafes serve as social hubs and cultural centers, propelling demand for various brewing strategies and specialty beans. Prioritizing sustainability, EU initiatives such as the Common Agricultural Policy and Exchange agreements affect international necessities, raising the market for sustainable coffee. Europe's coffee scene flourishes on innovation, with advancements in brewing structures, revolutionary grinders, and plant-based options. As a trade policy influencer, the EU's regulations form worldwide coffee dynamics, impacting production and intake.

Competitive Landscape

The global coffee market is dominated by companies likes Starbucks, Nescafe, Kraft Heinz Company, Lunchin Coffee, J M Smucker, Coca-Cola, Dutch Bros, Keurig Dr Pepper, and JDE PEET'S N.V. 

September 2022- Swiss coffee brand CoffeeB has delivered a new type of compressed espresso balls wrapped in seaweed-based material instead of traditional capsules. This innovative material helps the tablet maintain its form, ensuring it is perfect for brewing whenever needed.

Product Type – Market breakup in 4 viewpoints:

1.    Coffee
2.    Ground Coffee
3.    Whole Grain
4.    Others

Distribution Channel – Market breakup in 4 viewpoints:

1.    Supermarket/Hypermarket
2.    Convenience Store
3.    Online Platform
4.    Others

Country – Market breakup in 23 viewpoints:

1.    North America

1.1    United States
1.2    Canada

2.    Latin America

2.1    Brazil
2.2    Mexico
2.3    Argentina
2.4    Colombia

3.    Europe

3.1    European Union
3.2    United Kingdom
3.3    Russia
3.4    Switzerland
3.5    Turkey

4.    Asia Pacific

4.1    Japan
4.2    China
4.3    India
4.4    Philippines
4.5    Indonesia
4.6    Korea, South
4.7    Vietnam
4.8    Australia

5.    Middle East & Africa

5.1    Saudi Arabia
5.2    Morocco
5.3    Algeria
5.4    Ethiopia

All the Key players have been covered from 3 Viewpoints:

•    Overview
•    Recent Development
•    Revenue Analysis

Company Analysis:

1.    Starbucks
2.    Nescafe
3.    The Kraft Heinz Company
4.    Lunchin Coffee
5.    J M Smucker
6.    Coca cola
7.    Dutch Bros
8.    Keurig Dr Pepper
9.    JDE PEET'S N.V.