DUBLIN--(BUSINESS WIRE)--The "Coffee Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.
The global coffee market was valued at USD 102.02 billion in 2020, and it is projected to reach a CAGR of 4.28% during the forecast period of 2021-2026.
The main coffee importing and consuming markets in Europe, North America, and Asia are in the middle of the COVID-19 crisis. Governments have imposed measures, like social distancing and lockdowns, in place, which has had a huge impact on cafes, micro-roasters, restaurants, and other out-of-home outlets.
However, the current trend toward online shopping for at-home consumption is forcing retailers, roasters, and consumers to adapt to this new reality. Therefore, this factor is expected to increase the consumption of coffee around the world.
For instance, companies such as Nestle SA had reported strong retail demand for food and beverage products globally, achieving 4.4% organic group sales growth in the first quarter of 2020. Coffee sales were particularly robust as consumers stockpiled essential items during the pandemic.
Convenient forms of coffee, like coffee pods and capsules and instant coffee, are becoming popular among the masses (especially in North America and Western Europe) to prepare good coffee in the comfort of home, in less time. For instance: as per the survey conducted by the National Coffee Association in the United States, more than 70% of the consumers prefer at-home coffee preparation.
The market is driven by multiple factors, a few being increasing demand for certified coffee products, acceptance of single-serve coffee brew systems by the consumers, and constant innovation lead by top players in the coffee market.
In developed economies, some consumers are expected to switch from instant coffee to more premium options for reasons of quality and flavor. Instant coffee was once considered a high-end product but began to lose its base of younger consumers, which is changing the market dynamics.
Depending on coffee production, countries, like Brazil and Vietnam accounts for the highest production of coffee, in terms of volume, owing to suitable coffee growing conditions. With the production of 3.6 billion metric ton of green coffee, Brazil is the largest producer globally, followed by Vietnam, Colombia, Indonesia, and Ethiopia.
Key Market Trends
Surge in Demand for Certified Coffee Products
Over the past few years, it has been noticed that consumers are getting more aware regarding the manufacturing of the product they are buying and from where their purchases are coming from. This is applicable especially in the case of the supply chain of food and beverages, and coffee is no different.
Therefore, consumers are readily looking for certified coffee products to be ensured about the credibility of their coffee purchases.
Certified coffee is an assurance to the consumer about the reliability of the product, as coffee is becoming an increasingly common target for food counterfeiters. UTZ Certification - It is the largest certification program in coffee and cocoa.
UTZ aims to make sustainable farming a norm, by encouraging farmers to implement eco-friendly agricultural practices and manage their farms profitably with respect to coffee consumers and nature. A number of coffee certification organizations are engaged in keeping a check upon the production procedures and supply chain of coffee. Some of them are as follows: Fair Trade Certification, Rainforest Alliance Certification, UTZ Certification.
Europe Holds a Major Share in the Coffee Market
According to a survey conducted by the Institute for Scientific Information on Coffee (ISIC), 68% of the respondents stated that they often consumed coffee, while working. This trend is leading to a huge demand for coffee in European countries, like Germany, Italy, Spain, the United Kingdom, and others as consumers are becoming increasingly conscious about the quality of their coffee.
Moreover, advancements in technology (like table-top machines and traceability tools) are creating the pathway for bean-to-cup solutions. The German coffee pods and capsules market is highly dominated by Nestle's Nespresso, with its wide product reach across the country. Keurig green mountain merged with JAB holding with an aim to expand its presence.
This is expected to hinder the growth of Nestle SA in Germany. As per a report published by Nestle Nespresso SA, in Germany, a growing sense of coffee connoisseurship was most noticeable among younger generations. About 24.1% of 18-29-year-olds want to try different types of coffees, coffee recipes, and want diversity in the coffee industry
Companies Mentioned
- JAB Holding Company
- Luigi Lavazza SPA
- Nestle SA
- Starbucks Coffee Company
- Strauss Group Ltd
- Tata Global Beverages
- Tchibo GmbH
- The Coca-Cola Company
- The J.M Smucker Company
- The Kraft Heinz Company
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