Coffee is the most cherished and consumed brewed beverage made from delicious and roasted coffee beans. It was a roller coaster ride for the global coffee industry over these years that definitely changed the coffee market growth and trends. The worldwide coffee market is expected to develop at a CAGR of 4.28% for the period 2022 to 2027. The coffee market primarily covers the major countries in Europe, North America, South America, Asia-Pacific, the Middle East, and Africa.
The coffee market comprises many coffee products, based on which it gets segmented into whole-bean, ground coffee, instant coffee, and coffee pods & capsules. The useful forms of coffee such as coffee pods & capsules and instant coffee are fetching much recognition among the crowds to make good coffee in the comfort of home, in less time.
The Covid-19 Impact on the Global Coffee Market
The emergence of the COVID-19 pandemic has put much pressure on the coffee sector which is susceptible to instabilities in global coffee prices, short productivity levels, climate changes, and damages caused by pests and diseases.
Additionally, the imposed measures by governments such as lockdowns and social distancing, that had a vast impact on cafes, restaurants, micro-roasters, and other outlets caused an impact on the market. The existing trend in online shopping is compelling roasters, retailers, and buyers to adjust to this novel reality. This will add to the rise in the intake of coffee around the world.
Significant Market Trends
The coffee market is determined by many factors like growing demand for certified coffee products, recognition of single-serve coffee brew systems by the customers, and persistent innovations. In developed economies, a fraction of customers is probable to shift from instant coffee to more premium choices for reasons of quality and flavor. Instant coffee was formerly measured as a high-end creation but began to drop its base among younger buyers, which caused many fluctuations in the market.
Demand for Certified Coffee Products
Over the past few years, it has been observed that customers are getting more attentive concerning the manufacturing of products that they are purchasing and from where their products are coming from. That means consumers are intensely considering for certified coffee products to confirm the integrity of their coffee consumption.
Consumers’ anxieties about environmental destruction have motivated a growing market for certified and sustainability labels in the food and beverage section. Coffee types that follow numerous blends of environmental, social, and economic values and are individually certified by an official third party have been jointly called sustainable coffee.
A lot of coffee accreditation institutions are involved in checking on the production events and the supply chain of coffee. Some of them include UTZ Certification, USDA Organic Certification, Fair Trade Certification, Rainforest Alliance Certification, and many more.
Europe Occupies a Great Share in the Coffee Market
It has been reported that almost 68% of people consume coffee during their work hours, as per Institute for Scientific Information on Coffee (ISIC) surveys. This paved the path for an enormous demand for coffee in European countries. Moreover, innovations in technology are building the corridor for bean-to-cup solutions.
The German coffee pods and capsules market is greatly conquered by Nestle’s Nespresso, with its extensive product influence across the nation. Keurig Green Mountain combined with JAB intending to enlarge its presence. Based on the report published by Nestle Nespresso SA, coffee enthusiasts are among the younger generations. Around 24.1% of 18 to 29-year-olds want to go with diverse kinds of coffee and coffee recipes.
Highly Competitive Landscape
The worldwide coffee market is extremely competitive and is ruled by companies including Nestle, Starbucks, The Kraft Heinz Company, and JM Smucker Company. Massimo Zanetti Beverage Group and Tchibo GmbH are also determined to upturn both their global and domestic sales market share.
Prominent players in the coffee sector recorded a noteworthy scope for expanding the market share with novelties in product and packaging. For example, companies like El Marino proclaimed to enter into a joint endeavor with NuZee, Inc., under which the teams integrate NuZee’s single-serve pour-over coffee bags into El Marino’s brand range and host the delivery system to El Marino’s client base.
Even though the covid-19 pandemic has caused some unstable situations in the market, people who depend on coffee for their living have now adapted to the new trends and practices. They are familiar with new advancements in the technologies too. As positive signals have been detected in the overall coffee market growth, let’s hope for reliable progress in the coffee industry for years to come.