The coffee market is segmented based on origin such as Arabica, Robusta, and others. Coffee bean extract has numerous health benefits such as providing antioxidants that improve brain functioning and delays aging. It helps boost energy levels and reduces fatigue.
The global coffee market is estimated to be valued at US$ 153.21 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.
Key Takeaways
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. The rising demand for specialty coffee beans and gourmet coffee as well as growing coffee shop culture are some key opportunities in the market. Technological advancements such as nanoencapsulation help protect volatile compounds in coffee and enhance its taste.
Market drivers
The major driver for the Coffee Market Size is the rising consumer preference for specialty and gourmet coffee due to changing tastes and evolving coffee drinking patterns. Moreover, health benefits associated with coffee consumption such as lowering risk of type 2 diabetes, Parkinson's disease, and stroke have been driving its demand worldwide. Growing millennial population, rising disposable incomes, and expanding distribution channels have also positively impacted the market growth. Ease of availability of specialty coffee beans through online channels and retail stores along with innovative coffee offerings by cafes and restaurants are fueling the coffee market expansion.
Current challenges in Coffee Market:
The coffee market is facing major challenges in terms of price volatility of coffee beans in the international markets. As coffee is agriculturally produced commodity, its prices highly depend on various external factors like weather conditions, political instability in producing regions etc. Any decline in global production due to unfavorable weather or pest attacks drives the prices up sharply. This price volatility poses major challenge for coffee companies in maintaining stable costs and profit margins. Significant fluctuations in foreign currency exchange rates is another major challenge faced by multinational coffee companies.
SWOT Analysis
Strength: Globally established brands and monopoly of major multinational players in market gives them pricing power.
Weakness: Dependency on climate/weather conditions of growing regions making supply vulnerable.
Opportunity: Increasing global coffee consumption due to changing lifestyle and taste preferences offers scope for volume growth.
Threats: Threat of substitutes like tea and other beverages; increasing health consciousness among consumers poses risk.
Geographical regions with high market concentration:
North America region presently holds the largest share of global coffee market primarily led by United States. Rising consumption of premium coffee varieties has been driving the market growth significantly in North America region.
Fastest growing geographical region:
Asia Pacific region is poised to be the fastest growing market for coffee globally during the forecast period. Rising disposable incomes, growing young population and changing consumer lifestyles in countries like China and India are driving the higher uptake of coffee in Asia Pacific region compared to other regions. Increasing number of international coffee chains entering Asian countries is further fueling the market growth in this region.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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