The global coffee bean market is projected to grow at a CAGR of 3.54% during the forecast period to reach US$30,225.625 million by 2027, from US$23,687.703 million in 2020. This growth could be predominantly attributed to the rising demand for coffee as the most consumed beverage by all age groups. Furthermore, in recent years, rising population, rapid urbanization, increased food outlets, and the emergence of online delivery apps have led to an increase in the coffee market globally. Improving work culture, economic development, and boosting living standards all have the potential to boost coffee consumption in the market. To meet the rise in demand and customer expectations, brands are constantly evolving their customer strategies to improve customer loyalty.
Increasing coffee production, changing trends and rising coffee beans production are expected to increase the market size in the projected period.
Arabica and Robusta are the two most economically important coffee plant kinds. According to International Coffee Organisation, in 2020, about 105,262 thousand 60-kg bags of Arabicas and 70,086 thousand 60-kg bags of Robusta were produced globally 2020. According to a study conducted by European Food Research and Technology, Robusta beans comprise about 68.6-81.6 gms of caffeine per kg of dry Coffee, almost twice that of caffeine in Arabica, which has about 34.1-38.5 gms per kg of dry Coffee. Owing to the revitalizing effect of caffeine, Coffee has become one of the most popularly consumed beverages. According to ICO, 166,346 thousand 60-kg bags were consumed in the period 2020-2021. Also, world coffee exports increased to 13.16 million in March 2022, compared to 12.65 million in the former year.
Additionally, the emergence of flavored coffees to meet the evolving tastes and aesthetics is also expected to grow the global coffee bean market. For instance, in February 2020, Starbucks expanded its product portfolio with the launch of the new Ready-To-Drink Starbucks Nitro Cold Brew series in collaboration with Pepsico. This series included many flavors and varieties, including Multi-Serve Iced Coffee, Starbucks Tripleshot beverages, Bottled Cold Brew, Starbucks Doubleshot beverages, and many others. The objective of this launch was to meet the changing tastes of the consumers and expand its reach to an even greater population.
Furthermore, with lockdown and work-from-home, the consumption of instant Coffee has also increased drastically. Due to increasing household chores and time constraints, hardcore filter coffee lovers have also shifted towards much easier and more convenient instant Coffee. Exploiting this, many companies have introduced instant coffees in their portfolios. For instance, in February 2020, Nestle and Starbucks collaborated together to co-develop an instant coffee, which is available in two flavors: Medium Roast and Dark Roast. The product was available in multiple regions, including Asia, Oceania, the Americas, Africa, and Europe.
Rapid growth in technological Innovations and adaptability to change in times propelled the growth of the coffee bean market.
The advancing technologies and emergence of table-top coffee machines, coffee pods, and capsules have caught the attention of many citizens worldwide, appealing to them to prepare good Coffee in home comfort. Its reduced time and effort and ease of consumption have attracted companies and institutions to install them in the workplace. As per a survey conducted by Reddi-Wip in 2019, a brand under Conagra brands, 89 % of Americans like to brew their coffee at home, citing cost, convenience, and customizability as prime factors. Moreover, the development of Artificial Intelligence and innovation of AI-based coffee machines have also shown positive signs in the market. In January 2020, Starbucks invested in artificial intelligence, adopting Mastrena II, a coffee machine, in their retail stores across US and Canada. Additionally, AI-based robots are also designed to serve as baristas in cafés. This novel strategy has become a highlight in the China International Trade 2020 for Trade in Services. These machines aid baristas in making the Coffee quicker and optimize them according to the outputs collected from the said equipment. Furthermore, with the pandemic still prevalent globally, AI offers an optimal and safe solution for human interactions. These innovative coffee-making AI robots can perform more complicated tasks than regular coffee machines and make even coffees in special flavours. And these robot baristas have already been deployed in Heshenghui Shopping Mall in Beijing, where AI robots staff the entire coffee corner.
The outbreak of covid-19 had made the coffee prices become volatile globally. Lockdown and travel restrictions had led lack of manpower and subsequently affected the productive coffee levels. The closure of cafes, restaurants, companies, institutions, and other outdoor food and beverage outlets also impacted the sales of coffee. As per the study done by the International Coffee Organisation, ICO, two factors affected the global coffee market: Firstly, the covid-19 pandemic has affected labour supply, either directly due to illness or indirectly. Migrant workers and farm labourers were limited by lockdown, travel restrictions, and social distancing measures. Secondly, internal logistics networks and the functioning of the export infrastructure have been disrupted, resulting in delays in shipment and increased trade and transaction costs. Nevertheless, the emergence of e-commerce has offset these instabilities. According to ICO, the global consumption of coffee increased by 1% in 2021 compared to the past four years, and the global production of coffee increased by 6.3% in 2020 compared to 2019.
|Market size value in 2020||US$23,687.703 million|
|Market size value in 2027||US$30,225.625 million|
|Growth Rate||CAGR of 3.54% from 2020 to 2027|
|Forecast Unit (Value)||USD Million|
|Segments covered||Type, End-User, Distribution Channel, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Backyard Beans Coffee Company, Caribou Coffee Company, Coffee Bean Direct LLC, International Coffee & Tea, LLC, La Colombe Coffee Roasters, Gold Coffee Company, Farmer Bros. Co., illycaffè S.p.A., LUIGI LAVAZZA SPA, Hawaiian Isles Kona Coffee Co., PEET'S COFFEE|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What is the size of the global coffee bean market?
A1. Coffee Bean Market was valued at US$23,687.703 million in the year 2020.
Q2. What will be the coffee bean market size by 2027?
A2. The global coffee bean market is projected to reach a market size of US$30,225.625 million by 2027.
Q3. What are the growth prospects for the coffee bean market?
A3. The coffee bean market is projected to grow at a CAGR of 3.54% over the six years.
Q4. What factors are anticipated to drive the coffee bean market growth?
A4. Increasing coffee production, changing trends and rising coffee bean production are expected to drive the coffee bean market.
Q5. How is the global coffee bean market segmented?
A5. The global coffee bean market has been segmented by type, end-user, distribution channel, and geography.
Backyard Beans Coffee Company
Caribou Coffee Company
Coffee Bean Direct LLC
International Coffee & Tea, LLC
La Colombe Coffee Roasters
Gold Coffee Company
Farmer Bros. Co.
LUIGI LAVAZZA SPA
Hawaiian Isles Kona Coffee Co.
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