Global Flavored Coffee Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Whole-Bean, Ground Coffee, Instant Coffee, Coffee Pods And Capsules), By Distribution Channel (On-Trade, Off-Trade), And By Geography - Forecasts From 2022 To 2027

Published:  Jun 2022 Report Code: KSI061614199 Pages: 125

The global flavoured coffee market is projected to grow at a healthy rate over the forecast period of 2022-2027. Flavoured coffee is prepared by infusing one or multiple flavouring oils into the coffee beans. To do so, coffee beans are roasted and cooled before they are mixed with a flavoured solvent, propylene glycol, to stimulate the easy and efficient absorption of the flavouring oils into the coffee beans. These flavouring oils can be either natural, synthetic, or even a mixture of both. Some of the top varieties of flavouring oils available on the market are – vanilla, banana foster, blueberry cobbler, pumpkin spice, caramel, and many more. As one of the most popular beverages of all ages, it is hard to imagine coffee declining in popularity. The times have changed, and so have consumers' perspectives and tastes.  The changing times and consumers' new demands pressure the coffee manufacturers to stay ahead of the innovation curve. To meet these changes, coffee has also evolved to meet the changing tastes and aesthetics. The new flavored coffee attracted the masses of all ages, both old-school coffee connoisseurs and new coffee lovers alike.   

Changing Trends: Increasing Consumption of Coffee across the Globe among Millennials and Teenagers With lockdown and work-from-home, the consumption of instant coffee has 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, pushing its sales even further. Exploiting this change and rising demand, many companies have ramped up their sales by innovating and flavouring coffee variants in instant form. Many multinational brands and local coffee brewers are emphasizing creating new innovative, and authentic flavours to meet localized taste preferences. Levista, a coffee brand from SLN Coffee Pvt Ltd., an India-based instant coffee company, launched four flavoured coffee variants – Caramel, Hazelnut, Vanilla, and Choco-Orange – in 2021, aimed at millennial and Gen Z consumers.  Nestle India, the largest market shareholder of instant coffee, has innovatively increased their sales by creating different coffee recipes that could be easily replicated at home with their Nescafe coffee, resonating with the changing demands among their consumers. In 2022,  coffee company Salada Foods Jamaica Limited announced its entry into the flavoured coffee market. It unveiled three new flavours – Cinnameg, a blend of nutmeg and cinnamon flavour, caramel, and coconut cappuccino – with the aim of targetting the younger demographic.

Rapid technological innovation and adaptability to change in times of stress propelled the coffee market's growth. The manufacture of table-top coffee machines, coffee pods, and capsules has caught the attention of many citizens worldwide, appealing to them to prepare good coffee in the comfort at home. Its reduced time and effort and ease of consumption have attracted companies and institutions to install them in the workplace. As an initiative to tackle the increasing environmental pollution, Nestle stated that Nespresso would be using 80% recycled aluminium in their coffee pods by  May 2020. Strategic partnerships and acquisitions to promote production and innovative development were also seen in the market among the countries. For instance, in  March 2021, JDE Peets partnered with The J.M. Smucker Co. to offer liquid coffee products to their consumers. This partnership would allow the former to support Smucker's Away From Home liquid coffee business with the production, development, and innovation of foodservice equipment. Furthermore, the active participation of the government has also contributed to positive changes in the market. In November 2021, the Saudi government invested in expanding coffee cultivation and processing in the country's southwestern region. The country's Ministry of Environment, Water and Agriculture has signed a deal with the Agricultural  Co-operative  Society of Balijurashu to plant more than 300,000 arabica seedlings in Mashuqa village. A few companies also tried to come up with new flavours to meet the changing demands of Gen Z and millennials. In April 2021, Nescafe launched a Roastery Collection range, expanding its portfolio. Its objective was to give customers ‘the flavour of the artisan coffee” that they expect from a café The Roastery Collection included two instant coffee varieties made from Arabica beans: Light Roast and Dark Roast. In January 2022, Sleepy Owl, an instant coffee brand, launched and added a premium version of instant coffee to its portfolio, expanding the accessibility of its brand. The three new flavours added are comprised of Original Vanilla, French Vanilla, and Hazelnut. In March 2022, Melbourne coffee roasters launched a speciality instant coffee that captured flavour, quality, and convenience all in a single sachet. The brand used freeze drying to maintain the quality of the product. Similar initiatives and strategic partnerships among companies and governments worldwide are expected to increase the market share even higher during the forecasted period.

Covid-19 Insights

The outbreak of COVID-19 has made coffee prices volatile globally. The lockdown and travel restrictions had resulted in a lack of manpower, which had a negative impact on coffee productivity levels. Furthermore, coupled with the climatic changes and the coffee plants' diseases due to the pests, it has further aggravated the situation. 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 laborers 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 shipments and increased trade and transaction costs. The impact of supply from important origins was still observed in market conditions as climate-related shocks and COVID-related disruptions continued to affect trade flows in many countries throughout the years 2020 and 2021. Nevertheless, owing to the fast adaptability of the brands to shifting towards online shopping and door-to-door delivery, the impact has been lessened.  The increase in domestic coffee sales and increased consumption at home have offset the decline.

Global Flavored Coffee Market Scope:

Report Metric Details
 Growth Rate  CAGR during the forecast period
 Base year  2020
 Forecast period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments covered  Type, Distribution Channel, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered Starbucks Coffee Company, Nestle SA, The J.M Smucker Company, Luigi Lavazza SPA, The Kraft Heinz Company, Strauss Group Ltd, Tchibo GmbH, JAB Holding Company, Tata Global Beverages, The Coca-Cola Company
 Customization scope  Free report customization with purchase


Key Market Segments

The global flavoured coffee market has been segmented on the basis of type, end-user, distribution channel, and geography.

  • By Type
    • Whole-bean
    • Ground coffee
    • Instant coffee
    • Coffee pods and Capsules
  • By Distribution Channel
    • On-Trade
    • Off-Trade
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
      • Rest of North America
    • South America
      • Brazil
      • Argentina
      • Colombia
      • Venezuela
      • Ecuador
      • Peru
    • Europe
      • Germany
      • France
      • United Kingdom
      • Italy
      • Russia
      • Spain
      • Rest of Europe
    • Asia-Pacific
      • India
      • China
      • Australia
      • Japan
      • Rest of Asia-Pacific
    • South America
      • Brazil
      • Argentina
      • Rest of South America
    • Middle East & Africa
      • United Arab Emirates
      • South Africa
      • Rest of Middle East & Africa

1.1. Market Definition
1.2. Market Segmentation

2.1. Research Data
2.2. Assumptions

3.1. Research Highlights

4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The Threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis

5. Global Flavoured Coffee Market Analysis, By Type
5.1. Whole-bean
5.2. Ground coffee
5.3. Instant coffee
5.4. Coffee pods and Capsules

6. Global Flavoured Coffee Market Analysis, By Distribution Channel
6.1. On-Trade
6.2. Off-Trade

7. Global Flavoured Coffee Market Analysis, Geography
7.1. North America
7.1.1. United States
7.1.2. Canada
7.1.3. Mexico
7.1.4. Others
7.2. Europe
7.2.1. Germany
7.2.2. United Kingdom
7.2.3. France
7.2.4. Italy
7.2.5. Russia
7.2.6. Spain
7.2.7. Others
7.3. Asia-Pacific
7.3.1. India
7.3.2. China
7.3.3. Australia
7.3.4. Japan
7.3.5. Others
7.4. South America
7.4.1. Brazil
7.4.2. Argentina
7.4.3. Others
7.5. Middle East & Africa
7.5.1. United Arab Emirates
7.5.2. South Africa
7.5.3. Others

8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9.1. Starbucks Coffee Company
9.2. Nestle SA
9.3. The J.M Smucker Company
9.4. Luigi Lavazza SPA
9.5. The Kraft Heinz Company
9.6. Strauss Group Ltd
9.7. Tchibo GmbH
9.8. JAB Holding Company
9.9. Tata Global Beverages
9.10. The Coco Cola Company

Starbucks Coffee Company

Nestle SA

The J.M Smucker Company

Luigi Lavazza SPA

The Kraft Heinz Company

Strauss Group Ltd

Tchibo GmbH

JAB Holding Company

Tata Global Beverages

The Coca-Cola Company


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