Coffee Bean Market Size (2023 – 2030)

The Global Coffee Beans Market was valued at USD 31.93 billion in 2022 and is projected to reach a market size of USD 53.32 billion by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 6.62%. 

The phrase "coffee bean" describes the dried, roasted, and processed seeds of a tropical plant that are used to form coffee granules and powder that can be ingested as a beverage. They're frequently available in Arabic and Robusta varieties. The arabica bushes produce aromatic flat and elongated coffee, whilst the Robusta trees create bitter coffee beans that are often used in espresso and instant coffees.

One of the most consumed beverages in the world, coffee, is becoming more and more popular. A few examples of the various hot and cold coffee drinks that may be made from a variety of coffee beans and served in various ways include espresso, cappuccino, and americano. A coffee bean is the seed of the Coffea plant, which is used to make coffee. It is the pip that can be found inside the red or purple coffee cherry fruit. The coffee fruit is categorized as stone fruit, just like normal cherries. Coffee beans are referred to as beans even though they are not true beans because they resemble real beans. Due to its caffeine concentration, coffee is frequently used to deliver an energy boost; however, it is also believed to provide health benefits like a better heart generally, a lower chance of liver cancer, and a defense against Parkinson's disease.

Key Market Insights:

According to a legend that dates back to the ninth century, after consuming the fruit of the Coffea plant, goats appeared to be "dancing" (presumably high on caffeine. That finding led to the creation of coffee as we know it today when a local monk created a drink utilizing the ingredient and discovered that it kept him awake all night.

We call them "beans" because of their resemblance to legumes, even though they are the pits of the cherry-like berries that grow on flowering shrubs. Coffee beans are therefore technically seeds.

Brazilian coffee production currently accounts for nearly a third of global production, or about twice as much as Vietnam, the country that comes in second.

The Mayo Clinic estimates that two to twelve milligrams of caffeine are present in an eight-ounce brewed cup of decaf coffee. Between 95 and 200 milligrams of caffeine are in a typical cup of coffee, compared to 23 to 35 milligrams in a can of cola.

Coffee Bean Market Drivers:

Coffee beans are becoming more widely used in cosmetics thereby increasing the global market demand.

Coffee is most frequently consumed as a beverage, but it is also becoming more popular as a complementary skin treatment. This is because its antioxidants contain phenols, which help fight free radicals, which can harm the skin. Coffee is the most popular source of antioxidants in the United States, even more so than other antioxidant-rich liquids like tea and wine, according to the American Chemical Society. While antioxidants can be found in a cup of coffee, the alleged skin benefits are primarily obtained topically. Fresh coffee grounds are used to make a paste, mask, or scrub that is applied directly to the skin.

In the skin care industry, coffee-based skin care products are currently popular. To exfoliate dead skin cells from the scalp, coffee grinds can be used. The natural pH of the scalp and hair is acidic. Coffee has an acidic flavor by nature. The medium roast of a well-known brand has a pH rating of 5.11 according to the American Dental Association. Applying coffee to your hair and scalp will help the pH levels there. For instance, Mcaffeine is India's first caffeinated personal care brand that provides young, aspirational millennials with an inventive range of caffeinated goods. Body, face, scalp, and face mask scrubs, as well as additional scrubs derived from coffee beans and other ingredients, are sold by Mcaffeine.

Consumption of Coffee and Coffee-Based Drinks has increased significantly boosting sales.

Coffee consumption among young people around the world is increasing, notably in countries such as India, China, and the Philippines. A lot of factors influence coffee consumption, including utilitarianism, enjoyment of the flavor and scent, habit, tradition, culture, and interpersonal interactions.

The rise of the middle class and improved living conditions have increased demand for coffee and coffee-related items. Coffee consumption among office workers has also climbed dramatically. Another factor driving rising coffee consumption is the opening and expansion of new local coffee shops, which serves to expand the coffee bean market.

Increased milk consumption and the rise of disposable income are fueling the growth of the global coffee bean market.

Coffee and milk are both excellent sources of energy, which is why people, particularly the younger generation, have become increasingly dependent on both. Caffeine is one of coffee's addictive components. People's living conditions have changed, causing them to believe that coffee has a rich flavor and demonstrates high social standards.

Furthermore, as coffee shops become more popular, the business has the potential to develop. The younger generation, as is widely known, adores coffee and has created exquisite cafés and restaurants to lure clients. According to a 2016 poll, 64% of Americans prefer to have their coffee in a coffee shop because of the atmosphere.

Growing knowledge of health benefits is another aspect contributing to the market's potential for growth. One of the primary aspects driving market development is coffee's ability to help people avoid diabetes, depression, and other ailments.

However, the availability of substitute beverages such as tea is hampering market growth. Because tea is India's most popular beverage, the market for coffee beans is very competitive. For example, the coffee market has not risen as swiftly as it could because of a plethora of enterprises primarily marketing tea, such as chai sutta bars and coffee shops.

Coffee bean use in food and alcohol has increased.

The advent of coffee shops like Starbucks, Costa, and CCD has increased consumer willingness to spend for high-quality coffee, which has evolved into a socializing tool and stimulated the market for a variety of coffee beans. By combining a variety of coffee-based bakery items, coffee is increasingly used in bakeries and pastries, increasing coffee demand in the industry.

Cocktails have long featured coffee as a prominent ingredient; examples include the Irish Coffee and the Espresso Martini. While many of these cocktails require freshly brewed coffee or espresso to provide flavor and caffeine, an increasing number of spirits and liqueurs have succeeded in capturing the aromas and flavors of the bean, making them suitable for blending into drinks or serving on their own with dessert. Brands of coffee liqueurs like Kahlua and Bailey's Irish Cream have been creating their distinctive coffee liqueurs using premium coffee beans.

Coffee Beans act as a medicine for Patients boosting the sales and growth of the market.

Benefits Coffee beans can strengthen your immune system and help against some types of diabetes, skin cancer, and heart disease. The diabetic community has increased its intake of these beans due to growing awareness of their health benefits because they help prevent type 2 diabetes. In turn, this is anticipated to fuel demand for coffee beans during the course of the projected period. Two of the many substances contained in coffee that have different impacts on the body are caffeine and polyphenols. Antioxidant molecules known as polyphenols are expected to aid in the prevention of several illnesses, including type 2 diabetes, heart disease, and cancer.

Heart health is aided by antioxidants. Consuming adequate foods strong in antioxidants may help reduce the risk of heart disease and stroke in diabetes patients, who are more susceptible to these conditions. Click here to find out more about foods that are high in antioxidants. Additionally, coffee contains the minerals chromium and magnesium. The risk of type 2 diabetes has been linked to magnesium supplementation. However, coffee has a relatively low concentration of these nutrients compared to other foods, making it far from the most reliable source.

Coffee Bean Market Restraints and Challenges:

Climate change is a major challenge for the coffee bean market.

Coffee is a crop that thrives in regions and coffee plants are very sensitive, to changes in temperature and rainfall. The effects of climate change have caused an increase in weather conditions like droughts and floods which can harm coffee crops and lead to yields. Furthermore, climate change has created environments that pests find attractive making it easier for diseases to spread among coffee plants. This poses a challenge for coffee farmers as pests and diseases can cause damage to their crops.

The availability of land for growing coffee is also being affected by climate change. With rising temperatures coffee production is gradually shifting towards altitudes. However, there is an amount of land at these higher altitudes, for cultivating coffee. The coffee bean market is already experiencing the impact of climate change. In the years there have been several instances of severe droughts and floods, in countries that produce coffee resulting in crop losses and increased coffee prices.

Coffee Bean Market Opportunities:

The specialty coffee industry offers a chance, for coffee farmers. People nowadays are looking for one-of-a-kind and top-notch coffee experiences appreciating things like taste, fragrance, and where the beans come from. To tap into this market growers can concentrate on growing specialty coffee beans that are known for their flavors. By highlighting the qualities of coffee from areas or farms and giving detailed information about their origins they can meet consumers' desire, for transparency and high-quality coffee choices. This will ultimately boost sales and foster customer loyalty.

COFFEE BEAN MARKET REPORT COVERAGE:

Coffee Bean Market Segmentation: By product

• Arabica

• Robusta

In 2022, based on market segmentation by product, due to its lower caffeine level and sweeter flavor, Arabica accounted for the largest sector and 61.2% of global revenue in 2022. Market growth is anticipated to be boosted by a rise in the penetration of cafes in developing countries as well as an increase in the use of arabica beans in chocolate, nuts, and caramels. With a CAGR of 7.4%, Robusta is anticipated to experience the fastest growth during the projection period. These beans also contain a lot of caffeine, which affects the brain right away.

Adenosine, which stimulates the brain and keeps you up and energized, is replaced by caffeine. This is anticipated to become more well-liked among working people during the course of the predicted year. These beans contain a lot of naturally occurring antioxidants, which have anti-inflammatory properties. Additionally, they support the promotion of weight loss and the prevention of several illnesses like Alzheimer's and gallbladder stones. Throughout the projected period, this is probably going to fuel demand for robusta beans.

Coffee Bean Market Segmentation: By Application

• Food and Beverages

• Pharmaceutical

• Cosmetics

In 2022, based on market segmentation by application, Food and Beverages held a share of more than 70.0%, making it the largest segment 0020The use of these beans in baked goods including cakes, cookies, and muffins is anticipated to spur market expansion. Espresso is becoming more and more popular in the food and beverage sector because of its robust and intense flavor. This flavor is frequently used in cakes, cookies, and many dietary supplements due to its high caffeine content. The demand for these beans is also anticipated to increase throughout the forecast period due to the growing popularity of ice cream and beverages with coffee flavors.

With a CAGR of 10.3% during the projection period, the pharmaceutical segment is anticipated to develop the fastest. During the projected period, a key factor driving the industry will be the rise in health benefits awareness. For instance, green coffee beans are used to reduce weight and speed up metabolism. The usage of Arabica and robusta beans in functional foods and treatments due to their high antioxidant content is anticipated to fuel demand for these beans throughout the course of the forecast period.

The market for cosmetics is expected to grow over the coming years as a result of the growing use of coffee beans in a variety of personal care products like face wash, scrubs, and lipsticks. Coffee extract prolongs the moisturizing effects and aids in suntan removal. As a result, extracts are added to face creams, moisturizers, and lip balms. Demand for coffee beans is anticipated to increase during the projected period as consumers' needs for moisturizer, face wash, lip balm, and lotion increase.

Coffee Bean Market Segmentation: By Regional Analysis

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

In 2022, based on market segmentation by region, North America held the greatest market share with a share of 30.2% due to the region's high coffee brew consumption. Rising demand from the working population, as well as increased demand for coffee vending machines at enterprises, airports, businesses, and other locations, are expected to support market revenue. Furthermore, an increase in the number of coffee shops in Canada and the United States is expected to fuel demand for coffee beans throughout the forecast period. Brazil was the world's leading coffee producer in 2020, but the United States dominated the world in coffee market revenue the following year.

Impact of COVID-19 and Analysis on the Global Coffee Bean Market:

The COVID-19 pandemic epidemic shook the coffee industry. Coffee consumption outside the home has decreased significantly as a result of an increasing number of countries instituting a full or partial shutdown to prevent the spread of COVID-19. Offices, coffee shops, and restaurants remain closed to prevent the spread of the coronavirus, which restricted the usage of coffee during the pandemic year 2020. Furthermore, because of the COVID-19 pandemic, social isolation policies, lockdowns, and travel restrictions restricted the movement of agricultural laborers and migrant workers, forcing them to return to their hometowns and reducing the overall labor supply in farms during harvest seasons. The highly labor-intensive process of choosing coffee beans was hampered due to a manpower shortage, significantly impacting overall coffee production.

Latest Trends/ Developments:

The food and beverage (F&B) industry is experiencing growth worldwide which is having an impact, on the market. Coffee beans are commonly used in a variety of cold drinks at coffee shops. The market is benefiting from the adoption of coffee due to its minerals, vitamins, and antioxidant properties offering several health benefits such as protecting cells from damage. Additionally, consumers increasing awareness about health has led to the introduction of coffee that is grown naturally without pesticides or artificial fertilizers. This has greatly contributed to the market growth. Moreover, advancements in technology like integrating the Internet of Things (IoT) for monitoring and controlling factors affecting coffee cultivation have also influenced market growth. Factors like consumers increased spending power promotional activities on e-commerce platforms and growing demand for coffee, in the pharmaceutical industry are expected to drive market growth.

Key Players:

1. Starbucks Coffee Company.

2. The Coffee Bean Company.

3. Death Wish Coffee Co.

4. Gold Coffee Co.

5. illycaffè S.p.A.

6. Hawaiian Isles Kona Coffee Co.

7. The East India Company Ltd.

8. La Colombe Coffee Roasters.

9. Luigi Lavazza S.p.A.

10. Backyard Beans Coffee Company.

11. Caribou Coffee Company Inc.

12. Coffee Bean Direct LLC.