GLOBAL COFFEE GROUNDS MARKET (2024 - 2030)

The Coffee Grounds Market was valued at USD 14.92 billion in 2023. Over the forecast period of 2024-2030 it is projected to reach USD 21.13 billion by 2030, growing at a CAGR of 5.1%.

Coffee is a prepared beverage crafted from roasted coffee beans, which constitute the seeds found within the berries of coffee species. The residual material left after brewing, known as coffee grounds, consists of solid particles that form a residue. Brewed coffee is derived from ground coffee, produced similarly to how flour and maize are obtained from corn. Coffee grounds serve various purposes, including enhancing garden nutrition, repelling pests and insects, eliminating fleas from pets, and neutralizing odors. These grounds emerge during the bean roasting process and are acquired in the production of instant coffee.

Key Market Insights:

The residual material remaining after the coffee brewing process, known as coffee grounds, typically comprises the powdery residue retained in the filter or percolator. These grounds encompass a range of compounds, including caffeine, antioxidants, and oils that were extracted during brewing. Although coffee grounds are commonly disposed of, there is a growing recognition of their potential applications across diverse industries and their positive environmental attributes.

Forecasts indicate that the global roast and ground coffee market will experience consistent growth over the projected period. The expansion is attributed to the demand for robustly aromatic coffees, coupled with the accessibility of high-quality roast and ground coffee beans. The escalating population, rising per capita coffee consumption, and the burgeoning popularity of cafés and coffee shops contribute to the increased demand for roast and ground coffee.

Coffee Grounds Market Drivers:

Anticipated Growth Fueled by Product Development and Innovation:

A key strategy employed by manufacturers to enhance market share involves the introduction of new product portfolios and increased product diversity. Competitive pricing strategies have also been utilized by coffee grounds producers to boost sales. The global coffee grounds market is experiencing growth driven by the introduction of attractive bundles and substantial investments in social media promotion. Competitive rivalry, influenced by numerous competitors, operational strategies, and a high level of innovation, significantly impacts the global coffee grounds market.

Focus on Product Development in the Face of Fierce Competition propelling market sales:

Players in the global coffee grounds market are directing their efforts toward developing new products to gain a competitive edge amid intense competition. Collaborations between corporations and coffee grounds manufacturers have resulted in innovative products like coffee flour, suitable for gluten-free, high-protein, and high-fiber dishes. Despite its potential in the food and beverage industry, coffee flour is yet to gain widespread traction.

Increasing Demand in the Cosmetic Sector and Environmental Benefits fueling growth:

Consumer preferences in the beauty product industry are shifting towards sustainability, organic ingredients, and carbon neutrality. Manufacturers, responding to concerns about the negative effects of chemical content in cosmetics, are incorporating coffee grounds as a primary ingredient in beauty products. The inclusion of coffee grounds is driven by their ability to promote cell turnover and blood circulation, making them increasingly prevalent in lotions and soaps.

Coffee Grounds Market Restraints and Challenges:

The majority of coffee production is concentrated in highland tropical regions. However, studies indicate that escalating temperatures could potentially shrink the suitable areas for cultivating coffee by 50 percent. This reshaping of the global coffee landscape presents profound risks, impacting not only the economies of nations such as Mexico, El Salvador, Nicaragua, Brazil, India, and Madagascar but also jeopardizing the livelihoods of coffee farmers. Notably, 70 percent of these farmers operate small-scale enterprises.

The prolonged or excessive use of caffeine, exceeding 400 mg daily, is deemed potentially unsafe. Side effects may encompass insomnia, nervousness, restlessness, nausea, and an elevated heart rate. Larger doses can result in headaches, anxiety, and chest pain.

In very high doses, caffeine is considered likely unsafe, leading to irregular heartbeats and, in extreme cases, even death. Products containing highly concentrated or pure caffeine pose a significant risk of misuse in excessively high doses and should be avoided.

Coffee Grounds Market Opportunities:

Coffee grounds have gained popularity due to their environmental benefits, including enhanced soil quality and water conservation. Farmers are expected to adopt coffee grounds more widely in the coming years as they become increasingly aware of the nutritional benefits and the role of coffee grounds in supporting plant-based microbiological activities. The coffee grounds market has found traction across various industries, and this trend is anticipated to persist throughout the forecast period.

Scientific studies suggest that moderate coffee consumption may contribute to a reduction in cancer risk. Drinking 2–4 cups of coffee per day is associated with a potential decrease in liver cancer risk by up to 64% and colorectal cancer risk by up to 38%. Consuming 4 or more cups of caffeinated coffee daily may reduce the risk of skin cancer by 20%. Additionally, coffee consumption may be linked to a lower risk of liver damage (cirrhosis) by as much as 84%, and it could potentially slow disease progression, improve treatment response, and lower the risk of premature death.

GROUND COFFEE GROUNDS MARKET REPORT COVERAGE:

Coffee Grounds Market Segmentation:

By fermentation:

• Natural (dry composting method)
• Decomposition (wet composting method)

In the natural fermentation method, also known as the dry composting method, coffee grounds undergo a gradual, natural decomposition over time. This approach requires minimal intervention and is particularly favored by organic and sustainable coffee producers. Conversely, the decomposition fermentation method, referred to as the wet composting method, entails a deliberate and controlled process. In this method, coffee grounds are intentionally mixed with other organic materials, leading to a faster decomposition. This technique is commonly employed in commercial composting operations.

By Application:

• Food and Beverage
• Agriculture
• Cosmetic and Personal Care
• Insecticides
• Pesticides
• Others

In terms of application, the Food & Beverages segment holds a dominant position in the market. Within the food and beverage industry, coffee grounds find extensive use for flavoring and enhancing various products such as syrups, oils, and desserts. In agriculture, coffee grounds function as a natural fertilizer and soil conditioner, playing a vital role in promoting plant growth. The cosmetic and personal care industry incorporates coffee grounds into exfoliating scrubs and skincare products. Moreover, they serve as effective insecticides and pesticides for pest control in both gardens and farms. Beyond these sectors, coffee grounds exhibit potential applications in industries such as horticulture and biotechnology.

When utilized for planting, coffee grounds generate a natural acid bacterium that fosters the growth of acid-loving plants, including roses, blueberries, evergreens, and tomatoes. Coffee grounds also contribute to protecting plants from slugs and snails that pose a threat to vegetables and flowers. Consequently, the demand for insecticides and pesticides is anticipated to witness a significant upsurge in the coming years.

By Type:

• Drip Ground Coffee
• Classic Roast Ground Coffee
• Sumatra Ground Coffee
• Others

The Roast Coffee market is expected to yield a revenue of US$58.0 billion in 2023, projecting a steady growth at an annual rate of 4.40% (CAGR 2023-2028). In a global context, the United States stands at the forefront with a projected revenue of US$9,112 million in 2023. The surge in popularity of drip-ground coffee in recent years can be attributed to its user-friendly nature and convenience, prompting a shift among many baristas from traditional percolators or French press methods.

Coffee Grounds Market Segmentation- By region

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

North America, renowned for its robust coffee culture and a growing preference for organic coffee grounds, is anticipated to assert dominance in the market, projecting a substantial market share of approximately 35%. The Asia-Pacific (APAC) region, especially China, is poised for robust growth, expected to capture a market share of around 25%. Europe and the USA are also expected to hold significant market shares, driven by the expanding community of coffee enthusiasts who exhibit a preference for premium and specialty coffee products.

In 2021, Europe emerged as the global leader in coffee consumption, accounting for 32% of the market, equivalent to an estimated 3,252 thousand tonnes of coffee. This positions Europe as the largest coffee market globally. The Asia-Pacific region follows closely as the second-largest market, holding a 24% market share, trailed by Latin America and North America, both with market shares of 19%. Furthermore, Europe solidifies its position as the world's leading exporter of roasted and ground coffee, contributing to approximately 85% of the total global volume of roasted coffee (excluding decaffeinated).

COVID-19 Pandemic: Impact Analysis

The Coffee ground market experienced a varied impact attributable to the influence of Covid-19. The pandemic hindered cross-border work opportunities for numerous individuals, resulting in potential spoilage of some coffee prior to harvesting or a decline in overall harvest quality. The enforced social separation and stay-at-home directives mandated by governments led to the closure of numerous coffee shops worldwide, thereby affecting the sales of coffee grounds. The exchange rate fluctuations induced by Covid-19 directly impacted the pricing of coffee grounds, consequently affecting producers, exporters, and international consumers. The repercussions of these circumstances primarily burden coffee farmers, who are already grappling with significant production challenges.

Latest Trends/ Developments:

As the inclination toward recycling gains momentum, there is a concurrent rise in the practice of recycling both coffee grounds and coffee beans. Coffee grounds prove to be a valuable enhancement to soil for plants due to their elevated nitrogen and magnesium content. Recycling coffee beans also yields several advantages. The bean shells are commonly employed as a biodegradable seed cover for crops. Furthermore, the extraction of oils from the beans offers an opportunity to produce natural pesticides or fertilizers.

Key Players:

These are top 10 players in the Coffee Grounds Market: -

• Starbucks Corporation
• Death Wish Coffee Company
• Kicking Horse Coffee
• Folgers Coffee
• Hills Bros. Coffee
• The Kraft Heinz Company
• Peet's Coffee
• Red Thread
• UCC
• Royal Kona