Roasted Coffee Market size (2024 – 2030)

The Global Roasted Coffee Market was valued at USD 44.39 Billion and is projected to reach a market size of USD 65.43 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 5.7%.

Coffee is one of the most widely consumed beverages in the world, with increasing consumption each year and booming market expansion, making it a highly competitive and constantly changing market. Green coffee beans are roasted and transformed into brown beans, which induces chemical changes in the coffee beans giving them an aromatic smell. This roasting process is vital to unlocking the full potential of coffee beans for creating the unique aroma and flavor of coffee. Coffee has numerous health benefits, including a lower risk of diabetes, Alzheimer’s disease, Parkinson’s disease, prevention of heart failure, etc., which drives the growth of this market. It is a popular choice among health-conscious people and is preferred by younger generations. The roasted coffee market provides a wide range of products including different types of coffee beans, flavor choices, and different roast levels which fulfills the preference of different consumers. Few coffee companies are also providing low-acid or low-caffeine coffee varieties to people with specific demands. According to a poll result conducted by National Coffee Association (NCA), coffee consumption among Americans continues at its two-decade high, and two-thirds of Americans drink at least one coffee per day.

Global Roasted Coffee Market Drivers:

Growing Global Coffee Consumption and Specialty Culture are increasing demand for roasted coffee

Coffee is seeing increased popularity as a preferred beverage around the world, which is a major and long-term driver for the roasted coffee market. Increased coffee consumption in rising economies and markets has led to booming demand for roasted coffee.

Consumers seek unique experiences in this market, which has led to increased specialty coffee shops, single-origin beans, and micro-roasters, expanding the specialty coffee culture.

Rising Coffee Chains, E-Commerce platforms, and Urbanization will boost the roasted coffee market

The expansion of coffee shop chains and franchises has increased access to coffee products, which in turn has contributed to the popularity of coffee consumption. Expansion in online coffee subscription services and e-commerce platforms has increased the market’s reach and has given consumers access to a wide variety of roasted coffee products with ease and convenience.

Increasing health and wellness trends

Coffee provides numerous health benefits which have encouraged individuals to incorporate coffee into their daily routines. Coffee is a rich source of antioxidants and some research shows that a healthy intake of coffee could decrease certain conditions like type 2 diabetes, cancer, and Parkinson’s disease.

The presence of caffeine, which increases alertness, energy levels, and concentration, has made it a popular choice among people, especially during morning and busy hours.

Global Roasted Coffee Market Challenges:

Short shelf life deteriorates the roasted coffee quality

Due to the susceptibility of roasted coffee to external factors like moisture, heat, and light, it has a shorter shelf life. These external factors deteriorate the flavor and aromas by degrading the volatile compounds and essential oils of coffee. It is crucial to store roasted coffee in proper conditions, to maintain coffee’s quality.

Few coffee companies are investing in improved packaging technologies like one-way degassing valves. Distributors and retailers must manage their inventory carefully to avoid the impact caused by external factors on coffee.

Price Volatility due to climate changes and other factors could be challenging for the roasted coffee market:

Fluctuations in the price of coffee caused by factors like weather conditions and geopolitical events can impact the profit margins and lead to unpredictable prices. Simultaneously, changing rainfall patterns, rising temperature, and the spread of pests affect coffee crops and reduce yields, which result in a shortage of supply, impacting availability along with the quality of coffee beans.

Global Roasted Coffee Market Opportunities:

Emerging coffee-consuming countries, like the Asia-Pacific region, provide exciting opportunities for coffee companies. Adapting products to regional preferences, and providing specialty coffee catering to consumers’ specific needs, can attract coffee enthusiasts. The rise in E-Commerce has offered coffee businesses to reach a wider audience, which could be enhanced by providing coffee subscription services. Ready-to-drink coffee also presents a favorable opportunity to diversify the product portfolio. These opportunities show that the roasted coffee market has the potential for more innovation and growth.

COVID-19 Impact on the Global Roasted Coffee Market:

The COVID-19 pandemic had a significant impact on the global roasted coffee market and affected the coffee supply chain, along with various aspects of the industry. Lockdown and labor shortages in coffee-producing regions affected processing and transportation. The closure of cafes and coffee shops during lockdowns caused a shift in consumer behavior and individuals started preferring at-home coffee consumption. This resulted in raised demand for retail coffee products, like packaged coffee beans.

Several export and import challenges were posed reducing shipping capacity and supply chain, which influenced coffee prices. While coffee stores experienced reduced foot traffic, online coffee sales and E-Commerce boosted, as consumers have to shift to at-home coffee consumption.

Recent Developments in Global Roasted Coffee Market:

• In January 2023, PROBAT, a German-based company specializing in coffee processing products, launched P12e, an all-electric powered roaster, expanding its electric roaster portfolio, aiming for more environmentally friendly solutions.

• In August 2022, Fairwave, which operates in specialty coffee businesses, acquired Up Coffee Roasters, to assist in promoting awareness of premium and high-quality coffee.

• In March 2022, Massimo Zanetti Beverage USA, one of the biggest coffee companies with many brands to its name, extended its presence in Virginia, USA to solidify its operations and expand future growth opportunities in the region.

ROASTED COFFEE MARKET REPORT COVERAGE:

Global Roasted Coffee Market Segmentation: By Type

• Arabica

• Robusta

The two main varieties of coffee beans cultivated are Arabica and Robusta, having their flavor profile and characteristics. Arabica coffee is grown in various regions including South America, Asia, and Africa, and has lower caffeine content as compared to Robusta. Robusta coffee is grown in countries like Brazil, Indonesia, and Brazil, and accounts for 30-40% of global coffee production. These have a stronger and bitter taste as compared to Arabica and are more resilient. Arabica coffee segment dominates the market and comprises 60-70% of global coffee production and is considered the largest in the roasted coffee market, because of its wide range of taste notes, including sweet, nutty, and fruity flavors. Robusta coffee is anticipated to have the fastest growth in the projected period, accounting for its stronger caffeine content and robust flavor. Robusta coffee is also easier to cultivate and has a greater yield

Global Roasted Coffee Market Segmentation: By Distribution Channel

• Retail Stores

• Coffee Shops and Cafes

• Online Retail

• Others

The global roasted coffee market can be segmented based on distribution channels through which roasted coffee products are made available to consumers. Retail Stores comprise Supermarkets, Hypermarkets, Specialty Food Stores, and Convenience Stores, and it is the largest segment among all distribution channels. These retail stores provide convenient and easily accessible options to consumers along with a wide range and curated selections. Coffee Shops, Chains, and kiosks also offer roasted coffee products for retail purchase. E-Commerce platforms and online retailers provide a wide selection of roasted coffee products to choose from, where consumers can be provided subscription services as well. Many coffee roasting businesses provide the facility to purchase products directly from the roaster. Other distribution channels include food services like restaurants and hotels, where they may offer retail packages to customers, and coffee farms/farmers’ markets where artisanal roasted coffee products are provided directly to the customers. The E-Commerce platform is anticipated to have the fastest growth in coming years attributed to factors like convenience, wide selection, D2C models, subscription services, global access, etc.

Global Roasted Coffee Market Segmentation: By Regions

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

The coffee industry spans various regions, each having its unique production and consumption pattern. North America, the USA, and Canada are consumers of roasted coffee, having many specialty coffee shops and cafes, along with expanding E-Commerce platforms providing consumers easy access to roasted coffee products. Europe has a substantial and strong coffee market with high-quality espresso blends highly preferred. In Asia-Pacific, countries like India produces both Arabica and Robusta coffee along with China which produces Arabica coffee in the Yunnan region. Japan and South Korea also have well-established coffee markets. South America is the largest producer of coffee globally, with Brazil being the largest contributor which produces both Arabica and Robusta beans.

Africa is home to several coffee-producing countries that are a major contributor to global coffee supply, like Ethiopia which is considered the birthplace of coffee and produces a variety of Arabica coffee beans. UAE and Saudi Arabia also have a strong coffee culture, with a long history of coffeehouses. Europe holds the largest market share in the coffee consumption market. South America is the largest producer of coffee with 77.46 million 60 kg bags of coffee produced in 2021, while Asia-Pacific is poised to be the fastest-growing region concerning both production and consumption.

Global Roasted Coffee Market Segmentation Key Players:

1. Nestlé S.A.

2. The J.M. Smucker Company

3. Starbucks Corporation

4. The Kraft Heinz Company

5. Lavazza Group

6. Illycaffè S.p.A.

7. Keurig Dr Pepper Inc.

8. Jacobs Douwe Egberts (JDE)

9. Dunkin' Brands Group, Inc.

10. Peet's Coffee