Coffee Industry

The global coffee market was valued at USD 223.78 billion in 2023 and is anticipated to grow at a compound annual growth rate (CAGR) of 5.4% during the period from 2024 to 2030. A major factor driving this growth is the steadily increasing demand for coffee worldwide. Coffee ranks among the most widely consumed beverages across the globe, and its popularity is rising steadily, especially in emerging regions such as the Asia Pacific. Factors such as rising disposable incomes, evolving lifestyles, and a growing coffee culture among consumers in various parts of the world are significantly contributing to the market’s overall expansion. Supporting this trend, data released by the National Coffee Association of U.S.A., Inc. in March 2020 indicates that coffee consumption in the United States increased by 5% since 2015.

In addition to the growing demand, changing consumer tastes and behavioral trends are playing an increasingly important role in shaping the coffee market landscape. Factors such as heightened interest in specialty and gourmet coffee varieties, an emphasis on organic and sustainably sourced products, and a rising appreciation for premium and single-origin coffees are influencing how the market evolves. Specialty and gourmet coffees are often associated with superior quality and distinct flavor profiles. As a result, more consumers are willing to pay a higher price for these options, which boosts the overall value of the coffee industry. This rising demand for premium products contributes positively to the revenue streams and profit margins of coffee producers, roasters, and retailers. Moreover, the growing popularity of convenient coffee formats—such as single-serve coffee pods and capsules—has brought significant transformation to the way consumers purchase and consume coffee.

The supply side of the market, particularly the availability and production of coffee beans, also plays a vital role in influencing market dynamics. A variety of external factors—such as weather patterns, natural disasters, plant diseases like coffee rust, and geopolitical tensions—can significantly affect the production volumes and prices of coffee. The output from leading coffee-producing nations like Brazil, Vietnam, and Colombia heavily influences global supply trends. According to a report published by the U.S. Department of Agriculture in June 2023, Brazil’s coffee harvest is projected to reach 66.4 million bags for the 2023/24 season. Additionally, Vietnam and Colombia are expected to produce 31.3 million and 11.6 million bags respectively during the same period.

Demographic changes are also contributing to shifts within the coffee market. Variations in age distribution and evolving lifestyle patterns are altering consumption habits. Younger generations, particularly millennials and Gen Z, are becoming key consumer segments in the coffee industry. These groups often have distinct preferences, favoring specialty brews, ethically sourced beans, and unique flavor profiles. Meanwhile, older adults are showing interest in milder or decaffeinated coffee options as their tastes and health considerations change. According to data from the Fall 2021 National Coffee Data Trends (NCDT) survey, 65% of millennials (ages 25 to 39) and 46% of Gen Z individuals (ages 18 to 24) reported drinking coffee on the previous day, highlighting the strong engagement of younger demographics with the product.

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1. How big is the coffee market?

The global coffee market was valued at USD 483.91 billion in 2023 and is projected to reach USD 690.09 billion by 2030. This growth reflects the beverage's enduring popularity and its expanding consumer base worldwide. ​

2. What is the coffee market growth?

The market is expected to grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2030. This steady growth is driven by factors such as increasing disposable incomes, evolving consumer lifestyles, and the rising demand for coffee in emerging markets. ​

3. Which segment accounted for the largest coffee market share?

In 2023, the roasted coffee segment held the largest share of the market, generating revenue of USD 257.48 billion. Roasted coffee remains a staple for many consumers due to its rich flavor and widespread availability. ​

4. Who are the key players in the coffee market?

While the Grand View Research report does not list specific companies, the global coffee market includes several prominent players known for their significant market presence and influence. These include multinational corporations involved in coffee production, processing, and retail. These companies contribute to the market through their extensive product offerings and global distribution networks.​

5. What are the factors driving the coffee market?

Several factors are propelling the growth of the global coffee market:

• Rising Disposable Incomes: As consumers have more spending power, they are more inclined to purchase premium coffee products.​
• Changing Lifestyles: Busier lifestyles have increased the demand for convenient coffee options, such as ready-to-drink beverages.​
• Emerging Markets: Regions like Asia Pacific are experiencing a surge in coffee consumption due to urbanization and westernization of diets.​
• Specialty Coffee Trends: There's a growing interest in specialty and gourmet coffees, which offer unique flavors and are often ethically sourced.​
• Technological Advancements: Innovations in coffee brewing and packaging have made it easier for consumers to enjoy high-quality coffee at home.

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