DUBLIN--(BUSINESS WIRE)--The "Coffee Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The global coffee market was valued at USD 102.02 billion in 2020, and it is projected to reach a CAGR of 4.28% during the forecast period of 2021-2026.
The main coffee importing and consuming markets in Europe, North America, and Asia are in the middle of the COVID-19 crisis. Governments have imposed measures, like social distancing and lockdowns, in place, which has had a huge impact on cafes, micro-roasters, restaurants, and other out-of-home outlets.
However, the current trend toward online shopping for at-home consumption is forcing retailers, roasters, and consumers to adapt to this new reality. Therefore, this factor is expected to increase the consumption of coffee around the world.
For instance, companies such as Nestle SA had reported strong retail demand for food and beverage products globally, achieving 4.4% organic group sales growth in the first quarter of 2020. Coffee sales were particularly robust as consumers stockpiled essential items during the pandemic.
The convenient forms of coffee, like coffee pods and capsules and instant coffee, are becoming popular among the masses (especially in North America and Western Europe) to prepare good coffee in the comfort of home, in less time. For instance: as per the survey conducted by the National Coffee Association in the United States, more than 70% of the consumers prefer at-home coffee preparation.
The market is driven by multiple factors, a few being increasing demand for certified coffee products, acceptance of single-serve coffee brew systems by the consumers, and constant innovation lead by top players in the coffee market. In developed economies, some consumers are expected to switch from instant coffee to more premium options for reasons of quality and flavor. Instant coffee was once considered a high-end product but began to lose its base of younger consumers, which is changing the market dynamics.
Depending on coffee production, countries, like Brazil and Vietnam accounts for the highest production of coffee, in terms of volume, owing to suitable coffee growing conditions. With the production of 3.6 billion metric ton of green coffee, Brazil is the largest producer globally, followed by Vietnam, Colombia, Indonesia, and Ethiopia.
Key Market Trends
Surge in Demand for Certified Coffee Products
Over the past few years, it has been noticed that consumers are getting more aware regarding the manufacturing of the product they are buying and from where their purchases are coming from. This is applicable especially in the case of the supply chain of food and beverages, and coffee is no different. Therefore, consumers are readily looking for certified coffee products to be ensured about the credibility of their coffee purchases.
Certified coffee is an assurance to the consumer about the reliability of the product, as coffee is becoming an increasingly common target for food counterfeiters. UTZ Certification - It is the largest certification program in coffee and cocoa. UTZ aims to make sustainable farming a norm, by encouraging farmers to implement eco-friendly agricultural practices and manage their farms profitably with respect to coffee consumers and nature. A number of coffee certification organizations are engaged in keeping a check upon the production procedures and supply chain of coffee. Some of them are as follows: Fair Trade Certification, Rainforest Alliance Certification, UTZ Certification
Competitive Landscape
The global coffee market is a highly competitive market, which is dominated by players, like Nestle, JM Smucker Company, The Kraft Heinz Company, and Starbucks Coffee Company. Nonetheless, the private-label brands, such as Massimo Zanetti Beverage Group and Tchibo GmbH, are also focused on increasing their market share in the coffee market, both on the global and domestic sales.
Moreover, they are engaging the consumers with their innovation and expansion strategies, thereby, maintaining its competitive strand among the top players. The major strategies adopted by the companies in the market are new product development, agreements/partnerships, expansions, mergers, and acquisitions.
The merger or acquisition of companies, in order to utilize the respective key strengths, such as intense R&D activities, distribution network, and the development of new products, to enhance the portfolio and capture the untapped markets, are driving the coffee market.
Companies Mentioned
- The Kraft Heinz Company
- Starbucks Coffee Company
- The J.M Smucker Company
- Luigi Lavazza SPA
- Nestle SA
- The Coca-Cola Company
- JAB Holding Company
- Tata Global Beverages
- Tchibo GmbH
- Strauss Group Ltd
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