Roasted Coffee Market

According to a new report published by Introspective Market Research, titled, ?Roasted Coffee Market by Distribution Channel and Type: Global Opportunity Analysis and Industry Forecast, 2024?2032,? 

the global Roasted Coffee market size was valued at $ 42.8 billion in 2023 and is projected to reach $ 73.55 billion by 2032, registering a CAGR of 6.2% from 2024 to 2032.  

Roasted coffee is the result of a meticulous process that transforms green coffee beans into aromatic, flavorful gems through the application of heat. This crucial stage involves significant physical and chemical changes, prominently featuring caramelization and the Maillard reaction. The spectrum of roast levels, ranging from light to dark, offers diverse flavor profiles?from the pronounced acidity of light roasts to the deep, robust richness of dark roasts.

The rising popularity of coffee is not only due to its sensory appeal but also its recognized health benefits. Research indicates that coffee consumption may reduce the risks of diabetes, Alzheimer's, and Parkinson's diseases, prevent heart failure, and support liver and stomach health. These health advantages have broadened coffee's appeal across various age groups, with younger generations, particularly Gen Z and millennials in emerging nations, increasingly favoring coffee over other beverages. The roasted coffee market is experiencing rapid growth, driven by a trend of increased daily coffee consumption. A survey by the National Coffee Association (NCA) in March 2022 revealed a notable 14% rise in daily coffee consumption in the U.S. from 2021, with 66% of the population partaking. This surge in demand, fueled by factors such as changing work routines, innovative coffee products, and the social aspects of coffee drinking, is poised to propel the roasted coffee market further. In the United States alone, an astonishing 517 million cups of coffee are consumed daily, highlighting the beverage's widespread popularity and economic impact.

According to the global Roasted Coffee market analysis, the market is divided by application, type, and geographical division. By Type, the market is categorized into Arabica and Robusta. By Distribution Channel, the market is categorized into B2B and B2C (Hypermarkets & Supermarkets, Convenience Stores, Online).. By geography, it includes North America, Europe, Asia-Pacific, and LAMEA markets. Further, the report also covers the strategies adopted by key market players to sustain a competitive environment and increase their market share.

Increasing health consciousness is significantly driving the demand for roasted coffee. As research indicates potential health benefits, such as reduced risks of diabetes, Parkinson's, and Alzheimer's, consumers are increasingly viewing coffee as a health-promoting beverage. The antioxidants in coffee, along with its associations with liver and stomach health, have further enhanced its image as a functional, beneficial drink, leading to a shift in consumer perception, particularly among younger demographics.

The roasted coffee market is also thriving due to the growing demand for premium and specialty varieties. Influenced by shifting preferences and a focus on sustainability, consumers, especially millennials, are driving the popularity of specialty coffee options like Ready-To-Drink (RTD) coffee, cold brew, and nitro coffee. Companies are innovating with new flavors and sustainable packaging, catering to a discerning market. This trend is not confined to traditional coffee markets, as countries like China, India, and Brazil see a rise in coffee consumption, contributing to sglobal growth in the specialty coffee sector.

Global Roasted Coffee Market, Segmentation

The Roasted Coffee market is segmented based on type, distribution channel, and region.

Type:

The type segment is further classified into Arabica and Robusta. Among these, the Arabica sub-segment accounted for the highest market share in 2023. The Arabica segment is set to maintain its dominance in the roasted coffee market, driven by its smooth, premium flavor profile that appeals to discerning consumers. Known for its low acidity and diverse, intricate flavors?ranging from fruity and floral to nutty and chocolaty?Arabica beans align with the evolving preferences of coffee enthusiasts. A 1.8% increase in Arabica production during the 2022/23 coffee year, reaching 94 million bags, further solidifies its leading position. South America, the primary producer, significantly contributed with a 2.6% increase to 57.4 million bags. As global demand for specialty coffees grows, Arabica's market prominence is expected to persist, accounting for 55.9% of total coffee production.

Application:

The application segment is further classified into B2B and B2C (Hypermarkets & Supermarkets, Convenience Stores, Online). Among these, the B2C sub-segment is anticipated to show the fastest growth by 2032. The B2C segment, including hypermarkets, supermarkets, convenience stores, and online platforms, is set to dominate the Roasted Coffee Market due to its widespread accessibility. Hypermarkets and supermarkets offer a variety of roasted coffee options in a one-stop shopping environment, while convenience stores provide on-the-go choices. The online segment is also growing rapidly, driven by e-commerce trends and the convenience of doorstep delivery. This segment's robust market position is a response to consumers' evolving preferences for quality and convenience in their coffee choices.

Region:

The Roasted Coffee market in South America is projected to show the fastest growth by 2032. The rise in government regulations and initiatives in the region is encouraging manufacturers to opt for Roasted Coffee. South America, led by Brazil, is set to dominate the global coffee market in the coming years. Brazil, the world's top Arabica producer, saw a 7.3% increase in output to 41.8 million bags in 2022/23. The region also recorded a significant 10.4% rise in Robusta production, reaching 23.9 million bags, with Brazil contributing 10.6% growth to a total of 23.7 million bags. Expansion in Robusta cultivation, up 4.2% to 408,719 hectares, highlights South America's commitment to meet rising global coffee demand and solidifying its industry leadership.

Some of The Leading/Active Market Players Are-

• Starbucks Corporation (USA)
• Nestl? SA (Switzerland)
• JAB Holding Company (Luxembourg)
• The JM Smucker Company (USA)
• Keurig Dr Pepper Inc. (USA)
• Dunkin' Brands Group, Inc. (USA)
• Lavazza Group (Italy)
• Tchibo GmbH (Germany)
• Illycaff? S.p.A. (Italy)
• Peet's Coffee (USA) and Other Active Players

Key Industry Developments

• In May 2024, Nashville, Tennessee-based specialty coffee roaster and retailer 8th and Roast acquired the award-winning Nashville roasting company Good Citizen Coffee Co. The acquisition, announced today, saw 8th & Roast intending to retain the Good Citizen staff and operations. They planned to continue selling Good Citizen?s renowned eponymous and Common Voice coffee lines to consumers and maintaining relationships with hundreds of existing wholesale clients.
• In April 2024, Portland Coffee Industry Vets acquired Guilder and Junior?s Roasted Coffee. The acquisition included three cafe locations: Guilder?s flagship on NE Fremont Street, Guilder?s at Powell?s City of Books, and Junior?s Roasted Coffee at Upright Brewing Beer Station. It also encompassed the roasting operation located within the Fremont cafe. Junior?s Roasted Coffee was founded by Mike and Caryn Nelson in Tallahassee, Florida, in 2017.

Key Findings of the Study 

• In the B2C (Hypermarkets & Supermarkets, Convenience Stores, Online) segment held the largest share of 53.6% in 2022.   
• The South American region is expected to continue to lead the market followed by North America during the forecast period.
• The global Roasted Coffee market size was valued at $ 42.8 billion in 2023 and is projected to reach $ 73.55 billion by 2032, registering a CAGR of 6.2% from 2024 to 2032.