Market Overview:
Roasted Coffee Market Size Was Valued at USD 42.8 Billion in 2022 and is Projected to Reach USD 66.84 Billion by 2030, Growing at a CAGR of 5.73% From 2023-2030.
The result of a laborious process that uses heat to transform green coffee beans into aromatic, delicious jewels is roasted coffee. This crucial phase involves both chemical and physical changes, with the Maillard process and caramelization playing important roles. A variety of flavor characteristics are offered by varying roast levels, from light to dark, from the robust richness of heavy roasts to the intense acidity of light roasts.
Coffee's increasing popularity can be attributed to both its taste and the expanding body of research indicating potential health advantages. Research indicates that coffee may protect against heart failure, lessen the risk of diabetes, Parkinson's, and Alzheimer's disease, and improve stomach and liver health. Coffee consumption has expanded across age groups as a result of these health concerns; younger generations, particularly Gen Z and millennials in emerging economies, have shown a preference for coffee over other beverages.
The growing trend of everyday coffee consumption is driving the rapid expansion of the roasted coffee market. A National Coffee Association (NCA) survey conducted in March 2022 found that 66% of Americans now drink coffee every day, a notable 14% rise from 2021. It is anticipated that the roasted coffee industry will continue to increase in the future due to factors like changing work hours, new coffee products, and the social component of coffee consumption. A remarkable 517 million cups of coffee are drunk every day in the United States alone, demonstrating the beverage's widespread appeal and financial importance.
Top Key Players Covered in The Roasted Coffee Market:
- Starbucks Corporation (US)
- Nestlé SA (Switzerland)
- JAB Holding Company (Luxembourg)
- The JM Smucker Company (US)
- Keurig Dr Pepper Inc. (US)
- Dunkin' Brands Group, Inc. (US)
- Lavazza Group (Italy)
- Tchibo GmbH (Germany)
- Illycaffè S.p.A. (Italy)
- Peet's Coffee (US), and other major player.
Market Dynamics and Factors:
The market for roasted coffee has been driven by customers' growing health consciousness. Coffee has become a daily ritual for many due to research demonstrating its possible health benefits, including lowering the risk of diabetes, Parkinson's disease, and Alzheimer's disease. It is thought that the antioxidants in coffee safeguard the body, especially the health of the stomach and liver. With this change in thinking, coffee is now seen as part of a healthier lifestyle rather than merely a beverage. The market for roasted coffee is expanding as a result of growing customer demand for specialty and premium kinds, as well as millennial influence and concerns about sustainability. Remarkable developments include the emergence of specialty coffee shops, the availability of ready-to-drink choices, and novel goods like compressed coffee balls. The consumption of coffee is rising significantly in developing nations like China, India, and Brazil. The specialty coffee market is anticipated to continue expanding globally, with the US leading the way in rising consumption. In the roasted coffee sector, this offers a significant chance for innovation and market expansion.
The Roasted Coffee Market Report Highlight:
- By type, the market for roasted coffee is still led by the Arabica category, which is valued for its rich flavor and adaptability. Despite a 1.8% rise in output, South America continues to play a significant role in its supremacy, with 94.0 million bags produced in 2022–2023. Conscientious consumers looking for superior coffee prefer Arabica coffee because of its rich flavors and low acidity. Arabica is predicted to continue dominating the market, reflecting the rising demand for specialty coffees across the globe.
- By Application, In the roasted coffee industry, the B2C segment—which includes hypermarkets and supermarkets, convenience stores, and online platforms—has the biggest market share. Hypermarkets, supermarkets, and convenience stores have made it simple for consumers who are always on the go to get a variety of roasted coffee options, contributing to this domination. The ease of doorstep delivery and the rise in e-commerce contribute to the expansion of the online market. The B2C segment is anticipated to continue holding sway in the coffee market as customers emphasize quality and convenience, indicating a shift in the industry's response to changing consumer demands and retail environments.
- By Region, South America, led by Brazil, is expected to rise significantly in both Arabica and Robusta production, positioning it to dominate the world coffee market. The region's overall strong performance was aided by a considerable boost in output from Brazil, the major producer of Arabica. Brazil had a notable surge in Robusta production due to the expansion of growing zones and ideal climatic conditions. South America—Brazil in particular—is anticipated to continue playing a significant role in the coffee market as long as it remains committed to satisfying the increasing demand for the crop worldwide.
Key Industry Development:
- In July 2023, Lavazza, a coffee company based in Italy, launched Tales of Italy. Tales of Italy is a collection of locally roasted coffees designed to promote Italy’s rich cultural heritage and storytelling traditions. It comes in three distinct flavors such as Alluring Napoli, made from Conilon Robusta, Eternal Roma, which is a premium blend of hand-picked Colombian Arabica, and Refined Milano, which is a 100% premium blend of late-harvested Arabica. Tales of Italy comes packaged in resealable packaging with a bright, vibrant color palette.
- In March 2023, Westrock Coffee, a U.S.-based coffee roasting company, acquired Bixby Roasting Co for an undisclosed amount. Through this acquisition, Westrock Coffee aims to capitalize on growing consumer trends and create new impactful brands that are especially appealing to younger consumers. Bixby Roasting Co is a US-based company that specializes in providing roasted coffee beans.
The Roasted Coffee Market Segmentation:
By Type
- Arabica
- Robusta
By Distribution Channel
- B2B
- B2C
- Hypermarkets & Supermarkets
- Convenience Stores
- Online
For this report, Introspective Market Research has segmented the Roasted Coffee Market based on region:
Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)
North America
- The U.S.
- Canada
- Mexico
Eastern Europe
- Russia
- Bulgaria
- The Czech Republic
- Hungary
- Poland
- Romania
- Rest of Eastern Europe
Western Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Spain
- Rest of Western Europe
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- New-Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
