Coffee Beverages Market-Global Size, Share & Industry Trends

Coffee Beverages Market Synopsis

Coffee Beverages Market Size Was Valued at USD 747.8 Billion in 2023 and is Projected to Reach USD 1347.29 Billion by 2032, Growing at a CAGR of 6.76% From 2024-2032.

Coffee beverages are diverse and beloved worldwide, offering a rich tapestry of flavors and preparations. From the classic black coffee to the elaborate espresso-based drinks, the options are vast. Espresso, a concentrated coffee shot, serves as the foundation for favourites like cappuccinos, lattes, and Americanos.

Café Americano blends espresso with hot water for a milder flavor, while lattes combine espresso with steamed milk and a small layer of foam. Mochas add chocolate for a sweet twist, and macchiatos feature espresso "stained" with a dash of milk. Cold brew and iced coffee provide refreshing alternatives, showcasing coffee's versatility in satisfying diverse palates.

The market is characterized by a diverse range of products, including traditional brewed coffee, espresso-based drinks, cold brews, and specialty blends. Consumers are increasingly seeking unique and exotic flavors, driving innovation in the industry. The market is also influenced by changing lifestyles, with a growing demand for convenient and on-the-go coffee options.

Nowadays, there has been a surge in the popularity of specialty coffee shops, contributing to the growth of the artisanal coffee movement. Additionally, the rise of e-commerce has enabled consumers to explore and purchase a variety of coffee products online.

The growth of cafes, coffee shops, and specialty coffee shops has also contributed to the growth of coffee consumption. These establishments offer a variety of coffee drinks, giving consumers a wide range of options and flavors to explore. Coffee culture promotes sociability and creates demand for coffee drinks in addition to domestic consumption.

Coffee Beverages Market Trend Analysis

Café Culture and Out-of-Home Consumption

• Café culture and out-of-home consumption play pivotal roles in propelling the growth of the coffee beverages market. The evolution of coffee from a simple beverage to a cultural phenomenon has significantly influenced consumer behavior. Cafés have become more than just places to grab a cup of coffee; they are social hubs and workspaces, contributing to the overall experience of enjoying coffee.
• The surge in demand for coffee beverages is closely linked to the rising trend of consumers seeking unique and premium coffee experiences outside their homes. The modern lifestyle, characterized by busy schedules and a desire for social interaction, has driven people to opt for the convenience and ambiance offered by cafes. This shift in consumer preferences has led to an increased emphasis on specialty coffees, artisanal blends, and innovative brewing methods, further enriching the coffee market.
• Additionally, the globalization of café chains and the expansion of coffee culture in various regions have fueled the out-of-home consumption trend. The market thrives on the notion that coffee consumption is not merely a routine but an experience that transcends the functional aspect of a beverage.

Convenience and Ready-to-Drink (RTD) Coffee create an Opportunity for Coffee Beverages Market

• The coffee beverages market is witnessing significant opportunities, with Convenience and Ready-to-Drink (RTD) coffee emerging as key drivers of growth. Nowadays, fast-paced lifestyle, consumers increasingly seek convenience without compromising on quality, making on-the-go coffee options more popular than ever. Convenience is a critical factor influencing consumer choices, and the coffee industry has responded by innovating with ready-to-drink solutions that cater to busy lifestyles.
• RTD coffee offers a hassle-free and time-efficient way for consumers to enjoy their favorite brews without the need for brewing equipment or additional preparation. The market has seen a surge in diverse RTD coffee products, including cold brews, iced coffees, and flavored variants, providing consumers with a wide range of options to suit their preferences.
• These opportunities are further amplified by the growing trend of e-commerce, enabling easy accessibility and delivery of coffee products to consumers' doorsteps.

Coffee Beverages Market Segment Analysis:

Coffee Beverages Market Segmented on the basis of Type, Beans Type, and Distribution channels.

By Type, instant coffee segment is expected to dominate the market during the forecast period

• The instant coffee segment is poised to exert its dominance in the global coffee beverages market, showcasing a robust trajectory driven by convenience and rapid consumption trends. This segment's anticipated dominance can be attributed to several factors, including the fast-paced lifestyles of consumers, demanding work schedules, and the desire for quick and hassle-free coffee preparation.
• Instant coffee holds a distinctive appeal for its time efficiency and ease of use, offering consumers a convenient solution for obtaining their daily caffeine fix. The product's popularity is further heightened by its extended shelf life, making it a practical choice for those seeking a longer-lasting coffee supply.

By Beans Type, Robusta segment held the largest share of 53.34% in 2022

• Robusta segment is its resilience to adverse growing conditions, making it well-suited for cultivation in diverse environments. This inherent hardiness ensures a stable and consistent supply of beans, mitigating the impact of fluctuations in climate or agricultural challenges. Additionally, the affordability of Robusta coffee compared to its Arabica counterpart further enhances its market appeal, catering to a broader consumer base.
• The dominance of the Robusta segment is also reflected in the increasing popularity of espresso and instant coffee, where its bold flavor plays a pivotal role. As consumer preferences continue to evolve, the market is witnessing a rising demand for strong and intense coffee experiences, further propelling the prominence of Robusta in the coffee beverages sector.

Coffee Beverages Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast period

• The Asia Pacific region is poised to emerge as the dominant force in the global coffee beverages market, reflecting a dynamic blend of cultural affinity for coffee and a rapidly expanding consumer base. The region's rich cultural traditions, where coffee is often more than just a beverage but a social ritual, contribute significantly to the burgeoning demand for coffee products.
• In recent years, the Asia Pacific coffee market has witnessed a remarkable surge in popularity, driven by a growing middle class, urbanization, and changing lifestyles. Countries like China, India, and Japan are at the forefront of this coffee revolution, with an increasing number of consumers embracing coffee culture.

Coffee Beverages Market Top Key Players:

• Dunkin' Brands Group, Inc. (USA)
• Peet's Coffee & Tea -(USA)
• Kraft Heinz Company (USA)
• Coffee Bean & Tea Leaf - (USA)
• Bulletproof 360, Inc. (Bulletproof Coffee) (USA)
• Death Wish Coffee Company (USA)
• Starbucks Corporation (USA)
• The J.M. Smucker Company (Folgers) (USA)
• Keurig Dr Pepper (USA)
• Stumptown Coffee Roasters (USA)
• Starbucks Corporation (USA)
• The Coca-Cola Company (USA)
• Tchibo –(Germany)
• Nestlé Nescafé (Switzerland)
• Illycaffè S.p.A. (Italy)
• Lavazza (Italy)
• JAB Holding Company (Luxembourg)
• Ting Hsin International Group Co. Ltd. (Taiwan)
• UCC Ueshima Coffee Co., Ltd (Japan)

Key Industry Developments in the Coffee Beverages Market:

• In February 2024, Dunkin' Spiked announced the highly anticipated expansion of its line of Spiked Iced Coffees and Spiked Iced Teas, doubling the brand's national retail footprint to 28 states in total on the heels of an explosive launch last fall.
• In January 2024, Peet’s Coffee launched its Winter Beverage menu, which included the return of the Golden Caffè Latte, a combination of Espresso Forté with steamed milk and syrup with notes of honey, turmeric, and ginger. Peet’s also announced that this fan favorite will become a permanent fixture on the menu, even when the season wraps.
• In April 2023, Chamberlain Coffee, the leading coffee lifestyle brand and brainchild of Emma Chamberlain, announced the launch of their new line of Ready to Drink (RTD) plant-based cold brew lattes. The highly anticipated release brings fans the same high-quality product they've come to expect in a new convenient format. Through an exclusive collaboration with Walmart, fans will be able to shop the RTD lattes on shelves nationwide.
• In October 2022, Bevzilla, a D2C Beverage brand and the curator of India’s first Instant Coffee Cubes expanded its portfolio this International Coffee Day and launched yet another exotic and exciting flavor- Turkish Hazelnut, which is a real treat for all coffee lovers. Through the newest addition, Bevzilla stands on its promise to deliver smooth, delicious, healthy, and frothy coffee to all its consumers.