Roasted Coffee Market Synopsis

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.

Roasted coffee is the end product of a rigorous procedure that uses heat to turn green coffee beans into fragrant, tasty jewels. Physical and chemical changes are involved in this critical stage, where caramelization and the Maillard reaction play major roles. Different roast levels—from light to dark offer a range of flavor qualities, from the strong acidity of light roasts to the robust richness of heavy roasts.

• The surge in coffee consumption is not only driven by its sensory appeal but also by the growing recognition of its potential health benefits. Studies suggest that coffee may lower the risk of diabetes, Alzheimer's, and Parkinson's, prevent heart failure, and promote the health of the liver and stomach. These health considerations have led to increased uptake of coffee across age groups, with the younger generation, especially Gen Z and millennials in emerging nations, displaying a preference for coffee over other beverages.
• The market for roasted coffee is expanding rapidly, fuelled by a rising trend in daily coffee consumption. According to a survey by the National Coffee Association (NCA) in March 2022, daily coffee consumption in the U.S. has seen a noteworthy 14% increase from 2021, reaching 66% of the population. This growing demand, influenced by factors such as shifting work schedules, innovative coffee products, and the social aspect of coffee consumption, is expected to propel the roasted coffee market further into the future. In the United States alone, a staggering 517 million cups of coffee are consumed daily, underscoring the beverage's pervasive popularity and economic significance.

Roasted Coffee Market Trend Analysis

Increasing Health Awareness

• Growing health consciousness has become one of the main factors driving the demand for roasted coffee. The possible health advantages of coffee intake have become an important element influencing consumer decisions as they grow more health conscious. Research and studies indicating coffee may help lower the incidence of diabetes, Parkinson's disease, and Alzheimer's disease have struck a chord with people who are concerned about their health, leading many to choose coffee as part of their daily routine.
• The antioxidants present in coffee are believed to have protective effects on the body, contributing to its overall health-promoting image. Furthermore, the association of coffee consumption with liver and stomach health has garnered attention, particularly among those seeking preventive measures for maintaining well-being. This heightened awareness of the positive aspects of coffee has led to a shift in consumer perception, positioning coffee as more than just a beverage but also as a potential contributor to a healthier lifestyle.
• Consumers, particularly in younger demographics, are actively seeking functional foods and beverages that offer both enjoyment and health benefits. The alignment of roasted coffee with these evolving consumer preferences has driven market growth, with individuals increasingly viewing their coffee consumption as a conscious choice for well-being. As health awareness continues to be a focal point in consumer decision-making, the roasted coffee market is expected to thrive, catering to those who value both the sensory pleasures and potential health advantages associated with their daily cup of coffee.

Growing Demand for Premium and Specialty Coffee Varieties

• The roasted coffee market is witnessing a significant opportunity with the growing demand for premium and specialty coffee varieties. This surge is fueled by a confluence of factors, including shifting consumer preferences, a heightened focus on sustainability, and the influential role played by millennials, who exhibit a strong penchant for coffee consumption. Recent trends in the global specialty coffee market underscore this opportunity, with an increasing number of coffee shops, a rising popularity of Ready-To-Drink (RTD) specialty coffee, and the emergence of cold brew and nitro coffee as sought-after options.
• Market vendors are capitalizing on this trend by concentrating on product diversification, introducing new and unique flavors, and extending their brands to cater to a discerning consumer base. An illustrative example is the innovative approach adopted by CoffeeB, a Swiss coffee brand, which introduced compressed coffee balls as the "next generation of single-serve coffee." Remarkably, they utilized seaweed-based material wrappers, a sustainable alternative to traditional aluminum or plastic capsules, emphasizing the industry's commitment to environmental responsibility.
• The consumption of specialty coffee is not limited to established coffee markets, as developing countries such as China, India, and Brazil are experiencing a significant uptick in coffee consumption. In the United States, a National Coffee Association report highlighted a substantial increase in specialty coffee consumption, reaching a five-year high. Furthermore, Europe, boasting the largest global specialty coffee market share at around 46.2%, contributes significantly to this trend.
• As evidenced by the National Coffee Association's data, the world's coffee consumption is projected to grow by 1.7% to 178.5 million 60kg bags in 2022/23. This growth is mirrored in the United States, where daily coffee consumption has reached its highest level in 20 years, with approximately 60% of the population indulging in coffee every day. The robust demand for premium and specialty coffee varieties presents a major opportunity for the roasted coffee market, encouraging continued innovation and market expansion.

Roasted Coffee Market Segment Analysis:

Roasted Coffee Market Segmented based on Type and Distribution Channel.

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

• The Arabica segment is poised to maintain its dominance in the roasted coffee market during the forecast period. Renowned for its smooth and premium flavor profile, Arabica beans continue to be the preferred choice for discerning consumers who prioritize a sophisticated coffee experience. With lower acidity and a diverse array of intricate flavors, ranging from fruity and floral to nutty and chocolaty notes, Arabica stands out in delivering a nuanced taste that aligns with the evolving preferences of coffee enthusiasts.
• The segment's leading position is further solidified by a 1.8% increase in Arabica production during the 2022/23 coffee year, reaching 94.0 million bags. South America, the primary regional producer, contributed significantly to this growth, with a 2.6% increase in output to 57.4 million bags. As the global demand for specialty coffees rises and consumers increasingly emphasize quality, Arabica's market prominence is expected to persist, accounting for 55.9% of total coffee production.

By Application, the B2C (Hypermarkets & Supermarkets, Convenience Stores, Online) segment held the largest share of 53.6% in 2022

• The B2C segment, encompassing Hypermarkets & Supermarkets, and Convenience Stores and Online, is anticipated to assert its dominance as the primary driver in the Roasted Coffee Market, holding the largest share. This heightened market presence is attributed to the widespread consumer accessibility of roasted coffee products through hypermarkets, supermarkets, and convenience stores. These retail outlets offer a diverse range of roasted coffee options, catering to the evolving preferences of discerning consumers.
• The convenience of one-stop shopping in hypermarkets and the accessibility of on-the-go choices in convenience stores contribute significantly to the segment's robust market position. The online segment continues to witness significant growth, driven by the increasing trend of e-commerce and the convenience of doorstep delivery. As consumers increasingly seek quality and convenience in their coffee choices, the B2C segment is poised to maintain its dominance, reflecting the market's responsiveness to evolving consumer preferences and retail dynamics.

Roasted Coffee Market Regional Insights:

South America is Expected to Dominate the Market Over the Forecast Period

• South America is poised to assert its dominance in the global coffee market over the forecast period, buoyed by significant growth trends in both Arabica and Robusta production. In the coffee year 2022/23, Brazil, the leading Arabica producer globally, witnessed a remarkable 7.3% surge in output to 41.8 million bags, marking an "on-year" for Arabica production. Meanwhile, South America, recognized as the world's largest Arabica-producing region, recorded a substantial 10.4% growth in Robusta output, reaching 23.9 million bags. Brazil further contributed to this momentum with a noteworthy 10.6% increase in Robusta production, totaling 23.7 million bags, attributable to favorable weather conditions and expanded cultivation areas.
• The Brazilian Institute of Geography and Statistics reported a 4.2% rise in the Robusta area harvested for coffee year 2022/23, reaching 408,719 hectares. This expansion, encompassing 16,648 additional hectares, underscores the region's commitment to meeting the growing global demand for coffee. As South America, particularly Brazil, continues to exhibit robust production figures and adaptability to market dynamics, it is poised to dominate the coffee market landscape over the forecast period, solidifying its position as a key player in the global coffee industry.

Roasted Coffee Market Top Key Players:

• Starbucks Corporation (USA)
• Nestlé 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)
• Illycaffè S.p.A. (Italy)
• Peet's Coffee (USA)
• Strauss Group Ltd. (Israel)
• Eight O'Clock Coffee Company (USA)
• Melitta Group (Germany)
• Segafredo Zanetti (Italy)
• Luigi Lavazza S.p.A. (Italy)
• Stumptown Coffee Roasters (USA)
• Coffee Bean & Tea Leaf (USA)
• Bulletproof 360, Inc. (USA)
• Keen Coffee B.V. (Netherlands)
• Blue Bottle Coffee Company (USA)
• PJ's Coffee of New Orleans (USA)
• D.E Master Blenders 1753 (Netherlands)
• Intelligentsia Coffee (USA)
• Allegro Coffee Company (USA) and Other Major Players

Key Industry Developments in the Roasted Coffee Market:

• 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.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. ROASTED COFFEE MARKET BY TYPE (2016-2030)
   1. ROASTED COFFEE MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. ARABICA
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2016 – 2030F)
      3. Historic And Forecasted Market Size in Volume (2016 – 2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. ROBUSTA
7. ROASTED COFFEE MARKET BY DISTRIBUTION CHANNEL (2016-2030)
   1. ROASTED COFFEE MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. B2B
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2016 – 2030F)
      3. Historic And Forecasted Market Size in Volume (2016 – 2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. B2C
      1. HYPERMARKETS & SUPERMARKETS
      2. CONVENIENCE STORES

7.4.3     ONLINE

8. COMPANY PROFILES AND COMPETITIVE ANALYSIS
   1. COMPETITIVE LANDSCAPE
      1. Competitive Positioning
      2. ROASTED COFFEE Market Share By Manufacturer (2022)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
   2. STARBUCKS CORPORATION (USA)
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves And Recent Developments
      10. SWOT Analysis
   3. NESTLÉ SA (SWITZERLAND)
   4. JAB HOLDING COMPANY (LUXEMBOURG)
   5. THE JM SMUCKER COMPANY (USA)
   6. KEURIG DR PEPPER INC. (USA)
   7. DUNKIN' BRANDS GROUP, INC. (USA)
   8. LAVAZZA GROUP (ITALY)
   9. TCHIBO GMBH (GERMANY)
   10. ILLYCAFFÈ S.P.A. (ITALY)
   11. PEET'S COFFEE (USA)
   12. STRAUSS GROUP LTD. (ISRAEL)
   13. EIGHT O'CLOCK COFFEE COMPANY (USA)
   14. MELITTA GROUP (GERMANY)
   15. SEGAFREDO ZANETTI (ITALY)
   16. LUIGI LAVAZZA S.P.A. (ITALY)
   17. STUMPTOWN COFFEE ROASTERS (USA)
   18. COFFEE BEAN & TEA LEAF (USA)
   19. BULLETPROOF 360, INC. (USA)
   20. KEEN COFFEE B.V. (NETHERLANDS)
   21. BLUE BOTTLE COFFEE COMPANY (USA)
   22. PJ'S COFFEE OF NEW ORLEANS (USA)
   23. D.E MASTER BLENDERS 1753 (NETHERLANDS)
   24. INTELLIGENTSIA COFFEE (USA)
   25. ALLEGRO COFFEE COMPANY (USA) AND OTHER MAJOR PLAYERS
9. GLOBAL ROASTED COFFEE MARKET BY REGION
   1. OVERVIEW
   2. NORTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Type
      4. Historic And Forecasted Market Size By Distribution Channel
      5. Historic And Forecasted Market Size By Country
         1. USA
         2. Canada
         3. Mexico
   3. EASTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Russia
         2. Bulgaria
         3. The Czech Republic
         4. Hungary
         5. Poland
         6. Romania
         7. Rest Of Eastern Europe
   4. WESTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Germany
         2. United Kingdom
         3. France
         4. The Netherlands
         5. Italy
         6. Spain
         7. Rest Of Western Europe
   5. ASIA PACIFIC
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Malaysia
         6. Thailand
         7. Vietnam
         8. The Philippines
         9. Australia
         10. New-Zealand
         11. Rest Of APAC
   6. MIDDLE EAST & AFRICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Turkey
         2. Bahrain
         3. Kuwait
         4. Saudi Arabia
         5. Qatar
         6. UAE
         7. Israel
         8. South Africa
   7. SOUTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Brazil
         2. Argentina
         3. Rest of South America
10. INVESTMENT ANALYSIS
11. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies