Coffee is one of the most widely consumed beverages globally and is rich in antioxidants that help boost energy levels in humans. Some key advantages of coffee include increased alertness, enhanced mood & focus, reduced risk of type 2 diabetes, and potential anti-aging properties. The global demand for coffee has been steadily rising due to hectic work schedules and changing lifestyles.
The global coffee market is estimated to be valued at US$ 132.99 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Increased Consumption
The key opportunity driving the growth of the coffee market size is increased coffee consumption. With growing awareness about the health benefits of coffee, its consumption has increased significantly over the past decade. Coffee shops are proliferating globally due to rising spending power and changing consumer tastes. Moreover, the easy availability of coffee products through various retail channels including supermarkets, specialty stores, and online portals is making coffee increasingly accessible. The availability of innovative product offerings such as cold brew coffee, coffee pods, and flavored coffee is also fueling the demand. The market players are expected to gain substantial profits by catering to the surging demand through extensive R&D and new product launches over the forecast period.
Porter's Analysis
Threat of new entrants: The coffee market requires large capital investments for production facilities and distribution networks making the threat of new entrants moderate.
Bargaining power of buyers: The presence of many regional and global coffee brands gives buyers moderate bargaining power in the market.
Bargaining power of suppliers: Coffee is primarily grown in developing countries giving suppliers high bargaining power due to limited availability of resources.
Threat of new substitutes: Beverages like tea and other plant-based drinks pose a threat but coffee is still the most popular beverage worldwide.
Competitive rivalry: The market is highly competitive with companies competing based on brand, quality, taste and price.
SWOT Analysis
Strength: Coffee has a huge consumer base worldwide and offers various health benefits. The market is dominated by well-established brands.
Weakness: Coffee prices fluctuate due to weather conditions and are dependent on single raw material input. Emerging markets offer low brand loyalty.
Opportunity: Growing cafe culture and demand for specialty coffees present an opportunity. Expanding wellness segment also provides growth avenue.
Threats: Substitutes like tea and other plant-based drinks, and economic slowdowns pose major threats. Sustainability and fair trade issues strain supply.
Key Takeaways
The global coffee market is expected to witness high growth over the forecast period. The global coffee market is estimated to be valued at US$ 132.99 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030.
North America currently leads coffee consumption globally due to rising demand for premium coffee varieties and cafe culture.
Key players in the region include Bristol-Myers Squibb Company, Novartis AG, Merck & Co., Inc., Genentech Inc., F. Hoffmann-La Roche AG., Amgen Inc., AstraZeneca, Daiichi Sankyo Company, Limited., AB Sciences., AgonOX, Inc., Eisai Co., Ltd, GlaxoSmithKline, plc., Pfizer, Inc., and Vical, Inc. The Asia Pacific region is expected to be the fastest growing market with countries like China and India emerging as major consumers.
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