The global coffee market is used for the extraction of caffeine and other aromatic substances from roasted coffee beans. The beans originate from the coffee plant and contain caffeine, which is considered as an active ingredient that provides physical and mental stimulation. Coffee offers various health benefits such as improved energy levels and alertness, reduced risks of type 2 diabetes, Parkinson's disease and liver cancer. It is considered a beverage of choice among the millennials who are major consumers and producers. The rising disposable incomes and changing lifestyles and food habits have increased the demand for specialty coffee.

The global coffee market is estimated to be valued at US$ 153.21 bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the coffee market are 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. These key players are focusing on new product launches and innovations to cater to evolving consumer preferences for specialty coffee. The rising health consciousness and awareness about benefits of coffee is driving increased consumption globally and opening new opportunities.

The Coffee Market Growth in organized retail and e-commerce channels are facilitating the global expansion of key coffee companies. Companies are undertaking mergers and acquisitions to strengthen their product portfolio and global footprint. For instance, in 2022, Starbucks expanded its global footprint by acquiring the remaining 40% shares of Starbucks China and Taiwan from joint venture partners. This expanded Starbucks presence across over 6000 stores in China.

Market drivers:

Rising disposable incomes: The rising incomes especially in developing economies like India, China are fueling increased spending on food and beverages. Higher disposable incomes enable consumers to spend more on specialty coffee and products.

Changing lifestyles: Evolving lifestyles, frequent socializing and growing tendency to seek stimulants is driving the coffee consumption globally. Coffee shops have become popular hangout places.

Market restraints:

Price volatility of raw materials: Coffee prices fluctuate widely depending on weather conditions, crop failures, price controls and currency exchange rate fluctuations influencing raw material supply and costs. This volatility poses challenge for coffee producers.

Substitutes: Tea and other beverages offer alternatives to coffee consumption. Rising popularity of healthy drinks like herbal teas is a threat.

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