Global Coffee Market : Understanding the Key Product Segments and their Future

Coffee is the highest consumed beverage in developed countries, such as the United States and European countries. It is produced almost exclusively in the developing world, which includes about 17 least developed countries. The coffee-producing nations are increasing their domestic consumption. China, Panama, Kenya, Senegal and the United States are considered the highest potential markets in the coming years.

The global market value of coffee is expected to witness a 5.5% CAGR, during the forecast period (2018-2023). The market share of Germany, in terms of in coffee trade, is about 5%.

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Growing Millennial Population Fuelling Market Growth
About 44% of the United States coffee demand comes from the millennial. In eight years, through 2016, the daily consumption among 18 to 24-year-olds increased to 48% from 34% while, it is increased to 60% from 51% among the population aged 25 to 39 years, as reported by the National Coffee Association in New York. Moreover, adults aged 60 years and above witnessed a decrease to 64% from 76 %, including the 40 to 59 age group. Café culture in developing countries like China and India is becoming a fashion symbol and is driving the coffee consumptionglobally.

Further, other factors such as the availability of wide-range of coffee type, flavors and brewing styles, rising urbanization & disposable incomes and increasing number of food outlets, retail stores and cafes are driving the global coffee market growth. However, the price fluctuation of coffee beans and climate change, leading to supply shortage, are restraining in the market.

Robusta Coffee Expected to Grow Faster During the Forecast Period
Based on source type, the global coffee market has been segmented into arabica, robusta and liberica. The arabica holds the highest share of 70% in the market, while robusta and liberica hold about 27% and 3%, respectively. Based on product type, the market is segmented into whole-bean, powder, instant coffee, others. Further, based on flavor, the market is categorized into flavor and non-flavor. Furthermore, the flavor is segmented into vanilla, caramel, Irish cream, hazelnut and others. The caffeinated and decaffeinated are the two segments, divided based on the processing.

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World coffee production in 2017 -2018 is provisionally estimated at around 158.78 million bags, which represents an increase of 0.7% compared to 2016 – 17, which has been revised up to 157.69 million bags. Total production of Arabica is estimated to decrease by 1.1% to 97.32 million bags compared to 98.42 million bags last year, as lower production of Colombian Milds and Brazilian Naturals are only partially offset by increases in Other Milds. An increase of 3.7% is expected in Robusta, due largely to a rebound in Vietnam, the world’s largest Robusta producer.

The ready-to-drink coffee demand is rising. The falling popularity of soft drinks, including the caffeinated colas, are the driving sales of RTD coffee. Nitro Coffee is another key product trend that interests consumers. Nitro coffee is poured from a tap and provides a mouth-feel similar to that of beer. The foamy and creamy texture of nitro coffee allows brewers to add less milk and sugar to cut off the bitter taste. Moreover, it appeals more to the health-conscious coffee drinker. In addition, the texture is difficult to replicate in an RTD coffee, giving cafes something to offer the consumers looking for unique drinking experiences.

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Europe Holds the Major Market Share
Asia-Pacific is the fastest growing market. China and India, with their growing number of large middle-class young professionals and consumer base, are witnessing high coffee consumption. However, while these emerging markets are increasing, owing to the rising disposable incomes, there are few importing countries that are offering a potential for expansion, due to low per capita consumption. Europe holds the highest share in the global coffee market, followed by North America. These regions depend mainly on imports to meet the growing demand, as the harsh climatic conditions restrict coffee cultivation. New markets, such as Ukraine and Russia, are witnessing a sharp rebound in the consumption level. Several Middle Eastern countries having higher disposable incomes are also predicted to offer good prospects for growth in the short-to-medium term period.

KEY PLAYERS: EIGHT O’ CLOCK COFFEE, J. M. SMUCKER COMPANY, JACOBS DOUWE EGBERTS, KRAFT HEINZ INC., STARBUCKS CORPORATION, NESTLE S.A., UNILEVER, AJINOMOTO GENERAL FOODS, INC., BEWLEY’S, CAFFE NERO, COFFEE BEANERY, COFFEE REPUBLIC, COSTA COFFEE, DUNKIN’ DONUTS, HACO, INDUSTRIA COLOMBIANA DE CAFÉ, MELITTA USA, STRAUSS GROUP, TIM HORTONS, INC. and TRES CORACOES ALIMENTOS S.A, amongst others.

Reasons to Purchase this Report
Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come
Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market
Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years
Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
3 months analyst support along with the Market Estimate sheet in excel.

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Companies Mentioned:
Eight O’ Clock Coffee, J. M. Smucker Company, Jacobs Douwe Egberts, Kraft Heinz Inc., Starbucks Corporation, Nestle S.A., Unilever, Ajinomoto General Foods, Inc., Bewley’s, Caffe Nero, Coffee Beanery, Coffee Republic, Costa Coffee, Dunkin’ Donuts, HACO, Industria Colombiana de Café, Melitta USA, Strauss Group, Tim Hortons, Inc., Tres Coracoes Alimentos S.A.

Table of Content

1. Introduction 
   1.1 Research Methodology
   1.2 Market Definition
   1.3 Report Description
2. Market Overview 
   2.1 Market Trend
3. Market Dynamics 
   3.1 Drivers
   3.1.1 Growing Millenial Population
   3.1.2 Availibility of Wide Range of Coffee Type, Flavors and Brewing styles
   3.1.3 Rising Urbanisation and Disposable Income
   3.1.4 Growth in the number of Food Outlets, Retail stores and Cafes
   3.2 Restraints
   3.2.1 Price Fluctuations of Coffee Beans
   3.2.2 Climate Change can Lead to Supply Shortage
   3.3 Opportunities
4. Segmentation 
   4.1 By Source Type
   4.1.1 Arabica
   4.1.2 Robusta
   4.1.3 Liberica
   4.2 By Product Type
   4.2.1 Whole-Bean
   4.2.2 Ground Coffee
5. Competitive Landscape 
   5.1 Most Adopted Market Strategies
   5.2 Most Active Companies
   5.3 Market Share Analysis
6. Company Profiles 
   6.1 Eight O’ Clock Coffee
   6.2 J. M. Smucker Company
   6.3 Jacobs Douwe Egberts
   6.4 Kraft Heinz Inc.
   6.5 Starbucks Corporation
   6.6 Nestle S.A.
   6.7 Unilever

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