The global decaffeinated coffee products market was estimated at USD 10.5 billion in 2022 and is expected to register a CAGR of 8.2% from 2023 to 2030. Decaffeinated coffee is gaining traction among health-conscious consumers, as it offers the same taste and aroma as regular coffee, with minimal caffeine content. It is becoming increasingly popular among coffee drinkers, who are looking for a healthier alternative to regular coffee. Furthermore, an increase in the number of coffee outlets and specialty stores has propelled the sales of decaffeinated coffee.

The launch of new products has been a key trend in the market. For instance, in August 2021, Nestle launched Nescafe Decaff+, a decaffeinated version of its iconic instant coffee blend. The company has used a patented process to remove caffeine from the blend, while still preserving the aroma, taste, and color of the coffee. Furthermore, the availability of various decaffeinated coffee varieties, such as instant coffee, filter coffee, espresso, and cappuccino, is expected to drive the demand in the coming years.

The demand for decaffeinated coffee is further driven by the rise in the number of health-conscious consumers. The growing consumer preference for natural ingredients has led to an increase in the demand for organic decaffeinated coffee. For instance, in October 2021, HealthCo launched a new range of organic decaffeinated coffee. The range is made using 100% Arabic beans and is certified organic by the Organic Food Federation. The increasing number of coffee shops and restaurants offering decaffeinated coffee is further fuelling the demand for the product.

The growing sustainability trend is expected to have a positive impact on the market. Various coffee companies are focusing on the development of sustainable decaffeinated coffee to reduce their environmental footprint. For instance, in April 2022, Starbucks launched a new decaffeinated coffee blend, which is made from sustainably sourced beans. The company has partnered with the Rainforest Alliance and the Smithsonian Migratory Bird Center to ensure that the coffee is sustainably grown and harvested.

Furthermore, an increase in the number of promotional activities and digital marketing campaigns is expected to support the growth of the market. Companies are focusing on creating awareness among consumers about the benefits of decaffeinated coffee. For instance, in June 2021, the National Coffee Association launched a digital campaign to promote the health benefits of decaffeinated coffee. The campaign’s main objective was to create awareness among consumers about the health benefits of drinking decaffeinated coffee, such as improved concentration and energy levels.

Decaffeinated coffee led the market and accounted for a share of around 32.4% in 2022. The increasing demand for decaffeinated coffee products is primarily attributed to the rising health consciousness among consumers and the health benefits associated with decaffeinated coffee products. According to an article by the American Chemical Society, decaffeinated coffee contains antioxidant compounds that may help protect against type 2 diabetes. Furthermore, increasing consumer preference for decaffeinated coffee products due to their caffeine-free nature is boosting the demand for decaffeinated coffee products globally.

The instant coffee segment is anticipated to expand at the fastest CAGR of 5.8% over the forecast period. The convenience associated with the availability, storage, and preparation of instant coffee products is a key factor driving the demand for instant coffee products. According to an article by the New York Times, instant coffee is the fastest growing segment of the coffee market. In addition, the growing demand for convenience foods, increasing disposable incomes, and the changing lifestyle of consumers are some of the other factors driving the growth of the instant coffee market.

The supermarkets and hypermarkets segment held the major share of over 40.0% in 2020. Supermarkets and hypermarkets are the most preferred channel for buying decaffeinated coffee products, as these stores provide a wide range of options to the consumers. Supermarkets and hypermarkets offer great convenience to the customers for buying decaffeinated coffee products due to their large presence in the form of physical stores. Major players in the decaffeinated coffee products market are focusing on expanding their product presence in supermarkets and hypermarkets to increase their brand visibility and sales.

The online segment is anticipated to expand at a higher CAGR of 12.2% over the forecast period. The rising penetration of the internet and increasing awareness about the benefits of decaffeinated coffee products are driving the demand for these products through online stores. Companies are focusing on expanding their presence on major e-commerce platforms, such as Amazon, Flipkart, and Walmart, to increase their consumer base. Moreover, the increasing preference for cashless transactions and the growing number of digital payment platforms is likely to further drive the growth of the segment.

The instant decaffeinated coffee segment accounted for the largest revenue share of 41.1% in the year 2022. The convenience and affordability associated with instant decaffeinated coffee are the key factors driving its demand. Furthermore, the introduction of innovative flavors, such as hazelnut, caramel, and cappuccino, is expected to bolster the segment’s growth. For instance, in May 2022, Nestle, a leading player in the instant decaffeinated coffee market, introduced Nescafe Gold Blend Decaf Coffee.

The ground decaffeinated coffee segment is anticipated to expand at the highest CAGR of 10.9% over the forecast period. The increasing popularity of specialty coffee in developed countries, such as the U.S. and Germany, is encouraging consumers to opt for ground decaffeinated coffee. Furthermore, the growing trend of home brewing is propelling the demand for ground decaffeinated coffee. For instance, in December 2021, Starbucks launched its Starbucks Blonde Espresso Decaf Blend, which is a ground decaffeinated coffee blend.

Europe is expected to witness the fastest growth rate over the forecast period. This is attributed to the high consumption of decaffeinated coffee in the region. The consumption of decaffeinated coffee is significantly high in countries such as the United Kingdom, Germany, and the Netherlands. According to the International Coffee Organization, the consumption of decaffeinated coffee in Europe is approximately 25%, which is significantly higher than the global average of 10%. This is expected to drive the growth of the market in the region.

North America is expected to be the second-largest region for the decaffeinated coffee market. The presence of a large number of key players in the region has further enhanced the growth of the market. The U.S. is the largest market for decaffeinated coffee in the region. In addition, the presence of consumers that prefer healthier options has further increased the demand for decaffeinated coffee in the region.

In this part of the decaffeinated coffee products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your decaffeinated coffee products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a decaffeinated coffee products business comes from sales of decaffeinated coffee products, wholesale orders, and online sales. Other possible sources of profit could include partnerships with other businesses and any fundraising activities.

Projecting Expenses

In this section, all the regular expenses related to keeping the decaffeinated coffee products business running will be described. The list of operating expenses includes employee wages, rent, supplies, insurance policies, advertising, and others. Additionally, you will need to factor in the costs associated with the production and packaging of the decaffeinated coffee products.

Some of the key companies operating in the decaffeinated coffee market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In June 2022, Starbucks launched its new line of decaffeinated coffee, including three new flavors.

– In August 2022, Nestle launched its new range of decaffeinated coffee, including a variety of flavors.

– In October 2022, Maxwell House launched its new decaffeinated coffee line, including decaffeinated espresso and cappuccino.

Some of the prominent players in the decaffeinated coffee market include:

– Starbucks Corporation
– Nestle SA
– Cafe Britt
– J.M. Smucker Company
– Jacobs Douwe Egberts
– The Kraft Heinz Company
– Unilever
– Tata Global Beverages
– Keurig Dr Pepper
– Maxwell House

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global decaffeinated coffee products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Instant Coffee
– Ground Coffee
– Whole Bean Coffee
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Natural Decaffeinated
– Chemical Decaffeinated

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What is the Potential of Decaffeinated Coffee Products?
[A]: The global decaffeinated coffee products market is expected to witness significant growth over the forecast period owing to the increasing demand for decaffeinated coffee products. The rising awareness regarding health benefits associated with decaffeinated coffee products is a major factor driving the growth of the market. Moreover, the increasing number of health-conscious consumers and the growing demand for organic and natural decaffeinated coffee products are expected to further boost the market growth.

[Q]: Who are the Key Players in the Decaffeinated Coffee Products Market?
[A]: Key players in the global decaffeinated coffee products market include Nestle SA, Tata Global Beverages Limited, Starbucks Corporation, Jacobs Douwe Egberts, The J.M. Smucker Company, illycaffè S.p.A., Kraft Foods Group, Inc., and The Folger Coffee Company.

[Q]: Which Region Offers the Largest Opportunity for Sales of Decaffeinated Coffee Products?
[A]: North America is expected to be the largest market for decaffeinated coffee products over the forecast period. The U.S. holds the largest market share in the region, owing to the increasing demand for decaffeinated coffee products in the country.

[Q]: What are the factors driving the decaffeinated coffee products market?
[A]: The increasing awareness regarding health benefits associated with decaffeinated coffee products, the increasing number of health-conscious consumers, and the growing demand for organic and natural decaffeinated coffee products are some of the key factors driving market growth. Additionally, the growing prevalence of lifestyle-related diseases and the introduction of new flavors and formats are expected to further drive market growth.