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Roasted Coffee Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global roasted coffee products market was valued at USD 78.8 billion in 2022 and is projected to expand at a CAGR of 7.2% from 2023 to 2030. Coffee is one of the most popular beverages consumed worldwide. To meet the rising demand for coffee, the market participants are focusing on expanding their product portfolios. In addition, the market is witnessing the increasing demand for healthy beverages, such as organic and natural coffee, which is expected to drive the market. In 2019, the global consumption of organic coffee was around 4.7 million bags, while in 2020 it increased to 5.3 million bags.
The presence of a large number of market players in the market is leading to the emergence of new product launches, which is expected to push the market growth. For instance, in August 2021, Starbucks Corporation announced the launch of a new plant-based beverage, the Starbucks® Blonde® Roast Cold Brew, made from a blend of beans from Latin America and French-roasted beans. The product is available in a variety of flavors, including Vanilla, Caramel, and Mocha.
The market is also witnessing the increasing demand for instant coffee, which is expected to propel the market growth. The ease of preparation, longer shelf life, and availability of a range of flavors are the key factors that are driving the demand for instant coffee. Instant coffee is gaining traction, especially in Asian countries, such as India, Thailand, and Japan, where consumers prefer a convenient cup of coffee. In 2021, Nestle India launched Nescafe Sunrise Roast, a special blend of coffee, which is a combination of Arabica and Robusta beans.
The increasing demand for specialty and premium coffee is another factor driving the market growth. The market players are focusing on product innovations to meet the changing preferences of consumers. For instance, in October 2021, Nestlé launched a new range of premium coffee, called Starbucks® by Nespresso®, for the U.S. market. The product range includes three varieties, such as Blonde Roast, Espresso Roast, and Dark Roast. The product is said to be a premium offering with intense aromas and flavors.
The increasing demand for convenience is expected to drive the demand for ready-to-drink (RTD) coffee. The RTD coffee segment is expected to witness significant growth owing to the easy availability of these products in various flavors and sizes. The increasing presence of RTD coffee in retail stores and convenience stores is expected to drive the market growth. For instance, in May 2021, Coca-Cola India announced the launch of its RTD coffee brand, Georgia, in India. The brand has launched five variants in the Indian market, namely Georgia Gold Arabica, Georgia Gold Hazlenut, Georgia Gold Caramel, Georgia Gold Mocha, and Georgia Gold Vanilla.
Product Insights
The instant coffee segment held the largest share of the roasted coffee products market in 2020. This is attributed to the growing demand for convenience and improvement in quality of instant coffee products. Instant coffee contains roasted, ground coffee beans that are pre-brewed and freeze-dried. It is easy to use and requires minimal preparation time. The growing popularity of instant coffee among millennials and the introduction of new products by leading companies are expected to drive the demand for instant coffee products.
The specialty coffee segment is expected to witness the fastest growth rate during the forecast period. Specialty coffee is made from high-quality beans that are grown in specific regions and are processed through special methods. Growing health consciousness among consumers and increasing awareness regarding the health benefits of consuming specialty coffee are some of the major factors driving the growth of the segment. In addition, the introduction of new flavors by leading companies is expected to further propel the growth of the market.
Distribution Channel Insights
The supermarkets and hypermarkets segment held the largest share in the roasted coffee products market in 2020. This can be attributed to their wide product range, availability of multiple brands, and convenience of buying the products. Moreover, supermarkets and hypermarkets offer a wider range of roasted coffee products, including instant coffee, ground coffee, and coffee beans. Consumers generally prefer to buy coffee from supermarkets and hypermarkets due to the convenience they offer.
The e-commerce segment is expected to expand at the highest CAGR during the forecast period. The increasing use of the internet and rising penetration of smartphones are leading to the growing popularity of online shopping. Moreover, online platforms enable customers to compare prices and check the reviews of different coffee products. This further encourages customers to purchase roasted coffee products through e-commerce platforms.
Type Insights
The ground roasted coffee segment accounted for the largest revenue share of 47.6% in the year 2022. The increasing popularity of ground coffee is mainly due to convenience and the availability of different types of grinds for different brewing methods. Also, the development of new products such as pre-ground coffee, which is convenient for consumers and provides a consistent flavor, is expected to drive the market for ground roasted coffee.
The whole bean segment is anticipated to grow at the highest CAGR of 6.8% over the forecast period. The increasing trend of home brewing and the growing popularity of espresso makers has resulted in a surge in the demand for whole bean coffee. The consumers are opting for whole beans coffee since it is considered to be of higher quality compared to pre-ground coffee due to the freshness of the coffee beans.
Regional Insights
Europe dominated the market and accounted for the largest revenue share of over 38.6% in 2022. This is attributed to the increasing demand for organic and specialty coffee varieties, particularly in Germany and the United Kingdom. Rising health awareness among consumers is driving them to opt for organic and specialty coffee products, which is further driving the growth of the market in the region. Moreover, the presence of leading market players, such as Starbucks, Costa Coffee, and Dunkin Donuts, has further increased the availability of roasted coffee products in Europe.
North America is expected to witness the second-fastest growth in the coming years. Increasing demand for convenience in functional beverages, such as ready-to-drink and instant coffee, is a key factor driving the market in the region. In addition, the presence of leading market players, such as Starbucks and Dunkin Donuts, is further expected to drive the growth of the market in North America. Moreover, the growing popularity of plant-based coffee and rising demand for sustainable coffee products, such as nitro coffee, is anticipated to increase the demand for roasted coffee products in the region.
Financial Projections
In this part of the roasted 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 roasted coffee products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a roasted coffee products business comes from the sale of roasted coffee products, online and/or in-store. Here you will find a list with a description of possible sources of profit such as wholesale, bulk orders, subscription/membership services, and special events.
Projecting Expenses
In this section, all the regular expenses related to keeping the roasted coffee products business running will be described. The list of operating expenses includes raw materials, marketing and promotion, packaging, transport, rent, wages, maintenance and repairs, utilities, insurance policies, and others.
Key companies & market share insights
Some of the key companies operating in the roasted 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 Corporation launched a new range of organic coffee beans from around the world, including Ethiopia, Colombia, and Guatemala.
– In August 2022, Dunkin’ Donuts launched a new line of organic, Fair Trade Certified coffee beans.
– In October 2022, Lavazza launched a new range of single-origin and blended coffees.
Some of the prominent players in the roasted coffee market include:
– Starbucks Corporation
– Dunkin’ Donuts
– Lavazza
– J.M. Smucker Co.
– Nestlé S.A.
– Jacobs Douwe Egberts
– Kraft Foods Group
– Tata Global Beverages
– The Kraft Heinz Company
– Massimo Zanetti Beverage Group
Global Roasted Coffee Market Segmentation
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 roasted coffee products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Roasted Arabica Coffee
– Roasted Robusta Coffee
– Decaffeinated Coffee
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Cafes
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Ground Coffee
– Instant Coffee
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the factors driving the growth of the roasted coffee products market?
[A]: The rising disposable income, the increasing demand for premium quality coffee, the growing popularity of organic and specialty coffee, the convenience offered by ready-to-drink coffee, and the increasing penetration of e-commerce are the key factors driving the growth of the roasted coffee products market.
[Q]: Who are the major players in the roasted coffee products market?
[A]: The major players in the roasted coffee products market are Nestle SA (Switzerland), J.M. Smucker Company (US), Starbucks Corporation (US), Kraft Heinz Company (US), Jacobs Douwe Egberts (Netherlands), The Coca-Cola Company (US), Tchibo GmbH (Germany), and Lavazza S.p.A. (Italy).
[Q]: What are the different types of roasted coffee products available in the market?
[A]: The different types of roasted coffee products available in the market include whole bean, ground, instant, and K-Cup.
[Q]: What are the trends observed in the roasted coffee products market?
[A]: The recent trend observed in the roasted coffee products market is the growing popularity of cold brew coffee. Cold brew coffee is gaining popularity due to its smooth taste, low acidity, and its ability to retain the natural flavor of the coffee beans. In addition, the increasing popularity of e-commerce is expected to contribute to the growth of the roasted coffee products market.
[Q]: What is the potential of product innovation in the roasted coffee products market?
[A]: Product innovation is expected to remain a key factor in the roasted coffee products market. Manufacturers are introducing coffee products with unique flavors and ingredients that provide a variety of health benefits. In addition, they are also introducing coffee products with natural sweeteners, such as honey and coconut sugar, which are becoming increasingly popular.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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