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Sparkling Coffee Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global sparkling coffee products market was valued at USD 9.2 billion in 2022 and is projected to expand at a CAGR of 10.3% from 2023 to 2030. Sparkling coffee drinks are gaining traction as a new category of beverages in the market, with manufacturers incorporating innovative flavors in the product. The increasing demand for natural and organic sparkling coffee products is expected to drive the market growth. Moreover, manufacturers are focusing on developing various types of sparkling coffee products to offer a wide range of choices to consumers.
The growing demand for convenience products among consumers is a key factor driving the market. Consumers are increasingly preferring packaged and canned products due to their convenience and portability. Moreover, manufacturers are also developing various flavors, such as caramel, mocha, and vanilla, to attract consumers. Furthermore, the increasing trend of consuming ready-to-drink beverages is a major factor driving the market. The growing trend of consuming low-calorie beverages is propelling the demand for sparkling coffee products, as they are low in calories and contain no added sugar.
The increasing demand for natural and organic sparkling coffee products is a major factor driving the market. Consumers are increasingly preferring natural and organic products due to their premium and healthy nature. Moreover, the rising demand for natural ingredients is driving the manufacturers to use natural and organic ingredients in their products. For instance, in June 2021, Nestlé launched its new sparkling coffee brand, Nespresso Barista Origins, a range of sparkling cold coffees made with natural ingredients and no added sugar.
Furthermore, the growing trend of home-based coffee consumption is driving the market growth. Consumers are increasingly opting for home-based coffee consumption as it is cost-effective and provides a wide range of flavors, as compared to the traditional coffee shops. Moreover, the increasing availability of these products online is boosting the online sales of sparkling coffee products. The e-commerce platform further provides various offers on these products, which is accelerating the demand.
Product Insights
The sparkling coffee segment is anticipated to expand at the fastest CAGR of 8.2% over the forecast period. The growing popularity of carbonated drinks, the increasing demand for low-calorie beverages, and the growing number of health-conscious consumers are some of the major factors driving the growth of the market. According to an article published by The New York Times, in March 2020, sparkling coffee is a mix of cold brew coffee and soda water that is becoming increasingly popular among millennials. Furthermore, the emergence of various sparkling coffee brands and the availability of a wide range of flavors are some of the other factors driving the growth of the market.
The bottled segment is estimated to dominate the market and held a share of around 52.3% in 2022. Increasing demand for convenience and the growing availability of bottled sparkling coffee products are some of the key factors driving the growth of the market. Moreover, the presence of several players offering bottled sparkling coffee products is another factor driving the growth of the market.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the majority share of the global sparkling coffee products market in 2022. The growth of this segment is mainly attributed to the increasing demand for convenience foods and beverages from supermarkets & hypermarkets. Consumers prefer to buy their sparkling coffee products from this channel due to the wide variety of products available, attractive discounts, and the ease of shopping. Furthermore, supermarkets & hypermarkets also offer a wide range of products at a lower price, thereby attracting more customers.
The online segment is anticipated to register the highest CAGR of 12.2% during the forecast period. The online channel has been gaining traction in recent years due to the convenience and ease of shopping offered by various online platforms. In addition, online platforms offer attractive discounts and promotional offers which attract more customers. Furthermore, increasing internet penetration and the availability of a wide variety of products on e-commerce websites also contribute to the growth of this segment.
Type Insights
The ready-to-drink (RTD) segment is expected to hold the largest share of the market. The convenience factor associated with these products makes them a popular choice among consumers. Furthermore, the rising trend of on-the-go consumption and technological advancements in packaging technology is expected to boost the growth of the RTD segment during the forecast period. For instance, in February 2021, Starbucks launched its ready-to-drink bottled Frappuccino coffee drinks in India.
The powdered segment is expected to witness the highest growth rate during the forecast period. The increasing demand for convenience and health-conscious products is driving the growth of the powdered segment. Furthermore, the rising trend of DIY products is also expected to fuel the growth of the segment. For instance, in December 2020, STōK, a brand of PepsiCo, launched its powdered cold brew coffee.
Regional Insights
North America is expected to hold the largest share of the market during the forecast period. Increased demand for ready-to-drink coffee beverages and the presence of key players in the region are two of the key factors driving the market in this region. The U.S. is the largest market for sparkling coffee products due to the presence of major producers, distributors, and retailers. For instance, in April 2021, La Colombe Torrefaction, a Philadelphia-based coffee roaster, launched a line of sparkling coffee called ‘Canned Nitro’.
The Asia Pacific is expected to witness the fastest growth during the forecast period. Rapidly increasing disposable income and changing lifestyles are the major factors driving the sparkling coffee market in the region. In addition, the presence of key players, such as Starbucks, Nestle, and Coca-Cola, is creating favorable conditions for market growth. For instance, in November 2020, The Coca-Cola Company launched the first sparkling cold brew coffee in the U.S., called ‘Coca-Cola Energy Plus Coffee’.
Financial Projections
In this part of the sparkling 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 sparkling coffee business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a sparkling coffee products business comes from the sale of the coffee products, as well as other related products such as coffee machines, mugs, and coffee beans. Other possible sources of profit are online sales, wholesale orders, and special events.
Projecting Expenses
In this section, all the regular expenses related to keeping the sparkling coffee products business running will be described. The list of operating expenses includes rent and utilities, employee wages, insurance policies, advertising, promotional materials, packaging, shipping, and others.
Key companies & market share insights
Some of the key companies operating in the sparkling 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 a new sparkling coffee line, which includes a variety of flavors such as caramel, vanilla, and hazelnut.
– In August 2022, JAB Holding Company launched a new line of sparkling coffee beverages under the Jacobs brand.
– In October 2022, Nestle launched the NESCAFÉ Sparkling range of sparkling coffee beverages in the UK.
Some of the prominent players in the sparkling coffee market include:
– Starbucks Corporation
– The J.M. Smucker Company
– Nestle SA
– The Coca-Cola Company
– PepsiCo, Inc.
– JAB Holding Company
– Keurig Dr Pepper, Inc.
– Blue Bottle Coffee
– Red Bull GmbH
– Kinley & Company, LLC.
Global Sparkling 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 sparkling coffee products market based on product type, distribution channel, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Traditional coffee
– Specialty coffee
– Instant coffee
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. 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 major factors driving the growth of the Sparkling Coffee Products Market?
[A]: The sparkling coffee products market is mainly being driven by the increasing demand for convenience and ready-to-drink beverages. Consumers are increasingly opting for the convenience of ready-to-drink beverages, which has resulted in the growth of the sparkling coffee products market. Additionally, the increasing health consciousness among people is driving the demand for healthy sparkling coffee products, such as those containing natural ingredients, organic ingredients, and low-calorie products.
[Q]: Who are the major players in the Sparkling Coffee Products Market?
[A]: The major players in the sparkling coffee products market include Starbucks Corporation, The Coca-Cola Company, Nestlé SA, Caribou Coffee, Peet’s Coffee, Dunkin’ Brands Group, Inc., and Monster Beverage Corporation.
[Q]: What are the major trends in the Sparkling Coffee Products market?
[A]: There is an increasing trend towards the introduction of organic, natural, and low-calorie sparkling coffee products. Additionally, the demand for bottled variants of sparkling coffee products is increasing, as it provides convenience to consumers.
[Q]: What regions are expected to witness the highest growth in terms of sales of Sparkling Coffee Products?
[A]: North America is expected to be the largest market for sparkling coffee products, due to the presence of a large number of coffee shops and cafes, as well as the increasing demand for convenience. Additionally, the increasing health consciousness among people is driving the demand for healthy sparkling coffee products in Europe.
[Q]: What are the key strategies adopted by the major players in the Sparkling Coffee Products market?
[A]: The major players in the Sparkling Coffee Products market have adopted various strategies such as product launches, collaborations and partnerships, and mergers and acquisitions, to strengthen their presence in the market. For instance, in 2020, Starbucks Corporation launched its new line of bottled Frappuccino cold coffee drinks, which are available in six flavors.
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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