Coffee is one of the most popular beverages consumed worldwide. It contains caffeine that provides an energy boost along with other health benefits such as reduced risk of type 2 diabetes, Parkinson's disease, liver cancer etc. Coffee beans are usually roasted before being brewed to extract the flavor. Common coffee preparation methods include drip brewing, French press, espresso etc. Premium or specialty coffees are gaining popularity with niche products like cold brew coffee and nitro brew coffee entering the market.

The global coffee market is estimated to be valued at US$132.99 Mn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increased consumption of coffee among millennials is one of the key drivers propelling the growth of global coffee market. Millennials prefer unique coffee flavors and specialty coffee drinks. They are willing to pay premium prices for innovative coffee experiences. With growing health consciousness, demand for organic and low-acid coffee varieties is also rising. Moreover, the growth of coffee shop culture supported by caffeine-driven working styles has boosted café sales globally. Advent of mobile ordering and rewards programs by coffee shop chains are further encouraging millennial spending in coffee retail outlets. Rising disposable incomes in developing countries also presents new market opportunities. However, price volatility of coffee beans due to changing weather conditions and other factors may negatively impact the profit margins of coffee producers.

SWOT Analysis

Strength: The coffee market has been gaining significant traction among consumers across regions. The attractive health benefits associated with consumption of coffee such as reduced risk of type 2 diabetes, Parkinson's disease, and liver cancer have boosted its demand. Moreover, innovations in product offerings such as ready-to-drink coffee, coffee pods, instant coffee, and flavored coffee have expanded the target segments for coffee producers.

Weakness: Coffee prices are highly volatile and depend on various factors such as weather conditions, political instability in producing countries. Consequently, fluctuations in coffee prices negatively impact the profit margins of producers. Moreover, the availability of substitute drinks poses competition to the coffee market.

Opportunity: The growing café culture and increasing social media influence are expected to drive the coffee market, especially single-serve coffee products. Furthermore, the rising number of young adults and working population who prefer quick and convenient food and beverages offer potential growth prospects. Expanding distribution channels through online retailing will also support the market growth.

Threats: Stringent government regulations regarding cultivation of coffee plants and marketing of coffee products are major challenges for players. Additionally, uncertainties due to the ongoing COVID-19 pandemic have disrupted export-import and supply chain activities.

Key Takeaways

The Global Coffee Market Share is expected to witness high growth. The market size is projected to reach US$ 132.99 Mn by 2024, expanding at a CAGR of 11% during the forecast period of 2023 to 2030.

Regional analysis indicates that North America dominates currently with the largest share owing to heavy consumption of coffee. Europe is another major market driven by growing café culture. Meanwhile, Asia Pacific is expected to showcase the fastest growth due to increasing Western influence and rising disposable income in developing nations.

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 companies are focusing on innovations and expansion of product portfolio targeting health-conscious consumers.

For more insights, Read- https://www.ukwebwire.com/coffee-market-size-and-share/

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