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Global Coffee Market - Growth, Trends and Forecasts (2020 - 2025)

Global Coffee Market - Growth, Trends and Forecasts (2020 - 2025)

  • September 2020
  • 166 pages
  • ID: 5976753
  • Format: PDF
  • Mordor Intelligence LLP
Up to $1125 off Until Nov 30th 2020

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The global coffee market is projected to grow at a CAGR of 4.22% during the forecast period (2020-2025).

- The convenient forms of coffee, like coffee pods and capsules and RTD coffee are becoming popular among masses (especially in North America and Western Europe) to prepare good coffee in the comfort of home, in less time. For instance: as per the survey conducted by the National Coffee Association in the United States, more than 70% of the consumers prefer at-home coffee preparation.
- The market is driven by multiple factors, few being increasing demand for certified coffee products, acceptance of single-serve coffee brew systems by the consumers and constant innovation lead by top players in the coffee market. In developed economies, some consumers are expected to switch from instant coffee to more premium options for reasons of quality and flavor. Instant coffee was once considered a high-end product, but began to lose its base of younger consumers, which is changing the market dynamics.
- Depending on coffee production, countries, like Brazil and Vietnam accounts for the highest production of coffee, in terms of volume, owing to suitable coffee growing conditions. With the production of 3.6 billion metric ton of green coffee, Brazil is the largest producer globally, followed by Vietnam, Colombia, Indonesia, and Ethiopia.

Key Market Trends
Surge in Demand For Certified Coffee Products

From past few years it has been noticed that consumers are getting more aware regarding the manufacturing of the product they are buying and from where their purchases are coming from. This is applicable especially in the case of supply chain of food and beverages, and coffee is no different. Therefore, consumers are readily looking for certified coffee products to be ensured about credibility of their coffee purchases. Certified coffee is an assurance to the consumer about the reliability of the product, as coffee is becoming an increasingly common target for food counterfeiters. UTZ Certification - It is the largest certification program in coffee and cocoa. UTZ aims to make the sustainable farming a norm, by encouraging farmers to implement eco-friendly agricultural practices and manage their farms profitably with respect to coffee consumers and nature. A number of coffee certification organizations are engaged in keeping a check upon the production procedures and supply chain of coffee. Some of them are as follows:Fair Trade Certification, Rainforest Alliance Certification, UTZ Certification

Europe Holds a Significant Share in the Market

According to a survey conducted by the Institute for Scientific Information on Coffee (ISIC), 68% of the respondents stated that they often consumed coffee, while working. This trend is leading to a huge demand ffor coffee in the European countries, like Germany, Italy, Spain, United Kingdom and others as consumers are becoming increasingly conscious about the quality of their coffee. Moreover, advancements in technology (like table-top machines andtraceability tools) arecreating the pathway for bean-to-cup solutions. The German coffee pods and capsules market is highly dominated by Nestle’s Nespresso, with its wide product reach across the country. Keurig green mountain merged with JAB holding with an aim to expand its presence. This is expected to hinder the growth of nestle SA in Germany. As per a report published by nestle Nespresso SA, in Germany, growing sense of coffee connoisseurship was most noticeable among younger generations. About 24.1% of 18-29-year-olds want to try different types of coffees, coffee recipes, and want diversity in the coffee industry

Competitive Landscape
Some of the prominent players in the market include Nestle, JM Smucker Company, The Kraft Heinz Company, and Starbucks Coffee Company. The major strategies adopted by the companies in the market are new product development, agreements/partnerships, expansions, mergers, and acquisitions. The merger or acquisition of companies, in order to utilize the respective key strengths, such as intense R&D activities, distribution network, and the development of new products, to enhance the portfolio and capture the untapped markets, are also driving the coffee market. Due to the high growth potential of developing regions, most companies are trying to establish themselves in these regions by expanding their production lines, to serve the increasing need for coffee, globally. For instance, in 2018, Nestlé inaugurated a new Nescafé Dolce Gusto production in Vietnam. The site is expected toprocess approximately 2,500 metric ton of coffee per year (equivalent to 130 million capsules), using high-quality coffee beans from Vietnam.s.

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