PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1256572
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1256572
The market is likely to grow owing to several developments by major coffee houses that utilize these coffee beans along with the growing consumption and production of coffee. According to the ICO (International Coffee Organisation), the exports of arabica coffee grew by 1.4% in June 2022 as compared to June 2021. Further, the organization also reported that the global exports of Robusta coffee in the same month went up by 1% as compared to their exports in June 2021. Adding to that, the increasing trend of coffee consumption holds lucrative opportunities for many coffee companies that are a consumer of the coffee beans market. Millennials, who are readily adopting a busy lifestyle are interested in consuming convenience food and beverages such as ready-to-drink coffee including pre-made coffee which is easy to carry along. Also, with the growing trend, it is easier to find coffee machines in gas stations, in addition to ready-to-drink coffee product variants in convenience stores for the customers on move.
The increasing trend of coffee consumption among the younger generation is projected to surge the market demand with the rise in disposable income in the developing regions of the world and the high disposable income of the citizens of the developed regions. This has further boosted the demand for coffee and evolving coffee-drinking customers force the coffee makers to bring out innovations in coffee products resulting in a variety of coffee drinks ranging from iced beverages to coffee shakes and classic coffee options. Further, growing consumption by people is expected to drive the demand for these coffee beans by cafes and instant coffee makers, which is expected to boost the market. According to the International Coffee Organization, global coffee consumption was estimated to show a 3.3% annual growth in the 2021-22 coffee year, which is a testament to the growing amount of coffee that people have been consuming lately.
Based on type, the coffee beans market is segmented into Robusta and Arabica. The Robusta coffee bean is expected to grow owing to the increasing disposable income among the middle-income population and the high-income population, which is allowing them to spend more on specialty and premium coffee. In addition, the ever-growing popularity of select roasts, and specialty cafes, among the younger generation population is further contributing to its major share. Diabetes in developing nations is at its peak, in this regard, the consumption of Robusta coffee beans can imperatively support reducing the risk of diabetes type 2. Many researchers have found a relationship between low sensitivity to insulin as a result of higher coffee consumption. It has been shown that regular high caffeine consumption can impair insulin sensitivity in people suffering from type 2 diabetes. Thus, with increasing diabetes cases, the demand for coffee beans is expected to grow.
The offline distributional channel is estimated to hold a considerable market share over the forecast period owing to some individuals still prefer conventional and physical shopping methods in case, they are not technologically adept and trust issues regarding the products that are being sold through e-retail channels and e-commerce channels. The rising number of cafes and offline coffee shops has led to a significant demand for coffee beans to be supplied to these stores directly from coffee bean farms. The demand for coffee has positively served the coffee bean market through offline distribution. This is further signified by the rising number of offline company-operated and licensed stores of key cafe chains like Starbucks. It is also symbolized by the rising revenue of these chains. For instance, according to their annual reports, Starbucks generated total revenue of US$30.23 billion in 2022 through their offline stores seeing an increase of almost 11% as compared to the total revenue of US$ 27.29 billion in 2021 through offline stores.
Based on geography, the coffee beans market is divided into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. In the European region, the market is poised to grow on account of the rising consumption of coffee coupled with growing trends of specialty cafes in numerous countries. Furthermore, the growing coffee culture in counties such as Ireland, Hungary, and the Czech Republic also bolsters the market growth in the region in the coming years. North America is another prominent regional market for coffee bean producers owing to the presence of specialty shops coupled with the rising demand across food and beverage manufacturers to make coffee-based products. Further, coffee consumption is changing in the MEA region, especially in urban areas, and with the growing middle-class population, the market is expected to grow significantly during the forecast period. The market growth in Asia Pacific is majorly being driven by the increasing middle-class population across many countries, the increasing influence of western culture on lifestyle, and changing tastes of people.
Report Metric | Details |
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Market Size Value in 2021: | US$24,874.457 million |
Market Size Value in 2028: | US$33,863.990 million |
Growth Rate: | CAGR of 4.51% from 2021 to 2028 |
Base Year: | 2021 |
Forecast Period: | 2023-2028 |
Forecast Unit (Value): | USD Million |
Segments Covered: | Type, End-User, Distribution Channel, And Geography |
Regions Covered: | North America, South America, Europe, Middle East and Africa, Asia Pacific |
Companies Covered: | Backyard Beans Coffee Company, Caribou Coffee Company, Coffee Bean Direct LLC, International Coffee & Tea, LLC, La Colombe Coffee Roasters, Gold Coffee Company, Farmer Bros. Co., illycaffe S.p.A., LUIGI LAVAZZA SPA, and more. |
Customization Scope: | Free report customization with purchase |