Coffee is the most popular beverage across the globe and a source of caffeine that many consumers have included into their daily routines. Millennials in particular have been major contributors to the global coffee market and are the most likely age group to opt for organically produced and natural coffee. The global coffee market is an industry that will see considerable growth in the coming years.
According to a recent report by Market Research Future, the global coffee market is anticipated to be worth $102,279.2 Mn by 2023, registering a CAGR of 4.32% during the forecast period 2018-2023.
Coffee is segmented by both form (ground or whole bean) and variety.
Ground coffee held the largest share of the market in 2017 and is expected to continue to hold the lead during the forecast period. However, whole bean coffee is still going to experience a significant market growth and will register a CAGR of 4.12%.
Of variety, Arabica coffee is the most highly produced, followed by Robusta.
In terms of regions, North America is expected to register the highest CAGR during the forecast period at 23.88% and will generate around $24,277 million for the coffee market.
Meanwhile, Brazil has been, and will continue to be, the world’s largest coffee producer and exporter. The success of the coffee plantations in Brazil can be attributed to the favorable climate conditions.
So why is the global coffee market anticipated to perform so well during the forecast period?
A number of factors have contributed to this market growth, including:
Innovations in the global coffee industry have prompted an increase in the market. In recent years, single-serve coffee technology has played a big part in the success of the market.
Coffee pods, for example, are containers that hold a single serving of ground coffee ready to go. There has also been the introduction of reusable coffee pods into the market, which allows consumers to use a single pod multiple times.
These coffee pods have reduced the steps needed to brew a pot of coffee and has also reduced the possibility of wasting additional coffee.
Coffee is one of the most popular products to post on social media. Since 2015, photogenic coffee posts on Instagram have risen 4,500%. Marketing coffee online has never been easier and advancements in social media have allowed companies to advertise toward specific consumers based on preference.
In years past, coffee has had a bit of a stigma attached to it as most people believed it was generally unhealthy.
However, in recent years, consumers have become increasingly aware of the health benefits associated with coffee. Drinking coffee regularly can help prevent diabetes, parkinson’s disease, liver disease and can help maintain a generally healthy heart.
Increased Disposable Income
An increase in disposable income among households worldwide has affected the global coffee market. Consumers are more likely to purchase coffee more regularly and socially as a personal expense.