Global Coffee Market is an ever flourishing market space, reason being the worldwide popularity of coffee as a beverage. Coffee is consumed in high volume globally thanks to its taste, feel, and caffeine content. Moreover, the rapid urbanization and the demand for the beverages-on-the-go to deal with the modern lifestyles escalate the market on the global platform.
Conversely, factors such as the volatility in the prices and demand & supply gap of coffee beans are expected to pose challenges in the growth of the market, further worrying market players to the core. Nevertheless, factors such as the emergence of organic coffee and various functional beverages based on coffee would support the market growth over the forecast period.
Achieving fair trade certification continues to be a popular trend among producers as well as coffee shoppers. Fairtrade coffee is a big business for grocery retailers as well as to the private label coffee lines. Citing the growing consumers’ demand for transparency in the production and understanding more about the supply chain, the decision to certify the entire private label coffee line as fair trade is a natural next step in the process, which also indicates that shoppers have responded well to the initial offering.
Fairtrade certification also increases the sales of coffee products by nearly 10%. Almost half of all coffee meets some sustainability standard, reflecting consumers’ sentiments about from where their coffee comes and supports fair practices.
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Key players driving the Coffee Market Analysis include Starbucks Corporation (U.S.), Tata Global Beverages Ltd. (India), Nestlé S.A. (Switzerland), Jacobs Douwe Egberts (The Netherlands), The Coca-Cola Company (U.S.), Strauss Group Ltd. (Israel), Unilever PLC (U.K.), The Kraft Heinz Company (U.S.), Tchibo Coffee International Ltd. (U.K.), and The J.M. Smucker Company (U.S.) among others.
Industry Advancements/Related News
March 21, 2019 – Archer Farms, Inc. (the US), one of the larger producer and supplier of coffee beans as well as swine and sheep to hospitals, research facilities, and universities announced that their coffee products, including bags and pods, will be fair trade certified by 2023. In 2016, Archer Farms had introduced an expanded assortment of coffee that featured many bold new farm-to-cup improvements for clients as well as for the environment.
About 20% of Archer Farms coffee is already certified, and sold around the United States Target Corporation (the US), a general merchandise retailer, collecting 6 MN pounds of the private label coffee, annually. Target is teaming up with Fair Trade USA to complete the certification process. The Fair Trade Certified program works to ensure coffee producers are paid fairly for their products and have safe working conditions.
For ease of understanding, the market has been segmented into four key dynamics: –
By Variety: Arabica and Robusta among others.
By Form: Whole and Ground (Instant Coffee Powder, Portioned Coffee,) among others.
By Distribution Channel: Store-based and Non-store-based.
By Regions: North America, Asia Pacific, Europe, and the Rest-of-the-World.
The North American region, heading with the high consumption of Arabica dominates the global coffee market. The region accounts for an attractive market space for coffee manufacturers, worldwide. As a result, these manufacturers are continually bringing up a new flavor of the product, expanding their product portfolio which consecutively leads to increasing the size of the coffee market in the region.
Additionally, these manufacturers are focusing on the promotional activities to create awareness among the consumers related to the new product launch that, as a result, further stimulates the growth of the regional coffee market. Owing to the various innovations in flavor and the quality of the product, the coffee market in the North American region is estimated to garner a value of USD 24,277.8 MN by 2023, registering a whopping 23.88% CAGR throughout the forecast period.
The coffee market in the European region accounts for the second-largest market globally. Europe is also known for the larger producer of coffee in the world which makes it host of coffee for the world. Also, the European government supports the organic production of coffee which in turn escalates the demand in the market.
The Asia Pacific coffee market accounts for a profitable market globally. Being one of the larger producer and consumer of coffee, the APAC region has been witnessing a remarkable growth overall. Under the APAC region, Vietnam is popularly known for the second largest producer of coffee, globally.
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