Authored By: Sarah
04 Mar 2025

Latest News- Coffee Market: Arabica coffee is expected to lead the Product segment during 2025-2029

The Coffee Market is being driven by Rising coffee consumption

The Coffee Market is expected to grow at a CAGR of 6.9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 37.7 billion. The global coffee market is experiencing a notable trend towards specialty coffee and premiumization. Consumers are increasingly seeking high-quality, single-origin, and artisanal coffee experiences, departing from mass-produced commercial blends. Specialty coffee, defined by unique flavor profiles, sustainable sourcing, and masterful craftsmanship, is gaining popularity among both coffee aficionados and casual consumers. This trend is further fueled by the third-wave coffee movement, which regards coffee as an artisanal product rather than a common commodity. Premiumization is reflected in the escalating demand for specialty-grade beans, organic coffee, and ethically sourced products. Consumers are prepared to pay a premium for coffee that is ethically cultivated, fair-trade certified, or shade-grown, indicative of a broader industry shift towards sustainability and transparency. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

  • Product
    • Arabica coffee
    • Robusta coffee
    • Liberica coffee
    • Excelsa coffee
  • Application
    • Food and beverage
    • Pharmaceuticals
    • Cosmetic
  • Geography
    • Europe
    • North America
      • Canada
      • US
    • APAC
      • Japan
      • South Korea
      • Vietnam
    • Middle East and Africa
    • South America
      • Brazil

 

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

  • Rising coffee consumption
  • Expanding coffee culture and cafe chains
  • Rising demand for ready-to-drink coffee

However, the market also witnesses some limitations, which are as follows:

  • Climate change and supply chain disruptions
  • Competition from alternative beverages
  • Regulatory and trade barriers

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Market Scope in Coffee Market Research Report

Market Scope

Report Coverage

Details

Page number

214

Base year

2024

Historic period

2019-2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 6.9%

Market growth 2025-2029

USD 37.7 billion

Market structure

market_structure.ucfirst

YoY growth 2024-2025(%)

6.2

Key countries

US, Russia, Brazil, Japan, Ethiopia, Indonesia, Canada, Philippines, Vietnam, and South Korea

Competitive landscape

Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

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Find out which segment is leading the market by accessing the free PDF report

Research Analysis Overview

In the dynamic coffee market, nitro coffee and tea compete for consumers' preference, while roasters focus on enhancing flavor through freshly roasted beans. Coffee harvest, affected by issues like coffee rust, influences production and prices. Age distribution of consumers favors the aging population, leading to increased demand for milder gourmet coffee and sustainable options. Coffee culture thrives with various consumption patterns, including herbal infusions and capsules. Coffee substitutes and retailers cater to health-conscious consumers concerned about negative health effects, especially regarding brain health, diabetes, and heart health. Starbucks Corporation, a business associate, dominates the Western coffee scene with high-end shops offering certified coffee and single-origin beans. Sustainability is a growing concern in coffee production and consumption, influencing the industry's future.

Market Research Overview

The coffee market encompasses entities engaged in the processing and packaging of coffee beans to ensure food safety and extend shelf life. According to Technavio, the global coffee market size is determined by the consolidated revenue of the participating vendors. This market scope excludes providers of coffee processing equipment and those producing packaged alcoholic and non-alcoholic beverages, excluding mineral waters. Key growth drivers for the global coffee market include: 1. Health-conscious consumers' preference for minimally processed coffee: Minimally processed coffee, such as barley coffee and cold brew, retains more nutrients, including potassium, dietary fiber, folate, vitamin A, and vitamin C, compared to heavily processed coffee. 2. Diversification in coffee varieties, brewing methods, and product offerings: Innovation in coffee bean varieties, cold brew coffee, craft coffee, and ready-to-drink coffee caters to evolving consumer preferences and trends. 3. Integration of technology in coffee production and shop design: Advanced technology in coffee roasting, brewing, and shop design enhances the overall coffee experience for consumers. 4. Stringent regulations and certifications: Compliance with coffee industry regulations and certifications, such as Fair Trade and USDA Organic, ensures a sustainable and ethical supply chain. 5. Strategic marketing and branding initiatives: Effective marketing strategies and branding efforts contribute to the growth of the coffee market by expanding consumer reach and loyalty.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.


Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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