The Coffee Market is Estimated to Witness High Growth Owing to Opportunity in Instant Coffee Consumption

Coffee is one of the widely consumed beverages globally. It contains antioxidants and caffeine that provide energy and helps in boosting mental alertness. The coffee market comprises coffee beans, instant coffee, packaged coffee powder, brewed coffee and different flavors. Coffee machines like coffee makers, coffee roasters and coffee grinders are used for brewing purposes.

The global coffee market is estimated to be valued at US$ 132.99 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity in the growth of instant coffee consumption is estimated to drive the coffee market.Instant coffee is seeing rising demand globally owing to the fast-paced lifestyle of consumers and convenience offered. It can be easily prepared within minutes without any brewing process. With increasing disposable incomes, urbanization and busy schedules, consumers are opting for instant coffee variants over regular brewed coffee. The on-the-go consumption trend of instant coffee powder mixed with milk or water is growing rapidly. The market players are innovating various product formats like sachets, jars and pods to cater to this growing demand. They are introducing different flavors and better taste profiles to appeal to more customers. Thus, the instant coffee segment is expected to witness high growth in the forecast period.

Porter's Analysis for Coffee Market
Threat of new entrants: The threat of new entrants is moderate as the coffee market is fragmented with presence of many regional and local players. However, establishing brand loyalty and distribution channels poses challenges for new players.
Bargaining power of buyers: The bargaining power of buyers is high as coffee is a commodity and buyers can easily switch between brands based on price and quality. Moreover, private label brands provide additional competition.
Bargaining power of suppliers: The bargaining power of suppliers is also high due to limited availability of quality coffee beans globally. Suppliers can influence prices depending on supply conditions.
Threat of new substitutes: The threat of substitutes is low as coffee is unique beverage with no close substitutes. However, tea and other beverages can take away some market share based on consumer preferences.
Competitive rivalry: The competitive rivalry is high among existing players to increase their market share through product differentiation, brand promotion, and competitive pricing.

SWOT Analysis for Coffee Market
Strengths: Wide consumption worldwide; varied health benefits associated with coffee; robust supply chain for green coffee beans.
Weaknesses: Volatility in raw material prices impacts margins; competition from private labels and substitutes; capital intensive roasting processes.
Opportunities: Innovation in ready-to-drink formats; expansion in emerging economies; growth of specialty coffee shops.
Threats: Changes in weather patterns impact crop yields; health concerns around caffeine; stringent regulations on packaging and marketing.

Key Takeaways
The Global Coffee Market Share is expected to witness high growth during the forecast period of 2023-2030. The global coffee market is estimated to be valued at US$ 132.99 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030.

Regional analysis: The Asia Pacific region is expected to dominate the global coffee market led by countries like India and China. Rapid urbanization, rising disposable incomes, and youth population are driving the demand for coffee in the region. Countries like Vietnam and Indonesia are also emerging as major producers and exporters of coffee beans in the global market.

Key players: Key players operating in the coffee market are Bristol-Myers Squibb Company, Novartis AG, Merck & Co., Inc., Genentech Inc., F. Hoffmann-La Roche AG., Amgen Inc., AstraZeneca, Daiichi Sankyo Company, Limited., AB Sciences., AgonOX, Inc., Eisai Co., Ltd, GlaxoSmithKline, plc., Pfizer, Inc., and Vical, Inc. These players are focusing on new product launches, mergers & acquisitions and expanding to untapped markets to gain competitive advantage.