Enjoy complimentary customisation on priority with our Enterprise License!
The latte powder market size is projected to increase by USD 1.26 billion, at a CAGR of 6.22% between 2023 and 2028. The market is experiencing significant growth due to the increasing consumption of coffee globally. With the growing popularity of coffee culture, there is a rising demand for convenient and easy-to-prepare espresso machines for preparing coffee bean beverages, fueling market growth. Additionally, the trend towards artisanal and craft latte powders is gaining traction through social media, as consumers seek unique and authentic flavors. However, the possible health implications of caffeine, a key ingredient in latte powders, may pose a challenge to market growth. Consumers are becoming increasingly health-conscious and are seeking alternatives to traditional coffee and latte beverages. Market players are responding to this trend by introducing caffeine-free and low-caffeine latte powders to cater to this demand. Overall, the market is expected to witness steady growth in the coming years, driven by these trends and challenges.
To get additional information about the market, Request Free Sample
The market is witnessing significant growth due to the increasing popularity of aromatic beverages, particularly lattes, as a convenient and tasty option for consumers. Beverage mixes, which include latte powders, have gained traction as they offer the convenience of preparing a latte at home using just hot water. These mixes often contain milk powder, creaming agents, and ground spices such as cloves, cinnamon, cardamom, ginger, and black pepper, adding to the latte's unique flavor profile. The market is also driven by the health-conscious trend, with consumers opting for vegan, sugar-free, and organic options. The anti-inflammatory qualities of these spices further add to the market's growth. The market is expanding beyond traditional coffee consumption, with readymade products gaining popularity for mobile consumption and lifestyle changes. Flavor innovations and sustainable packaging are key product strategies for market players. The market also caters to the infant formula, health consciousness, and dietary supplements industries, as well as the bakery sector. Overall, the global market is poised for steady growth in the coming years.
Increasing consumption of coffee globally is notably driving market growth. The market is witnessing significant growth due to the rising consumption of coffee and the increasing demand for convenient and quick beverage solutions. Coffee is the second most traded commodity worldwide, with over one-third of the global population consuming it regularly.
Moreover, this trend is driven by changing lifestyles and consumer preferences, as people seek convenient ways to enjoy their favorite coffee beverages despite busy schedules. Additionally, there is a demographic shift towards coffee consumption, particularly among younger generations. Latte powders offer a range of benefits, including the ability to be easily prepared with hot water and milk powder, creaming agents, and ground spices such as cloves, cinnamon, cardamom, ginger, and black pepper. Thus, such factors are driving the growth of the market during the forecast period.
The growing demand for artisanal and craft latte powders is expected to have a positive impact on the market in the coming years. A rising trend in the global market is the increasing demand for artisanal and craft latte powders, targeting consumers seeking a more specialized and elevated coffee experience. These latte powders distinguish themselves from mass-produced options by offering unique flavors, premium ingredients, and a focus on quality craftsmanship. Artisanal and craft latte powders stand out by carefully sourcing ingredients and employing traditional production methods. Manufacturers prioritize selecting high-quality coffee beans and collaborate with specialty suppliers or coffee growers to obtain beans with distinct characteristics, resulting in refined and nuanced flavors.
Moreover, the production process often involves small-batch or handcrafted techniques, allowing for greater flavor control and freshness. These powders may incorporate natural flavors, spices, or sweeteners to create exceptional and complex flavor combinations. Furthermore, artisanal and craft latte powders prioritize the use of high-quality and natural ingredients, appealing to sustainability-conscious consumers. They are often free from artificial additives, preservatives, and unnecessary fillers, catering to health-conscious preferences. The increasing demand for artisanal and craft latte powders is projected to drive the growth of the global market during the forecast period.
Possible health implications of caffeine will be a major challenge for the global market. The global market may face challenges due to the negative health concerns associated with caffeine consumption during the forecast period. Excessive intake of caffeine can lead to increased anxiety and disrupt sleep patterns, resulting in insomnia. It can also raise blood sugar levels, making it difficult for individuals with type-2 diabetes to manage insulin levels effectively. Caffeine inhibits the absorption of magnesium, an essential mineral for maintaining regular and healthy bowel movements, thereby slowing down digestion.
Furthermore, caffeine consumption can cause dehydration, hindering nutrient absorption and waste elimination by dehydrated cells. Excessive caffeine intake stimulates the nervous system and may lead to irritability, anxiety, agitation, headaches, palpitations, and dizziness. These potential side effects of caffeine can impact the sales of coffee products, including latte powder, presenting a significant challenge to the growth of the global market in the coming years. Hence, such factors are hindering the market during the forecast period.
The market share growth by the sachets segment will be significant during the forecast period. The market encompasses a diverse range of beverage mixes, including ground spices, milk powder, and creaming agents, used to create aromatic lattes. These lattes can be prepared using hot water and a variety of tea types, such as black tea, or plant-based milk for consumer preferences catering to vegan and lactose-intolerant individuals.
The sachets segment was valued at USD 1.44 billion in 2018 and continued to grow until 2022.
For a detailed summary of the market segments Request for Sample Report
Key flavorings like cloves, cinnamon, cardamom, ginger, black pepper, and even turmeric and vanilla, add distinctive alternatives to traditional lattes. Premium beverages, popular in specialty cafes and hotels are increasingly incorporating these spices for flavor innovation. Consumer trends lean towards health-conscious options, with sugar-free and organic ingredients gaining popularity. Hence, such factors are fuelling the growth of this segment during the forecast period.
Europe is estimated to contribute 49% to the growth of the global market during the forecast period.
Get a glance at the market share of various regions View PDF Sample
Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The global market is witnessing significant growth due to the increasing health consciousness among consumers. This trend is driving the demand for latte powders in various applications, including infant formula, health supplements, and fitness nutrition. In the bakery and confectionery industries, latte powders are used as ingredients in cakes, pastries, and beverages to enhance their taste and texture. Dairy technology advancements, such as spray drying and membrane filtration, are used to produce instant milk powders, protein-enriched products, and specialty milk powders. Hence, such factors are driving the market in Europe during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 19 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is witnessing significant growth due to the increasing popularity of aromatic beverages, especially beverage mixes that include ground spices such as cloves, cinnamon, cardamom, ginger, and black pepper. These spices, when added to black tea or plant-based milk, create distinctive alternatives to traditional coffee-based lattes. Consumer preferences for vegan options and sugar-free choices are driving the market's growth. Milk powders and creaming agents are being replaced with organic plant-based milk and natural sweeteners. Premium beverages, including latte powders, are gaining popularity in specialty cafés and e-commerce platforms. Moreover, the health-conscious trend is also influencing the market, with many consumers seeking anti-inflammatory qualities in their beverages. Turmeric and ginger are increasingly being used in latte powders for their health benefits. Flavor innovations, such as vanilla and fruit-infused latte powders, are also gaining traction. Customization is a key trend in the market, with consumers looking for personalized options.
Further, ready-made products, pre-mixed concentrates, and mobile consumption are also driving the market's growth. Sustainable packaging and eco-friendly product strategies are essential for companies looking to stay competitive. Overall, the market is expected to continue its growth trajectory, driven by lifestyle changes and consumer preferences for distinctive, flavorful, and healthy beverage options. The market is evolving with an emphasis on instant milk powder and organic options to meet consumer demand. Clean-label products are becoming increasingly popular, aligning with the trend toward personalization in food choices. Nutritional benefits are a key focus, particularly in infant nutrition, where the inclusion of lactose intolerance solutions and adherence to regulatory standards play a critical role. Market research highlights the growing preference for products that combine convenience with health benefits. As the market progresses, market growth analysis and market forecast will be crucial in understanding future trends and opportunities in this sector.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
156 |
|
Base year |
2023 |
|
Historic period |
2018 - 2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 6.22% |
|
Market Growth 2024-2028 |
USD 1.26 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
5.53 |
|
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
|
Performing market contribution |
Europe at 49% |
|
Key countries |
US, Italy, China, Germany, and France |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Caffe Nero Group Ltd, Coconut Cloud CO, David Rio, ITO EN Ltd., jacobs DOUWE EGBERTS B.V., Joya Inc., Kerry Group Plc, Lakanto, Navitas LLC, Neel Beverages Pvt. Ltd. , Nestle SA, Pukka Herbs Ltd., Puro Gusto Ltd., Starbucks Corp., Sweet Revolution Ltd., Tavalon, Tea Forte, TSUJIRI, and Yen Chuan International Co. Ltd. |
|
Market dynamics |
Parent market analysis, market growth analysis, market research and growth, market forecasting, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Packaging
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Get the report (PDF) sent to your email within minutes.
Complimentary full Excel data with your report purchase.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
