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The Latte Powder Market size is projected to increase by USD 1,172.57 million and the market size is estimated to grow at a CAGR of 6.1% between 2022 and 2027. The Increasing consumption of coffee globally is driving market growth. The global latte powder market is experiencing significant growth due to the rising global consumption of coffee. Coffee has gained immense popularity worldwide, and its consumption continues to increase steadily. Each day, approximately 2.25 billion cups of coffee are consumed globally, with one-third of the world's population being coffee consumers. This makes coffee the second most traded commodity worldwide. Changing consumer lifestyles and preferences play a vital role in driving increased coffee consumption.
As people lead busier lives, they seek quick and convenient ways to enjoy their favourite coffee beverages and satisfy their caffeine cravings. Latte powder offers a convenient solution by enabling consumers to prepare lattes easily at home or work without the need for expensive espresso machines or specialized barista skills. This convenience factor has fueled the demand for latte powder as a time-saving and accessible option for coffee enthusiasts. The global trend of urbanization has also contributed to the growing coffee culture and the consumption of coffee-based beverages like lattes. As more individuals move to urban areas, they are exposed to a wider range of coffee choices and coffee shops. This exposure, coupled with the influence of social media and the desire to be part of coffee culture, has driven the consumption of coffee, including lattes. Thus, the increasing global consumption of coffee acts as a significant driver for the growth of the global latte powder market in the forecast period.
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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 latte powder 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.
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 emphasize 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 latte powder market during the forecast period.
Possible health implications of caffeine will be a major challenge for the global latte powder market. The global latte powder 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 latte powder market in the coming years.
Sachets have gained popularity as a preferred packaging option for latte powder in the global market. These single-serving packets offer convenience and portability to consumers, making them suitable for on-the-go consumption and those who prefer controlled portions. Sachets are designed to be user-friendly, requiring consumers to simply tear open the packet, mix the contents with hot water or milk, and enjoy their latte. They are widely used in various settings such as hotels, offices, and travel, providing a hassle-free solution for quick latte preparation. Additionally, sachets serve as a means of retail sales, allowing brands to introduce new flavors or varieties to customers through sample-sized packaging. Sachets ensure freshness and convenience by providing precisely measured portions, maintaining consistent taste and quality while protecting the latte powder from air and moisture. Starbucks VIA is a notable vendor in the market that offers latte powder in sachets, enabling consumers to enjoy the renowned Starbucks latte experience in a convenient and portable format. The increasing demand for latte powder in sachets is expected to drive the growth of this packaging segment in the global latte powder market throughout the forecast period.
The market share growth by the offline segment will be significant during the forecast period. In 2022, the offline segment held the largest market share in the global latte powder market. Supermarkets and grocery stores are commonly utilized offline distribution channels for latte powder. These establishments offer a diverse range of food and beverage products, including various brands and flavors of latte powder.
The Offline segment was valued at USD 1,860.25 Million in 2017 and continued to grow until 2021
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Consumers can physically browse through the aisles, compare options, and make their purchases in person. Supermarkets and grocery stores typically stock latte powder in different packaging sizes to cater to different consumer needs. Specialty food stores also play a significant role in the offline distribution of latte powder.
These stores specialize in providing unique and high-quality food and beverage products, often featuring a curated selection of latte powder brands, including premium or gourmet options. Knowledgeable staff members in specialty food stores can offer guidance and recommendations based on consumer preferences. Convenience stores are another offline distribution channel that caters to consumers seeking convenient, on-the-go purchases. These stores, often operating 24/7, carry single-serving sachets or smaller packaging options suitable for immediate consumption. Offline channels provide immediate access to latte powder products, allowing consumers to physically evaluate different brands, flavors, and packaging options. They enable consumers to read product labels, inspect the packaging, and make informed decisions. Additionally, offline stores provide the opportunity for consumers to interact with store staff, who can offer assistance and recommendations based on individual preferences. Overall, the numerous advantages of offline distribution channels are expected to drive the growth of the offline segment in the global latte powder market during the forecast period.
Europe is estimated to contribute 43% to the growth of the global market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Europe's latte powder market has witnessed substantial growth in recent years due to the convenience it offers the rising coffee consumption, and the increasing popularity of specialty coffee beverages. Latte powder provides a convenient alternative for preparing lattes quickly and easily, both at home and in cafes, eliminating the need for expensive espresso machines. Prominent players in the food and beverage industry have introduced a wide range of latte powder products in the European market. These products come in diverse flavors, including vanilla, caramel, chocolate, and matcha, to cater to the diverse tastes of European consumers. Some companies have also responded to the growing demand for healthier and more sustainable options by offering organic or plant-based latte powders. These factors are expected to contribute to the continued growth of the latte powder market in Europe throughout the forecast period.
In 2020, COVID-19 severely affected the growth of the latte powder market in Europe. The governments in the region imposed stringent lockdowns to limit the spread of infection, primally in the first half of 2020. However, the lockdown restrictions were lifted in the second half of 2020 with the help of rapid vaccination drives across Europe. This led to the resumption of operations in the manufacturing industries and offline retail outlets in the first half of 2021, which helped the regional market focus to recover to some extent in the first half of 2021. Additionally, the e-commerce industry in Europe is expected to grow significantly during the forecast period. This will further drive the growth of the latte powder market in Europe during the forecast period. Furthermore, the invasion of Ukraine by Russia has compelled various vendors operating in Russia to suspend their operations in the country. All these factors negatively impacted the growth of the latte powder market in Russia in 2022. Thus, the overall latte powder market in Europe is expected to witness moderate growth 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 latte powder market report also includes detailed analyses of the competitive landscape of the market and information about 15 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 latte powder market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Latte Powder Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.1% |
Market growth 2023-2027 |
$ 1172.57 million |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
5.26 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 43% |
Key countries |
US, China, Italy, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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 inducers and obstacles, Fast-growing and slow-growing segment analysis, 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Packaging
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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