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The roast and ground coffee market size is forecast to increase by USD 27.94 billion at a CAGR of 6.51% between 2023 and 2028.
The European market is being driven by the emergence of new coffee establishments established by companies within the region. Furthermore, the increasing expenditure of households on food and beverages in Europe, combined with product introductions, will significantly bolster market expansion. Ajinomoto Co. Inc. provides roast and ground coffee like Birdy 3in1 Robusta, a blend of roasted coffee aroma and concentrated coffee beans, catering to the diverse tastes of consumers in the region.
The market shows an accelerated CAGR during the forecast period.
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A growing number of cafes worldwide is notably driving the market. The culture of socializing at cafes is gaining traction among urban youth. In addition, the increased influx of people to urban areas and the substantial increase in the number of employees in service industries have necessitated an increase in the number of cafes and service outlets, which increased the demand for coffee products such as roast and ground coffee.
Moreover, varied tastes and preferences for different types of fresh coffee have further led to the emergence of coffee shops, specialty coffee shops, and quick-service restaurants. Leading cafe chains such as Starbucks, Costa Coffee, and Barista are opening their outlets in emerging economies. For example, in January 2024, Starbucks confirmed its commitment to operate 1,000 stores in India by 2028. Furthermore, the growing popularity of malls and shopping centers has also led many new players to invest substantially in the distribution of coffee through these centers to increase their sales. Hence, such factors are driving the market during the forecast period.
Rising demand for organic roast and ground coffee is an emerging trend in the market. Several coffee manufacturers have started capitalizing on consumers' growing desire for organic beverages that are environmentally friendly. In addition, organic beverage products, being free from chemicals, pesticides, and hormones, are safer and nutritionally superior to their non-organic counterparts. Furthermore, the increasing awareness about the health benefits of natural and organic caffeine and the harmful effects of chemicals and pesticides in normal coffee has increased the demand for organic coffee.
Moreover, coffee producers have geared up to cater to the demand for organic coffee. In addition, coffee shops and cafe chains also have an extensive range of organic caffeine on their menus. Furthermore, although organic caffeine is expensive compared with conventional caffeine, growth in the sales of organic caffeine far outpaces that of conventional coffee. Hence, such factors are driving the market during the forecast period.
Threat from tea and other beverages is a major challenge hindering the market. even though coffee is the most preferred hot beverage worldwide, tea has emerged as a major substitute due to its numerous health benefits. In addition, tea is believed to relieve stress, improve heart health, and prevent cancer and Alzheimer's disease. Therefore, many health-conscious consumers prefer tea to caffeine.
Moreover, premium tea offerings and aggressive marketing efforts have resulted in an increase in global tea consumption. In addition, the consumption of green tea has been growing at a rapid pace across the globe due to the increasing awareness among consumers about the health-promoting benefits of consuming it. Furthermore, the consumption of green tea is also beneficial in improving the functioning of endothelial cells and preventing the clogging of arteries. Hence, such factors are hindering the market during the forecast period.
The improving lifestyles leverages will fuel the coffee beans segment which in turn drive the market. Coffee beans are manufactured from the coffee plant. In addition, coffee plants have bunches of coffee berries, which form the basis of caffeine beans. Moreover, some of the different types of caffeine beans include Arabica, robusta, and others. Arabica coffee beans are one of the most popular types of caffeine beans. In addition, Latin America, specifically Brazil, is the largest producer of Arabica coffee. Furthermore, due to its sweet flavor and less bitterness, it is widely used in various beverages in restaurants and cafes. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
The market encompasses a wide range of aspects, starting from the consumption of coffee itself, which is a daily ritual for many individuals worldwide. Apart from its rich aroma and flavor, coffee offers several health benefits, making it a popular choice among consumers seeking a boost of energy and alertness. Coffee shops play a crucial role in providing on-the-spot brewing services, catering to the immediate caffeine needs of consumers looking for freshly brewed beverages. These retailers serve as key stakeholders in the market, responding to consumer preferences by offering various brewing techniques and regional flavors to suit diverse tastes. The market is brimming with a variety of coffee products, including coffee beans, Roasted coffees, and Ground coffees, each contributing to the overall market. These products are readily available in various retail channels such as Supermarkets and Hypermarkets, Online Channels, and Convenience Stores, providing consumers with convenient access to their favorite coffee blends.
The offline segment is estimated to witness significant growth during the forecast period. Companies are focusing on strengthening their organized distribution networks to increase sales and revenues. In addition, supermarkets, hypermarkets, and convenience stores aim to attract customers by offering discounts and shopping packages. Furthermore, organized retailing is considered the most effective mode of caffeine, as it allows consumers to inspect the products before purchasing.
The offline segment was the largest segment and was valued at USD 50.08 billion in 2018.
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Moreover, companies that operate in the global market focus on promotional and marketing strategies to increase customer footfall. In addition, some such promotional and marketing strategies include branding through signages, the distribution of samples, and the provision of discounts on product kits. Furthermore, Walmart Inc. (Walmart), Tesco Plc (Tesco), and Target Corp. (Target) are some of the largest retail chains that offer separate retailing segments for caffeine products at their stores. In addition, an increase in the number of retail stores will improve the visibility of caffeine products such as roast and ground caffeine and increase the volume of sales of roast and ground coffee. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
Europe is estimated to contribute 34% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Europe was the dominant geographical segment of roast and ground coffee in 2022 and will continue to remain the largest segment in the coming years. In addition, the roast and ground coffee in Europe was moderately fragmented in 2022 due to the presence of numerous regional and a few global companies such as Bewleys Tea and Coffee, UCC Coffee, and others. Moreover, the presence of such key companies propels the market in the region. For example, in October 2022, UCC Coffee Europe launched its first out-of-home coffee bar in the UK. Furthermore, the coffee kiosk will serve various ranges of Ueshima artisanal coffees, pour-overs, iced beverages, and exclusive Japanese specials, which include Matcha Latte and Cherry Blossom Latte. Hence, such factors are driving the market growth 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 forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
Fresh Roasted Coffee LLC, Graffeo Coffee, Grupo Nutresa, HACO AG, Hawaii Coffee Co., Keurig Green Mountain Inc., LUIGI LAVAZZA S.p.A., Massimo Zanetti Beverage Group Spa, McDonald Corp., Nestle SA, Paulig Ltd., Restaurant Brands International Inc., Starbucks Corp., Strauss Group Ltd., Tata Consumer Products Ltd., The J.M Smucker Co., The Kraft Heinz Co., and UCC UESHIMA COFFEE CO. LTD.
The market analysis and report of 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 research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is fueled by the ever-growing consumption of coffee globally, with consumers showing a preference for on-the-spot brewing techniques. Retailers and stakeholders are actively responding to evolving consumer preferences by offering a wide range of options, including specialty and artisanal coffee sourced through ethical sourcing techniques. This market segment also sees a surge in online coffee subscription services catering to those seeking sustainably sourced and ethically roasted beans, such as shade-grown coffee or single-origin coffees.
Moreover, the market offers a diverse array of options, including regional flavors that cater to specific tastes and preferences. Consumers can explore a variety of coffee types at specialized coffee shops or opt for the convenience of automated delivery services that bring freshly Roasted coffees and Ground coffees directly to their doorstep. Within the Roast & Ground Coffee Market, supermarkets and hypermarkets play a significant role in offering a wide selection of quality roasted and ground coffee pods. Coffee enthusiasts can also enhance their brewing experience using coffee percolators, ensuring a rich and flavorful cup every time.
Furthermore, technological advancements in brewing technology have led to the development of Roast & Ground Coffee Pods and Roast & Ground Coffee Powder, which are available in supermarkets, hypermarkets, and online channels. The market also witnesses the inclusion of Vitamin B3 in coffee products, offering benefits for skin and nerves and aiding in managing cholesterol levels. The market is not just limited to beverages but extends to caffeine products and coffee flour, which are finding applications in the food and beverage industry for creating gluten-free, high-protein, and high-fiber dishes. Moreover, the beauty industry is embracing coffee-based products due to their environmentally sensitive nature, catering to consumers looking for carbon-neutral and natural cosmetics with nutritional benefits and plant-based microbiological activities.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.51% |
Market Growth 2024-2028 |
USD 27.94 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.72 |
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
Performing market contribution |
Europe at 34% |
Key countries |
US, Japan, Germany, Italy, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ajinomoto Co. Inc., Death Wish Coffee Co., Fresh Roasted Coffee LLC, Graffeo Coffee, Grupo Nutresa, HACO AG, Hawaii Coffee Co., JDE PEETs NV, Keurig Green Mountain Inc., LUIGI LAVAZZA S.p.A., Massimo Zanetti Beverage Group Spa, McDonald Corp., Nestle SA, Paulig Ltd., Restaurant Brands International Inc., Starbucks Corp., Strauss Group Ltd., Tata Consumer Products Ltd., The J.M Smucker Co., The Kraft Heinz Co., and UCC UESHIMA COFFEE 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, and Market condition analysis for the 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 Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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