Coffee is one of the widely consumed beverage globally due to its stimulant properties and pleasant aroma and taste. It contains caffeine that acts as a central nervous system stimulant resulting in increased alertness and energy levels. Regular consumption of coffee has been linked to several health benefits such as reduced risk of type 2 diabetes, Parkinson's disease, liver cancer and stroke. The global coffee market is primarily driven by increasing health awareness among consumers regarding the various health benefits offered by coffee.
Key Takeaways
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.
The Coffee Market Demand is expected to witness significant opportunities due to rising health consciousness among millennials. The increasing preference for coffee pods and capsules owing to their convenience is also expected to boost the market growth over the forecast period.
The global coffee market is anticipated to expand rapidly during the forecast period. Rising demand from densely populated developing countries such as India and China is expected to drive the Asian coffee market. Also, innovations in brewing technologies and emergence of specialty coffee shops are likely to fuel global market expansion.
Market Drivers
The global coffee market is primarily driven by increasing consumption of organic and fair trade coffee by health-conscious consumers. Rising influence of western culture and increasing number of coffee shops are encouraging social coffee drinking habits resulting in higher product demand. Changing consumer lifestyle along with growing disposable income particularly in developing countries is also expected to fuel the market growth over the forecast period.
PEST Analysis
Political: The political landscape can impact the coffee market. Regulations around farming, import/export tariffs, and subsidies for farmers can all influence the supply and prices of coffee beans. Changes in government can also change relevant policies and regulations.
Economic: Economic conditions influence consumer spending habits and impact demand. Higher incomes lead to more discretionary spending on coffee products. Recession can curb sales as people reduce spending. Exchange rate fluctuations also affect export/import costs and international trade.
Social: Evolving consumer preferences and tastes impact what types of coffee products are popular. Health and wellness trends encourage demand for organic, fair trade and low-calorie coffee options. Urbanization concentration and busy lifestyles boost convenient coffee formats like pods and canned coffee drinks.
Technological: Advances in processing and brewing technologies allow for new product innovations. Single-serve formats like pods utilize new packaging technologies. Digital platforms facilitate online ordering and subscription services for coffee delivery. Traceability systems help verify origin and growing practices of coffee beans.
The geographical regions where the coffee market is concentrated in terms of value are Europe and North America. These developed markets have established coffee drinking cultures and consumers who are willing to pay premium prices. Major importers like the United States, Germany and Italy represent large volumes and revenues.
The fastest growing region for the coffee market is Asia Pacific. Rising incomes are driving increased consumption in countries like China, India and Vietnam. Younger populations are adopting Western lifestyles including caffeine-laden coffee drinks. Single-serve formats are popular among time-pressed urban professionals. Specialty independent cafes are proliferating and becoming social gathering spaces that boost the coffeehouse experience.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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