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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 market is experiencing significant growth, driven by the increasing number of cafes worldwide and the rising trend of consumers preferring premium coffee at home. The market is also witnessing an increasing number of new coffee product launches, with companies introducing innovative flavors and packaging to cater to evolving consumer preferences. However, the market faces challenges from competitors in the beverage industry, particularly tea, which also offers consumers a hot and comforting beverage experience. Additionally, sustainability concerns and the need for ethical sourcing are becoming increasingly important factors, with consumers demanding transparency and traceability in the supply chain. Overall, the market is expected to continue its growth trajectory, driven by these trends and challenges.
The market is driven by the increasing consumption of coffee worldwide. The beverage's health benefits, including improved focus and energy, make it a popular choice among consumers. Coffee shops and on-the-spot brewing have gained immense popularity, leading to an increase in demand for roasted coffee beans and ground coffees. Retailers are emphasizing consumer preferences for regional flavors and brewing techniques, expanding their offerings beyond traditional coffees. Coffee products encompass a wide range of items, including caffeine and Caffeol products, derived from coffee beans. Supermarkets and Hypermarkets, Online Channels, and Convenience Stores are the primary distribution channels for roasted coffees and ground coffee.
Moreover, the coffee gardens face challenges from pests, affecting the supply of raw materials. Key products in the market include Coffee, Roasted coffee beans, and Coffee grounds. Other raw materials like Berries, Flour, Maize, and Corn are also used in coffee production. Overall, the market is a dynamic and complex industry that continues to evolve with consumer trends and preferences.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The offline segment is estimated to witness significant growth during the forecast period. The market witnesses continuous growth due to the increasing consumption of coffee and the health benefits associated with it. Coffee shops are a popular destination for consumers seeking on-the-spot brewing and regional flavors. companies focus on ethical sourcing techniques, such as sustainably sourced and ethically roasted coffee, to cater to consumer preferences. Brewing technology plays a crucial role in enhancing the taste and aroma of coffee, with specialized coffee shops offering single-origin coffees and automated delivery systems for fresh coffee. Supermarkets, hypermarkets, and convenience stores are significant retail channels, attracting customers through discounts and shopping packages. Organized retailing is preferred due to the ability to inspect products before purchase.
Moreover, the leading companies employ promotional and marketing strategies, including branding, product sampling, and discounts on product kits, to boost sales. Coffee products, including roasted coffee beans, ground coffees, caffeine products, and caffeol products, are in high demand. Online channels and convenience stores are increasingly popular due to their convenience and accessibility. Coffee percolators and other brewing techniques continue to be popular, with the young population showing a preference for ground coffee and berries. Vitamin B3, which is beneficial for skin and nerves, and cholesterol reduction are additional health benefits associated with coffee consumption. Flour derived from coffee beans is a recent innovation in the market.
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The offline segment was valued at USD 50.08 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The European market for roast and ground coffee holds a significant share in the global industry, accounting for the largest geographical segment in 2022. This dominance is attributed to the region's rich coffee culture and the presence of numerous cafes and specialty coffee shops. The market is moderately fragmented, with a multitude of regional and global players. These key companies contribute to the market's growth by introducing innovative products and expanding their footprint. For instance, UCC Coffee Europe launched its first out-of-home coffee bar in the UK in October 2022, offering a range of artisanal coffees, pour-overs, iced beverages, and Japanese specials like Matcha Latte and Cherry Blossom Latte.
Moreover, the European market caters to various consumer segments, including those seeking gluten-free, high-protein, and high-fiber dishes, nutritious snack bars, and beauty product buyers. The demand for strong-aroma coffees and instant coffee is also on the rise, driven by their convenience and versatility in various applications, such as in bakery, confectionery, pizza, pasta, and even in cosmetics and beauty products. As consumers become increasingly environmentally sensitive, the demand for organic, carbon-neutral, and chemically-free coffee is growing. This trend is expected to influence the market's trajectory during the forecast period. Farmers are also focusing on soil quality and water conservation to ensure the nutritional benefits of their crops and minimize the use of pesticides and insecticides, such as those used against pests, insects, fleas, and pets that can affect coffee production. Overall, the European market is poised for growth, driven by these trends and the increasing popularity of coffee as a beverage and an ingredient in various food and beverage applications.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing number of cafes worldwide is the key driver of the market. The consumption of coffee, particularly roast and ground varieties, has witnessed significant growth due to the increasing popularity of coffee shops and on-the-spot brewing. This trend is driven by the young population's preference for socializing and the increasing number of employees in service industries. The emergence of specialized coffee shops and quick-service restaurants caters to the diverse tastes and preferences for different types of fresh coffee. Ethical sourcing techniques, such as sustainably sourced and ethically roasted beans, have become essential for consumers. Regional flavors, including shade-grown coffee and single-origin coffees, add to the appeal. Advanced brewing technology and convenience, such as automated delivery and fresh coffee, further enhance the coffee experience.
Moreover, coffee products, including roasted coffees, ground coffees, caffeine products, and caffeol products, are increasingly available through online channels, convenience stores, and supermarkets. Major retailers, such as Starbucks are expanding their presence in emerging economies, with Starbucks aiming to operate 1,000 stores in India by 2028.
An increasing number of new coffee product launches is the upcoming trend in the market. The global market for roast and ground coffee has experienced significant growth due to the increasing consumption of this beverage and the introduction of new products. companies continue to launch innovative offerings to cater to diverse consumer preferences and expand their customer base. For instance, in November 2022, Kraft Heinz Company unveiled its new Kraft Cafe Barista, a premium flavor-first coffee available in Chocolate Hazelnut and Salted Caramel formats. This product comes in both roast and ground versions. The health benefits associated with coffee, such as the presence of Vitamin B3, which contributes to the health of skin and nerves, and the potential reduction of cholesterol levels, have also contributed to the market's growth.
Moreover, coffee shops and convenience stores are major retail channels for roast and ground coffee, with consumers increasingly preferring on-the-spot brewing and fresh coffee. Specialized coffee shops, single-origin coffees, and ethically sourced, ethically roasted, and sustainably grown coffees have gained popularity. The use of advanced brewing technology and automated delivery systems further enhances the consumer experience. Online channels have also emerged as a significant distribution channel, offering convenience and a wide range of coffee products, including roasted coffee beans, ground coffees, caffeine products, and caffeol products. The young population's growing preference for coffee and the availability of a diverse range of brewing techniques and regional flavors continue to fuel the market's growth.
The threat from tea and other beverages is a key challenge affecting the market growth. Coffee, as the world's most popular hot beverage, faces competition from tea due to the latter's numerous health benefits. Tea is believed to alleviate stress, enhance heart health, and prevent cancer and Alzheimer's disease. Consequently, health-conscious consumers increasingly opt for tea over coffee. The premium tea market has experienced growth due to aggressive marketing strategies, leading to a increase in global tea consumption. Green tea, in particular, has gained popularity due to its health advantages, including the promotion of endothelial cell function and prevention of arterial clogging. In contrast, coffee consumption continues to thrive, driven by the unique flavors and experiences it offers.
However, the coffee shops have become social hubs, providing on-the-spot brewing and regional flavor explorations. Ethical sourcing techniques, such as sustainably sourced and ethically roasted beans, have gained traction among consumers. Brewing technology has advanced, with specialized coffee shops offering single-origin coffees and automated delivery systems for freshly roasted and ground coffee. Coffee products, including roasted beans, ground coffees, caffeine, and caffeol, remain in demand. Consumer preferences for brewing techniques, such as French press, pour-over, and espresso, vary. Younger generations are increasingly drawn to the convenience of instant coffee and coffee pods. Online channels and convenience stores cater to the diverse needs of consumers, ensuring a wide range of coffee choices.
Moreover, despite the health benefits of tea, coffee continues to be a preferred beverage for many, with its unique flavors and brewing techniques offering an enriching experience. The coffee market remains dynamic, with advancements in roasting, grinding, and brewing technology, as well as a focus on sustainably sourced and ethically roasted beans, ensuring a continued demand for this beloved beverage.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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.
Ajinomoto Co. Inc. - The company provides a selection of roast and ground coffee products, including the Birdy 3in1 stronga. This offering represents a unique blend of roasted coffee beans and concentrated coffee extract, delivering an intensified aroma and flavor experience.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 is witnessing a significant increase in consumption due to the numerous health benefits associated with coffee. Coffee shops have become a popular hangout spot for consumers, offering on-the-spot brewing of various regional flavors. Retailers are emphasizing ethical sourcing techniques and roasting coffee beans sustainably and ethically. Brewing technology has advanced, allowing for fresh coffee and automated delivery. Consumer preferences for specialized coffee shops and single-origin coffees continue to influence the market. Roasted coffees and ground coffees remain popular choices, with caffeine and caffeol products also gaining traction. Vitamin B3, which is beneficial for skin and nerves, is found in coffee.
However, it's important to note that coffee also contains cholesterol. Coffee percolators are a traditional brewing technique, but modern consumers are turning to convenience stores and online channels for their coffee needs. The young population's increasing coffee consumption is also driving market growth. Coffee products come in various forms, including coffee beans, roasted coffee, ground coffee, and even flour derived from coffee beans. In summary, the market is a dynamic and evolving industry, with a focus on ethical sourcing, brewing technology, and consumer preferences. Whether you prefer a freshly brewed cup from a specialized coffee shop or a conveniently packaged ground coffee, there's a product and brewing method to suit every coffee lover's taste.
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Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.51% |
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Market growth 2024-2028 |
USD 27.94 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.72 |
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Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 34% |
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Key countries |
US, Japan, Germany, Italy, and Brazil |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market 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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