Global Decaffeinated Coffee Market - 2025-2032

Global decaffeinated coffee market reached US$ 15.26 billion in 2024 and is expected to reach US$ 22.21 billion by 2032, growing with a CAGR of 4.81% during the forecast period 2025-2032.

The global decaffeinated coffee market is expanding steadily, driven by rising health consciousness and demand for low-caffeine alternatives. Growth is fueled by consumers prioritizing wellness, advancements in decaffeination technology and increasing popularity in North America and Europe. Additionally, the market benefits from a shift toward premium, sustainable coffee products, with e-commerce and ready-to-drink offerings enhancing accessibility and sales.

Major brands are introducing ready-to-drink (RTD) decaf cold brew, expanding convenience options. For instance, in December 2024, SToK Cold Brew Coffee introduced the first ready-to-drink decaffeinated cold brew available nationwide in grocery stores in US, catering to consumers seeking convenient, low-caffeine options.

Market Dynamics

Health and Wellness Concerns

Health and wellness concerns are driving the decaffeinated coffee market as consumers seek healthier alternatives to regular coffee. Globally, around 2.25 billion cups of coffee are consumed daily, highlighting its massive demand. In the U.S., approximately 80% of people drink coffee. However, many people are reducing caffeine intake to manage issues like anxiety, insomnia and high blood pressure, increasing demand for decaf options. For instance, the British Coffee Association reports that 20% of UK coffee consumers regularly choose decaffeinated options.

As wellness trends continue to evolve, coffee brands are innovating with high-quality, flavorful decaf options to meet consumer expectations. The rise of functional beverages and a growing preference for natural, clean-label products further boost the market. Additionally, pregnant women, older adults and individuals with heart conditions are opting for decaf coffee as a safer choice.

Flavor and Aroma Loss

The decaffeination process removes not only caffeine but also essential oils and flavor compounds that give coffee its rich taste. Many coffee enthusiasts find decaf coffee to be weaker, flatter or less aromatic compared to regular coffee, making it less appealing. This perception leads to lower consumer preference, especially among specialty coffee drinkers who prioritize taste and complexity.

Segment Analysis

The global decaffeinated coffee market is segmented based on product, bean, nature, roast, flavor, end-user and region.

Arabica Dominates Global Decaffeinated Coffee Market Due to Superior Flavor and Consumer Preference

Arabica holds a significant share in the global decaffeinated coffee market due to its superior flavor, offering a smooth and mild taste preferred by consumers. Its lower caffeine content compared to Robusta makes the decaffeination process easier while preserving quality. Arabica's widespread cultivation and dominance in specialty coffee contribute to its popularity in the decaf segment.

For instance, according to the International Coffee Organization, Arabica coffee exports reached 85.7 million bags in the 12 months ending January 2025, up from 76.33 million bags last year, marking strong growth in global demand. Advanced decaffeination techniques, such as the Swiss Water Process, help maintain Arabica's rich aroma and taste. Rising health-conscious consumer trends drive demand for high-quality, low-caffeine options, further boosting Arabica's share.

Geographical Penetration

North America's Consumer Demand for Healthier Caffeine Alternatives Drives Market Growth

North America holds a significant share of the global decaffeinated coffee market due to rising health consciousness and increasing consumer preference for healthier beverage options. The growing demand for premium and organic decaf coffee, driven by a well-established coffee culture, further boosts market growth. Major coffee chains and specialty coffee brands in the U.S. and Canada actively promote decaf options, expanding accessibility.

In December 2023, MATCHA DIRECT, a brand by Tsuji Riichi Honten Co., Ltd. in partnership with Kataoka & Co., Ltd., launched Decaf Matcha in the U.S. market. Using supercritical carbon dioxide decaffeination, it retains nearly 100% of matcha's catechins while reducing caffeine to the level of 8-ounce decaf coffee. This innovation aligns with North America's growing preference for premium, natural and wellness-focused drinks, further expanding the market for decaf tea and coffee alternatives.

Sustainable Analysis

The sustainability of the decaffeinated coffee market depends on its environmental, social and economic impacts. Traditional decaffeination methods using chemical solvents like methylene chloride raise concerns about health and pollution, while water and CO2 processes offer eco-friendly alternatives.

Swiss Water Process offers a 100% chemical-free decaffeination method, utilizing only water, temperature and time to remove caffeine while preserving the coffee's original characteristics. This eco-friendly process ensures no chemical solvents are used, aligning with sustainable practices. Consumer demand for sustainable and organic decaf is rising, influencing brands to adopt greener practices.

Competitive Landscape

The Decaffeinated Coffee market is highly competitive, driven by advancements in AI-driven data management, automation and predictive analytics. The major players in the market include Nestle SA, Starbucks Corporation, The J.M. Smucker Company, Keurig Dr Pepper, Inc., Kraft Heinz, Inc., Tata Consumer Products Limited, LAVAZZA SPA, PEET'S COFFEE, Swiss Water Decaffeinated Coffee Inc., Lifeboost Coffee LLC. and others.

Key Developments

• In January 2025, Explorer Cold Brew, a specialty coffee company expanded its offerings to include low-caffeine ready-to-drink cold brews. This line features a "half-caf" option with 65 milligrams of caffeine and a 99.9% caffeine-free cold brew, both using the Swiss Water Process for decaffeination.
• In April 2023, Japan's Moacal Co., Ltd, launched the CUNAE brand which offers high-quality decaffeinated coffee beans and drip packs. Collaborating with Higurashi Coffee, CUNAE developed three flavors: "Yurikago Sweet," "Floral Dance," and "Night Delight," aiming to change consumer perceptions of caffeine-free beverages by delivering rich and satisfying tastes.

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