Global Coffee Concentrates Market 2024-2031

Global Coffee Concentrates Market Size, Share & Trends Analysis Report by Type (Caffeinated, and Decaffeinated), by Packaging (Bottles, Pouches, and Others), by Source (Arabica, Robusta, Others), and by Distribution Channel (Supermarkets-Hypermarkets, Departmental Stores, Convenience Stores, and Online Sales Channel) Forecast Period (2024-2031)

The global coffee concentrates market is anticipated to grow at a moderate CAGR of 4.7% during the forecast period (2024-2031). Coffee concentrate is a condensed form of coffee that offers convenience and versatility. It can be diluted with water or milk to create various coffee beverages, catering to diverse consumer preferences.

Market Dynamics

Increasing Coffee Demand Propels Coffee Concentrate Market

The increasing demand for coffee globally is a significant driver behind the growth of the coffee concentrate market. For instance, according to coffee.org, world coffee consumption rose by 4.2% to 175.6 million bags in the 2021/22 period, following a 0.6% increase in the previous year. The rebound from COVID-19 travel restrictions and robust global economic growth, which surged by 6.0% in 2021, are attributed to the uptick in coffee consumption. As coffee consumption rises, particularly among busy consumers seeking convenience, coffee concentrate emerges as an attractive solution. Its versatility and longer shelf-life appeal to a diverse consumer base, while its ability to meet the demands of evolving lifestyles aligns with contemporary trends. This growing demand for coffee, coupled with the unique attributes of coffee concentrate, positions it as a key player in meeting the needs of modern coffee enthusiasts worldwide.

Convenience and Versatility: Catalysts for Coffee Concentrate Market Expansion

Convenience and versatility are key factors propelling the popularity of coffee concentrate. Its convenience lies in the ease of preparation, offering a quick solution for busy individuals. Versatility comes from its ability to be used in various beverages, catering to different preferences. Whether hot or cold, coffee concentrate provides flexibility in consumption. Its convenience and versatility make it a practical choice for consumers looking for a hassle-free coffee experience. With the hectic pace of modern life, the simplicity of coffee concentrate appeals to those seeking convenience without sacrificing taste or quality, driving its continued growth in the market.

Market Segmentation

Our in-depth analysis of the global coffee concentrates market includes the following segments by type, by packaging, by source, and by distribution channel:

• Based on type, the market is sub-segmented into caffeinated and decaffeinated.
• Based on packaging, the market is bifurcated into bottles, pouches, and others.
• Based on source, the market is split into arabica, robusta, and others.
• Based on distribution channels, the market is sub-segmented into supermarkets-hypermarkets, departmental stores, convenience stores, and online sales channels.

Arabica Coffee Concentrate: Elevating Coffee Experiences

Arabica coffee concentrate is currently leading the charge in the source segment of the market, driven by consumer preference for taste and quality. For instance, in 2022, Arabica produced about 98.559 million bags, Robusta 72.709 million. Arabica holds a 57.5% market share, whereas Robusta holds a 42.5% market share. Unlike Robusta beans known for their bitterness, Arabica beans offer a smoother flavor profile, marked by smoothness and aromatic qualities appealing to discerning coffee aficionados. Arabica beans are favored by specialty roasters and baristas for their premium quality, and they offer nuanced flavors and complexity. Arabica beans yield a concentrated flavor profile with enhanced acidity, grown at higher altitudes, translating well into a concentrated form. As consumer preferences gravitate towards premium coffee experiences, Arabica coffee concentrate meets the demand for elevated taste and quality, positioning itself for sustained growth in home and commercial markets.

Online Sales channels hold a Considerable Market Share

Online sales channels are experiencing explosive growth in the coffee concentrate market, fueled by convenience and the booming e-commerce trend. For instance, E-commerce has been steadily expanding within the global economy, accounting for 3.8% of the global gross domestic product (GDP) in 2019, which increased to 5.6% in 2022. Forecasts suggest this trend will continue, with e-commerce projected to reach 6.4% of global GDP by 2025. According to estimates, the global retail e-commerce market achieved sales worth $5.2 trillion in 2021, and this figure is expected to rise to $7.5 trillion by 2025. Consumers can browse a wider selection of coffee concentrates from the comfort of their homes and enjoy faster delivery times compared to physical stores. This aligns perfectly with the busy lifestyles demanding quick and easy access to products. As e-commerce continues to flourish, online sales channels are poised to become the dominant force for buying coffee concentrate.

Regional Outlook

The global coffee concentrates market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Coffee Concentrate: Meeting North America's Busy Lifestyle

High coffee consumption and busy lifestyles in North America contribute to the demand for coffee concentrate in the market. North Americans have developed a strong affinity for coffee, not just for its taste but also for its caffeine content, which offers a quick energy boost. For instance, In the coffee year 2021/22, coffee consumption in North America surged to 31.7 million bags, marking a significant growth of 4.8% compared to the previous year's consumption of 30.2 million bags. In regions characterized by long work hours and demanding schedules, coffee transcends its role as a beverage, becoming a vital tool for maintaining focus and alertness throughout the day. This elevated coffee consumption, when coupled with the time constraints of modern life, creates a fertile ground for the popularity of coffee concentration. This innovative product perfectly aligns with the fast-paced North American lifestyle, offering a convenient and high-quality solution for busy consumers who crave their daily cup of coffee without sacrificing precious time. Coffee concentrate provides a win-win scenario, ensuring both the quality and flavor consumers expect while seamlessly integrating into their demanding routines.

Asia's Booming Coffee Culture: A Catalyst for Coffee Concentrate Market Growth

The demand for coffee in Asia-Pacific is growing steadily. Korea, Australia, and Malaysia led the surge in coffee consumption in the region, contributing to a 3.7% increase equivalent to 1.5 million bags during the coffee year 2021/22. Collectively, these three countries accounted for an additional 0.9 million bags of coffee consumption, raising the total to 5.9 million bags in the same period. The rising popularity of coffee concentrate in Asia-Pacific is fueled by the region's growing coffee culture, particularly among younger generations influenced by Western trends. This trend extends beyond mere consumption to a desire for exploration and experimentation. Coffee concentrate meets this demand by providing a convenient and versatile format for preparing a variety of coffee beverages, aligning perfectly with the evolving preferences of Asian consumers who seek diverse flavors and experiences without compromising on time.

The major companies serving the global coffee concentrates market include Kohana Coffee (Westrock Coffee Company), Nestle S.A., and Starbucks Corp., among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in January 2024, Nestle Vietnam aims to meet Vietnam's demand for convenient beverages with Nescafe's new liquid coffee concentrate. Available in black and milk coffee variants, it offers quick preparation over ice, appealing to modern tastes. While traditional drip coffee dominates, there's room for both in the market, especially among younger, time-conscious consumers seeking the convenience of coffee concentrates.