PUBLISHER: TechSci Research | PRODUCT CODE: 1637318
PUBLISHER: TechSci Research | PRODUCT CODE: 1637318
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Global Decaf Coffee market was valued at USD 18.51 billion in 2024 and is expected to grow to USD 24.91 billion by 2030 with a CAGR of 5.04% during the forecast period. The Decaf Coffee market is primarily driven by the increasing preference for specialty coffees. Consumers are more discerning about the quality and flavor profiles of their coffee, and decaf options are now available with a range of roasts and origins, matching the preferences of coffee enthusiasts. The rise of premium decaf coffee has led to more options, including organic and fair-trade decaf coffee, which attract environmentally conscious and health-conscious buyers.
Market Overview | |
---|---|
Forecast Period | 2026-2030 |
Market Size 2024 | USD 18.51 Billion |
Market Size 2030 | USD 24.91 Billion |
CAGR 2025-2030 | 5.04% |
Fastest Growing Segment | Indirect |
Largest Market | North America |
Key Market Drivers
Growing Aging Population
The aging population is one of the key drivers of the rising demand for decaf coffee, especially in markets like North America, Europe, and parts of Asia. As people age, they often experience health concerns that make caffeine consumption less appealing. Conditions such as insomnia, high blood pressure, anxiety, and heart problems are more prevalent among older adults, and caffeine can exacerbate these issues. As a result, many seniors are opting for decaffeinated coffee to reduce their caffeine intake while still enjoying the flavor and experience of drinking coffee. As a part of this, according to WHO, one in six individuals worldwide will be 60 years of age or older by 2030. At this point, there will be 1.4 billion people over the age of 60, up from 1 billion in 2020. The number of individuals in the world who are 60 years of age or older is expected to increase to 2.1 billion by 2050. Between 2020 and 2050, the population of people 80 years of age or older is predicted to treble, reaching 426 million.
Increasing Popularity of Specialty Coffee
The growing popularity of specialty coffees is a significant driver in the increasing demand for high-quality decaffeinated coffee. As coffee culture continues to evolve, consumers are becoming more discerning about their coffee choices, seeking not just caffeine but also rich, complex flavors and unique brewing experiences. This shift towards premium and artisanal coffee has extended to decaffeinated options, which were once perceived as inferior in taste and quality compared to regular coffee. As a part of this, according to National Coffee Association, specialty coffee also grew significantly. In the preceding week, 57% of American adults drank a specialty coffee, a 7.5% increase from the previous year. Espresso-based beverages saw the biggest increase in consumption among specialty coffees during the preceding week, rising by 10%. Over the previous week, 18% of American adults have had a latte, the most popular espresso-based beverage, followed by cappuccinos (14%), and espresso (16%).
Rising Convenience & Accessibility
The increasing convenience and accessibility of decaf coffee has been a key driver in its rising popularity, as consumers increasingly prioritize convenience in their coffee-buying habits. With the rapid expansion of coffee chains, drive-thrus, and e-commerce platforms, decaf coffee has become more widely available and easier for consumers to purchase and enjoy, no matter their location or schedule. As a part of this, in April 2021, Roselius established Kaffee HAG (Kaffe Handels-Aktien-Gesellschaft, or Coffee Trading Company) in 1906. Adapting the brand to local markets, the corporation quickly expanded its operations throughout Europe. Sanka, an abbreviation of sans cafeine, or without caffeine, was the name given to Kaffee Hag in France, for instance. It was formerly known as Dekafa in the United States. The company expanded its market share in the United States around 1909, and Roselius set up the U.S. headquarters in New York in 1914. From Afghanistan to Australia, Iceland to India, Sweden to Zambia, the ground-breaking decaffeinated coffee was available in more than 50 nations. Many well-known businesses, including Merck & Co., Kellogg's, General Foods, and Kraft Foods, collaborated, distributed, and even purchased the Kaffee Hag brand over the course of several decades.
Key Market Challenges
The Presence of Limited Variety & Availability
Despite the growing popularity of decaf coffee, limited variety and availability remain significant challenges in the market, particularly for consumers living in less urbanized or rural areas. While decaf coffee has gained traction in major cities and is increasingly featured in coffee chains and supermarkets, it still lags regular coffee in terms of selection and accessibility in many locations.
High Production Cost
One of the key challenges faced by the decaf coffee market is the high production costs associated with the decaffeination process. Decaffeination requires specialized techniques that extract caffeine from coffee beans while aiming to preserve the beans' natural flavor profile. Methods such as the Swiss Water Process, CO2 decaffeination, and organic decaffeination are known for their ability to retain the coffee's full flavor, but these methods are costly and labour-intensive.
Key Market Trends
Growing Health-Conscious Population
The growing health and wellness focus has become a significant driver of the rising demand for decaffeinated coffee. As more consumers become conscious of the potential negative side effects of caffeine, including insomnia, anxiety, high blood pressure, and other health issues, many are seeking ways to enjoy coffee without the negative health implications. The trend toward caffeine reduction is not just a passing phase, but part of a broader movement toward healthier lifestyles and mindful consumption. As a part of this, in October 2022, Velty launched The Classic Uncaffeinated, in its unique take on decaf coffee. After eliminating 99.9% of the caffeine using a Swiss water technique, the instant decaf coffee is freeze-dried.
Growing Popularity of Flavoured Decaf Coffee
The rise of flavored decaf coffee is an emerging trend that reflects both the growing demand for decaffeinated coffee and the increasing interest in flavored coffee. As consumers become more health-conscious and seek to reduce their caffeine intake, many are still drawn to the sensory experience of coffee-specifically the indulgent flavors that enhance their coffee-drinking ritual. The availability of flavored decaf options has created an exciting opportunity to enjoy the rich, comforting flavors of coffee without the stimulating effects of caffeine.
Increased Consumer Focus on Sustainability & Ethical Sourcing
As consumer awareness of environmental issues and ethical sourcing continues to grow, sustainability has become an important factor influencing coffee purchasing decisions, including decaffeinated options. Sustainability in coffee production encompasses everything from the cultivation of the coffee beans to the decaffeination process itself, with a growing emphasis on minimizing environmental impact, supporting fair trade practices, and ensuring that farmers are paid fairly for their labor. Hence, sustainability and ethical sourcing are increasingly important drivers in the decaf coffee market. As consumers seek more conscious consumption, decaf coffee brands are responding by offering products that align with values such as environmental responsibility, fair trade, and organic farming practices. This trend not only benefits the environment and coffee farmers but also resonates with consumers looking to make more informed, ethical choices in their coffee consumption.
Segmental Insights
Distribution Channel Insights
Direct dominated the global Decaf Coffee market owing the increasing demand for convenient, high-quality coffee options. More coffee manufacturers are now offering decaf products directly to consumers through online platforms and direct-to-consumer (DTC) sales channels, allowing for greater accessibility and convenience. This shift is part of a broader trend where consumers are increasingly purchasing coffee online, attracted by the ease of shopping and the ability to access a wider variety of decaf options that may not be available in traditional retail stores.
Regional Insights
North America dominated the global Decaf Coffee market, owing to the growing health-conscious population across the region. As more people prioritize wellness, many are seeking to reduce their caffeine intake due to its potential negative effects, such as anxiety, insomnia, and elevated blood pressure. This health-driven shift has led to a rise in demand for decaffeinated options, as consumers want to enjoy the flavor and ritual of coffee without the associated caffeine-related drawbacks.
The region has a well-established coffee culture, with a growing number of health-conscious consumers opting for decaffeinated options to reduce caffeine intake while still enjoying the taste of coffee. The presence of major coffee chains and retailers offering a variety of decaf coffee options also contributes to the region market dominance.
Also, the widespread availability of decaf coffee across various channels, including specialty coffee shops, supermarkets, and online retailers, further boosts its demand. Major coffee chains in North America, such as Starbucks and Dunkin', offer a range of decaf options to cater to diverse preferences, ensuring widespread accessibility. The increasing number of consumers seeking alternatives to regular coffee due to lifestyle changes, such as reduced caffeine intake, is expected to continue driving the growth of the decaf coffee market in North America.
Nestle S.A.
The J.M. Smucker Co.
LUIGI LAVAZZA S.P.A.
The Bean Coffee Company
Caribou Coffee Operating Company, Inc.
Kicking Horse Coffee Co. Ltd
Baronet Coffee
Tata Consumer Products Limited
Volcanica Coffee Inc.,
Restaurant Brands International, Inc
In this report, the Global Decaf Coffee Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Decaf Coffee Market, By Nature:
Decaf Coffee Market, By Roast Type:
Decaf Coffee Market, By Flavor Type:
Decaf Coffee Market, By End User:
Decaf Coffee Market, By Distribution Channel:
Company Profiles: Detailed analysis of the major companies presents in the Global Decaf Coffee Market.
Global Decaf Coffee Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Detailed analysis and profiling of additional market players (up to five).