Organic Coffee Market

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The global Organic Coffee Market is valued at USD 8.9 Billion in 2022 and is projected to reach a value of USD 28.8 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 18.3% over the forecast period.

Organic Coffee is coffee produced without the integration of artificial chemical substances. These substances can include certain additives or a wide range of pesticides or herbicides, which are often used during the production of regular coffee. The global Organic Coffee market is expected to grow significantly during the forecast period owing to rising consumption of healthy and organic products and increasing awareness of health benefits among the general population. Studies have indicated that consuming organic products can reduce cardiovascular disorders such as type 2 diabetes and obesity. Consequently, the rising frequency of CVD will propel the growth of the Organic Coffee market.

Organic Coffee has a higher count of antioxidants, such as polyphenols, flavonoids, and catechins. This has indicated stabilizing of harmful free radical agents in the human body, which can help prevent large-scale cellular destruction. Additionally, research shows that regulated coffee consumption can lead to lowered chance of cancer affecting the body. Furthermore, cancer's health benefits include lowering cholesterol, boosting immunity, weight loss, and preventing neurological disorders. These products also act as highly refreshing drinks in hot and cold formats. These factors are expected to widen the global Organic Coffee market during the forecast period.

Rising promotional activities during the forecast period are paving the way for a widened consumer base that will likely adopt Organic Coffee products at an accelerated pace. Manufacturers are intaking aggressive marketing campaigns to cater to consumers of all age groups. Sources such as the internet, TV, and newspapers are used for promotional campaigns. Studies indicate that more than 45% of the global population is a substantial social media consumer. Additionally, rising environmental concerns are addressed by Organic Coffee products as they are produced without using any fertilizers.

Economic Insights

The US economy has now experienced negative growth for two quarters. A tough year is also forecast for the US stock market. However, market volatility should continue since US investors are bracing for expected adverse conditions. In the final month of 2022, the S&P 500 benchmark index was down 19.8% year to date and on set to record its most significant yearly loss since 2008. The probability of geopolitical conflict has increased since Russia invaded Ukraine. According to investors, market participants, and other authorities, the war was expected to harm the global economy by causing inflation. Turbulence in the world economy is anticipated due to these severe grave repercussions and the uncertainty surrounding possible outcomes.

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1. Private Labels: Increasing popularity regarding private labels is expected to drive the growth of the global Organic Coffee market during the forecast period. Private label organizations are advertising their products with a complete list of products to gain the trust of their consumers. Additionally, these products are moderately priced to gain wider acceptance. For instance, private labels, including White Coffee, Empire Coffee Roasters, and K&F Coffee Roasters, offer Organic Coffee products to be sold under their brands.

2. Widening Applications: Organic Coffee is being found within various applications such as dairy, bakery and confectionary, coffee-based drinks, pharmaceuticals, and others. The food and beverage sector are utilizing Organic Coffee at a rapid pace owing to rising consumer demand. Additionally, these products are being manufactured in many forms to suit individual consumers' needs, including espresso coffee, fair trade coffee, coffee pods, and gourmet coffee.

3. Product Attractiveness: Organic Coffee is growing extremely popular among millennials. They do not contain any toxic residue of synthetic fertilizers, herbicides, artificial flavors or colors, and preservatives. They are considered to be the healthiest among a wide range of beverages. They often help maintain a healthier lifestyle. This will increase sales in the global Organic Coffee market.

Market Segmentation

The global Organic Coffee market can be categorized on the following: Type, Packaging Type, Application, Sales Channel and Regions. Based on type, the market can be categorized into arabica and robusta. By packaging type, the market can be segmented across stand-up pouches, jars & bottles, and others. By sales channel, the market can be fragmented across hypermarkets/supermarkets, departmental and convenience stores, specialty stores, online sales channels, and others. Likewise, based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Type

Arabica to Dominate Largest Market Share Owing to a Sweeter Taste

The segment about arabica is expected to dominate the largest market share during the forecast period owing to arabica having a sweeter taste with a palette note of chocolate and sugar. Arabica beans have also been said to have flavor notes of berries. Studies have indicated that more than 60% of global coffee consumption comes from arabica beans. These factors are expected to contribute towards segmental growth. Robusta will grow with the fastest growing CAGR during the forecast period owing to robusta's stronger, harsher, and more bitter taste.

Based on Packaging Type

Stand-up Pouches to Occupy Dominant Market Share Owing to Modest Price Models

The global Organic Coffee market is expected to be dominated by the segment of stand-up pouches in terms of sales and revenue. Factors such as the easy availability of a wide variety of sizes and volumes combined with an ease of convenience are expected to contribute to the segmental growth during the forecast period. Additionally, stand-up pouches are priced moderately when compared to other packaging types. Consumers often purchase coffee meeting their requirements, which are in smaller quantities. These factors are expected to contribute to the stand-up pouches segment. Jars and bottles are expected to grow with the fastest growing CAGR during the forecast period owing to attractive designs by manufacturers.

Based on Sales Channel

Hypermarkets/Supermarkets to Capture Largest Market Due to Easy Accessibility of Products Under One Roof

Hypermarkets and supermarkets are expected to fuel the largest market share during the forecast period in revenue and growth. Factors such as a larger retail footprint and a healthy assortment of product categories under one roof are expected to contribute to the segmental development. Additionally, supermarkets and hypermarkets are often constructed in highly populated residential regions, wherein a steady flow of consumers can be found. Shifting consumer preference for low-calorie and sugar-free products is further expected to widen the sales of Organic Coffee market during the forecast period. Online retail is expected to grow with the fastest growing CAGR during the forecast period owing to rising smartphone penetration among the general population and an expanding e-commerce sector.

Based on Region

North America to Reign Dominance Over Global Sales Owing to the Presence of a Health-Conscious Consumer

The global Organic Coffee market is expected to be dominated by the North American region during the forecast period owing to rising demand for organic beverages among the general population combined with the presence of a highly health-conscious population. Additionally, the company of many dominant regional players and an expanding e-commerce sector is expected to trigger higher sales of Organic Coffee products. Consumers can afford a wide range of products as they possess a higher disposable income and a higher annual income. Also, rising health awareness among the millennial population and the introduction of RTD Organic Coffee products will increase sales in the North American Organic Coffee market.

Asia Pacific is expected to grow with the fastest growing CAGR during the forecast period owing to a rising inclination for organic products, alterations in dietary intake, and rising adoption of organic products. Additionally, increasing awareness among consumers is pushing the growth of the Organic Coffee market in the region.

Competitive Landscape

The global Organic Coffee market is fragmented due to the presence of numerous players. Prominent players also focus on introducing a more comprehensive product portfolio to attract consumers. Additionally, manufacturing units are being set up rapidly to meet the ongoing demand. Also, supply chains are being optimized to cater to the continuing need.

The key players in the global Organic Coffee market include - NESTLE S.A. (Switzerland), The KRAFT HEINZ Company (U.S.), Starbucks Corporation (U.S.), Jim’s Organic Coffee (U.S.), F S Gourmet Private Limited (India), Wessanen (Netherlands), Luigi Lavazza S.P.A. (Italy), Java Trading Co. LLC (U.S.), Dr. Pepper Snapple Group Inc. (U.S.) among others.

Recent Market Developments:

· June 2022: Systm Foods Inc., a US-based marketing solutions company, announced that they were acquiring Chameleon Organic Coffee from Nestle for an undisclosed amount. This acquisition is expected to allow Systm Foods Inc. to re-energize Chameleon to meet their ambitions for entering a new phase of growth trajectory.

· August 2021: Nespresso announced a new novel Organic Coffee for entering the Organic Coffee market in the Democratic Republic of Congo.

· September 2019: Italian coffee brand Lavazza announced introducing Tierra Bio-Organic, an Organic Coffee that can be enjoyed at home.

· January 2019: The Coca-Cola Company announced they were acquiring Costa Limited from Whitebread PLC for USD 4.9 billion. This acquisition is expected to be approved by the EU and China regulatory authorities. Furthermore, the investment will likely mark a significant entry of the Costa Brand in China. It will cover over 4,000 retail outlets, coffee vending operations, and home coffee formats.

Segmentation of the Global Organic Coffee Market