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Coffee beans market projected to reach US$ 42.5 billion by 2025 driven by coffee’s health benefits

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Rise in number of cafes and coffee outlets in emerging countries such as China and India are driving market growth

The global coffee beans market size is projected to reach US$ 42.5 billion by 2025, according to a new report published by Million Insights. The market is projected to grow at a CAGR of 6.7 per cent over the forecast duration. The increasing consumption of coffee owing to its health benefits along with rise in number of cafes and coffee outlets in emerging countries such as China and India are driving market growth. The demand for coffee is rising among consumers of different age groups, especially youngsters, which, in turn, supplementing the coffee bean market growth.

Arabica held the dominant position for the year 2018 and is predicted to continue to lead in the product segment over the forecast years. This is due to the higher consumption of beans in the country for the sweet taste and lipid content. The presence of caffeine content and a higher demand in pharmaceutical sector is expected to make the robusta beans division grows at the fastest pace. Manufacturers are emphasising on improving the quality of products in order to draw customer attention. For example, Lavazza, in 2019, introduced a new cold coffee brew, rich in robusta bean. Moreover, a motor service company, Roadchef collaborated with bio-bean to utilise the recycled waste coffee beans for production of fuel, thus creating an opportunity for the segment.

North America occupied the highest share in the regional market as of 2018 owing to the increasing demand for coffee vending machines at various places including railway stations. There has been a rise in coffee outlets in the US and Canada owing to the growing demand for coffee among working class.

Moreover, MEA is expected to register a CAGR of 9.9 per cent for the period due to higher consumption. Market penetration of different pharmaceutical companies like Allergan and Novartis is anticipated to drive the demand for arabica and robusta beans. Asia Pacific is anticipated to witness a steady growth owing to the rising coffee shops along with the demand from the cosmetic and pharmaceutical industries.

Further key findings from the report suggest:

  • Arabica beans dominated the coffee beans market with revenue of 61.2 per cent as of 2018 while Robusta is expected to witness a CAGR of 7.4 per cent over the period.
  • The largest share accounting to around 70 per cent in 2018, was held by the food and beverage segment due to the expansion of coffee outlets in countries like China and India.
  • North America was the dominant country with a 29.2 per cent revenue share in the year 2018 and is expected to continue its lead over the forecast period.
  • MEA is expected to grow at a CAGR of 9.9 per cent over the years. To drive the existing and future market and draw a demand pattern, manufacturers are focusing more on capacity expansion, technological innovation, and launching new products for the market.
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