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Coffee Is Estimated To Witness High Growth Owing To Increasing Awareness About Health Benefits12/19/2023 Coffee is one of the most popular beverages consumed worldwide. It contains antioxidants and caffeine that provide several health benefits such as improved focus and alertness. The increasing awareness about various health advantages associated with moderate consumption of coffee is driving its demand globally. The changing lifestyles and busy schedules have raised the need for beverages that provide mental stimulation.
The global coffee market is estimated to be valued at US$ 132.99 Mn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights. Market Opportunity: Increasing adoption of coffee pod systems The emergence of single-serve coffee formats such as pods and capsules has boosted the coffee market growth significantly over the past few years. Coffee pod systems provide convenience of making coffee easily without requiring any grinding or brewing. The rising disposable incomes and busy schedules have increased the demand for convenience foods and beverages, which is driving the adoption of coffee pod systems. Moreover, pod coffees helps in maintaining consistency and quality of coffee prepared at home or office. The growing popularity of these systems is expected to create extensive opportunities for players in the coffee market over the forecast period. Porter’s Analysis: Threat of new entrants: The threat of new entrants is moderate as the coffee market is well established globally with major players having strong brand recognition and distribution channels. However, startups can introduce new varieties and premiumization to attract customers. Bargaining power of buyers: The bargaining power of buyers is high given the presence of several coffee brands and substitutes. Buyers can easily switch between brands based on price and promotions. Product differentiation is low for commodity coffee. Bargaining power of suppliers: The bargaining power of suppliers is moderate to high as the prices of green coffee beans depend on climatic conditions and availability. Suppliers hold considerable influence over prices of raw materials. Threat of new substitutes: The threat of substitutes is moderate as tea and other beverages can replace coffee consumption for some customers. However, coffee has strong customer preference globally. Competitive rivalry: The competitive rivalry is high among major players due to strong brand loyalty, advertising spend and retail presence globally. Players compete aggressively on price, quality, promotion and innovation. SWOT Analysis: Strengths: Strong brand loyalty for major brands like Starbucks and Nestle. Wide distribution network and availability across retail channels and cafes. Innovation in product varieties and premiumization. Weaknesses: Volatility in green coffee prices impacts margins. Dependency on climatic conditions for raw material supply. Threat from sustainable sourcing and environment concerns. Opportunities: Growth in café culture and outside coffee consumption. Rising disposable incomes in developing countries boosting premiumization. Innovation in pod machines, cold brews and health-oriented products. Threats: Substitution threat from tea and other beverages. Rising input costs squeeze margins. Stringent regulations around health, recycling and waste disposal. Key Takeaways: The global coffee market analysis is expected to witness high growth during the forecast period due to rising disposable incomes, expanding retail network and growing café culture globally. The market size is projected to reach US$ 200 Bn by 2030, growing at a CAGR of 4.7% during 2023-2030. North America leads the global coffee market, accounting for over 30% share, driven by heavy consumption in the US. However, Asia Pacific region is poised to surpass North America and emerge as the fastest growing market during the forecast period due to rising exposure to specialty coffee and Western lifestyles in countries like China and India. Key players operating in the global coffee market are The Kraft Heinz Company, Starbucks Coffee Company, The J.M. Smucker Company, Luigi Lavazza SPA, Nestle SA, The Coca-Cola Company, JAB Holding Company, Tata Global Beverages, Tchibo GmbH, and Strauss Group Ltd. Major players are focusing on premiumization through innovation in pods, cold brews and health drinks while expanding globally through M&As and subsidiaries to leverage growth opportunities. Get more insights on this topic: https://www.trendingwebwire.com/coffee-market-industry-insights-trendscoffee-market-2023-2030/
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