Coffee Concentrates Market
Coffee Concentrates Market Analysis, By Bean Type (Robusta, Excelsa, Liberica, and Arabica), By Brew Type (Cold, Drip, French Press, Espresso, and Pour Over) and By Region - Global Market Insights 2023 to 2033
Analysis of Coffee Concentrates Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Coffee Concentrates Market Outlook (2023 to 2033)
The coffee concentrates market size is currently valued of US$ 2,260.0 million in 2023, The global revenue are forecasted to reach a valuation of US$ 4,625.0 million by 2033 with a projected growth rate of 7.4% during 2023 to 2033.
With an emphasis on growing customer demand and satisfaction, the beverage industry has experienced significant transformation from what was originally seen as an opportunity for refreshment and pleasure. The choice of enticing caffeine content and flavors are rapidly expanding owing to the increased coffee consumption globally.
RTD coffee beverages are also made from concentrates and are extensively used to quench the thirst of people who are unable to wait for their coffee to brew due to their rigorous work schedules that involve long, exhausting hours. In the light of aforementioned factors, the sales of coffee concentrates increased and reached a valuation of US$ 2,123.4 million in 2022 and is expected to grow at a CAGR of 7.4% creating an absolute $ opportunity of US$ 2,501.6 million during the forecast period.
Coffee Concentrates Market Size (2022A)
US$ 2,123.4 Million
Estimated Market Value (2023E)
US$ 2,260.0 Million
Forecast Market Value (2033F)
US$ 4,625.0 Million
Global Market Growth Rate (2023-2033)
North America Market Share (2023)
East Asia Market Growth Rate (2023-2033)
Key Companies Profiled
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Historic and Future Pathway Analysis for the Coffee Concentrates Market
Coffee concentrates offer convenience to consumers by providing a quick and easy way to prepare coffee beverages. They eliminate the need for grinding beans, measuring coffee, and brewing a full pot of coffee. Consumers can simply mix the concentrate with water or milk to create the desired coffee strength.
- Short Term (2023-2026): The growing coffee industry helps to power the US economy which is expected to fuel the market for coffee concentrates. The US has the largest coffee market worldwide so far which is projected to grow nearly by 5% during the forecast period and create immense growth opportunities for the market players.
- Medium Term (2026-2029): The proliferation of cafés, coffee café chains, and others, across emerging economies has gained momentum due to rising disposable income and a large increase in coffee consumption is likely to drive the market growth during the forecast period.
- Long Term (2029-2033): Efforts led by the market players to curb the demand pool and gain high-profit margins are likely to fuel the market growth. Further, investing in the manufacturing of coffee concentrates sourced from various bean types due to rising customer demand for smooth textured and flavored coffee significantly benefit manufacturers’ revenue during the long term.
On the back of the aforementioned facts, the coffee concentrates market is anticipated to grow at a CAGR of 7.4% during the forecast period from 2023-2033, According to the Fact.MR, a market research and competitive intelligence provider.
Market share analysis of coffee concentrates based on bean type and region is provided in a nutshell in the above image. Under the bean type segment, the Arabica sub-segment dominates with a 44.1% market share in 2023.
Market Dynamics Outlook
“Skyrocketing Demand for RTD Beverages to Uplift the Sales of Coffee Concentrates”
Coffee concentrates are a diverse product that can be used to create different coffee drinks at various restaurants, cafés, and offices as well as at home. Ready to Drink (RTD) beverages have insanely grown in the past decade in the overall beverage sector.
RTD beverages that make use of coffee concentrates are gaining popularity as the younger generations’ beverage of choice. Versatility and ease of consumption trends create lucrative opportunities for manufacturers producing coffee concentrates.
Consumers are provided with access to a variety of beverage choices to imbibe with many RTD coffee concentrate beverages available in the market on various online sales channels. Thus, the growing work-rich and time-poor population who constantly look out for easy-to-consume RTD beverage drinks are indirectly fueling the demand for coffee concentrates.
“Factors Restraining the Growth of the Coffee Concentrates Market”
Coffee leaf rust, caused by the fungal pathogen Hemileia vastatrix, is a devastating disease that affects coffee plants. It primarily affects the leaves of coffee trees, leading to defoliation and reduced photosynthesis, which hampers the growth of the coffee concentrate market coffee leaf rust significantly reduce the yield of coffee plants. Infected trees produce fewer cherries, resulting in a decrease in overall coffee production. This limited supply of coffee beans affects the availability of raw materials for coffee concentrate production, leading to a decrease in the market's growth potential.
Further, coffee leaf rust not only affects the quantity of coffee produced but also impacts the quality. Infected coffee cherries may have lower sugar content, affecting the taste and flavor profile of the resulting coffee concentrate. Consumers expect high-quality coffee products, and if the beans are affected by leaf rust, it can lead to a decline in demand, thus limiting market growth, especially across South America, South America is prone to such incidences. For instance, the coffee leaf rust outbreak in Brazil (1970s), the coffee leaf rust epidemic (Roya) in Central America (2012-2014), and others.
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What are the Factors Driving Coffee Concentrates Demand Across India?
The growing production and consumption of coffee in India have a significant impact on driving the Indian coffee concentrate market.
- India is the eighth largest exporter of coffee by volume, according to the Food and Agriculture Organization (FAO). The country exports over 70% of its coffee production. The strong growth in coffee exports, with a 42% rise to US$ 1.04 billion in 2021-22, indicates an expanding international market for Indian coffee products.
As the export market grows, it creates more opportunities for coffee concentrate manufacturers to expand their business and cater to global demand.
- Further, coffee consumption in India amounted to 1,235 thousand 60-kilogram bags during 2022/2023, representing an increase compared to the previous year.
This rise in coffee consumption indicates a growing demand for coffee among the Indian population. As more people develop a taste for coffee and incorporate it into their daily routines, the demand for coffee-based products, including coffee concentrates, is likely to increase.
- Moreover, around 70% of all coffee produced in India comes from the state of Karnataka. The coffee produced in Karnataka, approximately 1.58 lakh metric tonnes comprised Robusta coffee, while 74,755 metric tonnes comprised Arabica coffee.
Hence, the growing production and consumption of coffee in India coupled with the country's significant coffee exports and improved realizations for coffee growers, drive the Indian coffee concentrate market.
Why US’s Coffee Concentrates Market is Flourishing?
The growing coffee consumption in the United States is a significant driving factor for the coffee concentrate market in the country.
- Despite being the 25th biggest consumer of coffee on a per-person basis globally, the United States has a large population, and its annual coffee consumption of 4.4 kilograms or 9.7 lbs. is substantial.
The fact that the average person in the U.S. consumes about three cups of coffee per day highlights the strong coffee culture and preference for coffee-based beverages in the country. This high demand for coffee has led to the emergence of various coffee products and innovations to cater to different consumer preferences, convenience, and lifestyle needs. One such innovation is a coffee concentrate. Such factors are likely to drive the US coffee concentrate market in coming years creating an absolute $ opportunity of US$ 871.8 million.
Why is Demand for Arabica Beans High?
Arabica beans are known for their superior flavor and aroma compared to other coffee bean varieties. They offer a wide range of flavors, including fruity, floral, and sometimes chocolatey or nutty notes. This flavor profile is highly desirable among coffee enthusiasts, leading to a preference for Arabica beans.
As Arabica beans are favored for their superior flavor and quality, coffee concentrates made from Arabica beans are highly sought after. The concentration process helps preserve the distinct characteristics of Arabica coffee, allowing consumers to enjoy its flavor and aroma in a more convenient and versatile format.
On the back of the aforementioned factors, Arabica coffee concentrates are likely to hold a market share of 44.1% in 2023 and grow at a CAGR of 7.9% during the forecast period.
How Does the Growing Cold Brew Preference Drive Coffee Concentrate Market?
Cold brew coffee is made by steeping coffee grounds in cold water for an extended period, typically 12 to 24 hours, which results in a smooth, less acidic, and less bitter flavor profile compared to traditional hot brewed coffee, thus, gaining traction among the target population.
Further, cold brew coffee concentrates have also contributed to the growth of the ready-to-drink (RTD) coffee market. Manufacturers have capitalized on the demand for grab-and-go coffee options by introducing pre-packaged cold brew coffee concentrates that are ready to be consumed. These RTD products have gained popularity among busy consumers seeking a quick and convenient caffeine fix.
The increasing popularity of cold brew coffee and coffee concentrates has led to an expansion of distribution channels. In addition to traditional coffee shops and cafes, cold brew coffee and coffee concentrates are now available in grocery stores, online platforms, and even in some cases, on tap in bars and restaurants. The wider availability and accessibility have further boosted the market growth.
The cold brew type is expected to reach a valuation of US$ 2,459.7 million in 2033 from US$ 1,189.0 million in 2023 creating an absolute $ opportunity of US$ 1,341.4 million.
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Eminent Player’s Key Stratagems
Prominent players operating in the coffee concentrates market are All American Coffee LLC, Javo Beverage Company, Inc., Javy Coffee Company, Jot Labs Inc., Mode Cold Brew Coffee, Nestlé S.A., Starbucks Corporation, and Virginia Dare Extracts Co.
Companies focus on offering high-quality coffee concentrates with unique flavors to attract customers. They use premium coffee beans or use specialized extraction techniques to enhance the taste. For instance, Starbucks sells its line of Starbucks VIA Instant Coffee, which offers a range of flavor profiles and is known for its consistent quality.
Fact.MR has provided detailed information about the price points of key manufacturers of coffee concentrates positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.
Segmentation of Coffee Concentrates Industry Research
By Bean Type :
By Brew Type :
- French Press
- Pour Over
By Caffeine Content :
- Half Decaf
By Buyer Type :
By Roast Type :
By Distribution Channel :
- Modern Trade
- Convenience Stores
- Specialty Stores
- Other Offline Stores
- Company Websites
- E-Commerce Platforms
By Region :
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa
- FAQs -
The coffee concentrates market is likely to reach a valuation of US$ 4,625.0 million by the end of 2033.
The East Asia market is expected to hold a market share of 15.8% in 2023 in the global coffee concentrate market.
The coffee concentrate market has created an absolute $ opportunity of US$ 2,501.6 million.
The Arabica bean type is expected to grow at a CAGR of 7.9% during the forecast period.
The commercial buyer type is expected to account for a market share of 53.4% in 2023.