Coffee Roaster Market

Coffee Roaster Industry Outlook (2022-2032)

The coffee roaster market is expected to register a CAGR of 5% by garnering a market value of US$ 701.24 Billion in 2032 from US$ 430.5 Billion in 2022. The market is significantly driven by the growing consumer inclination towards coffee consumption across the world. From 2021 to 2022, the market experienced a Y-o-Y incline of 5%.

According to the International Coffee Council, consumer preference in South and East Asia is changing with favorable demand for the consumption of fresh coffee. This increasing demand for fresh coffee in countries in the Asia Pacific are significantly contributing to the increasing coffee consumption.

Report Attributes	Details
Market Size Value in 2021	US$ 410 Billion
Market Value in 2022	US$ 430.5 Billion
Project Market Forecast Value in 2032	US$ 701.24 Billion
Global Growth Rate (2022-2032)	5% CAGR
Market Share of Europe	40%
Key Companies Profiled	Nestle SA Buhler Group LUIGI LAVAZZA SPA PROBAT-Werke von Gimborn Maschinenfabrik GmbH Scolari Engineering S.p.A. Coffee Holding Co. Inc. Cia. Lilla de Máquinas Ind. Diedrich Manufacturing Inc. Giesen Coffee Roasters TOPER ROASTER Joper Roasters Nesco US Roaster Corp. Sonofresco Genio Roasters Ambex Roaster Hottop Vittoria Food & Beverages Gracenote Coffee Roasters

Furthermore, the ever increasing cafe culture in the emerging economies has led to the expansion of coffee shop chains. This is also expected to drive market growth over the forecast period. Rising disposable income and development in the retail sector are likely to propel the growth of the residential coffee roaster segment.

Demand Analysis of Coffee Roaster from 2017 to 2021 vs, Market Projections from 2022 to 2032

Historically from 2017 to 2021, the sales of coffee roasters showed a positive growth rate, owing to the expansion in the e-commerce sector during the COVID-19 pandemic. However, the effect of continuous social distancing measures and the shutdown of restaurants during lockdown caused a reduction in coffee consumption. 

This key factor has particularly affected the small and medium-sized coffee roasters that mainly supply to restaurants, cafes, and hotels. This also hampered the U.S. and European market growth rate in 2020. As a counter act, consumers started roasting the coffee at home, making COVID-19 pandemic a reason behind boosting the sales of home roasters.

In the upcoming years, the sales of coffee roasters are expected to increase in countries such as the U.S., China, India and France. Coffee roasting has made it easier for coffee to experiment with innovative ways of brewing and has made coffee and brewing machines accessible on commercial and domestic platforms. Thus, the coffee roaster market is expected to register a staggering CAGR of 5% in the forecast period.

Key Factors Driving Coffee Roaster Market Growth

Increased Consumption of Fresh Coffee Escalating Sales of Coffee Roasters

According to AJCA (All Japan Coffee Association), the average weekly cups of coffee consumed per capita in Japan from 2020 has increased, showing an application of coffee roasters in Japan. Consuming coffee has predominantly been a cultural and traditional practice in different geographical regions across the globe.

The coffee roasting processes have been liked by people since decades. This is mainly due to the taste, flavor and aroma of the coffee. As the taste buds of consumers are drastically changing, coffee roaster manufacturers are experimenting with coffee to make it fresh and nice.

Growing demand for fresh, flavourful, and aromatic coffee from end-users is increasing due to its benefits. Coffee is loaded with antioxidants and nutrients which adds on to the overall health by boosting the immune system and helping prevent cancer and other life-threatening diseases.

In addition, the leading companies are working on expanding the presence of their brands by engaging in coffee innovations with value-added coffee-based RTD, flavor added coffee, and many more to attract more consumers toward roaster coffee.

Increased Pace of Product Innovation and Launches Widening Growth Prospects

Manufacturers of coffee roasters are focusing on attracting consumers by offering various flavors of coffee. This has led to a competitive landscape in the coffee roaster market. By offering coffee roasters in premium packaging, manufacturers are giving a plethora of options to consumers to choose from.

Furthermore, most traditional manufacturers of coffee roasters have taken the digital route and are selling roasters through E-commerce websites. This has led to increasing sales, especially in the COVID-19 pandemic period.

Market growth is also credited to the heightened product innovation and product launches around the world. The increasing product launches include added functionality and improved characteristics are likely to attract more consumers.

For instance, in January 2021, IKAWA Ltd. introduced a new coffee roaster, IKAWA Pro100. The roaster has a capacity of 120 gm and is extremely consistent, and easy to use. Also, U.S. Roasters Corp. launched a new heat recirculating solution, Revelation F5, in 2020.

Key Challenges/Restraints to Coffee Roaster Industry Growth

Low Shelf Life of Coffee Expected to Hinder the Growth of Coffee Roaster Industry

The low shelf- life of roasted coffee acts as a major restraint for the coffee roasters market, as it loses flavor due to the onset of staleness. Furthermore, increased and extensive usage of instant coffee powder hinders the global market. This is primarily because instant coffee powder reduces the time needed for roasting and grinding.

Other challenges faced by the coffee roasters market include emission of toxic gases and particulate matter during the roasting process along with high consumption of tea in major parts of the world.

Region-Wise Insights

How is the Increasing Demand for Premium Coffee Roasters Making European Countries a Hotspot?

High Consumption of Freshly Roasted Coffee Fueling Growth

Germany made the largest contribution to the global market with around 35% in 2021. According to the CBI, Ministry of Foreign Affairs, in 2018, Germany and Italy were the largest roasted coffee exporters in Europe, which had volume market shares of around 23% and 22%, respectively. Other substantial exporters of roasted coffee beans in Europe include Switzerland, Spain, Poland, and the Netherlands.

European countries such as Finland, Norway, Denmark, the Netherlands, Iceland, Sweden, and Belgium have the highest per capita consumption of coffee in 2019. Higher consumption of freshly roasted coffee and the presence of many small and medium roasters in European countries is attributable to higher market share. Overall, the region is expected to contribute 2/5th of global coffee roaster market revenue.

To add to these factors, international events and shows held in the region have further fuelled the market growth. For instance, the World of Coffee, one of Europe's largest specialty trade shows, was organized in Berlin. Over 250 exhibitors from 50 countries participated, displaying the latest products and innovations in the coffee market, including coffee roasters, baristas, producers, and other professionals.

Will Good Fortune Spur Demand for Coffee Roasters Across the Asia Pacific Countries?

Traditional Habits Increasing Sales of Coffee Roasters

According to Fact.MR, Asia Pacific is expected to witness a CAGR of over 8% from 2022 to 2032, accumulating 35% market revenue. Consumption of roasted coffee is growing in major economies including China, Japan, Indonesia, India, the Philippines, and South Korea. In the Asia Pacific, medium and small-sized roasters lead to the introduction of premium and high-quality roasted coffees and create increasing demand for coffee roasters. 

Moreover, new players in the region are entering the market and driving the growth. For instance, Kaapi Machines announced setting up a factory to manufacture coffee roasters. Additionally, youth and millennials in the region are getting attracted to coffee and ready-to-consume drinks thus showcasing strong growth in the near future.

Region-wise Coffee Roasters Market Share

Region	Market Share
Europe	40%
Asia Pacific	35%
North America	25%

Category-Wise Insights

Which Type of Roaster is expected to acquire a Major Market Share?

Direct Fire Roasters to Influence Sales Positively

Fact.MR projects the direct fire roasters to account for 25% of the global market share, registering the 2nd highest share in the market. Direct fire roasters allow the green coffee beans to be in direct contact with the burner's flame, also called perforated drum roasters. This direct roasting process results in the dark roasted coffee beans and imparts a strong taste to the coffee.

In addition, hot air is expected to register a CAGR of 7% over the forecast period. This is mainly because it is one of the easiest ways to get great results using indirect heat. Hot air is pushed through the roasting chamber which roasts all the green coffee beans by surface contact and is majorly consumed in commercial and residential applications. This process results in light and even roasted coffee beans.

By Application, which Segment Plays a Key Role in Boosting Sales of Coffee Roasters?

Wide Application in Industrial Area Accelerating Sales of Coffee Roasters

The industrial segment is projected to account for the highest share of around 52%. The higher consumption of coffee through roasted coffee powder and beans together leads to the higher market share.

Industrialization and urbanization in the developing economies is anticipated to contribute to the market growth. Increasing consumption of coffee in the Asia Pacific along with the health benefits of coffee and derived products is expected to drive the growth of the segment.

What is the Intensity of the Competition in the Global coffee roaster Market?

Key players in the global coffee roaster market include US Roaster Corp., Coffee Holding Company Inc., Behmor Inc., Hottop, and Giesen Coffee Roasters. Some of the recent developments in coffee roaster market are:

• In March 2022, Breville Group Ltd. launched beanz.com, an e-commerce platform featuring around 50 specialty coffee roasters for residential use.
• In December 2021, Starbucks introduced its new oat dairy alternative coffee in its espresso segment. It includes three combinations of flavors, Vanilla & Strawberry, Hazelnut & Honey, and Dark Cocoa & Orange, which are uniquely handcrafted to enhance a distinctive flavor. It also announced its plan to not charge extra for dairy-alternative products from January 2022.
• In September 2021, Nespresso of Nestle SA launched its coffee roasting machine "Roasterlier." It aims to provide the most reasonable coffee roasting solutions for HoReCa entrepreneurs across the world, starting with Europe. The machine is customizable to prepare Arabica coffees in a sustainable way.

Key Segments Covered in the Coffee Roasters Market Study

• Coffee Roasters Market by Type :

  • Direct Fire Coffee Roasters
  • Half Hot Air Coffee Roasters
  • Hot Air Coffee Roasters
  • Other Coffee Roasters

• Coffee Roaster Market by Application :

  • Industrial Coffee Roasters
  • Commercial Coffee Roasters
  • Residential Coffee Roasters

• Coffee Roaster Market by Region :

  • North America
  • Europe 
  • Asia Pacific 
  • Latin America
  • Middle East & Africa