Coffee Concentrate Market Size, Share & COVID-19 Impact Analysis, By Type (Caffeinated and Decaffeinated), By Distribution Channel (HoReCa and Retail [Supermarkets / Hypermarkets, Specialty Stores, Convenience Store, and Online Retail]), and Regional Forecast, 2023-2030

The global coffee concentrate market size was valued at USD 2.54 billion in 2022 and is projected to grow from USD 2.67 billion in 2023 to USD 3.90 billion by 2030, exhibiting a CAGR of 5.54% during the forecast period. Europe dominated the coffee concentrate market with a market share of 35.04% in 2022. Moreover, the coffee concentrate market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 988.45 million by 2032, driven by higher per capita coffee consumption in the country.

Coffee concentrate is highly concentrated liquid soluble coffee which is produced by cold brew manufacturing process of Arabica and Robusta coffee beans and can be used to make several coffee drinks. This liquid soluble coffee is further segmented into caffeinated and decaffeinated by type. Caffeinated is said to have a higher growth rate in the forecast period owing to the rising demand in emerging markets, such as India and China. The increase in demand for convenient coffee products in countries such as India and Chine in retail channels is said to drive market growth. The liquid soluble coffee is distributed through HoReCa and several retail channels, including supermarkets/hypermarkets, specialty stores, convenience stores, and online retail, from which the online retail segment has shown significant growth owing to the rising technological advancements by leading e-commerce platforms.

The North American and European regions hold a significant coffee concentrate market share due to the higher demand in countries such as the U.S., France, Italy, Germany, Spain, and others. The leading two regions are followed by the Asia Pacific region owing to the rising demand for coffee in countries such as India, China, Japan, and others. Furthermore, liquid soluble coffee products have shown rapid growth during the forecast period owing to the rapid growth in urban lifestyle in countries in the Asia Pacific region.

COVID-19 IMPACT

COVID-19 Pandemic had a Moderate Impact Owing to the Sudden Spike in Demand for Coffee in Retail Sales Channels

 Retail sales saw a sudden spike during the COVID-19 pandemic owing to consumers stockpiling with the rising fear of lockdown as governments announced several new restrictions on social gatherings to curb the rapid spread of the virus globally. Thus, retail channels, such as supermarkets/hypermarkets, convenience stores, and online retail, globally saw a rising demand for coffee products, including liquid soluble coffee.

However, sudden lockdowns imposed by the governments to control the spread of the virus severely impacted the HoReCa channel. In addition, the sudden rise in demand and restrictions caused by closed borders resulted in several supply chain constraints that caused a bottleneck in the supply chain of soluble coffee including liquid and powdered. In addition, the longer shelf life of liquid soluble coffee further contributed to the market growth with rising consumer inclination toward products with longer shelf life owing to the social restrictions imposed by the government.

LATEST TRENDS

Increasing Demand for Instant Coffee to Fuel the Coffee Concentrate Market Growth

The rising consumer inclination toward instant coffee products, such as powdered coffee and top roast liquid soluble coffee, shall benefit the market growth. The increase in demand is owing to the rising working population and increasing participation of women in the workforce. In addition, the launch of flavored coffee products with higher shelf life is significantly contributing to market growth. Thus, there has been a rising investment by major players toward advancement in production and the launch of new products to cater to the rising demand. For instance, in August 2023, Onyx Coffee Lab, an Arkansas-based coffee products company, announced its launch of a new coffee extract designed to be shelf stable and to provide higher convenience and taste, which has a higher demand among the new consumers in the market. In addition, manufacturers are ramping up their production with the launch of new manufacturing facilities to cater to the increasing demand. For instance, in May 2021, Finlay, a B2B supplier and one of the leading manufacturers of powdered and liquid soluble coffee, announced a major investment in its U.K. facility to cater to the rising demand for cold brew concentrate in the European region.

Furthermore, generation Z consumers have been showing a rising inclination toward affordable quality coffee experiences at home. For instance, as per Joe Stanziano, Vice President and General Manager of J. M. Smucker Company, the consumers are tired of K-cups taking too much time to prepare a coffee. In addition, generation Z is not familiar with brewing coffee and cannot afford to invest in equipment. Thus, it needs more convenient and affordable products.

DRIVING FACTORS

Higher Convenience and Products Being Economical is Driving Market Growth

The liquid soluble coffee products are highly economical and convenient to use. Furthermore, the rising new product launches and new startups in the market have shown an increasing penetration in global markets with availability at several retail channels, including hypermarkets/supermarkets, convenience stores, specialty stores, and online retail. For instance, in August 2023, Tim Hortons announced the launch of its all-new coffee concentrate in four new flavors, including Medium Blend Black, Birthday Cake, Cinnamon Swirl, and Mocha Cereal, in all 50 states in the U.S. retail market.

The highly economical characteristic of liquid soluble coffee is a major contributor to market growth due to the rising cost of living. For instance, as per Natalie Warb who is a financial expert at CouponBirds, a coupon company based in the U.S., the ongoing crisis caused by the rising cost of living and rising inflation are going to result in changing consumer demand from costly fresh products towards economic food products thus liquid soluble coffee is said to show significant growth during the forecast period.

RESTRAINING FACTORS

Higher Availability and Demand of Substitute Products to Restrain Market Growth

The demand for instant powdered coffee is high in the market with higher penetration with extensive product portfolios of major players, including Nestle, Kraft, and others. Instant powder coffee is available in several retail channels and also in tier-three cities in global markets and has a significant demand in emerging coffee markets, such as India, China, and others. In addition, the rising demand among consumers for coffee and increasing per capita coffee consumption in emerging markets have been driving the growth of instant powdered coffee in the global market. Thus, the higher availability of substitute products in the market to restrain the growth.

SEGMENTATION

By Type Analysis

Higher Demand for Caffeinated to Fuel Segment Growth

The market is segmented by type into caffeinated and decaffeinated, from which the caffeinated segment has a dominant share in the global market. The rising caffeine consumption among individuals in the global market is fueling the demand for caffeinated coffee products made from either Arabica or Robusta. Liquid soluble coffees have a higher caffeine content, thus catering to the rising demand among individuals for caffeine.

In addition, the launch of new decaffeinated products to fuel the growth of coffee concentrates in the market. Decaffeinated coffee is coffee which is made from regular Arabica and Robusta coffee beans, although the majority of coffee content is removed from this coffee. Owing to the manufacturing process of liquid soluble coffee, which is the cold brew method, it has higher caffeine content; thus, there are limited decaffeinated products available in the market, resulting in limited availability and demand, which restricts its share in the global market.

By Distribution Channel Analysis

Rising Advancement in the Online Retail Channel to Fuel Retail Segment Growth

By distribution channel, the market is divided into HoReCa and retail. Retail, which has a dominant share of the market, is further segmented into supermarkets/hypermarkets, specialty stores, convenience stores, and online retail. The supermarkets/hypermarkets have the highest share in the market owing to the higher availability of different product variants. However, online retail is said to have the highest CAGR owing to the rapid growth in technology and the convenience of doorstep delivery offered by the leading online grocery and e-commerce companies.

As the markets have become normal post-pandemic and retail shops have been showing a boost in sales, manufacturers are expanding their business operations through retail establishments.

For instance, in April 2023, Wake the Crew, a Singapore-based coffee concentrate startup that began during the mid-pandemic, was distributing its products through e-commerce channels. However, with increasing retail sales and an increase in market penetration, the company has announced its plans to expand in the South East Asia region through supermarkets.

REGIONAL INSIGHTS

Geographically, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Europe to Dominate Market due to Higher Coffee Consumption

The European region has a dominant share in the market for coffee owing to the higher consumption of soluble coffee at home in countries, including the U.K., Germany, France, Italy, and others.

Europe is followed by North America owing to higher per capita coffee consumption in the U.S. Furthermore, the rising coffee consumption in countries, such as India and China, shall fuel the market growth in the Asia Pacific region.

In addition, with the rising e-commerce development in the region, the Asia Pacific is said to have significant growth in the market.

The coffee production in the South American region has been a significant reason for the market's growth. In addition, the rapid growth in the HoReCa sector in the Middle East & Africa and South America fueled the market growth in these regions.

KEY INDUSTRY PLAYERS

Market Players to Focus on New Product Launch to Cater the Rising Demand

The leading market players are focused on launching new products and regional expansion to cater the growing demand among consumers. For instance, in November 2020, Solo Coffee announced the launch of cold brew concentrate in the U.K., which provides the convenience of making barista-style coffee at home by just adding water or milk to the concentrate.

Other key players in the market are Starbucks Corporation, Javy Coffee, J. M. Smucker, and others.

LIST OF KEY COMPANIES PROFILED:

• Javy Coffee Company (U.S.)


• The J.M. Smucker Company (U.S.)


• Starbucks Corporation (U.S.)


• Blue Bottle Coffee, Inc. (U.S.)


• Kohana Coffee (U.S.)


• Nestle S.A. (Switzerland)


• Climpson & Sons (U.K.)


• Monin (France)


• Grady’s Cold Brew (U.S.)


• Wandering Bear Coffee (U.S.)

KEY INDUSTRY DEVELOPMENTS: 

• June 2023 – Monin announced the launch of its new seasonal coffee concentrate products with all new seasonal flavors, such as maple pumpkin cold brew coffee concentrate, to increase its product portfolio and cater to the growing demand.


• August 2022 – Finlay’s announced the establishment of a multi-million dollar manufacturing facility of cold brew coffee concentrates to cater to the rising demand in the B2B coffee concentrate market.


• August 2022 – Pop & Bottle announced the launch of its all new products exclusively at Walmart owing to the higher penetration of the supermarket chain in the U.S.


• April 2020 – Jot Coffee launched its operation in the market with the launch of its coffee concentrate products through its direct-to-consumer sales channel to have a competitive edge in the rapidly growing market.


• May 2019 – Union Hand-Roasted Coffee, a U.K.-based coffee roaster, announced the launch of its new cold brew coffee concentrate products in the country owing to the increasing demand for convenient products.

REPORT COVERAGE

The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, type, and distribution channels. Besides this, the report offers insights into the coffee concentrate market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation: