Coffee Bean Market

Coffee Bean Market Size, Share, Growth (2023-2028)

Coffee Bean Market size was valued at USD 32.35 billion in 2023 to 44.32 at 2028 and is projected to grow at a compound annual growth rate of about 6.50%.

Coffee Bean Market Overview:

A coffee bean is a type of seed obtained from the coffee tree. It is a seed, inside the red or purple fruit often called cherry. Even if the coffee bean is a seed, they are called "beans" because of their resemblance to real beans. Coffee has several health benefits, as it helps reduce the risk of type 2 diabetes, reduces the risk of heart disease, and reduces the risk of skin cancer. In addition, it helps improve energy levels and additional fat burning. Furthermore, it helps to increase the metabolic rate of the body and improve its physical performance of the body. It contains several essential nutrients, such as riboflavin, pantothenic acid, manganese, potassium, magnesium, and niacin, which help fill the lack of micronutrients in the human body. The use of coffee beans in the pharmaceutical industry increases the growth of the world market for coffee beans. The health benefits associated with a coffee bean in the form of food supplements have increased its consumption worldwide. Green coffee bean extract has a higher level of chlorogenic acid than other roasted and regular coffee beans because these beans are not roasted. Therefore, the adoption of green coffee beans in the form of weight loss supplements has been widely observed among consumers. 

Recent Developments in Coffee Bean Industry:

• Jollibee Foods Corp., the Philippines' largest foodservice company, said it acquired Coffee Bean & Tea Leaf for USD 350 million. Through its Singapore-based subsidiary Jollibee Worldwide Pte Ltd., the company will initially finance the acquisition through a bridge loan. Coffee Bean & Tea Leaf will be consolidated in JFC's financial statements after its purchase. The deal is the most important to date for Jollibee, according to Bloomberg. It spent $ 210 million on Smashburger and $ 111.3 million on Mang Inasal. The company acquired a 47% stake in Tortas Fronteras, a Rick Bayless Mexican fast-food restaurant, for $ 12.4 million in September.

• Based in Los Angeles, Coffee Bean & Tea Leaf will increase Jollibee's global sales by 14% and expand its base by more than a quarter. The 1,189-unit beverage chain posted a net loss of $ 21 million in revenue of $ 313 million in 2018. When JFC acquired its stake in Tortas Frontera, it had 4,379 stores worldwide. This included 436 North American units: 349 Smashburgers, 37 Jollibee stores in the US. In the USA, Three locations in Jollibee Canada, 32 Red Ribbons and 15 Chowkings. In the Philippines, the company operated 1,094 locations under the Jollibee brand, 542 Chowkings, 277 Greenwich stores, 434 Red Ribbon units, 415 Man Inasals and 96 Burger Kings.

Coffee Bean Market Drivers and Restraints:

The increasing penetration of franchise stores like CCD and Starbucks in India, China, and other countries is one of the main factors that should stimulate the global coffee beans market during the forecast period.

The demand for coffee beans is supposed to grow significantly due to the increasing application of these beans in various sectors, including pharmaceuticals, cosmetics, and food and beverages. Coffee is gaining popularity among young people, especially in India and China. Due to increasing popularity, various franchise retailers are entering these markets to meet consumer demand. India has more than 1,400 registered coffee shops. In China, Starbucks only has more than 1,500 points of sale. The number of coffee lovers is supposed to increase in the coming years, which should fuel demand for robusta and arabica beans during the outlook period. These types of beans help prevent certain types of diabetes, skin cancer, and heart disease, as well as improve the immune system. The growing awareness of the health benefits of these beans has resulted in increased consumption among the diabetic population, as it helps reduce the risk of type 2 diabetes. This, in turn, should fuel the demand for coffee beans during the outlook period. Arabica and robusta beans are widely used due to their caffeine content. Robusta contains 2.7% caffeine, almost double 1.5% arabica. Also, the Arabica type has a pleasant taste and contains nearly 60% lipids and almost twice as much sugar as Robusta, which makes people prefer Arabica to Robusta. The coffee culture is made up of more than 60% arabica, where Brazil is one of the leading world producers. Arabica has a higher acidity than robust, which adds a fruity, chocolate and nutty flavor to beans. 

REPORT COVERAGE:

Coffee Bean Market Segmentation:

Based on Type:                              

• Arabica     

• Robusta    

 Based on Application:                 

• Personal care         

• Food          

• Dietary supplements          

• Pharmaceuticals   

Regional Presence of Coffee Bean Market:

• North America

• Asia-Pacific

• Latin America

• Middle East

• Europe

The Asia-Pacific region is also anticipated to be a severe competitor in the world market for coffee beans. Emerging economies, such as India and China, are foreseen to contribute to the growth of the Asia-Pacific coffee bean market. Furthermore, the market will also be driven by the increase in disposable income spent on coffee consumption in cafes, the increase in the group of young people who fed coffee cultivation, and the essential coffee plantations which are known to provide some of the best coffees in the world. Latin America is presumed to be a significant regional player in the global coffee bean market, as the region is known for being an experienced producer of high-quality coffee beans.

Impact of COVID-19 for Coffee Bean Market:

With the onset of the pandemic and an indefinite lockdown in various nations, at first the consumer food & beverage industry witnessed a surge in demand for household staples and consumables with longer shelf lives. However, while this is sustained during the early stages of the crisis, currently most companies are facing difficulties with low consumption and supply chain challenges. So, most companies are attempting to reinforce their online presence and delivery measures. Already, medium and small farmers were facing issues as regards operation costs and low mechanization. The pandemic may further lead to a shortage of manpower in producing countries. In addition to this, postponement of orders by the consumer countries will lead to the destruction of entirely coffee-based economies. Due to the restrictions in movement imposed by the governments, the shipment of goods has faced delays and reduction in number. Even though governments are implementing policies in order to mitigate economic damage, a global economic recession is bound to bring about a rapid decline in the economy’s status. The International Coffee Organisation (ICO) published a study stating that monetary devaluation risks in coffee-producing countries.

Coffee Bean Market Key Companies:

1. Kicking Horse Whole Beans

2. Death Wish Coffee

3. The Coffee Beans Co.

4. La Colombe Torrefaction Inc.

5. Coffee Beans International Inc.

6. Luigi Lavazza

7. Hawaiian Isles Kona Coffee Company

8. Peets Coffee & Tea Inc.

9. La Colombe Corsica Blend

10. Illycaff S.p.A