Coffee Grounds Market

Coffee Grounds Market Research Overview:

Coffee Grounds Market was at USD x.xx million in 2020 and is anticipated to reach USD x.xx million, registering a CAGR of 5.49% throughout the outlook period (2022 - 2027).

Coffee refers to an infused beverage made from roasted coffee beans, which are the seeds of the berries of the coffee species. The residue that remains after making coffee is known as coffee grounds, which are beneficial in fertilizing the garden, repelling pests and insects, eliminating pet drips, and also help neutralize odors. Coffee grounds are produced during the roasting of the beans and are obtained during the instant coffee making process.

Recent Developments

1. Blue Bottle Coffee is about to begin the sales of its packaged pre-ground coffee with the purchase of Perfect Coffee. This is the latest acquisition and rebrand of Blue Bottle in two eight-figure investment rounds: the Handsome Coffee Roasters brands and the Tonx Coffee subscription service dissolved under the Blue Bottle umbrella, and the company claims that the Five people involved in Perfect Coffee will join the Blue Bottle team.
2. Massimo Zanetti Beverage Group (MZBG) completed the purchase of Brazilian coffee company Café Pacaembu, with the aim of reinforcing its market position in the nation. Founded in 1957, Café Pacaembu is a San Paolo-based company described by MZBG as “one of the best-known brands” in the country. According to estimates provided by MZBG, the acquisition of the Brazilian company will raise the company's turnover in the country to R $ 130 million.
3. Nestlé's recent acquisition of Nature's Heart brand has given it a break from its traditional instant coffee category and into the potentially more lucrative fresh ground coffee category.
4. Gryphon Investors, a San Francisco-based private equity firm, announced that the company and its co-investors have completed the purchase of Eight O'Clock Coffee Company from The Great Atlantic & Pacific Tea Company, Inc. As an independent business, Eight O'Clock will continue to manufacture its complete bean and ground coffee lines for customers in the United States and Canada.
5. TPG, a private equity fund, is thought to be planning for obtaining shares in Coffee Day Global, which controls Cafe Coffee Day outlets. Although the conference is only at a very early stage, it could significantly change the way current Coffee Day outlets operate. However, a TPG spokesperson declined to comment, as did Coffee Day Enterprises Ltd (CDEL).

Market Drivers and Restraints:

The new product portfolio and product diversity are the main approaches taken by manufacturers to increase their market share. In addition to this, coffee grounds producers have adopted competitive pricing techniques to increase their sales. The introduction of attractive packaging combined with adequate investment in social media promotion is boosting the global market for coffee grounds. The impact of competitive rivalry in the global coffee grounds market is significant due to the high number of players, the strategies adopted by operating companies, and high-level innovations. Players operating in the global coffee grounds market are also focusing on new product development to gain a solid foothold in the dominant competition. Coffee flour is derived from coffee and is suitable for gluten-free recipes that are high in protein and fiber. The main applications of coffee flour are bakery and pastry, healthy snacks, and pizza, and pasta. It has yet to be recognized in the food and beverage industry. Coffee grounds are a source of nitrogen that can help improve soil structure. They can be spread over the soil or mixed with it to improve its fertility. It is common to add coffee to compost or worm bin. This technique helps create nitrogen-rich soil, making it more fertile for agriculture. Studies have also shown that coffee grounds help maintain optimum temperatures in compost heaps. This allows the compost to remain free of potentially harmful pathogens that affect the delicate seedlings. These factors contribute to the increasing use of coffee grounds in the agricultural industry.

In addition to agriculture, the observed demand in the food and beverage sector is expected to remain high according to the graph shown. The coffee grounds used in fertilizers are slightly acidic and full of nitrogen, a mineral that helps enhance the growth of various vegetables and plants. For tomato plants that grow in nitrogen, soil with coffee beans is considered remarkably bright. If used for planting, coffee grounds produce a type of natural acid bacteria that stimulates the growth of acid-loving plants such as roses, blueberries, evergreens, and tomatoes. Coffee grounds also protect plants from slugs and snails that nibble on vegetables and flowers. Therefore, the demand in the insecticides and pesticides segment will increase significantly in the coming years. Consumers of beauty products are becoming more environmentally conscious, and a growing number of buyers expect their products to be sustainable, organic, and carbon neutral. The growing concerns about the side effects of the chemical content in cosmetics and their inclination towards natural products have forced manufacturers to introduce beauty products that contain coffee grounds as one of the key ingredients. Caffeine helps improve cell turnover and blood circulation, which is a key factor in the increasing use of coffee grounds in lotions and soaps. Coffee grounds have gained enormous popularity due to various environmental benefits, such as improving soil quality and conserving water. Raising awareness among farmers of the nutritional benefits and role of coffee grounds in promoting plant-based microbiological activities will lead to its adoption in the years to come.

Market Segmentation:

The global coffee grounds market is segmented based on the product, end-use, and geography. On the basis of the product, the market is classified into Arabica, Robusta, and others. By end-use, it is classified into food, personal care, and pharmaceuticals. Bakers have incorporated coffee into muffins, cookies, and cakes for years. These coffee-based cookies and cakes are gaining in popularity and therefore complement coffee beans in the food industry.

Impact of covid-19 on Coffee Grounds Market

COVID-19 has prevented many people from working across borders, implying that some coffees may rot before being harvested, or that the overall quality of the harvest may deteriorate before being harvested. Government-imposed social distancing and staying at home has forced millions of cafes around the world to close their doors. It also had an impact on the sale of coffee grounds. The current scenario could affect the price of ground coffee on the exchange rate, which would have a direct effect on foreign farmers, exporters, and buyers. Coffee producers must bear the brunt of this decision, which will be compounded by the fact that most already face significant challenges in coffee production.

Regional Analysis:

The Market for Coffee Grounds has been categorized on the basis of geography into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. North America was the largest market with a 29.2% share in 2018 due to the high consumption of brewed coffee. The increasing demand for coffee vending machines at railway stations, airports, offices, and other places and the increasing demand from the working population is expected to contribute reasonably to the market revenue. Also, an increase in the number of coffee shops in Canada and the United States is expected to boost demand for coffee Grounds during the forecast period. MEA is estimated to grow at the fastest CAGR of 9.9% during the forecast period due to the increase in coffee consumption. Additionally, the penetration of various pharmaceutical companies such as Novartis and Allergan is expected to boost demand for coffee grounds during the forecast period. The Asia-Pacific region is expected to experience significant growth over the forecast period due to the increase in disposable income associated with coffee consumption. The growing popularity of coffee among the young population and the growing number of coffee shops are expected to provide growth opportunities for coffee grounds business in the area.

Leading Company

Death Wish Coffee Company had the largest share of the Coffee Grounds Market in terms of sales and revenue in 2019.

Key Players

Key players in the Coffee Grounds Market include UCC, Death Wish Coffee Company, The Kraft Heinz Company, Starbucks Corporation, Royal Kona, Red Thread, Peet's Coffee, Kicking Horse Coffee, Hills Bros. Coffee, and Folgers Coffee.