Decaffeinated Coffee Market

Global Decaffeinated Coffee Market Size

The global decaffeinated coffee market size was valued at USD 21.27 billion in 2024, and the global market size is expected to reach USD 32.21 billion by 2033 from USD 22.74 billion in 2025, and the market is growing at a CAGR of 4.45% during the forecast period.

Decaffeinated coffee is essentially the same as regular coffee, with the notable difference being the removal of caffeine. It is crafted from coffee beans that have undergone a process to eliminate at least 97% of their caffeine content. Various methods are employed to achieve this, often involving water, organic solvents, or carbon dioxide. Interestingly, decaffeinated coffee stands as the primary source of antioxidants in the Western diet. While decaf generally contains similar levels of antioxidants as regular coffee, there may be a slight reduction of up to 15%. It's worth noting that the U.S. Food and Drug Administration maintains stringent standards to ensure the safety of any residual solvents used in the decaffeination process. Despite over 90% of American coffee enthusiasts favoring caffeinated brews, decaffeinated coffee offers a valuable option for those seeking the flavor and social aspects of coffee consumption without the stimulating effects of caffeine.

The increasing popularity of Fairtrade Certified Coffee presents a promising avenue for growth within the Decaffeinated Coffee Market. Fairtrade Certified coffee is produced in accordance with Fairtrade standards, emphasizing trade partnerships that prioritize dialogue and transparency to promote greater equality in international trade. These partnerships offer coffee farmers improved trading conditions and support sustainable development. The appeal of such ethically produced coffee among conscientious and informed consumers is reshaping the coffee market, with similar anticipated impacts on the decaffeinated coffee market.

MARKET DRIVERS

Surge in the popularity of arabica coffee, driven by growing global consumer health concerns is enhancing the market growth rate. Arabica coffee stands out due to its higher content of lipids, vitamins, and minerals compared to other coffee varieties. Moreover, it boasts a naturally sweeter taste thanks to its elevated sugar content in contrast to Robusta beans. This preference for sweetness over bitterness is expected to propel the growth of the decaffeinated coffee market during the forecast period. Additionally, the naturally lower caffeine content in arabica beans results in more effective decaffeination, preserving the coffee's exceptional flavor, aroma, and body when brewed. Its naturally sweet and fruity flavor profile makes it a favorable choice for consumption with minimal or no added sugar, further boosting its appeal.Furthermore, a significant driver in the decaffeinated coffee market is the emerging trend among young consumers, particularly millennials aged between 18 to 34 years, who opt for decaf coffee to manage their caffeine intake. This demographic group has the potential to incorporate coffee as a lifelong consumption habit.

MARKET RESTRAINTS

The Decaffeinated Coffee Market faces potential hindrances to its growth. One significant factor is the increasing awareness surrounding the adverse physiological effects of caffeine, a psychoactive substance found in regular coffee. For instance, there is a growing recognition of the potential risks associated with caffeine consumption, including an elevated risk of miscarriage in women, increased levels of harmful cholesterol, heightened heart rate and blood pressure, insomnia, migraines, and more. Nonetheless, the relatively higher cost of decaffeinated coffee may pose a long-term challenge to the global decaffeinated coffee market.

It's worth noting that at higher doses, caffeine can lead to various adverse effects such as headaches, confusion, nausea, vomiting, dizziness, and fatigue. Additionally, animal studies have suggested a potential link between caffeine and the development of liver and lung cancer. However, it's important to highlight that in 1999, the FDA determined that the trace amounts of caffeine present in decaffeinated coffee are exceedingly small and unlikely to have any detrimental impact on one's health.

REPORT COVERAGE

SEGMENTAL ANALYSIS   

By Product Insights

Based on product, the raw decaffeinated coffee segment dominated the Decaffeinated Coffee market in 2022. This is primarily due to its cost-effectiveness compared to roasted decaf coffee. Buyers often prioritize a soft aroma when choosing raw decaf coffee. Furthermore, the increasing popularity of home coffee roasters has encouraged people to opt for unroasted, raw, and green decaf coffee beans.

On the other hand, the roasted decaf coffee segment is projected to experience the fastest growth from 2023 to 2028. This surge in demand is attributed to the flavor and aroma enhancements achieved through the roasting process. Roasted decaf coffee tends to be priced higher than its raw counterpart because the roasting process involves the evaporation of moisture, resulting in lighter and crunchier beans.

By Bean Species Insights

Based on the bean species, arabica decaf coffee beans are expected to dominate the Decaffeinated Coffee market during the forecast period. This dominance can be attributed to their widespread cultivation and greater availability. Additionally, Arabica beans naturally contain lower caffeine levels compared to other decaf coffee bean varieties, making them more suitable for effective decaffeination. Arabica beans are renowned for yielding a superior finished coffee with enhanced flavor, aroma, and body. Their naturally sweet and fruity taste, derived from high lipid and sugar content, makes them an excellent choice for consumption with minimal or no added sugar.

On the other hand, Robusta decaffeinated coffee beans are expected to witness the fastest CAGR in the coming years. The affordability of these beans is driving their demand, and countries like Vietnam and Indonesia are significant suppliers due to the high concentration of coffee farmers in these regions.

By Distribution Channel Insights

Based on the distribution channel, the offline channel is expected to dominate the Decaffeinated Coffee market during the forecast period. The preference for physical verification when making purchases is expected to drive the use of offline stores, encompassing supermarkets, hypermarkets, and convenience stores. Additionally, the improvement of urban infrastructure in emerging economies like China and India is likely to lead to a rise in the number of offline retail outlets in these regions.Conversely, the online channel is poised for the most rapid growth during the forecast period. This growth can be attributed to the increasing popularity of e-commerce platforms, which provide products with additional benefits such as discounted prices, cash-back offers, and coupon incentives. Furthermore, manufacturers of decaffeinated beverages are expected to form partnerships with online companies to expand their customer base.

REGIONAL ANALYSIS

Based on region, in 2022, Europe emerged as the largest market, generating the highest revenue. The region's strong affinity for coffee, coupled with growing awareness among consumers about the potential side effects of caffeine, has been driving the sales of decaffeinated coffee in Europe. For instance, in Germany, decaffeinated variants account for approximately 8% of total coffee consumption, as reported by the International Trade.

North America is projected to experience a moderate CAGR in the decaffeinated coffee market during the forecast period. This growth is driven by increased consumer demand for enhancing food products and ingredients.

The Asia-Pacific region is expected to register the fastest CAGR throughout the forecast period. This rapid growth can be attributed to the rising health consciousness among residents in countries like India, Indonesia, and Japan. The market is witnessing significant demand for decaffeinated coffee in Japan, contributing to increased sales during the forecast period. Additionally, within the Asia-Pacific region, China holds the largest market share in the decaffeinated coffee market, while the market for decaffeinated coffee in India is experiencing the fastest growth.

KEY MARKET PLAYERS

Key Market players of Decaffeinated Coffee Market Don Pablo Coffee (US), The Kraft Heinz Company (US), Cravium Foods LLP (India), Colombian Brew Ground Coffee (Colombia), Nestlé S.A. (Switzerland), Lifeboost Coffee (US), Dunkin' Brands Group, Inc. (US), Fresh Roasted Coffee LLC (US), Volcanica Coffee, LLC (Costa Rica), Kicking Horse Coffee Co. Ltd. (Canada), Koffee Kult (US), Eight O’Clock Coffee Company (US), Cafedirect PLC (UK), Grindhouse Coffee Roasters (UK), Luigi Lavazza S.P.A. (Italy).

RECENT HAPPENINGS IN THE MARKET

• In October 2022, CafePod, an independent coffee brand, unveiled a new decaf coffee flavor known as "Decaf Supercharger Espresso."
• In February 2022, Três Corações Group revealed its acquisition of Mitsui & Co. (Brasil) S.A.'s Roast and Ground Coffee Business. This move is aimed at reinforcing the company's dominant position in the Brazilian coffee market.
• In June 2022, Reliance Brands Ltd. declared a strategic collaboration with Pret a Manger, a fresh food and organic coffee chain, to introduce and expand the brand's presence in India. 

MARKET SEGMENTATION 

This research report on the global decaffeinated coffee market has been segmented and sub-segmented based on product, bean species, distribution channel, and region.   

By Product Insights

• Roasted
• Raw

By Bean Species Insights

• Arabica
• Robusta
• Others

By Distribution Channel Insights

• Online
• Offline

By Region

• Europe
• Middle East
• APAC
• Europe
• North America