The coffee concentrate market is experiencing a significant surge, with a current valuation of US$ 2.90 billion in 2024. This growth is fueled by the expansion of eCommerce chains, making manufacturers accessible to a wider consumer base. The market is poised to reach an impressive US$ 5.10 billion by 2034, with a projected CAGR of 5.80%. A notable trend shaping this market is the shift towards sustainability, as manufacturers invest in eco-friendly practices. The increasing popularity of coffee concentrates is also driven by consumers’ desire for functional benefits and a traditional coffee-drinking experience. Retail channels, preferred by 71% of consumers, provide immediate access and a sensory experience that online platforms often lack.
The demand for coffee concentrates is soaring due to consumers’ familiarity with the taste and benefits of caffeine. Caffeinated concentrates, accounting for 63% of the market share, are especially popular among coffee enthusiasts seeking authenticity. Retail stores are the preferred distribution channel, offering convenience and an immersive shopping experience. The market is witnessing a preference for premium products, particularly in affluent markets like the United States and the United Kingdom.
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Growing Factors:
- Sustainability Initiatives: Manufacturers are investing in sustainable practices, aligning with the eco-conscious preferences of consumers and businesses.
- Retail Preference: Consumers favor retail stores for their immediate access to products and sensory experience, boosting sales.
- Functional Benefits: Caffeinated concentrates offer functional benefits and a traditional coffee-drinking experience, driving consumption rates.
- Premiumization: Affluent markets are attracted to premium products, boosting sales and market growth.
- eCommerce Expansion: eCommerce boom, especially in China, has facilitated accessibility and choice for consumers, leading to increased sales.
Key Takeaway:
The coffee concentrate market is on a growth trajectory, driven by sustainability initiatives, retail preference, and consumer demand for functional benefits. With a projected market value of US$ 5.10 billion by 2034 and a CAGR of 5.80%, investors have a lucrative opportunity to capitalize on this thriving market. Premiumization, eCommerce expansion, and the popularity of caffeinated concentrates are key factors contributing to the market’s growth.
Sustainability Takes Center Stage
In an era where eco-consciousness reigns supreme, sustainability has become a defining factor in consumer choices. The coffee concentrate market is no exception, with manufacturers investing billions of dollars in embracing sustainable practices. From eco-friendly packaging to sustainable sourcing, companies are aligning with the growing demand for environmentally responsible products. This shift towards sustainability not only benefits the planet but also resonates with consumers who prioritize ethical consumption.
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Retail Channels Dominate
Despite the rise of online platforms, retail channels remain the preferred choice for consumers, capturing a significant 71% market share in 2024. Retail stores offer consumers immediate access to products, allowing them to satisfy their coffee cravings on the spot. Additionally, the sensory experience provided by retail outlets—where consumers can see, touch, and sometimes sample products—adds value that online platforms often lack. This preference for retail channels underscores the importance of physical presence and consumer engagement in the coffee concentrate market.
Functional Benefits Drive Consumption
One of the key drivers of the coffee concentrate market is the functional benefits offered by caffeinated concentrates. Accounting for 63% of the market share, caffeinated concentrates are a favorite among coffee enthusiasts seeking an authentic coffee-drinking experience. Consumers are increasingly familiar with the taste and after-effects of caffeine, making caffeinated concentrates a popular choice. This trend highlights the market’s ability to cater to consumers’ desires for both flavor and functionality.
Premiumization and Affluent Markets
The market’s growth is further propelled by the trend of premiumization, particularly in affluent markets like the United States and the United Kingdom. Affluent consumers are drawn to premium coffee products, driving sales and market growth. The emergence of artisanal coffee products and customized concentrates has also contributed to increased consumption rates. Additionally, the expansion of eCommerce chains, especially in China, has facilitated accessibility and choice for consumers, leading to a surge in sales.
Recent Developments
- In January 2024, Torr Industries launched the Hive Cafe, a compact version of its Hive Brew cold coffee system. Baristas pre-wetted coffee grounds loaded them into the brewing chamber, and brewed espresso-like concentrate alongside cold brew.
- In August 2023, Tim Hortons unveiled its Cold Brew Concentrate in the USA, featuring four flavors: Medium Blend Black, Birthday Cake, Cinnamon Swirl, and Mocha Cereal. The 32-ounce bottles offered eight servings each, promising a smooth coffee experience at home.
- In August 2023, Rogers, Arkansas’s Onyx Coffee Lab unveiled “Extractions,” a groundbreaking coffee concentrate. The product, boasting full flavor and convenience, raised the bar for discerning coffee enthusiasts seeking quality.
- In March 2024, Starbucks introduced new grocery items inspired by its brown sugar oat milk shaken espresso. The lineup included ground coffee, K-Cups, and cold brew concentrate, available at Target, Walmart, and Amazon. Customers could enjoy the flavor of Starbucks at home.
- In June 2023, Monin unveiled its latest creation, Maple Pumpkin Cold Brew Coffee Concentrate. Infused with gourmet arabica espresso, pumpkin spice, and rich maple syrup, it quickly became a seasonal favorite, inspiring both consumers and operators to indulge in autumn-inspired beverages.
- In May 2023, Westrock Coffee unveiled its groundbreaking Energy Refresher platform alongside innovative cold coffee offerings at the National Restaurant Association Show in Chicago. The suite of pioneering beverage solutions catered to diverse tastes, meeting the demand for ready-to-drink beverages.
Key Companies
- Starbucks
- Nestlé
- Keurig Dr Pepper
- Stok
- Califia Farms
- La Colombe Coffee Roasters
- Chameleon Cold-Brew
- Kohana Coffee
- Rise Brewing Co.
- Caveman Coffee Co.
- Lucky Jack Coffee
- Secret Squirrel Cold Brew
- High Brew Coffee
- Wandering Bear Coffee
- Cuvee Coffee
- Kitu Super Coffee
- Highwire Coffee Roasters
- Slingshot Coffee Co.
- Grady’s Cold Brew
- RISE Nitro Brewing Co.
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Key Segments of the Coffee Concentrate Industry
By Type:
- Caffeinated
- Decaffeinated
By Distribution Channel:
- HoReCa
- Retail
- Supermarkets/Hypermarkets
- Specialty Stores
- Convenience Store
- Online Retail
By Region:
- North America
- Latin America
- Europe
- Asia Pacific
- Middle East and Africa
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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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