Coffee has been a crucial part of people’s daily routine since its discovery in the eighth century AD. Over the course of time, as people began experimenting with it, more variants and caffeine-associated products made their way to the general populace’s shopping basket. The coffee concentrate market is valued to be a staggering USD 2.90 billion, as of 2024.
With the expansion of eCommerce chains, especially in developed and developing economies, manufacturers are able to reach a wider consumer base. This has benefitted not only them but also the consumers as they get a plethora of options to select from. This is slated to further take the market valuation to USD 5.10 billion by the end of 2034.
The ongoing sustainability trends have also impacted the coffee concentrate market. Manufacturers are investing billions of dollars in embracing sustainable practices to make their offerings more eco-friendly. With the market growing at a modest CAGR of 5.80% through 2034, FMI predicts a bright future in the years to come.
| Attributes | Details |
|---|---|
| Market Value for 2024 | USD 2.90 billion |
| Projected Market Value for 2034 | USD 5.10 billion |
| Value-based CAGR of the Market for 2024 to 2034 | 5.80% |
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Concentrates of coffee mainly come in two variants, caffeinated and decaffeinated. Among these, caffeinated coffee concentrates are in line to hold a market share of 63% in 2024.
| Attributes | Details |
|---|---|
| Type | Caffeinated |
| Market Share (2024) | 63% |
The demand for caffeinated coffee concentrates is touching the skies as consumers are increasingly familiar with the taste and after-effects of drinking caffeine-containing drinks. This appeals to a consumer base seeking functional benefits from their coffee consumption.
Also, caffeinated concentrates are perceived as more authentic to the essence of coffee, particularly among coffee enthusiasts who prioritize the traditional coffee-drinking experience. All these factors have led to the growing consumption rates of caffeinated concentrates.
Concentrates of coffee are available over a wide spectrum of distribution channels like retail, supermarkets, specialty stores, convenience stores, etc. The retail segment is anticipated to hold a majority share of 71% in 2024.
| Attributes | Details |
|---|---|
| Distribution Channels | Retail |
| Market Share (2024) | 71% |
Consumers in the coffee concentrate market are increasingly preferring retail outlets despite the emergence of online platforms. Retail stores offer the convenience of immediate access to products, allowing consumers to satisfy their coffee cravings on the spot without waiting for delivery.
These shops also provide a sensory experience where consumers can see, touch, and sometimes even sample the products before making a purchase. Retail shops also save a substantial amount of financial costs as they don’t include shipping charges.
| Countries | CAGR (2024 to 2034) |
|---|---|
| United States | 6.10% |
| United Kingdom | 7.00% |
| South Korea | 8.00% |
| Japan | 7.60% |
| China | 6.60% |
South Korea is one of the leading markets in the world when it comes to coffee concentrates. The South Korean market is estimated to grow at a CAGR of 8.00% through 2034.
South Korea, as a country, has undergone a serious transition in its dietary habits. The youth population in the country is actively following Western eating practices. Coffee, which is a major part of this diet, has become an integral part of people’s lifestyle in South Korea.
Coffee essences are thus, in great demand in the country as they offer a convenient way of enjoying coffee while aligning with the busy and fast-paced lifestyles of individuals in this country. Besides this, the growing number of specialty coffee centers in the country is also one of the major reasons for the improved sale of concentrates in South Korea.
The Japanese market is also a lucrative one. It is anticipated to expand at a CAGR of 7.60% through 2034.
Japan, in the last few years, has developed a considerable coffee culture thanks to exposure to Western dietary habits and the corporatization of jobs where drinking coffee is promoted actively. This has led to enormous sales of the concentrates in the urban and semi-urban parts of the country.
Health-conscious trends among the Japanese population, especially the younger ones, have also influenced the market. Cold brews and concentrates are considered healthy beverages as compared to traditional coffee drinks.
China is also one of the top countries in this market. It is slated to progress at a promising CAGR of 6.60% through 2034.
China’s eCommerce boom has benefitted the sales of various consumer goods products, including coffee concentrates. This expansion of distribution channels has facilitated coffee enthusiasts in many ways. Consumers can now browse through millions of products before making a purchase.
Sales have also increased due to the advent of multinational companies in the Chinese marketplace. This has left consumers with even more concentrate options when it comes to coffee. All these factors have collectively made China, one of the most lucrative countries in this market.
The United States market is also a promising one. It is anticipated to progress at a CAGR of 6.10% through 2034.
The United States is home to one of the most affluent populations in the world. This consumer group gets attracted to premium products The premiumization of coffee concentrates has positively impacted the market sales. The emergence of artisanal coffee products and customized concentrates of coffee on eCommerce platforms have also increased consumption rates in the country.
The market in the United Kingdom is also predicted to flourish in the coming future. It is projected to progress at a CAGR of 7.00%.
People in the United Kingdom, especially those living in urban and semi-urban settings, seek beverages that not only give them instant energy but also those that are easy to make and carry. Making caffeinated drinks using concentrates of coffee is a very easy and super fast way of satisfying coffee cravings.
This has appreciably increased the sales in the country. Besides this, the effective marketing strategies of companies involved in the market have also fueled sales in the United Kingdom.
The coffee concentrate market is a well-established one with a multitude of companies already gaining a strong foothold in the international marketplace. Key players in the market have used social media influencers, with millions of virtual followers, to market their products more effectively. Also, with effective campaigns and marketing strategies, they are successful in reaching every nook and corner of developed and developing countries.
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The market is expected to be worth USD 2.90 billion in 2024.
The coffee concentrate market is expected to reach USD 5.10 billion by 2034.
The market is anticipated to grow at a CAGR of 5.80% from 2024 to 2034.
Javy Coffee Company, Starbucks Corporation, Blue Bottle Coffee Inc, Kohana Coffee, and Nestle S.A., are some of the major players in the market.
The valuation for the market in 2023 was USD 2.70 billion.
| Estimated Market Size (2024E) | USD 7.3 billion |
|---|---|
| Projected Market Value (2034F) | USD 10.5 billion |
| Value-based CAGR (2024 to 2034) | 6.0% |
| Market Size (2023) | USD 20.06 billion |
|---|---|
| Market Size (2033) | USD 39.10 billion |
| Market CAGR (2023 to 2033) | 6.9% |
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