Coffee Bags Market

Coffee Bags Market Overview

The global coffee bags market is expected to rise at a CAGR of ~5.3%, during the forecast period. 

The coffee bags market is expected to witness a soaring growth in 2021 with year on year growth around 5%-7.5%. A new forecast by FMI estimates that the coffee bags profit margin will nearly double between 2021 and 2031. The majority of demand for coffee bags is because of high consumption of coffee as a beverage among consumers.

Coffee Bags Market: An Overview

Coffee bags will see a significant increase in sales throughout the forecast period due to increasing consumption of coffee in household and other public domains.

Coffee bags helps preserve coffee beans and coffee powder for a longer duration. This market is highly depended on aesthetics of the product packaging, due to which there is an unsaid race between competitors to provide premium packaging solutions to attract consumers. Key players are spending large amount on research and development for developing innovative, attractive and airtight packaging solutions. These factors will contribute to rise of coffee bags demand in future years.

What Accelerates the Market Growth of Coffee Bags?

Extensive consumption of beverages across the globe will drive the market growth for coffee bags market. An average American consumes 3 cup of coffee per day, which shows the popularity of coffee among other beverages. Between the age group of 18-24 years, it was calculated that 51% of millennials consume more coffee than their counterparts of different age group.

Rising number of heart diseases has led to a growing demand for coffee because of its anti-oxidant properties, which will significantly raise the sales of coffee bags in near future.

What are the Market Opportunities for Manufacturers in Coffee Bags Market?

Opportunities have knocked the doors for coffee bag manufacturers as it is widely seen that consumers are more inclined towards purchasing user friendly products. Coffee bags that have zip locks are proved to be an effective solution against degradation of coffee bean quality. Also, rising concerns over obesity have revolutionized the demand for modest beverages such as ready to drink coffee (RTD).

RTD coffee has gained recent popularity among millennials and is spreading across the globe. Moreover, low calorie content will increase the chances of coffee being adopted as a ready-to-go drink in future. All these opportunities will provide exponential increase in the financial profitability of coffee bags manufacturers.

Ismail Sutaria

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What are the Key Market Trends Impacting the Coffee Bags Market?

The rising trend of ready-to-drink coffee, creates an opportunity for players in the market to benefit from this new coffee consumption trend. Players are offering new combinations that consumer can be easily grabbed from the store.

Not only millennials entire coffee consumer community want high-end quality product which has low calorie content and less sugary as well. This recent trend will highly increase the demand for coffee bags in forecast period.

What are the Market Restraints for Coffee Bags Market? 

Tea and beer are the second and third largest consumed beverage across the globe. Significant number of populace are attracted towards these beverages and consume at least one of them of regular basis.

An average American home consumes 3 pounds of tea, in different forms. Beer is nowadays more of a recreational drink and has seen a significant rise in demand over the last three decades. This current rise in consumption of beer and tea will somehow affect the consumption of coffee, which will directly restrict coffee bags market growth.   

Solutions such as ready to drink coffee has started to make itself a space in the heavily dominated beverage sector, RTD coffee will significantly rise future due to growth in demand and will increase the revenue generation for coffee bag market.

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Competitive Landscape

Global Players: -

• Amcor Ltd.
• Novolex Holdings Inc.
• Sixto Packaging
• Pacific Bag Inc.
• Bemis Co. Inc.
• Graham Packaging Co.
• Sonoco Products Company
• DS Smith PLC
• Crown Holdings Inc.
• Mondi PLC
• Goglio S.p.A.

APAC Players: -

• Dongguan Min Lee Packaging Materials Co. Ltd.
• Shenzhen Packmate Packaging Co. Ltd.
• Color Hoyo Paper and Plastic Products Co. Ltd.
• Qingdao Dejili Packaging Material Co. Ltd.
• Dongguan Jmei Packaging Co. Ltd.  

What Strategies Are Adopted by Key Players for Increasing their Market Share in the Coffee Bags Market?

The key competitors implement various strategies such as product launch, merger & acquisition, expansion, innovation and others to survive and compete in the market:

• In July 2021, Steeped Coffee has committed to provide premium coffee, convenience to consumers in equal measure along with 100% biodegradable coffee bags. This initiative will enable consumers to directly dispose their used coffee bags for recycling.

Why will China hold a Prominent Share in the Coffee Bags Market?

China is projected to be the largest growing country in the coffee bags market in terms of volume and value. Since china is a largest country in terms of population, it significantly contributes to be one of the largest consumer of beverages. Recently, RTD coffee trend has gained traction in the Chinese market.

This product is fastest growing non-alcoholic beverage and has made a name for itself in the market. Moreover, New Energy Policy of China is working towards providing a sustainable approach to decrease carbon footprint generation of the country. To comply with the government regulations manufactures are setting up plants, collection centres for recycling and providing sustainable packaging solutions.

Adding all these factors in account, china will contribute to procure a significant share in coffee bags market and will cause an exponential surge in demand for coffee bags in foreseeable future.

How has COVID-19 Impacted the Growth of the Coffee Bags Market?

Packaging sector has great potential in coffee industry. Coffee manufacturers provide unique brand packaging to exhibit their product. Year by year new packaging designs have surfaced in the market to ensure best quality product reaches the cup. Coffee bag market had seen a disruption in trade due to COVID-19 pandemic.

Demand chain was not able to receive proper supply due to impositions of lockdown across the world. But in the later period of pandemic, the sales of coffee bags increased due to significant contributions from e-commerce and retail purchases. Overall the impact of novel covid-19 virus on the coffee bag market was moderate which later on improved by the end of year 2020.

Key Segments of Coffee Bag Market Covered in the Report

By Material Type:

• Plastic
• Paper
• Metal
• Others

By Product:

• Side Gusseted Bag
• Block Bottom Bag
• Flat Bottom Bag
• Others

By Capacity:

• Up to 100 gm
• 101-250 gm
• 251-500 gm
• More than 501 gm

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• The Middle East and Africa
• Oceania