The decaffeinated coffee market is projected to have a significant CAGR of 6.9% by 2033. According to FMI, the market is expected to expand from USD 20.06 billion in 2023 to USD 39.10 billion by 2033. Historically, the market showed significant growth, with a CAGR of 6.3% from 2018 to 2022.
With hectic schedules and the availability of unhealthy beverages increased in the past few years, millennials favor decaffeinated, gently roasted, organically, and responsibly cultivated coffee beans.
Given the rising popularity of decaf coffee, several cafés, coffee shops, restaurants, and eateries have started to offer menu items produced from the aforementioned varieties.
Additionally, as part of the lifestyle trends for socializing and working in these places, these cafés and coffee shops are popular with millennials, which is anticipated to increase the business-to-business sales of decaffeinated coffee.
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Consumption and desire for the widespread use of Genetically Modified Organisms (GMO) are declining. It is clear from all of this that these cause toxicity, allergic responses, antibiotic resistance, cancer, and nutritional loss.
People are more conscious of and dependent on providing their bodies with the correct kind of nourishment, which is free from any concentration of adulteration, as a result of rapid urbanization and work-centric lifestyles. Therefore, it is anticipated that the decaffeinated coffee market share is expected to increase.
Even the Food and Agriculture Organization (FAO) and the World Health Organization (WHO) support the creation of non-GMO goods. This has increased consumer demand for non-GMO food items. In order to process and create decaffeinated coffee, several coffee roasters are making sure to exclusively source non-GMO coffee beans.
Attributes | Details |
---|---|
Decaffeinated Coffee Market CAGR (2023 to 2033) | 6.9% |
Decaffeinated Coffee Market Size (2023) | USD 20.06 billion |
Decaffeinated Coffee Market Size (2033) | USD 39.10 billion |
Decaffeinated coffee market statistics show steady growth during the forecast period as compared to the historical period. Between 2018 and 2022, the market was expanding at a CAGR of 6.3%.
The market offers some tremendous opportunities in the decaffeinated coffee market, with amazing trends in cafes, restaurants, and coffee shops. From USD 14.78 billion in 2018, the sector is anticipated to grow to USD 26.06 billion by 2023.
Attributes | Details |
---|---|
Decaffeinated Coffee Market Historical Performance | 6.3% |
Decaffeinated Coffee Market Forecasted Performance | 6.9% |
Short Term (2023 to 2026): It is also projected that growing café cultures in developing nations would spur market expansion in the near future. Due to this, the market is expected to reach from USD 18.87 billion in 2022 to USD 39.10 billion in 2033.
Medium Term (2026 to 2029): Demand for decaffeinated coffee is expanding, as single-serve coffee makers are becoming more popular and there is a growing need for value-added coffee products.
Long Term (2029 to 2033): More improvements in roasting and packaging are fueling the sales of decaffeinated coffee in the longer run.
To achieve more equity in global trade, the coffee produced in accordance with Fairtrade criteria fosters trading relationships that are primarily centered on communication and openness. Better trade circumstances for coffee producers are made possible by these collaborations, which also promote sustainable growth.
Over time, Fairtrade has shown to be the most environmentally friendly, recognizable, and reliable mark available. It comprises about 1.8 million farmers and laborers, who are given trading choices that are financially viable due to this certification.
The appeal of this coffee among educated, modern customers is what is reshaping the coffee business for a variety of reasons, and comparable positive effects on the decaffeinated coffee market are anticipated.
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The organic segment dominated the market with a CAGR of 3.5% during the forecast period.
The adoption of the organic decaffeinated coffee category is expanding quickly. This development is a result of people being more aware of the health advantages of organic coffee.
Moreover, due to its superior quality and lack of potentially dangerous chemicals and pesticides, consumers are turning to organic coffee. More coffee firms are creating organic decaffeinated coffee to cope with the demand for organic coffee rises.
Although organic decaffeinated coffee can cost a little more than conventional decaffeinated coffee, many buyers are ready to spend extra for the peace of mind that comes with knowing their coffee is organic. As more individuals become aware of the advantages of organic coffee, this decaffeinated coffee trend is anticipated to continue.
According to FMI's decaffeinated coffee market research report, the Retail/Household segment is expected to have the highest CAGR of 6.7% by 2033.
Several brands and options are accessible to consumers in the highly competitive retail segment of the decaffeinated coffee market. The most well-known decaffeinated coffee brands include Eight O'Clock, Maxwell House, Starbucks, and Folgers.
For a wide range of consumers, these brands provide a range of flavor profiles, packaging choices, and price points. Along with the option to buy decaffeinated coffee beans, many regional and specialty brands also sell decaffeinated coffee.
Companies in the retail sector of the decaffeinated coffee industry must concentrate on providing a wide range of alternatives and tastes, as well as marketing their products through traditional and digital channels, in order to have competitive opportunities in the market.
Businesses must also make an effort to satisfy the needs of customers who are concerned about their health by providing organic and Fair Trade solutions.
Europe is the largest market, accounting for more than 6.3% CAGR by 2033. The United Kingdom remains the most promising market in Europe, with a CAGR of 5% over the forecast period.
The sales of decaffeinated coffee in Europe are being boosted by the region's high popularity of coffee and a growing public awareness of the negative effects of caffeine. Around 8% of all coffee consumed in Germany is the decaffeinated variety, according to the International Trade.
Due to the high prevalence of type 2 diabetes and cardiovascular disorders in the USA, a CAGR of 3.1% is expected from the USA market. The main factors driving the use of decaffeinated coffee in North America include growing knowledge of the advantages of low caffeine intake in treating various diseases without sacrificing taste.
According to the Economic Research Service of the USA Department of Agriculture, the demand for decaffeinated coffee made from organic materials is still increasing by double digits.
As a result, these products are now offered in 20,000 natural food stores and every third conventional grocery store in the country. Due to this, it is now a profitable economic opportunity for producers and processors of food and beverages.
Countries | CAGR (2023 to 2033) |
---|---|
Japan | 3.3% |
India | 4.9% |
Korea | 2.8% |
Marketing Strategies Assist Decaffeinated Coffee Market Players To Initiate Fresh Trends in the Industry
To capitalize on the expansion and keep their clients, many producers who were already producing conventional coffee have added decaffeinated varieties to their product lineup. The top players in the decaffeinated coffee market are also anticipated to benefit from the pre-built supply chain and brand awareness.
Decaffeinated coffee's popularity is being hampered by potential negative effects, including acidity, cardiac problems, and an exacerbation of rheumatoid arthritis. As a result, there is a wealth of information available online that promotes knowledge of the benefits and drawbacks of decaffeinated coffee.
In particular, for those with major health conditions, major participants use this opportunity to update their digital marketing strategy and inform customers about doctor consultations.
Firstly, a lot of coffee shops now have decaffeinated coffee on their normal menu. Customers can now enjoy a cup of coffee without getting the typical caffeine buzz. Secondly, coffee firms have started to spend money on marketing initiatives to advertise decaffeinated coffee and inform customers of its advantages.
Lastly, the fantastic flavor of decaffeinated coffee and the variety of flavors on offer are also highlighted in all the campaigns, which motivates new decaffeinated coffee businesses to locate their way into the market.
Company | Nestle |
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Launches | Nestle has made significant investments in research and development to create decaffeinated coffee. Under its Nescafe brand, the company has introduced a number of decaffeinated coffee products, including
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Company | Starbucks |
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Launches | A variety of decaffeinated coffee varieties, including Starbucks Decaf Pike Place Roast and Starbucks Decaf House Blend, have also been introduced by Starbucks. Starbucks and Dr. Pepper Snapple Group collaborated to create the Starbucks Decaf Vanilla Iced Coffee. Additionally, Starbucks just introduced a decaffeinated variation of its well-known Mocha Coconut Milk Macchiato, the new Decaf Mocha Macchiato. |
Company | JM Smucker |
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Launches | A number of decaffeinated products are available from J.M. Smucker, one of the top producers of food and beverages in the United States, including Folgers Decaf, Dunkin' Donuts Decaf, and Café Bustelo Decaf. A decaffeinated variant of the company's well-known Café Bustelo Espresso blend, Café Bustelo Decaf Espresso, was just launched. |
Company | ConAgra |
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Launches | Decaffeinated coffee products have also been introduced by ConAgra Foods, Inc., including Swiss Miss Decaf, Peter Pan Decaf, and Orville Redenbacher Decaf. As a decaffeinated variation of their well-known Orville Redenbacher popcorn, the business has also introduced Orville Redenbacher Decaf Popcorn. |
The decaffeinated coffee market is estimated to record a CAGR of 6.9% during the forecast period.
The decaffeinated coffee market size is predicted to be valued at USD 39.10 billion by 2033.
The decaffeinated coffee market share is valued at USD 20.06 billion in 2023.
Europe is anticipated to dominate the decaffeinated coffee market with a CAGR of 6.3% by 2033.
The organic segment is likely to dominate the decaffeinated coffee market, with a CAGR of 3.5% by 2033.
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