Decaffeinated Coffee Market Outlook (2023 to 2033)

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.

Don't pay for what you don't need

Customize your report by selecting specific countries or regions and save 30%!

Factors Underpinning the Decaffeinated Coffee Market Growth

  • According to a 2017 National Coffee Association (NCA) research, Americans between the ages of 18 and 24 made up about 19% of all drinkers of decaf coffee in the United States.
  • According to the survey, 68% of people believe that caffeine consumption ought to be reduced.
  • 66% of respondents felt that it is imperative to reduce their coffee intake. In the years to come, it is anticipated that this tendency would increase the demand for decaffeinated coffee.
  • A study conducted by the National Institutes of Health (NIH) and Ohio State University in 2016 found that drinking more than two caffeinated beverages per day increases the risk of miscarriage for either parent.
  • The chance of miscarriage was also said to be higher for women who drank more than two caffeinated drinks per day during the first seven weeks of pregnancy.
  • People feel compelled to choose decaf coffee over regular coffee due to the negative consequences of caffeine.

Demotion of GMO Products Promotes Demand for Decaffeinated Coffee Market

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
Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Is Decaffeinated Coffee Market Winning in 2023 to 2033 as Compared to 2018 to 2022?

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.

Trade Communications Lead to Smooth Sales of Decaffeinated Coffee

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.

Get the data you need at a Fraction of the cost

Personalize your report by choosing insights you need
and save 40%!

Category Analysis

Organic Decaffeinated Coffee: Healthy Way to Start a Day

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.

Reputed Brands Responsible for Greater Growth of the Retail Sector

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.

Regional Analysis

Europe Decaffeinated Coffee Adoption Trends Directly Proportional to the Consumer Awareness

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.

Decaffeinated Coffee Assist in Maintaining Healthy Lifestyle in the USA

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.

Decaffeinated Coffee Projects in Asia Pacific Region

Countries CAGR (2023 to 2033)
Japan 3.3%
India 4.9%
Korea 2.8%
  • In October 2018, Nescafe Mild, a new decaffeinated coffee beverage created with beans from Ethiopia, was introduced by Estel Japan.
  • The Seoul Coffee Festival was organized in Seoul in 2018 to encourage the country of Korea to drink decaffeinated coffee. The Ministry of Agriculture, Food, and Rural Affairs sponsored the event, which included a number of decaffeinated coffee-related events and activities.
  • In order to encourage the consumption of decaffeinated coffee in Korea, the Korean government sponsored the Decaf Korea campaign in 2018. The promotion featured a variety of events, including competitions, coffee tastings, and educational sessions.

Competitive Analysis

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.

  • Starbucks' Make the Switch and Folgers' Caffeinate Wisely campaigns are recent examples of decaffeinated coffee promotion initiatives.
    • The Make the Switch campaign promotes the advantages of decaffeinated coffee, such as its potential to lower the risk of health concerns linked to excessive caffeine use, and urges consumers to select it instead of normal coffee.
    • The Caffeinate Wisely campaign urges people to drink decaffeinated coffee without being concerned about getting too much caffeine.

Recent Developments by Top Players in the Decaffeinated Coffee Market

Company Nestle
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
  • Nescafe Decaf Espresso
  • Nescafe Decaf Latte
  • Nescafe Decaf Mocha.
A decaffeinated version of the company's well-known Nescafe Gold coffee, Nescafe Gold Decaf, was also released.
Company Starbucks
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
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
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.

Key Segments

By Nature:

  • Organic
  • Conventional

By Type:

  • Regular
  • Medium Roasted
  • Dark Roasted
  • Others

By End Use:

  • Retail/Household
  • Foodservice

By Distribution Channel:

  • Business to Business
  • Business to Consumers

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia and the Pacific
  • Middle East & Africa

Frequently Asked Questions

What is the Growth Outlook of the Decaffeinated Coffee Market?

The decaffeinated coffee market is estimated to record a CAGR of 6.9% during the forecast period.

What is the Projected Value of the Decaffeinated Coffee Market By 2033?

The decaffeinated coffee market size is predicted to be valued at USD 39.10 billion by 2033.

What is the Present Size of the Decaffeinated Coffee Market?

The decaffeinated coffee market share is valued at USD 20.06 billion in 2023.

Which is the Leading Region in the Decaffeinated Coffee Market?

Europe is anticipated to dominate the decaffeinated coffee market with a CAGR of 6.3% by 2033.

Which is the Leading Segment in the Decaffeinated Coffee Market, Based on Nature?

The organic segment is likely to dominate the decaffeinated coffee market, with a CAGR of 3.5% by 2033.

Table of Content
  • 1. Executive Summary | Decaffeinated Coffee Market
  • 2. Market Overview
  • 3. Market Background
  • 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
  • 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product
    • 5.1. Roasted
    • 5.2. Raw
  • 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Bean Species
    • 6.1. Arabica
    • 6.2. Robusta
    • 6.3. Others
  • 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel
    • 7.1. Online
    • 7.2. Offline
  • 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
    • 8.1. North America
    • 8.2. Latin America
    • 8.3. Europe
    • 8.4. Asia Pacific
  • 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 14. Key Countries Market Analysis
  • 15. Market Structure Analysis
  • 16. Competition Analysis
    • 16.1. Nestle SA
    • 16.2. Keurig Dr. Pepper Inc.
    • 16.3. The J.M. Smucker Company
    • 16.4. Cameron’s Coffee and Puroast Coffee Company
    • 16.5. Strauss Group Ltd.
    • 16.6. Tchibo Coffee International Ltd.
    • 16.7. Fresh Roasted Coffee LLC.
    • 16.8. Luigi Lavazza SPA
    • 16.9. Costa Limited
    • 16.10. Caribou Coffee Operating Company Inc.
    • 16.11. Tim Hortons
    • 16.12. Jacobs Douwe Egberts Pro
    • 16.13. Peet’s Coffee
    • 16.14. Massimo Zanetti Beverage Group
    • 16.15. Bewley’s Tea & Coffee
  • 17. Assumptions & Acronyms Used
  • 18. Research Methodology
Recommendations

Food and Beverage

Coffee Grounds Market

March 2024

REP-GB-11629

342 pages

Explore Food and Beverage Insights

View Reports
Future Market Insights

Decaffeinated Coffee Market

Schedule a Call