September 3, 2024 – Coffee is the preferred morning beverage of millions, and is a consistently strong industry within the food and beverage marketplace. Here we will discuss the latest research into the global coffee industry trends, utilizing market analysis on both a macro and micro level. We will cover global coffee sales and launches compared to the larger food and beverage market, as well as the top subcategory trends including popular claims and flavors.
Global Coffee Category Analysis
Global coffee industry new product development has gradually increased in share over the past five years. Between 2019 and 2024, coffee industry launches have grown by 5.7% CAGR, with a 2.6% increase between 2023 and 2024 alone. Clean labels including organic, no additives/preservatives, natural, and GMO free, as well as sugar related claims like no added sugar and sugar free have helped drive product launches in the global coffee industry.
Global coffee sales share has additionally increased over the past three years, however not at the same rate as overall hot drink sales. While coffee sales have increased by 6.3% CAGR, hot drink sales have increased by 6.5% CAGR, slightly outpacing the coffee industry.
Coffee is the top subcategory for product launches within the hot drinks category. Coffee makes up 46% of launches in the hot drinks category, while tea represents 44% and malt and other hot beverages represents the remaining 9%. 41% of consumers, globally, prefer cappuccino types of hot coffee. In line with this, launches with cappuccino as a product base displays a growth rate of 5.3% CAGR. Instant cappuccino mixes, capsules compatible with Nescafe Dolce Gusto machines, and choices in indulging flavors (milk chocolate, vanilla, caramel, strawberry + cream) provide a variety of cappuccino options which might engage consumers further.
Top Coffee Industry Region: North America
North America is the largest region for coffee industry launches, representing 54% of launches globally. 1 in 5 consumers from the US and Canada state that they have looked for more nutty flavors in coffee over the last year. This preference is reflected in the growth of nut flavors in coffee by 25.6% CAGR over the past year. Additionally, ranges of roasted whole coffee beans, mushroom coffee selections offering adaptogenic benefits, seasonal flavors, and choices with flavor blends of cream and fruits help drive new product development in North American coffee industry trends.
Subcategory Analysis in the Coffee Industry
Global coffee industry launch share within the hot drinks category has remained relatively stable over the past three years, hovering around 46%. Sales have remained stable alongside, matching launch trends. Launches with active health claims have grown within the subcategory at a rate of 22.5% CAGR in the last three years, linked to the consumer trend of 1 in 3 claiming to be proactive in preventing health issues.
Additionally, energy boosting options prepared with various ingredients, immune health supporting choices made with vitamins and blends of mushrooms, as well as green coffee ranges that may help with weight management, help boost launches and innovation.
Europe is the top region for coffee industry new product development, representing an average of 39% of launches over the past two years. The Middle East and Africa is the fastest growing region for coffee launches, with an 11.6% CAGR over the past four years. Green coffee bean selections, single origin coffee from varied countries, terebinth coffee options and spice-flavored varieties boost growth in the Middle East and Africa.
Europe also is the top region in coffee sales value, with a 31.7% share. The next most prominent region in coffee sales value is North America, followed by Asia Pacific, Latin America, and the Middle East and Africa.
Nestlé is the frontrunner for launches in the global coffee industry, representing 17.5% of launches in the subcategory over the past year. Nescafé, Starbucks, and Nescafé Dolce Gusto are the top 3 brands in the company during the same period. Instant coffee ranges, cappuccino coffees in various flavors, caramel/chocolate mocha coffee options, brown sugar coffee offerings, and dark roast selections remain attractive in the Nescafé brand.
Lidl is the fastest growing company among the top 7 within the global coffee industry, with a 43.4% CAGR in launches over the past two years. It is driven by coffee sourced from Latin American and African countries and a blend of roasted and grounded Arabica + Robusta coffees.
Positionings Trends in the Coffee Industry
Indulgent and premium is the leading positioning in global coffee industry trends over the past two years; seen on an average of 15% of all launches. Traditional is the next most common claim, on 10% of products, followed by halal, limited edition, and organic.
When comparing between regions, indulgent and premium remains the top claim for everywhere except Asia Pacific, where halal is most common. Additionally, each region has specific smaller claims that are growing in popularity. In Europe, these growing claims are natural and seasonal, in Asia Pacific it’s no additives/preservatives and low sugar, in the Middle East and Africa it’s natural and low/no/reduced fat, in Latin America it’s vegan and GMO free, and in North America it’s GMO free and seasonal.
Coffee Industry Flavor Trends
Caramel is the most popular flavor in coffee launches, seen on 2.8% of coffee products. Vanilla, milk chocolate, hazelnut, and French vanilla are the next most popular flavors. Apart from the top 5 flavors, nuts, spiced pumpkin, and white chocolate flavors are growing in popularity.
In the North American coffee industry, hazelnut remains the most popular, but in Europe caramel is at the top. In Asia Pacific hazelnut is just barely the most popular, with caramel not far behind. In the Middle East/Africa caramel, vanilla, milk chocolate, and hazelnut are all almost equal in popularity, and in Latin America vanilla is most popular.
What’s Next in Global Coffee Industry Trends?
The Middle East and Africa is a region worth watching for innovators in the coffee industry. It registered the highest CAGR of 11.6% in coffee launches among the five regions, showcasing a highly active and innovative market with no signs of slowing down. Green coffee bean selections, single origin coffee from varied countries, terebinth coffee options and spice-flavored varieties are all growing in the region, and are potential points of investment for brands in the space.
Clean labels are also popular within coffee industry trends, including claims of organic, no additives/preservatives, natural, and GMO free. Additionally, many of these claims are growing in popularity, catering to consumers who are keen on health and transparency. Brands can continue to develop products sporting these labels to tap into the growing health-minded consumer base.
This article is based on our report, “Overview of Coffee – Global.” If you are interested in reading this report, feel free to request a demo.
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