Global Organic Coffee Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Organic Coffee market is expected to record a CAGR of 9.5% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 8.08 billion. By 2032, the valuation is anticipated to reach USD 14.55 billion.

Coffee is an immensely popular beverage worldwide, making coffee beans the second most heavily traded commodity globally, just behind petroleum. Over 25 million farmers from more than 50 countries are involved in coffee production.

The demand for organic coffee is steadily rising due to its numerous health benefits. Organic coffee is known for its rich antioxidant content, particularly polyphenols like flavonoids and catechins, which help stabilize harmful free radicals in the body, protecting against cellular damage. Moreover, studies suggest that coffee consumption can contribute to cancer prevention, lower cholesterol levels, boost immunity, aid in weight loss, and reduce the risk of neurological diseases.

In addition to its health benefits, coffee, and coffee-related products, such as cold coffee, café latte, and cappuccino, have gained popularity as refreshing drinks among consumers. The trend of out-of-home coffee consumption is on the rise, indicating a continued increase in coffee consumption in the coming years, thus driving the growth of the global organic coffee market.

With changing consumer preferences and the growing awareness of coffee’s health advantages, the organic coffee market is expected to thrive, supported by a diverse range of coffee products and consumption trends.

Organic Coffee Market – Significant Growth Factors

The organic coffee market has been experiencing significant growth, driven by several key factors that have contributed to its popularity and demand. Here are some of the significant growth factors for the organic coffee market:

• Increasing Health Consciousness: Growing awareness among consumers about the health benefits of organic products has been a major driver for the organic coffee market. Organic coffee is perceived as a healthier choice compared to conventionally grown coffee, as it is free from synthetic pesticides, herbicides, and chemical fertilizers.

• Rising Demand for Sustainable and Ethical Products: Consumers are becoming more environmentally and socially conscious, seeking products that are sustainably produced and support fair trade practices. Organic coffee cultivation follows strict environmental standards and often involves fair trade practices, making it an appealing choice for conscious consumers.

• Growing Preference for Natural and Authentic Flavors: Organic coffee is often praised for its rich and authentic flavors, which are the result of its natural cultivation methods. Consumers, especially coffee enthusiasts, are increasingly seeking out premium and authentic coffee experiences.

• Expansion of Specialty Coffee Culture: The specialty coffee movement, focusing on high-quality coffee beans and unique brewing methods, has gained momentum globally. Organic coffee often falls under the specialty coffee category, leading to increased demand for organic, artisanal coffee products.

• Influence of Coffee Shop Culture: The rise of coffee shop culture, with a focus on high-quality and ethically sourced coffee, has contributed to the popularity of organic coffee. Consumers’ exposure to premium coffee offerings in coffee shops has translated into higher demand for such products in retail settings.

• Supportive Government Policies and Certifications: Governments and regulatory bodies in various countries have been promoting organic agriculture and providing support to organic coffee farmers. Additionally, certifications like USDA Organic and Fair Trade ensure the authenticity and quality of organic coffee products, instilling confidence in consumers.

• Growing E-commerce and Direct-to-Consumer Sales: The prevalence of e-commerce platforms and the rise of direct-to-consumer sales have made it easier for organic coffee brands to reach a broader audience. Online retail channels provide better accessibility to organic coffee products, further driving market growth.

• Health Benefits Associated with Coffee Consumption: Beyond the organic aspect, coffee itself is known for several health benefits, including antioxidant properties, potential cognitive benefits, and improved metabolism. The combination of health-consciousness and coffee’s positive attributes bolsters the demand for organic coffee.

• Increasing Global Coffee Consumption: The overall growth in coffee consumption worldwide has positively influenced the organic coffee market. As more people discover the taste and benefits of coffee, the demand for organic varieties has naturally expanded.

• Growing Coffee Culture in Emerging Markets: Coffee consumption is on the rise in emerging markets, such as Asia and South America, where a growing middle class seeks premium and healthier coffee options, including organic variants.

Organic Coffee Market – Mergers and Acquisitions

• Nestlé’s Acquisition of Chameleon Cold-Brew: In 2017, Nestlé, one of the world’s largest food and beverage companies, acquired Chameleon Cold-Brew, an organic cold brew coffee company. This acquisition allowed Nestlé to enter the organic and cold brew coffee segment, expanding its presence in the growing specialty coffee market.

• JAB Holding Company’s Acquisitions: JAB Holding Company, a private investment firm, has been actively acquiring various coffee-related businesses in recent years. Some of their acquisitions include Keurig Green Mountain, Peet’s Coffee, Stumptown Coffee Roasters, and Intelligentsia Coffee, which have significant stakes in the organic coffee market.

• Lavazza’s Acquisition of Carte Noire: In 2018, Lavazza, an Italian coffee company, acquired the French premium coffee brand Carte Noire. Although not exclusively focused on organic coffee, this acquisition strengthened Lavazza’s presence in the specialty coffee segment, which includes organic coffee offerings.

• Death Wish Coffee Company’s Partnership with Fair Trade USA: In 2020, Death Wish Coffee Company, a popular brand known for its strong coffee, partnered with Fair Trade USA to source fair trade organic coffee beans. This collaboration reinforced the brand’s commitment to ethical and sustainable practices.

• Starbucks’ Investment in Organic Coffee: Starbucks, a major global coffeehouse chain, has been increasingly investing in organic coffee sourcing and sustainability initiatives. While not a merger or acquisition, Starbucks’ commitment to sourcing organic coffee has contributed to the growth and visibility of the organic coffee market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Organic Coffee Market – Significant Threats

• Competition from Conventional Coffee: The conventional coffee market remains dominant and highly competitive. The lower prices of conventionally grown coffee can pose a threat to organic coffee sales, especially in price-sensitive markets.

• Supply Chain Challenges: Organic coffee production often involves complex supply chains, particularly in developing countries. Issues such as lack of infrastructure, limited access to resources, and supply chain disruptions can affect the availability and consistency of organic coffee products.

• Climate Change and Crop Vulnerability: Coffee crops are sensitive to climate changes and susceptible to pests and diseases. Climate-related events, such as extreme weather conditions or shifting temperature patterns, could affect coffee yields, including organic coffee production.

• Certification Costs and Requirements: Acquiring organic certification can be expensive and time-consuming for coffee producers, especially small-scale farmers. The costs and strict compliance requirements may discourage some farmers from transitioning to organic coffee cultivation.

• Counterfeit Organic Products: The increasing demand for organic coffee has led to concerns about counterfeit or mislabeled products. Consumers may face challenges in identifying genuine organic coffee from non-certified or falsely labeled alternatives.

• Fluctuating Organic Coffee Prices: Organic coffee prices can be more volatile compared to conventionally grown coffee due to factors like supply chain constraints and market demand. This volatility may affect the profitability of organic coffee producers and impact market stability.

• Consumer Perception and Awareness: While awareness of organic products is growing, some consumers may still be unfamiliar with the benefits of organic coffee or not fully understand the distinction between organic and conventional options.

• Retailer and Market Access: Organic coffee producers, especially smaller ones, may encounter difficulties in gaining access to established retail channels and markets, limiting their reach to a broader customer base.

• Economic and Political Instability: Organic coffee production often occurs in developing countries, where economic and political instability can pose risks to the industry. Changes in government policies or trade barriers could impact the flow of organic coffee to global markets.

• Market Fragmentation: The organic coffee market can be fragmented, with various brands and companies competing for consumer attention. This fragmentation may lead to price wars and reduced margins for organic coffee producers.

Report Scope

Category-Wise Insights

The Arabica Segment:

The Arabica segment dominates the coffee market with the highest market share and is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.9% during the forecast period. Coffee Arabica, derived from the Arabica species, enjoys global popularity. These beans are known for their mineral-rich composition and come in various well-known subtypes, including Mara-gogipe, Moka, San Ramon, Colomnaris, and Bourbon.

Arabica coffee stands out with its distinct sharp taste and relatively lower caffeine content compared to other coffee varieties. It encompasses several cultivars, each varying in origin, climatic preferences, tree size, yield patterns, product quality, and berry size. These beans are easily recognizable by their greenish-blue shades and slightly elongated shape.

The Packaging Type Segment:

Among the packaging types in the global organic coffee market, the stand-up pouches segment holds the largest market share and is expected to grow at a CAGR of 8.2% during the forecast period. Stand-up pouches offer several advantages that contribute to their popularity in organic coffee packaging.

Plastic pouches, commonly used in stand-up pouches, are cost-effective and provide excellent barrier properties against moisture and other factors, ensuring the extended shelf life of food products like organic coffee. The heat-sealing capability of these pouches prevents any contents from leaking out, maintaining product integrity.

Organic Coffee Market – Regional Analysis

North America:

• North America has been a significant market for organic coffee, driven by increasing consumer awareness of health and sustainability benefits.
• The United States, in particular, is a major consumer of organic coffee, with a strong demand for premium and specialty coffee products.
• Organic coffee shops and specialty coffee chains have gained popularity in urban centers, contributing to the market’s growth.

Europe:

• Europe is one of the largest organic coffee market, with countries like Germany, France, and the United Kingdom showing considerable demand.
• Consumers in Europe prioritize sustainable and ethically sourced products, making organic coffee a preferred choice.
• Fair trade certifications and organic labels play a vital role in boosting consumer confidence and driving sales.

Latin America:

• Latin America is a significant producer and exporter of organic coffee beans, supplying a substantial portion of the global market.
• Countries like Colombia, Peru, and Mexico are prominent organic coffee producers and have experienced increasing demand for their products in international markets.

Asia-Pacific:

• The Asia-Pacific region is witnessing a growing interest in specialty coffee, including organic coffee.
• Countries like Japan, South Korea, Australia, and China have seen a rise in the number of specialty coffee shops and the popularity of organic coffee among urban consumers.

Africa:

• Some African countries, such as Ethiopia and Kenya, have a long history of coffee cultivation and are exploring opportunities in the organic coffee market.
• Organic coffee production in Africa is driven by the desire to promote sustainable farming practices and access premium markets.

Middle East:

• The Middle East region has also shown increasing interest in specialty coffee, including organic options.
• Countries like the United Arab Emirates and Saudi Arabia have seen a rise in specialty coffee shops and cafes catering to the growing demand for organic and high-quality coffee.

List of the prominent players in the Organic Coffee Market:

• The Coffee Bean & Tea Leaf (U.S)
• Unilever (U.K)
• Gourmesso (U.S)
• Harney & Sons Fine Teas (U.S)
• Dualit (U.K)
• Nestlé SA (Switzerland)
• Dilmah Ceylon Tea Company PLC (Sri Lanka)
• Ippodo Tea Co. Ltd. (China)
• Tranquini (U.S)
• Chillbev (U.S)
• Som Sleep (U.S)
• Phi Drinks Inc.(U.S)
• com (U.S)
• Others

The Organic Coffee Market is segmented as follows:

By Type

• Arabica
• Robusta

By Packaging Type

• Stand-Up Pouches
• Jars and Bottles
• Others

By Sales Channel

• Hypermarket/Supermarket
• Departmental and Convenience Stores
• Specialty Stores
• Online Sales Channels
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America