The global roast and ground market size was valued at USD 102.02 billion in 2020 and is anticipated to expand at a CAGR of 4.28% during the forecast period, 2021–2028. The growth of the market is attributed to the rising consumption of coffee among millennials.
Coffee is one of the world's most commonly consumed hot beverages. It's made by brewing coffee seeds that have been processed, roasted, or decaffeinated. Coffee beans, packed coffee powder, and packaged coffee liquids are all examples of freshly roasted and ground coffees. The two primary species utilized in the production of coffee across the world are Arabica and Robusta. Millennials are more inclined than the rest of the population to spend money on premium beverage brands because they are eager to try new drink kinds, brands, and flavors. Furthermore, producers seek to understand the diverse interests and preferences of millennials to market a wide range of products. Starbucks, for example, introduced a smartphone app in 2010 to assist consumers with payment. In less than a year, the business processed 26 million mobile transactions and put more than USD 110 million on clients' Starbucks cards. According to a poll conducted by the National Coffee Association in the United States, around 70% of consumers prefer to make their coffee.
Market Trends, Drivers, Restraints, and Opportunities
- Growing demand for high-quality and specialty coffee products, such as flavored coffee, are projected to fuel the market growth during the forecast period.
- The rapid growth of the economic situations and more work prospects have made varieties of coffee more accessible for younger customers, thus a key factor propelling the market expansion in the coming years.
- Increasing disposable incomes and cafe culture are expected to boost market growth in the coming years.
- R&D investment in coffee product promotional activities via mobile applications is estimated to create lucrative opportunities for the market players.
Market Segment Insights
Coffee beans is projected to constitute a key market share
In terms of type, the global roast and ground coffee market is segregated into coffee beans and packaged coffee powder. The coffee beans segment is expected to account for a key share of the market during the forecast period owing to its strong taste and complex flavor. On the other hand, the packaged coffee powder segment is anticipated to expand at a rapid pace during the forecast period.
The hot drinks segment is expected to expand at a significant pace
On the basis of applications, the global roast and ground coffee market is bifurcated into hot drinks, food and suppliments, and others. The hot drinks segment is expected to account for a key share of the market during the forecast period. On the other hand,) the suppliments and other segments are anticipated to expand at a rapid pace during the forecast period.
Europe is expected to dominate the market
On the basis of regions, the global roast and ground market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of Europe is anticipated to expand at an impressive CAGR during the forecast period. The regional market growth can be attributed to the increasing use of coffee pods in the region and the increased demand for coffee products with additional flavors. On the other hand, the market of the Middle East & Africa is expected to exhibit a rapid growth rate in the coming years. The main coffee-consuming nations include Germany, France, Italy, the Netherlands, Spain, the United Kingdom, South Africa, and Nigeria.