DUBLIN, April 15, 2022– (BUSINESS WIRE) – The “Functional Coffee Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” report has been added to ResearchAndMarkets.com’s offering.
The global functional coffee market is projected to register a CAGR of 5.91% during the forecast period (2022-2027).
The COVID-19 has placed additional pressure on the coffee sector which is vulnerable to fluctuations in international coffee prices, low productivity levels, and climate change effects and damages caused by pests and diseases across the globe. Furthermore, governments have imposed measures like social distancing and lockdowns in place, which has had a huge impact on the cafes, micro Roasters, restaurants and other out-of-home Outlets which had a dynamic impact on the market. However, the current trend towards online shopping for at home consumption is forcing Retailers, Roasters and consumers to adapt to this reality. Therefore, this sector is expected to increase the consumption of coffee around the world. For instance, Nestle SA had reported strong retail demand for food and beverage products globally, achieving 4.4% organic group sales in the first quarter of 2020.
The global coffee producers have been adding ginseng to instant coffee for a number of years, to offer additional benefits of improving blood circulation and memory. Manufacturers combined the convenience and energy boost of instant coffee to increase the functionality of the coffee beans.
The market for functional coffee has expanded to include products with weight loss claims as well. There is a high demand for detox-oriented coffee rich in antioxidants. The market is driven by multiple factors, a few being increasing demand for certified coffee products, acceptance of single serve coffee brew systems by consumers.
Key Market Trends
Growing Demand for Healthy Hydration
Healthy hydration refers to the ability of functional beverages like RTD coffee, to provide instant refreshment and mild stimulating benefits that are not considered detrimental, which is otherwise the case with coffee or tea. Thus consumers are developing an Affinity for functional Beverages, due to its ready-to-drink version that offers enhanced convenience, thereby providing suitable, convenient, and healthy alternatives to soft drinks. The organoleptic versatility associated with functional coffee makes it open to manufacturers to innovate alongside the healthy Trends that have been resonating more prominently in the North American market. Functional coffee and enhanced water are becoming popular among consumers all around the world, as a result of which the demand for functional beverages is growing.
North America Dominates the Market
Asia-Pacific is the fastest growing region for sales of fortified / functional coffee with Indonesia, India and Vietnam being the fastest-growing functional coffee markets in the across the globe. The market is driven by a surge in new coffee products. The organoleptic versatility associated with functional coffee makes it open to manufacturers to innovate alongside the healthy Trends that have been resonating more prominently in the North American market. Coffee gained Popularity because of the functionality in this region which naturally contain caffeine. Today, however, consumers are demanding for more and a simple dose of caffeine isn’t enough to stand part in the crowded market. This has led to Innovations when it comes to functionality. Functional coffee and enhanced water are becoming popular among consumers all around the world, as a result of which the demand for functional coffee is growing in the forecast period.
The global functional coffee market is competitive with the top international players holding a significant share in the global market. Key players in the market are focusing on expansion through Merger and acquisition strategy. Some of the major key players in the functional coffee market, globally include Nestle SA, Starbucks Corporation, Tata Coffee Limited, Bulletproof 360, Inc., Ingenuity Beverages among others. These companies are actively investing in online distribution channels, targeting consumers who seek convenience. Thus, the key players are embarking on forming strategic partnerships with online portals, as one of their key strategies is to achieve consolidation and cater to the demands of consumers across various demographics.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter’s Five Force Analysis
5 MARKET SEGMENTATION
5.1 By Product Type
5.1.2 Ground Coffee
5.1.3 RTD Coffee
5.2 By Distribution Channel
5.2.1 Supermarket / Hypermarket
5.2.2 Cafes and Foodservice
5.2.3 Convenience Stores
5.2.4 Online Store
5.2.5 Other Distribution Channels
6 COMPETITIVE LANDSCAPE
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
8 IMPACT OF COVID-19 ON THE MARKET
For more information about this report visit https://www.researchandmarkets.com/r/j0a330
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